IT & tech services

Books and taxes for web hosting resellers.

A client's hosting plan renewed a year at a time, a domain sold at a small markup, an upstream server bill due every month regardless of who renews, and the occasional migration project. Your own bookkeeper sorts it, an accountant checks every transaction, and you get one number a month.

Book a call What we handle
  • From $197 a month
  • An accountant on every transaction
  • Cancel whenever
JulyExample month
$8,200
what you made

July came in at $8,200. A batch of annual hosting renewals landed all at once, so I spread that income out over the year it actually covers instead of counting it all in July.

  • Annual hosting renewals, 40 accountsHosting renewals
  • Domain registration markupDomain sales
  • Server capacity invoiceServer and infrastructure costs
  • SSL certificate reseller feesReseller costs
  • Site migration projectProject fees
Money in$19,800
Money out$11,600
Set aside for taxes$1,700
An example month. Yours will have your numbers.

Why your books are different

Hosting reseller books go wrong at the annual renewal and the domain markup.

A generalist sees a subscription business. Your business runs on annual renewals paid a year at a time, small markups on domains and add-ons, and a server bill that comes due every month no matter how many clients renewed that week. When the books blend those, one good renewal month hides a thin one coming.

  1. 1

    A year of annual renewals lands in one month

    When a batch of clients all renew their yearly hosting plan in the same week, that month looks unusually strong, but the money is meant to cover the whole year of service you still owe them, not just that month.

    What we doSpreads annual renewal income across the year it actually covers, so a renewal spike does not look like sudden growth.
  2. 2

    Domain markups disappear into hosting income

    A domain sold at a few dollars of markup on top of the registrar's cost is real profit, but if it is lumped in with hosting plan income, you cannot tell how much of your revenue is hosting versus small add-on sales.

    What we doKeeps domain and add-on markups in their own line, separate from hosting plan renewals.
  3. 3

    The server bill does not shrink when clients do not renew

    Your upstream server and infrastructure costs are largely fixed each month, so a slow renewal month can make it look like costs suddenly spiked when really income just dipped.

    What we doKeeps server and infrastructure costs visible on their own, so a slow renewal month reads as a revenue dip, not a cost problem.
  4. 4

    A migration project gets mixed with ordinary renewal income

    A one-time site migration or a client moving from another host is project work, not the recurring renewal income the rest of your business runs on, and blended together it makes recurring income look higher than it really is.

    What we doKeeps one-time migration and project fees apart from recurring renewal income, so the recurring number stays honest.

Your categories

The categories Gus keeps for a web hosting reseller.

Set up once for how you get paid and what you spend. You never pick a category. He does, and an accountant checks it.

Money in

  • Hosting renewalsAnnual or monthly hosting plan payments from client accounts.
  • Domain salesMarkup on domain registrations and renewals.
  • Add-on salesSSL certificates, backups, and email add-ons sold to clients.
  • Project feesOne-time migrations and site setup work.

Money out

  • Server and infrastructure costsUpstream capacity and bandwidth billed to run your hosting business.
  • Reseller costsWholesale rates paid for domains, SSL certificates, and add-ons before markup.
  • Support softwareTicketing and billing tools used to manage client accounts.
  • Business insuranceGeneral liability and technology errors-and-omissions coverage.
  • Business phone and internetKept separate from personal use.

What we watch for you

  • Renewal rate

    Accounts that renew against accounts that lapse, the clearest read on whether the business is holding steady.

  • Monthly recurring value

    Annual renewals spread evenly across the year, so one strong month does not hide a thin one coming.

  • Server cost per client

    Infrastructure cost against active accounts, so pricing still covers what it costs to host them.

  • The set-aside

    The set-aside grows steadily even though renewal income lands in lumps, so April is never a scramble.

Ask Gus

Things web hosting reseller owners ask Gus.

Text him like you would text anybody. He answers in plain English, and when a question is above his pay grade, an accountant looks and gets back to you.

A bunch of annual plans all renewed this month. Should I expect next month to look weaker?

That renewal income covers the whole year ahead, not just this month, so I spread it out. Next month will look normal, not weaker.

I sell domains at a small markup on top of what I pay the registrar. Is that worth tracking separately?

Yes, I keep domain markups in their own line, so you can see how much of your income is hosting versus small add-on sales.

My server bill stayed the same even though fewer clients renewed this month. Is something wrong?

No, that cost is mostly fixed month to month. I keep it visible on its own, so a slow renewal month reads as lower income, not a cost spike.

The tax side

The tax side of a web hosting reseller.

Most of what goes wrong here is timing: a year of renewal income counted all at once, and infrastructure costs that get confused with the wholesale rates behind domain sales.

What your return has to get right

Your accountant signs it, so it gets done right the first time.

  • Recognizing annual renewal incomePayments covering a full year of service are often better tracked spread across that year rather than counted all in the month they arrive, so the books reflect what is actually owed to clients.
  • Self-employment tax for solo ownersA one-person hosting reseller business pays 15.3 percent self-employment tax on top of income tax, so the set-aside has to cover both.
  • The pass-through deductionMost owners can take up to 20 percent of business profit off their taxable income when renewal, markup, and infrastructure costs are tracked apart all year.
  • State sales tax on hosting and softwareWhether hosting, domains, or software add-ons carry sales tax varies a great deal by state, and this is worth confirming directly rather than assuming either way.

Deductions web hosting resellers miss

Your bookkeeper knows what to look for in your statements. You never have to.

  • Server and infrastructure costs
  • Domain and SSL wholesale fees
  • Support and billing software
  • Business insurance
  • Technology errors-and-omissions coverage
  • Business phone and internet
  • Continuing education courses
  • Home office costs
  • Website hosting for your own business site
  • Payment processor fees
  • Backup and monitoring tools
  • Professional community dues

General information about 2026 federal rules, not advice for your business. Your accountant looks at your actual numbers before anything gets filed.

All year, not just April

A hosting reseller year, kept every month.

Renewals land whenever a client first signed up, scattered across the whole year. Your team stays on the books every month, not just at tax time. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.

  1. January

    Renewals, reset

    Last year's return gets started, and a monthly set-aside is planned once renewal income is spread across the year it covers.

  2. April

    Filed without a scramble

    Your return is filed and signed, with renewal income already spread across the year it covers.

  3. July

    Halfway through renewals

    Where you stand, what you will owe, and whether the renewal rate is holding steady against server costs.

  4. October

    Before the renewal wave

    Gus looks at infrastructure or tools worth buying before December and flags any accounts at risk of lapsing.

What you get

Starts at$197a month

What you pay depends on what your business needs, and it does not move after that, busy season or slow. No hourly bills, no surprise invoices, no setup fee.

Book a call
  • Monthly bookkeeping

    Every transaction sorted into categories set up for web hosting resellers. You never categorize a thing.

  • An accountant checks every transaction

    Real review, every month, before your books close. Not a spot check.

  • Your business tax return, filed

    Prepared, reviewed, and signed by that same accountant every year.

  • The monthly number

    What you made, what you spent, what to set aside for taxes.

  • Your own bookkeeper

    A real person assigned to your business, in the app whenever you need them. No hold music.

  • On your books all year

    Every month, not just in April. Your team speaks up whenever something is worth your attention.

  • Cancel any time

    No contract. No cancellation call. Your books are yours.

Straight answers

Questions web hosting reseller owners ask first.

A batch of annual plans renewed in the same month. Does that make my books look inflated?

No. Gus spreads that renewal income across the year it actually covers, so one strong renewal month does not read as sudden growth.

I mark up domains a few dollars over what I pay the registrar. Is that worth its own category?

Yes. Domain and add-on markups get their own line, separate from hosting renewals, so you can see how much of your income comes from each.

My server costs stay the same whether or not clients renew that month. Does that confuse the books?

No, Gus keeps infrastructure costs visible on their own, so a slow renewal month reads as a revenue dip, not a cost problem.

Does Gus handle sales tax on hosting or domain sales?

Gus flags hosting and domain sales so you and the accountant can confirm what your state requires, but collecting and filing sales tax is not part of the subscription.

My books are behind because renewal income and domain markups were never separated. Can Gus fix that?

Yes. Send what you have. Gus sorts hosting renewals from domain sales, the accountant checks it, and most owners know where they stand within a week.

Is a real accountant checking my books?

Yes. You get your own bookkeeper, Gus does the first pass on every transaction, and an accountant checks every one before your month closes. That same accountant prepares, signs, and files your business return. Goatkeeper is not a CPA firm, and we never pretend a person looked when they did not.

What does it cost, and can I cancel?

It starts at $197 a month, depending on what your business needs. No setup fee, no hourly bills, no contract. Cancel any time from the app, and your books go with you.

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We keep books for the business next door too.

What makes a bookkeeper worth paying for Every business we keep books for

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Pick a time. That's the whole signup.

Fifteen minutes with a real person on our team. They look at where your books are, tell you straight what it takes to get caught up, and get you set up on the spot if it fits.

  • $197 a month to start
  • An accountant on every transaction
  • Cancel whenever