How to amortize professional services revenue
FAQ | Professional Services Guide
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Guide overview
- 1. Professional Services Basics
- 2. Client Management and Retention
- 3. Project Definition
- 4. Resource Planning
- 5. The Ultimate Guide to Capacity Planning
- 6. Project Visibility
- 7. Billing for Projects
- 8. Project Profitability
- 9. Professional Services Software For Project Management
- 10. A Guide to Time Tracking for Consultants and Professional Services
- 11. FAQ
- 12. Glossary
Guide overview
- 1. Professional Services Basics
- 2. Client Management and Retention
- 3. Project Definition
- 4. Resource Planning
- 5. The Ultimate Guide to Capacity Planning
- 6. Project Visibility
- 7. Billing for Projects
- 8. Project Profitability
- 9. Professional Services Software For Project Management
- 10. A Guide to Time Tracking for Consultants and Professional Services
- 11. FAQ
- 12. Glossary
Accounting
How to amortize professional services revenue
As Investopedia notes, “amortization is an accounting technique used to periodically lower the book value of a loan or intangible asset over a set period of time.”
The IRS’ guidance on how to amortize is as follows: “To figure your deduction, divide your total start-up or organizational costs by the months in the amortization period. The result is the amount you can deduct for each month.”
Speak to a tax professional for more information on amortizing professional services revenue.