How to amortize professional services revenue
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.
Richard Blatcher
As the Senior Director for Product and Industry Solutions Marketing at Wrike, Richard manages the global go-to-market approach in strategic industries, including professional services. He has over 30 years’ experience in the industry, managing the delivery of marketing and sales enablement offerings to professional services, manufacturing, and distribution blue-chip enterprises. He previously worked at Autodesk, where he was responsible for market launches of SaaS solutions.
