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IT and agencies

Accounting software for IT companies and agencies

Revenue from builds, retainers and hosting, costs that are mostly salaries and cloud bills, and clients who pay less TDS. SimpleERP keeps it on one ledger that closes every month.

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In short

SimpleERP is accounting software for IT companies and digital agencies in India. Invoices, receipts, payroll and cloud bills post balanced journals, upfront payments wait on the client's account, and TDS deducted by clients is tracked as a receivable.

Illustration: saving invoice INV-2026-27-0213 moves stock, posts the customer ledger, records CGST and SGST and updates the dashboard in one step.

An accounting day at Kayal Softworks

Two thirds of Kayal Softworks' costs are salaries and the rest is cloud servers, software subscriptions and rent at Infopark. Income comes from three places: fixed-price builds, monthly retainers and hosting renewals. The founders want to know each month which of the three is carrying the company.

Clients rarely pay the invoice amount. A Chennai client paid ₹4,86,000 against a ₹5,31,000 invoice after deducting ₹45,000 of TDS, another paid 30 percent upfront before work began, and the AWS bill arrives in dollars converted on a card statement.

SimpleERP posts every invoice, receipt, payroll run and expense as it happens, so the accountant's month end is a review and a lock date, not a reconstruction from the bank statement.

Which ledger accounts give a software house useful numbers?

Split income by line of business with separate income accounts on each service, and the P&L answers the founders' question without a spreadsheet.

  • Every document posts its own journal, linked back to it.
  • Account detail with a running balance for any ledger.
AccountPosted byNote
Development incomeMilestone invoicesSet as the income account on development services
Retainer and AMC incomeMonthly retainer invoicesSeparate account per line of business
Clients (receivable), credit sideReceipt before the first milestoneUnallocated receipt, a credit on the client until allocated
TDS receivableManual journal for tax deducted by clientsMatched to the client's TDS certificate
Cloud and software subscriptionsExpense with input GSTCard statements entered as expenses
Computers (fixed asset)Supplier bill for laptopsDepreciated monthly in one run
Accounts an IT company or agency adds or uses, and what posts to them.

How do upfront payments and TDS on receipts get recorded?

An upfront payment of 30 percent is a receipt left unallocated; it sits on the client's account until the first milestone invoice is posted and you apply it. When a client pays net of TDS, record the receipt for what reached the bank and post the deducted amount by manual journal to TDS receivable, naming the client.

  • On-account balance visible on the customer statement.
  • Journals naming the party, so the client's ledger stays complete.
  • Receivables ageing that shows only what is genuinely unpaid.

Illustration of receivables ageing: ₹2,14,800 to collect across 5 buckets, with customer totals.

Receivables ageing with retainer clients by bucket.

What does month end look like for an agency?

Run the checks in this order and set the lock date when they pass. A full close takes the accountant an afternoon, not the first week of the next month.

  • Bank reconciliation by ticking cleared lines, since there are no bank feeds.
  • Payroll run approved, so salaries, PF, PT and TDS payable are in the books.
  • Depreciation run posted for laptops and servers.
  • GST summary checked against the sales and purchase registers.

One system

What it connects to

Honest limits

What SimpleERP does not do yet

  • No bank feeds: bank entries are recorded and reconciled by hand
  • No multi-currency; every document is in rupees
  • GST return filing and e-invoicing are not done inside the product
  • No project accounting or profit by client project; split income by account instead

Getting started

Start with accounting

  1. Sign up with your phone

    Name, phone number and a password. No card for the seven-day trial, and email is optional.

  2. Tell us about the business

    Type your GSTIN and the state fills itself. Accounts, GST rates, units, roles and numbering are seeded for you.

  3. Enter opening balances

    Enter bank balances, what each client owes, advances already received and the book value of laptops, as one reviewed opening entry.

  4. Run the trial balance

    Every posted document is already in the ledger; the trial balance and P&L are ready on any date.

FAQ

Questions, answered

Our AWS and Google Workspace bills are in dollars. How do we enter them?

Enter the rupee amount your card or bank actually charged, as an expense under a cloud or software category. Every document is in rupees, so the dollar figure goes in the description if you want it on record.

Can we see profit per client project?

Not in this release. There is no project accounting, so income and cost are reported by account rather than by project. Separate income accounts per line of business give the founders a useful split on the P&L.

Can our CA work in the books directly?

Yes. Your CA joins Kayal Softworks by an invite to their phone or email, with the Accountant role. They can post journals, reconcile the bank, read every report and export it to CSV, without seeing anything you have not given that role.

We are moving from Tally in the middle of the year. Is that a problem?

Start at the beginning of a month. Bring in closing balances from Tally as the opening entry, enter unpaid client invoices as opening receivables, and post everything new in SimpleERP. Keep Tally for the months before the switch.

Related

See how accounting works in SimpleERP for IT services and agencies

Seven days free. No card. Your first GST invoice in minutes.

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