Accounting and advisory for Software Dev Studios
Custom software and dev studios scale by adding engineers fast — but each hire, contractor, and client project reshapes your cost structure and margins. Laya gives studio founders clean, timely books and the cost visibility to staff projects, price work, and protect runway. Whether you're a five-person shop or a fifty-engineer studio, you manage on real numbers, not gut feel.
The financial challenges Software Dev Studios face
Contractor versus employee cost that's easy to misjudge
A 1099 contractor's hourly rate looks cheaper than a salaried engineer, but employees carry payroll taxes, benefits, and overhead that a raw rate hides. Without fully-loaded cost per head, you misprice bids and can't tell which mix actually protects your margin.
Project profitability and revenue recognition
Fixed-bid and milestone work earns revenue as you deliver, not when you invoice. Without tracking cost and hours per project against the contract, a job that looks busy can quietly lose money — and you only find out after the engagement closes.
Lumpy project billing that strains cash flow
Payroll runs every two weeks, but client payments arrive on milestones, deposits, and net-30 terms. One delayed invoice or a gap between projects can drain the bank even when the studio is profitable on paper, putting payroll and runway at risk.
R&D, software capitalization, and tax nuance
Engineering salaries may qualify for the R&D tax credit, and software you build can sometimes be capitalized rather than expensed. Section 174 now requires capitalizing and amortizing R&D costs — getting this wrong inflates taxable income and leaves credits on the table.
How Laya helps Software Dev Studios
Fully-loaded cost and contractor analysis
We track fully-loaded cost per engineer — salary plus payroll taxes, benefits, and overhead — alongside contractor spend, so you can see the true cost of each model. That gives you the numbers to price project bids accurately and decide when to hire versus when to staff with contractors.
Project-level profitability tracking
We structure your chart of accounts and QuickBooks Online classes around clients and projects, so each monthly close shows revenue, cost, and gross margin per engagement. You see which work is profitable and which is bleeding, while there's still time to renegotiate scope or reprice.
Cash flow and runway visibility
We reconcile deposits, milestone invoices, and net-30 receivables against your payroll and operating costs, then surface a clear picture of cash on hand and months of runway. You can see a slow-billing month coming and time hiring, distributions, and new contracts around it instead of reacting late.
R&D and software-capitalization-aware books
We keep your books clean enough to support an R&D tax credit study and Section 174 amortization, tagging qualifying engineering costs as we go. Through our advisory plans and licensed CPA partner network, we make sure capitalization and credit decisions are coordinated, not discovered at year-end.
What's included
- Monthly close by the 10th business day
- Project- and client-level P&L reporting
- Fully-loaded cost per engineer and contractor tracking
- Cash flow and runway visibility
- Accounts receivable and milestone invoice tracking
- R&D-credit-ready expense categorization
- Year-end books ready for tax filing
Frequently asked questions
Can you tell me the true cost of a contractor versus a full-time engineer?
Yes. We track fully-loaded cost per employee — salary plus payroll taxes, benefits, and overhead — next to your contractor spend, so you can compare the real cost of each model. That gives you defensible numbers for bid pricing and hiring decisions instead of a raw hourly rate.
Do you track profitability by client or project?
Yes. We use QuickBooks Online classes to break out revenue, cost, and gross margin for each client or project, so every monthly close shows which engagements actually make money. For studios running fixed-bid work, this is the fastest way to catch a job going underwater.
How do you help with cash flow when client billing is lumpy?
We reconcile deposits, milestone payments, and outstanding receivables against payroll and operating costs, then give you a clear view of cash on hand and months of runway. On the Peak and Vista advisory plans, we'll model upcoming gaps so you can time hiring and contracts around them.
Can you handle the R&D tax credit and Section 174?
We keep your books tagged so qualifying engineering costs are easy to identify, which makes an R&D credit study and Section 174 amortization far smoother. Filing and the credit study itself run through our licensed CPA partner network on the Summit ($1,000/mo) and Peak plans, coordinated with your bookkeeping.
How fast are my books closed each month?
By the 10th business day of the following month, every month. For a studio making real-time staffing and bid decisions, that means you're working from numbers that are days old, not a quarter behind.
Do I need to use QuickBooks Online?
Yes. Laya runs on QuickBooks Online as the source of truth, with your bank, payroll, and billing connected digitally. QBO is included in every plan, and we're fully remote — all work happens over email and video, with no on-site visits.
Ready to get your books in order?
Book an intro and we'll show you exactly how Laya works for Software Dev Studios.
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