Methodological approaches to management accounting of expenses and income for IT service providers

Abstract

Abstract. The purpose of the article is to systematize methodological approaches to management accounting of costs and revenues for IT service providers and to develop recommendations for organizing an effective management accounting system, taking into account the specifics of various business models in the IT industry. The study uses comparative analysis methods to assess the suitability of existing accounting methods for IT business conditions, a systematic approach to develop a multi-level management accounting model, and industry analysis to identify the specific features of IT companies that determine the requirements for the accounting system. As a result of the research, four main characteristics of the IT business that shape the requirements for management accounting were identified: the dominance of personnel costs, project-based organization of activities, diversity of business models, and a high share of indirect costs. It was established that the TDABC method is most naturally compatible with the operational reality of IT companies. The feasibility of applying the EVM methodology for project control in custom development companies is justified. A three-level management accounting system is proposed, covering the project, service, and corporate levels, integrated by a single cost coding system. Priority indicators have been identified for each business model: staff utilization rate and project margin for outsourcers; MRR/ARR, CAC, LTV, and ChR for SaaS companies; and profitability of practices, taking into account pre-sales costs, for consulting structures. An effective management accounting system for an IT service provider should be multi-level, integrated with time tracking and project management tools, and its configuration should be determined by the specific business model of the company. Ignoring industry specifics leads to distorted profitability assessments and wrong management decisions.