Web Design & Development Agencies have unique accounting challenges. Unlike generalist accountants, we understand your business model, your cash flow patterns, and your growth trajectory. We work with agencies across the entire United Kingdom, from London to Edinburgh. Our team is fully remote and works with clients nationwide.
Accounting Challenges for Web Design & Development Agencies
Unique challenges that most generalist accountants simply don't understand:
Project Revenue Recognition
Milestone-based projects span months. When do you recognize revenue—at contract signing, at milestone completion, or at final delivery? IFRS 15 compliance trips up most web agencies.
Distinguishing Expenses from Assets
Is Adobe Creative Suite a software expense or an asset? Is a custom theme asset or service delivery cost? Misclassification costs you thousands in tax deductions.
High Capex, Low Visibility
You invest in design software, hosting, domain registrations, stock imagery subscriptions. These pile up across projects. Cash flow is tight because money is tied up in barely-tracked assets.
Tailored for Web Design & Development Agencies
Services designed specifically for your business model:
Project Revenue Recognition
We correctly apply IFRS 15 to your project contracts. Milestone-based revenue is recognized properly, accruals are handled, and you never face audit issues.
Capex vs Expense Classification
We classify design software, themes, domains, and hosting correctly. You claim maximum tax deductions on legitimate expenses while properly capitalizing true assets.
R&D Tax Credit Assessment
Custom development work often qualifies for R&D credits. We identify eligible projects and claim back 20-25% of qualifying development costs.
Time Tracking & Project Costing
Monthly time import from your tools (Harvest, Toggl, etc.) shows true project margins. See which projects are profitable and which underdeliver.
Monthly Cash Flow Forecasting
Project-based revenue is lumpy. We forecast cash based on your project pipeline, showing when you will have cash crunches and helping you plan hiring.
Payroll & Contractor Management
Mix of employees and freelancers. We handle payroll, contractor invoicing, PAYE compliance, and IR35 status checks on your team.
Why choose Alto?
- Know your true project margin — Not just headline fee
- Never worry about revenue recognition or audit risk — IFRS 15 compliance handled correctly
- Monthly cash flow forecast — Based on project pipeline
- Maximize R&D tax credits — On custom development work
- Accountant who understands milestone-based contracts — Specialist knowledge of project accounting
Serving Web Design & Development Agencies Nationwide
We're remote-first, but have deep expertise in these key locations:
Common Questions
When do I recognize revenue on a multi-month project?
Under IFRS 15, you recognize revenue as you satisfy the performance obligation. For milestone-based projects, you recognize revenue at each milestone completion (not upfront). We set up the right recognition policy based on your contract terms.
Can I claim design software (Adobe CC, Figma) as an expense?
Yes. Software subscriptions are fully deductible business expenses in the year you incur them. They're not capitalized. Same with hosting, domain registrations, and stock imagery subscriptions.
What counts as R&D for web development work?
Custom development (building bespoke solutions, solving novel technical problems) qualifies. Template implementation does not. We review your project mix and identify 15-40% of development hours as R&D-eligible, worth 20-25% tax relief.
How do I handle cash flow when projects are unpredictable?
We import your project pipeline (deals in Salesforce, Pipedrive, etc.) and forecast cash weekly based on your typical project cycle. This shows cash crunches 4-6 weeks in advance, letting you plan hiring and manage working capital.
Learn More
Explore related resources and guides for web design & development agencies: