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.