27 Bookkeeping & Tax Services Inc. 27 Bookkeeping & Tax Services Inc.
Open ledger on a playtest bench with payout slips and a phone device under warm lamp light

27 Bookkeeping & Tax Services Inc. — Los Angeles

Every payout reconciled. Every close you can trust.

Bookkeeping and tax services for computer game companies in the United States — built for platform payouts, royalties, and the monthly close, not a cash register.

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Storefront payouts

Gross sales, platform fees, and net settlements separated by transaction.

Royalties

Contract terms, tiers, advances and settlements tracked on their own calendar.

Monthly close

Bank, payouts, payroll and reports ticked in order, exceptions listed.

Game company bookkeeping

Bookkeeping for game companies that tracks every payout

27 Bookkeeping & Tax Services Inc. works with computer game companies in the United States that sell through platforms, not just through a cash register. Revenue arrives as storefront payouts, subscription shares, in-app purchase settlements, and royalties, each with its own fees, timing, and tax treatment.

Our job is to make those streams readable in one set of books, so a founder, producer, or publisher can see what a title earned, what the platform kept, and what remains after payroll and contractors.

Bookkeeping Services Tax Services
Payout slips being ticked beside a phone showing a game world
Platform fees made visible — gross, fee, and net shown line by line, not as one lump sum.

Why game revenue needs its own bookkeeping

A game sale on a storefront is not recorded like a retail sale. The gross price, the platform fee, refunds, chargebacks, and the net settlement can all land in different months. If those pieces are posted as one lump sum, per-title profitability becomes guesswork and the monthly close drifts.

We separate gross sales, platform fees, and net payouts at the transaction level. That separation is the foundation for everything else — the close, the cash flow forecast, and the tax return.

The per-title stack

Each title on its own sheet, each payout on its own row

A studio with several titles in market needs to know which one is carrying the team and which one is consuming cash. We assign revenue, direct costs, and shared overhead title by title, on a consistent basis you can explain to a co-founder, a publisher, or a lender.

Storefront sales

Platform fees, payouts, and timing

Steam, Apple, Google Play, Epic Games Store, PlayStation, Xbox, and Nintendo storefronts each report and pay on their own cycle. A payout received in March may relate to February sales, and a fee deduction may appear a month after the sale. Our reconciliation matches the platform statement to the sales report and to the bank deposit, line by line. When a number does not match, we flag the difference while it is still small and explainable.

  • Gross sales by platformseparate
  • Platform fees and refundsseparate
  • Net settlement to bankmatched

Contract income

Royalties are not the same as storefront sales

Some studios earn royalties from licensing, publishing deals, or engine and music rights rather than direct sales. Royalty income follows contract terms, tiers, and reporting periods that rarely match a storefront calendar. We track royalty statements separately, record the contractual basis, and note when a payment is an advance, a recoupment, or a final settlement. That distinction affects both the balance sheet and the tax return.

Platform Revenue & Reconciliation

Ongoing revenue

Subscriptions and in-app purchases

Subscription revenue is recognized over the service period, not when a player signs up. In-app purchases add another layer, with consumables, currency packs, battle passes, and downloadable content that may be delivered at different times. Google Play is a clear example for mobile studios, where in-app purchase settlements, refunds, and fee structures shape the net figure that reaches the bank. We set up recognition rules by product type so the monthly close follows the delivery, not just the payment.

The monthly close

Monthly close you can press and tick

The monthly close is where the books either hold together or fall apart. We close each month on a fixed checklist: bank and card accounts reconciled, platform payouts matched, payroll posted, contractors accrued, sales tax reviewed, and reports issued. Each step is ticked in order and the exceptions are listed, not hidden.

Bank and card accounts reconciled to the ledger

Platform payouts matched to statements and deposits

Payroll posted and contractors accrued to milestones

Sales tax reviewed and per-title reports issued

Cash flow forecasting for studios with payout delays

A profitable title can still run short on cash if a large payout lands after payroll is due. Cash flow forecasting for game studios maps expected settlements against known outflows such as payroll, rent in Los Angeles, contractor milestones, and tax payments. We use the platform payment calendars and the contract terms already in the books, not optimistic guesses. The forecast shows the week the money is needed, which is the week a decision has to be made.

Payroll, contractors, and remote teams are part of the same picture: employees in one state and contractors in others create payroll tax, classification, and expense questions a single-state office may not face. We support payroll bookkeeping, track contractor payments against milestone agreements, and keep the documentation that supports each classification.

How We Work

Reading the books

Per-title profitability without guesswork

Development costs, marketing spend, and platform fees are coded to the title that caused them. Shared costs such as office rent are allocated on a stated basis, so the report can be explained — the same way, every month.

01

Revenue recognition for game companies

Revenue recognition asks when a studio has done what it promised. A one-time download, a season pass, and a subscription each create a different obligation. We document the policy in plain language, apply it the same way each month, and keep the supporting reports with the close — which also helps when a publisher asks how revenue was recognized during a due diligence review.

02

Chart of accounts built for studios

A generic chart buries platform fees in a single expense line and mixes development payroll with contractor milestones. We build a chart for game developers that separates storefront revenue by platform, royalties by payer, subscription deferred revenue, and capitalized development costs where the facts support them. Cost of sales, payroll, and contractor costs sit in their own groups — a chart a producer can read without an accounting translation.

03

Federal and state tax work

Bookkeeping and tax preparation are separate jobs, and we treat them that way. Federal and state compliance depends on the revenue recognition, cost capitalization, and payroll records that the monthly close produces. We prepare returns from the closed books, review sales tax nexus for digital goods, and assess whether R&D tax credits apply to the development work. Tax services for game companies start with books that can support the return, not with a year-end scramble.

Who this firm serves

Built for studios that sell through platforms

Our clients include indie studios, mid-size developers, and publishers that operate in the United States and sell through multiple platforms. Some are based in Los Angeles, where our office is located at 2424 W Florence Ave, Los Angeles, CA 90043. Others are remote teams that need a finance function they can call directly. If your revenue comes from storefronts, subscriptions, or royalties, the work described here is likely to match your books.

Platform control changes the finance work. Sony Interactive Entertainment runs PlayStation operations that combine platform fees, subscriptions, and first-party publishing. Epic Games, which develops Fortnite and the Unreal Engine and operates a marketplace, sits at the center of store fee discussions that affect every studio selling through its store. Nintendo combines hardware and software, a different mix from a pure digital studio. Understanding those differences helps us ask the right questions about your statements.

What a statement check covers

Platform statement to sales report Bank deposit to net settlement Royalty contract to statement Subscription delivery to recognized revenue

Differences are flagged while they are still small and explainable — not at year end.

Questions we hear first

Before you ask about the close

How should a game studio classify revenue from app-store sales, in-app purchases, subscriptions, and royalties?

Each stream needs its own treatment. App-store sales are recorded gross with platform fees shown separately, in-app purchases follow the delivery of the item or currency, subscriptions are recognized over the service period, and royalties follow the contract terms. We set those rules in the chart of accounts so each month is posted the same way.

How do platform fees and payout delays affect cash flow?

Fees reduce the gross sale before it reaches the bank, and payout delays mean the cash may arrive a month after the sale. We match platform statements to bank deposits and build the cash flow forecast around the actual settlement calendar for each storefront.

When can a game company capitalize development costs?

Capitalization depends on the stage of the project and the criteria in the applicable accounting guidance. Costs before technological feasibility are generally expensed, while later costs may be capitalized if the criteria are met. We document the decision by project so the treatment is consistent and supportable.

More detail is on the FAQ page and the About Us page.

What to do next

A first discussion does not need a full data room

Send a request through the contact page with a short description of your titles, platforms, and team structure. We will reply to the email you provide and explain the documents we need to start. You can also write directly to [email protected] or call (213) 504-8792.

Los Angeles office: 2424 W Florence Ave, Los Angeles, CA 90043
Monday to Friday, 9:00 AM to 6:00 PM

Contact the Los Angeles office