Guide · 5 min read

    Bookkeeping for web designers

    Project deposits, retainers, SaaS stacks, and pass-through hosting — books that match how designers actually work.

    Why designer books get tangled

    Lumpy income (big project deposits + months of nothing), recurring retainers, pass-through hosting, and a ~$300/mo SaaS stack. Without simple tagging, you can't tell what each client is actually worth.

    Tag every dollar: project deposit · milestone · maintenance retainer · pass-through (hosting) · reimbursement. End of quarter you'll know your real margin per client.

    The 4-step designer bookkeeping system

    1. 1

      Business checking + one card for SaaS

      All client Stripe/PayPal/wire payments to one account. One credit card for every recurring subscription. Auto-pull and categorize monthly.

    2. 2

      Invoice with clear payment terms

      50% deposit, 25% mid-project, 25% on launch is the classic split. Net-15 for retainers. Tag each payment to client + project.

    3. 3

      Separate pass-through hosting

      Bill hosting as a line item with a small mark-up. Books show both the income and the offsetting hosting expense — no inflated 'revenue' number on your tax return.

    4. 4

      Quarterly taxes + retirement

      25–30% of every payment to tax savings. Pay April / June / Sept / Jan. A Solo 401(k) or SEP-IRA can shelter $15–60k a year.

    Deductible expenses for web designers

    Figma, Webflow, Framer, Adobe CC
    Notion, Linear, GitHub
    ChatGPT Plus, Claude, Cursor
    Fonts & licensed assets
    Stock photos & illustrations
    Hosting (own + pass-through)
    Domain registrations
    Computer & monitor
    Home office (sq ft or actual)
    Internet & phone (business %)
    Coworking memberships
    Conferences (Config, etc.)
    Contractor & VA payments
    Health insurance (self-employed)
    Solo 401(k) / SEP-IRA

    Books that ship as fast as you do

    SnapBooks tracks every deposit, retainer, and SaaS charge — and tells you what each client is really worth.

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    Tools for designers and devs

    Frequently asked questions

    How do I handle retainers and deposits?+

    Deposits and retainers are income the day they hit your account — even if the work isn't done yet (cash basis). If you switch to accrual, you'd defer them as 'unearned revenue'. Most solo designers stay on cash basis.

    Can I deduct Figma, Webflow, Framer, Adobe?+

    100%. Software subscriptions you use for client work are fully deductible. Same for Notion, Linear, GitHub, ChatGPT Plus, Cursor, fonts, and stock assets.

    What about hosting I pay for clients?+

    Track separately as a pass-through. Either bill it back at cost (reimbursement, not income) or mark up and bill it (income + offsetting expense). The mark-up version is much cleaner come tax time.

    Should I form an LLC?+

    Helpful for liability (a buggy site brings down a client's launch = potential lawsuit). Tax-wise, sole prop is fine until net ~$60–80k, then S-Corp election can save thousands on self-employment tax.

    How do I price project work for taxes?+

    Set aside 25–30% of every project payment for tax the moment it lands. Then your 'profit' is what's actually yours — no April surprise.