How it runs for SaaS companies and venture-backed startups
Capitalized development cost is tracked where your CPA elects it. The books close within five business days with net burn and runway in the note.
What is outsourced bookkeeping?
Outsourced bookkeeping means a remote accounting team records, categorizes and reconciles your business transactions instead of an employee doing it in-house. You keep ownership of the accounting file and the bank relationship. The provider works inside your software on a fixed schedule, so the books are ready for reporting, tax and lending whenever you need them.
What we handle for SaaS companies and venture-backed startups
- Code Brex, Ramp and bank spend by department and vendor with receipts matched
- Post subscription billings to deferred revenue and recognize ratably by contract
- Amortize annual prepaid software and insurance over their terms
- Record payroll journals from Gusto or Rippling by department and headcount
- Maintain deferred revenue, prepaid, accrued liability and fixed asset schedules
The KPI that matters here
Accrual books closed within 5 business days with every balance sheet account supported by a schedule.
SaaS compliance notes
ASC 606 and IFRS 15 revenue recognition
Revenue is recognized when performance obligations are satisfied: subscriptions ratably over the term, usage as consumed, implementation fees over the period your accountant determines, and multi-element contracts allocated on standalone selling prices. We apply the policy your CPA or auditor sets and document the judgment for each contract type. Investors and acquirers expect this from the first institutional round.
Deferred revenue and contract liabilities
Cash collected ahead of service is a contract liability, not income, and the balance must roll forward every month: opening, billings, revenue recognized, closing. We maintain that schedule by customer and contract and tie it to the balance sheet and to the billing system, which is the first thing a diligence team tests.
Sales tax, VAT and GST on software
SaaS is taxable in a large share of US states and subject to VAT or GST on digital services in the UK, EU, Canada and Australia, each with its own registration threshold. We track taxable sales by jurisdiction, configure Stripe Tax, Avalara or TaxJar where you use them, and prepare filing workpapers for your tax adviser. We do not provide tax advice or file returns; your adviser or registered agent does.
SaaS metrics and investor reporting
MRR, ARR, gross and net churn, net revenue retention, CAC payback and burn multiple are reported from reconciled billing and ledger data with definitions documented. Board decks, lender covenant reports and data-room packs use the same figures as the monthly close, so nothing needs restating at the next round.
SaaS software we work in
- QuickBooks Online
- Xero
- Stripe
- Brex
- Ramp
- Gusto
- NetSuite
- Sage Intacct
- Avalara
- Chargebee
- Recurly
- Maxio
- All 50 platforms
More for SaaS companies and venture-backed startups
Other services for saas
Frequently asked questions
Why do startups need accrual books before they have a finance team?
Because investors, lenders and acquirers evaluate SaaS companies on recognized revenue, deferred revenue and net burn, none of which exist on a cash basis. Setting up accrual books at the seed stage costs little and avoids a restatement before the Series A. It also makes MRR from the ledger match MRR from the billing system.
How do you code spend from Brex or Ramp cards?
Card transactions sync with receipts and memos from the card platform, and we code each one by department, vendor and account, matching the receipt and flagging missing ones in the weekly note. Software subscriptions are tagged so the SaaS spend report is accurate. Annual charges are moved to prepaid and amortized rather than expensed in one month.
Do you track capitalized software development costs?
Where your CPA elects to capitalize internal-use software or website development, we track eligible payroll and contractor cost by project from timesheets or allocations, post it to a capitalized asset and amortize it over the life your CPA sets. The policy decision and the tax treatment, including research cost rules, stay with your CPA.
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