How it runs for SaaS companies and venture-backed startups
Cash-basis history is restated to accrual with a bridge showing every adjustment. Each block of months is reviewed before the next starts, and the founders receive a summary after each block so diligence can begin on the periods already rebuilt.
What is catch-up bookkeeping?
Catch-up bookkeeping is a one-time project that records and reconciles months or years of transactions that were never entered. The goal is a set of books where every bank, card and loan balance agrees with the statement and every period can be reported on. It ends when the backlog is current and reconciled, usually followed by ongoing monthly bookkeeping.
What we handle for SaaS companies and venture-backed startups
- Reconcile every back month of bank, Brex, Ramp and Stripe activity
- Post historical billing system invoices to deferred revenue and recognize by term
- Restate cash-basis history to accrual with a documented bridge
- Accrue infrastructure and contractor costs into the correct months
- Rebuild MRR and churn history from the billing system for diligence
The KPI that matters here
Back months rebuilt to accrual at a rate of at least 3 months per fortnight with the deferred revenue schedule reconstructed from the billing system.
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
Catch-up bookkeeping in other industries
Frequently asked questions
Can you restate cash-basis books to accrual for diligence?
Yes, we rebuild deferred revenue from the billing system's invoice history, recognize revenue by contract term, accrue costs into the months they belong to and produce a bridge from the original cash figures to the restated accrual figures. The bridge is what a diligence team wants to see, because it shows every adjustment and its reason.
How long does startup catch-up take before a fundraise?
A single-entity company with one processor and a few accounts typically moves at about three back months per fortnight once exports and statements are in hand. Multiple processors, entities or currencies extend that. We quote by scope within 1 business day with a timeline, and we prioritize the most recent months so diligence can begin sooner.
Will you rebuild our SaaS metrics history too?
Yes, MRR, ARR, new, expansion, contraction and churned MRR are rebuilt month by month from the billing system's subscription history and reconciled to the restated revenue. Metric definitions are documented so the investor's team can reproduce them. The KPI dashboard page for SaaS shows how the rebuilt history continues as a live view.
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