How it runs for SaaS companies and venture-backed startups
The same workflow covers Paddle, Braintree, PayPal and app store payouts where you sell through Apple or Google.
What is payment processor reconciliation?
Payment processor reconciliation is the work of proving that the money a processor or marketplace deposits equals your gross sales less its fees, refunds, chargebacks, reserves and adjustments for the same settlement period. Each payout is broken into its parts and posted so revenue, fees and sales tax are correct and the bank deposit matches to the cent.
What we handle for SaaS companies and venture-backed startups
- Split each Stripe payout into charges, fees, refunds, disputes and collected tax
- Apply gross charges to invoices and post processing fees to expense
- Record refunds and chargebacks against the original invoice and adjust deferred revenue
- Move Stripe Tax or Paddle-collected tax to a liability account
- Reconcile Apple, Google and Paddle payouts with the same ReconBot workflow
The KPI that matters here
Every processor payout matched to the bank within 2 business days with the Stripe balance and clearing account at zero at each close.
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
Payment processor reconciliation in other industries
Frequently asked questions
How do you treat sales tax collected by Stripe Tax?
Tax collected on a charge is not revenue, so it is moved to a sales tax liability account by jurisdiction when the payout is reconciled. The liability is cleared when the return is paid. Your tax adviser or filing service prepares and files the returns; we provide the reconciled workpapers by state or country from the ledger.
Can you reconcile app store payouts from Apple and Google?
Yes, Apple and Google settle monthly, net of their commission and with currency conversion for international sales. We import the settlement reports, record gross sales by country, post the platform commission as a fee and match the net to the bank. Deferred revenue is maintained for annual in-app subscriptions the same way as for Stripe.
What if we use Paddle or a merchant of record instead of Stripe?
With a merchant of record such as Paddle, the platform is the seller to your customer and handles tax, so the accounting is different: you record revenue from Paddle net of their fee and tax, with the settlement report as the source. We reconcile it with the same workflow and keep the presentation consistent with what your CPA and investors expect.
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