How it runs for SaaS companies and venture-backed startups
Founders approve and release every run.
What is payroll processing outsourcing?
Payroll processing outsourcing means a remote team prepares each pay run inside your payroll software: reconciling hours, entering changes, checking deductions and producing the run for the employer to approve. The employer keeps the payroll account, the bank authority and the legal responsibility. The provider posts the payroll journal and reconciles it, so payroll and the books agree.
What we handle for SaaS companies and venture-backed startups
- Prepare payroll runs from approved hires, changes and the commission schedule
- Flag new state or country registrations as remote employees are added
- Post payroll journals by department with capitalized engineering cost tracked
- Reconcile payroll tax, benefit and 401(k) liabilities after every run
- Record stock-based compensation entries from the cap table report
The KPI that matters here
Payroll journal posted by department within 2 business days of each run with every new state registration flagged before the first paycheck.
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
How do you handle payroll for employees in many states?
Each new hire's work state is checked against your existing registrations, and any new state is flagged before the first payroll so withholding and unemployment accounts can be opened, usually through the payroll platform. We track the registrations and reconcile state liabilities monthly. Your payroll provider or tax adviser handles the actual registration filings.
Can you calculate sales commissions from our CRM?
Yes, from closed-won bookings in HubSpot or Salesforce and the signed commission plan, we calculate each rep's commission, match it to invoiced and collected revenue where the plan requires, and provide the schedule for approval before it enters the run. Commissions are also accrued at month-end so expense lands with the booking.
How is stock-based compensation recorded?
Using the expense report from Carta or your cap table platform, we post the period's stock-based compensation by department as a non-cash expense with the offset in equity, as your CPA directs. It appears separately in the reporting pack so investors can see cash and non-cash compensation apart. Valuation and 409A work remain with your advisers.
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