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Help with SaaS Accounting

The SaaS model makes it simple to get innovative software in the hands of users, and to keep it updated with the features they want. But SaaS accounting is anything but simple.

 

Simpler for the subscriber, harder for the accountant

The revenue recognition rules for software sold by subscription are complex. Some contract elements can be recognized when you receive the payment, while others have to be spread over months or years.

Are you making a profit?

It’s hard to tell if you’re making a profit since the cycles of cash payments don’t match the cycles of revenue recognition. If a customer pays a lump sum for their annual subscription, that has to be spread over the period of the subscription. But what if there are separate fees for set-up or training or customization?

Revenue recognition clarified

We help SaaS companies sort out the rules for revenue recognition. Together with your CPA, we’ll help you set up procedures so your month-end closing is quick and easy, and eliminate all those error-prone manual calculations.

We’ll analyze your contracts so that you’re recognizing revenue correctly. You’ll know when you’re making a profit and when things need improvement.

Besides getting a handle on revenue recognition, we can help SaaS companies in these areas and more:

  • Bookkeeping and accounting so you can focus on your business
  • Cloud software integrations to streamline your back office operations
  • Financial planning and strategy
  • Outsourced CFO and controller services that give you a competitive edge
  • Assistance with fundraising
  • Business valuations to attract investors
  • Pricing strategy
  • Liaison with banks, investors and CPAs

 

We’ll help you untangle the complexities of SaaS accounting!

Call our experts today!