Accounting for startups that need their numbers to hold up in a board meeting and a diligence room. We give SaaS founders accounting, controller, and fractional CFO support, tracking MRR and ARR off your billing system, recognizing revenue under ASC 606, and closing every month so you always know your burn, your runway, and whether the model is working.
A subscription business does not look like a services firm on the books. Cash arrives before revenue is earned, contracts span months or years, and the metrics investors care about live in your billing tool, not your P&L. Accounting set up for the model tracks the earning, not only the cash.
When you collect an annual plan up front, booking it the wrong way inflates a strong month and starves the next eleven. We set up deferred revenue, run the recognition schedule, and reconcile it back to billing every close.
Usage-based plans, mid-term upgrades, proration, and the refunds and credits that quietly distort net revenue all need the same discipline. We build the chart of accounts around how your plans actually bill, so the numbers reconcile and the story matches reality.
How quickly is the business using cash, and how long could the available balance last? We distinguish cash burn from accrual profit, explain the calculation used, and connect the cash view with the accounting records.
Scope is agreed before we start. Most clients use the full range below; not every company needs every item on day one.
Track new, expansion, contraction and churned recurring revenue using documented definitions. Explain differences between recurring-revenue metrics, billings and recognized accounting revenue.
Five-step revenue recognition, deferred revenue schedules, and contract-level treatment for annual, usage-based, and multi-element deals, set up so your CPA and investors can rely on it.
Cash burn and runway reporting with the calculation, reporting period and assumptions stated, supported by reconciled accounting records.
Unit economics built from clean COGS and sales/marketing spend, customer acquisition cost, lifetime value, gross and net revenue retention, and logo versus dollar churn.
Monthly P&L, balance sheet, and cash flow on an accrual basis, formatted the way seed to Series B investors expect. Board-ready commentary comes with Controller and CFO.
Reconciliation, close preparation and review for the accounts in scope, delivered on an agreed schedule.
We apply the five-step ASC 606 model to your contracts: identify the contract and performance obligations, determine and allocate the transaction price, and recognize revenue as obligations are satisfied. For most SaaS, that means subscription revenue is recognized ratably over the service term, with deferred revenue carried as a liability until earned. Setup fees, usage overages, and multi-element arrangements are handled per their own obligations. We reconcile the recognition schedule to billing every close so the deferred revenue balance always ties out.
We track recurring-revenue movements using agreed definitions and supporting billing or contract data. MRR and ARR are operating metrics, not substitutes for recognized revenue. We explain the differences between the recurring-revenue view, billings and the financial statements.
Cash burn tracks how the business uses cash; accrual profit measures revenue and expenses in the periods they are earned or incurred. They answer different questions. A runway estimate uses available cash and a stated cash-burn assumption, while a forecast models future receipts, payments and decisions. Scenario planning is included where agreed in the engagement.
Yes. Once COGS and sales/marketing spend are clean, we calculate customer acquisition cost, the CAC payback period, gross margin, lifetime value, and gross and net revenue retention. Because these come off reconciled books rather than ad-hoc spreadsheets, they hold up when an investor asks how the number was derived.
That is the point. We maintain accrual-basis financials with proper deferred revenue and documented adjustments, the foundation a raise is built on. For the raise itself, our Fractional CFO service adds the model, board package, data room support, and investor Q&A. You are not scrambling to clean up books the week diligence opens.
We charge a fixed monthly fee, not an hourly rate, so there are no surprise invoices and the cost is predictable while you are watching runway. What you pay depends on your stage and volume, things like revenue, transaction count, and whether you need controller or fractional CFO work on top of the books, so a pre-revenue startup pays less than one heading into a raise. Use the estimator above for a quick number, then we confirm a tailored quote on a call. Engagement terms are confirmed in your proposal.
Yes. We are remote-first and work with US-based startups entirely through secure cloud accounting, which is how most software teams already operate. You connect your billing and accounting systems, and we run the accounting, close, revenue recognition, and reporting online, with quick communication over email, a shared workspace, or a call. There is no on-site requirement and no geographic limit within the US.
Get SaaS-specific books, clean rev rec, and a monthly close you can stand behind. We reply quickly.