Bookkeeping for SaaS & Subscription Businesses

Yes — that is the point of setting the books up by industry. Subscription businesses collect ahead and deliver over time, which puts a growing deferred revenue balance on the balance sheet and a much smaller number on the income statement than the bank suggests. Get it wrong and the company looks wildly profitable while it grows and inexplicably terrible when growth slows. Add processor payouts net of fees, refunds, proration, and failed payments, and the gap between what was billed and what was banked becomes its own reconciliation.

Annual and multi-month plans recognized across the term they cover; Deferred revenue maintained as a real, reconciled balance-sheet account; Processor payouts reconciled gross, with fees, refunds, and chargebacks separated; and 2 other recurring pieces. It is done monthly rather than reconstructed at year end, so the numbers are usable while the decisions are still open.

The three we see most: annual prepayments taken to revenue in full on the day they are collected; deferred revenue that has never been reconciled to the subscription system; net processor deposits recorded as revenue, understating both sales and fees; hosting and infrastructure in operating expense, so gross margin is not calculable. Cash collected in January for a year of service is one month of revenue.

Yes. We work inside your file so you keep ownership and full visibility. If you do not have one set up yet, we build it around your industry from the start, including a chart of accounts that matches how you actually earn.

That is our specialty. Cleanup is quoted at a fixed price after a short no-obligation review, so you know the cost before any work begins. Scope varies enormously, so we look first and quote second.