SaaS accounting services for startups and scale-ups.

Yes, we track MRR and ARR each month and tie both to the revenue in your ledger. MRR is monthly recurring revenue, and ARR is annual recurring revenue. We build the bridge from opening MRR through new, expansion, contraction and churn. Then we match it to recognized subscription revenue. Any gap gets a cause, such as a paused plan or a one-off credit.

Yes, we keep a deferred revenue schedule and roll it forward every month. Deferred revenue is cash billed for service you have not delivered yet. A $12,000 annual plan paid in January earns $1,000 a month. The rest sits on the balance sheet and is released month by month. We agree the schedule to the balance sheet at each close.

Yes, we keep accrual books with a monthly close, so investor-ready statements exist before the raise starts. This is where startup accounting services pay off. The pack has a balance sheet, income statement, cash flow statement, MRR bridge, burn and runway. If past months sit on a cash basis, we quote a cleanup to convert them first. That is priced apart from the monthly fee.

Yes, we work out net burn and runway from the closed books every month. Net burn is cash out less cash in. Runway is cash on hand divided by net burn. We use closed, accrued figures, so one big annual invoice or an unpaid bill does not skew the answer.

We keep the records an R&D credit needs, and your CPA or credit specialist makes the claim. We tag engineer pay, contractor costs and cloud spend by project as they post. The credit itself is claimed on IRS Form 6765. The deduction rules also changed in 2025. Section 174A lets U.S. research costs be deducted in the year paid again, while foreign research is still spread over 15 years. How this applies to you is your CPA's call.

SaaS accounting is bookkeeping for subscription software, where customers pay up front for service delivered over time. That timing gap drives the rest. Revenue is spread over each plan's term. Metrics like MRR and churn have to tie to the ledger. Commissions and prepaid costs are spread too. A cash-basis ledger handles none of this on its own.

ASC 606 says you record revenue as you deliver the service, not when the customer pays. It is the U.S. GAAP standard for revenue from customer contracts. For most SaaS plans, that means equal slices over the term. Setup fees that are not a separate service are usually spread over the contract too. Where a contract needs judgment, we write it up and your CPA or auditor decides.

It depends on whether you are the vendor or the customer. As the vendor, onboarding fees you charge are usually spread over the subscription under ASC 606. A company buying cloud software usually capitalizes its setup costs under ASC 350-40 and spreads them over the contract. FASB updated ASC 350-40 in 2025, for years starting after December 15, 2027. Your auditor sets the final policy.

Under GAAP, commissions on contracts longer than a year are usually capitalized and spread over the period they benefit. The rule is ASC 340-40. It often includes expected renewals. If the benefit lasts a year or less, you may expense the cost right away. We set up the schedule once and amortize it every month.

Sometimes, because only some states tax SaaS subscriptions. Texas, New York, Washington and Pennsylvania are among those that do. Economic nexus, a duty to collect created by sales alone, often starts at $100,000 of sales into a state. We track sales by state each month and flag when you get close. Registration and filing decisions stay with you and your tax adviser.

QuickBooks Online or Xero suits most early SaaS companies, and NetSuite fits once you have several entities or an audit. The billing tool matters as much as the ledger. Stripe Billing, Chargebee and Recurly hold the invoice data that drives deferred revenue. We work inside whatever you already use, so there is no migration to pay for.

Twelix charges a flat monthly rate set by the work, not by your MRR or customer count. We price from billing volume, entities, currencies, payroll size and reporting needs. There is no setup fee, and you can stop any month. You get the figure in writing within 24 hours of the call. Any catch-up work on past months is quoted on its own.