Essential SaaS CFO Services for Business Owners

It’s not just ARR, MRR and CAC – the best investors have questions around cohort churn rates, revenue run rates and more. In fact, our team has been interviewed by TechCrunch about the metrics needed to raise rounds and trends in the VC market. The biggest GAAP issue for most SaaS companies is revenue recognition, which we discuss above. GAAP (Generally Accepted Accounting Principles) are created by FASB (Financial Accounting Standards Board), and GAAP uses accrual accounting. At Less Accounting, we bring order to the chaos, with expert bookkeeping and tax-ready records tailored for fast-moving SaaS companies and startups.

High growth SaaS startup MeasureMatch

• For simplicity and accuracy, we recommend a streamlined model that emphasizes the income statement and projected cash flow.
• Artificial intelligence has been growing very quickly in the last few years and is expected to improve other industries such as healthcare, manufacturing and customer service.
• The Rule of 40 should not be taken as a definitive metric and should be used in conjunction with other financial and operational metrics to evaluate the performance and potential of a SaaS startup.
• Good accounting provides insight into a company’s revenue and operations.
• From fundraising to SaaS models, you’ll get the financial support you need.
• Our tax planning services help startups take advantage of available tax incentives and tax credits, minimize tax burdens, and comply with tax regulations.

You should seek the advice of a competent attorney or accountant licensed to practice in your jurisdiction for advice on your particular situation. Learn all the best practices of CRMs to simplify customer relationship management and elevate your bond CARES Act with loyal customers. Its graphs and charts are color-coded, enabling you to track relevant data at a glance.

• Our team sets up your dashboards using leading SaaS accounting software and also provides you real time performance visibility.
• We specialize in getting startups “VC-ready,” as you can see from our due diligence checklists.
• We’ll explore the outstanding features, potential drawbacks and benefits of each accounting software.
• It’s also important to recognize that even the best accounting software is augmented by a dedicated human team Finvisor offers online bookkeeping managed by a team of real, qualified, and experienced accountants.
• It’s about building investor confidence, guiding strategic choices, and ensuring compliance with critical standards like ASC 606.
• It offers features such as multi-entity consolidation and detailed reporting, helping you automate and manage complex accounting processes as your business expands.

Our SaaS Accounting Services for Startups

• You never know when your SaaS startup will grow, and you won’t regret having a trusted accounting system to help guide and support your business through the exciting (and complex) growth.
• Burkland’s fundraising support gives SaaS startups the edge to secure capital with investor-ready financials, compelling metrics, and a clear growth strategy.
• Our selection of these Accounting Tools for SaaS comapanies is based on thorough research and analysis.
• All companies should set up an accounting solution and a bank account on day one.
• These businesses typically use cloud-based SaaS accounting software to manage the entire process.
• Whether you’re tracking subscription churn or monitoring profitability, having up-to-date reports helps you pivot strategies quickly and stay ahead of financial risks.

If you haven’t been keeping track of your SaaS bookkeeping by the time you raise your first outside money, you need to get your books in order. SaaS has been one of the hottest business models for the past decade, if not more. Let’s take a deeper look at what makes accounting for SaaS companies different and how to put the proper accounting tools in place for your business. Our toolbox of SaaS technologies automates many tedious, manual processes — bill pay, payroll, accounting solutions, and more — ultimately improving efficiency and accuracy across the board. The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Stripe does not warrant or guarantee the accurateness, completeness, adequacy, or currency of the information in the article.

FreshBooks: Best for subscription and client management

A startup should hire an outsourced accounting firm after it has raised about $500k. To be more specific, before an early-stage company has raised funding, the founder can probably use QuickBooks Online to keep the books in order (it still makes sense to get a tax CPA for tax filings!). This will help the books be ready for due diligence, but more importantly, will save the CEO time! Time to focus on building product, getting sales, hiring, fundraising – Budgeting for Nonprofits time is very percious to a startup, so outsource non-essential tasks like books as soon as it’s affordable. We specialize in providing high-level accounting services tailored specifically for VC-funded startups.

More bookkeeping resources and accounting for SaaS companies.

Our deep VC experience and strong network of venture partners gives us the perspective to ensure your financial story aligns with investor expectations. From building robust financial models and pitch decks to refining your fundraising strategy, we help you raise with confidence—from Seed to Series A, and beyond. Your SaaS startup could qualify for up to $500,000 per year in R&D tax credits—freeing up valuable capital to fuel growth. Burkland’s tax experts analyze your expenses, optimize filings, and ensure compliance so you claim every dollar you’re entitled to. From payroll allocations to software development costs, we navigate the complexities for you, reducing tax liability and accounting services for startups extending your runway. Financial modeling is a valuable tool for startups seeking to make data-driven decisions.

• Plus, investors and government regulators may require your business finances to follow accrual accounting, so it’s not a bad idea to get ahead of these mandates.
• It works well for a range of businesses—from freelancers to medium-sized companies—offering powerful features like invoicing, expense tracking, payroll, and financial reporting.
• However as your business expands, your financial difficulties grow with it.
• At its most basic level, if your clients are paying ahead of time for services, your company will put a deferred revenue liability onto the balance sheet.
• With expert-built models tailored to your recurring revenue, customer dynamics, and fundraising needs, you’ll make smarter decisions, impress investors, and scale with confidence.