What we handle
Monthly bookkeeping & close
bank reconciliation, payroll entries, AP and AR management, and month-end close. clean books are the foundation of everything else a startup's CPA firm produces.
Revenue recognitionASC 606
SaaS revenue recognized correctly under ASC 606. performance obligations identified, standalone selling prices documented, and recognition timing applied consistently. deferred revenue and contract liability balances maintained accurately.
Deferred revenue schedule
deferred revenue balances tracked by customer contract. recognition schedule maintained. movements between deferred and recognized revenue reconciled monthly.
SaaS metrics support
MRR and ARR calculated from billing records. churn tracked and classified (customer churn vs revenue churn). LTV and CAC support from the accounting data — calculated consistently from the same underlying source.
Cap table reconciliationASC 718
equity compensation expense recorded correctly. cap table changes — new rounds, option grants, exercises, forfeitures — reflected in the equity section of the balance sheet. 409A valuation support documentation maintained.
Investor reporting packages
monthly or quarterly investor reporting packages prepared from the books — P&L, balance sheet, cash flow, and KPI summary. formatted to the standard your investor relations team or CPA firm uses.
R&D expense tracking
R&D expenses tracked separately from other operating costs. payroll allocations between R&D and non-R&D activities documented. this documentation is the evidence base for the R&D tax credit calculation.
AP & AR management
accounts payable and receivable managed inside your clients' QBO or Xero environment. vendor payments, customer invoicing, and aging reports maintained on the agreed schedule.
Why startup accounting requires a different approach
the difference between startup accounting and general small business accounting is mostly about what the numbers will be used for. small business financial statements are primarily for tax preparation and owner decision-making. startup financial statements are used for investor due diligence, fundraising, and board reporting — contexts where the numbers are scrutinized by sophisticated parties who know what they’re looking at.
this changes the standard. revenue recognition that’s directionally correct isn’t sufficient when a Series A investor’s due diligence team is reviewing the ARR schedule. deferred revenue that’s been informally managed becomes a material restatement risk at the point of fundraising. getting the accounting right from the beginning is significantly less expensive than correcting it under pressure before a financing event.
ASC 606 and SaaS businesses
SaaS revenue recognition under ASC 606 requires identifying performance obligations, allocating the transaction price, and recognizing revenue as obligations are satisfied. for subscription businesses, this is often straightforward — but multi-element arrangements (implementation fees, professional services, software licenses) can require careful analysis. our accountants apply ASC 606 as standard, not as an exception for audit-ready clients.
Software we work in
QuickBooks Online and Xero are both appropriate for pre-Series B startups. the choice usually comes down to your client’s existing setup and investor reporting requirements.
we work inside your clients’ existing accounting environment. no migration required. for clients using spreadsheet-based tracking alongside their accounting software, we support the transition to a fully software-based workflow as part of the engagement.
What you receive
Monthly books reconciled and closed — bank recs, journal entries, AP/AR, and month-end close delivered by the agreed date
Revenue recognition schedule — deferred and recognized balances reconciled monthly, contract-by-contract detail available
SaaS metrics report — MRR, ARR, churn, LTV calculated from accounting data consistently each period
Investor reporting package — P&L, balance sheet, cash flow, and KPI summary formatted to your firm's standard
R&D expense allocation documentation — the evidence base for the R&D tax credit, maintained throughout the year
Other industries we serve
