Revenue recognized properly, deferred revenue that reconciles, and board metrics that tie to the ledger.
In software, the accounting question that matters most is when revenue is earned. Annual prepays, usage tiers, ramped contracts, and implementation fees each recognize differently, and treating cash as revenue is the first thing a diligence team unwinds.
We run the accounting and CFO function for SaaS and technology companies from first institutional round through audit and exit.
Annual contracts, ramps, usage tiers, and setup fees recognize on different patterns under ASC 606. Booking the invoice misstates both MRR and deferred revenue.
The billing system and the general ledger diverge within a quarter unless someone reconciles them deliberately every month.
ASC 350-40 requires capitalizing certain internal development costs. Expensing everything understates assets; capitalizing everything invites a restatement.
The board deck says one ARR figure and the financial statements say another. Once that's noticed, every number gets questioned.
We set a revenue recognition policy per contract type, reconcile billing to the ledger monthly, apply a documented software capitalization policy, and build board reporting off the same ledger that produces the financials — so ARR, retention, and burn tie to numbers an auditor will accept.
By contract type, documented and repeatable.
Billing system to ledger, every month.
A written policy applied consistently.
ARR, NDR, burn, and payback tied to the ledger.
Policies, schedules, and PBC list, with auditor management.
Section 174 requires capitalizing and amortizing domestic research over five years — fifteen for foreign — which can create taxable income at a company still burning cash. The R&D credit remains available and can offset payroll tax for qualifying early-stage companies. Remote headcount drives state registration, withholding, and apportionment, and it is a common diligence finding.
You need them before you're audited and before diligence. Retrofitting two years of revenue recognition during a raise is slow and expensive. Doing it prospectively costs very little.
Yes, as a defined workstream: policies documented, schedules built, reconciliations current, PBC list assembled. We manage the auditor relationship through fieldwork.
We run the study and the filing, and we coordinate it with your Section 174 position so the two are consistent.
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