SaaS Accounting and Bookkeeping Services Built Around ASC 606
Subscription revenue is not earned the day it arrives. Monily's SaaS bookkeeping services keep your books on accrual, recognize revenue contract by contract, and tie your billing platform to the ledger, so your numbers hold up in front of investors and auditors.
- Serving businesses since
- 2006Serving businesses since
- Businesses served
- 5000+Businesses served
- on Google
- 4.4/5on Google
- Industries served
- 15+Industries served
The Problem
Revenue you earned, not cash you collected
Your bank balance jumps that month, but you have earned only $2,000 of it.
Deferred revenue
That is why a big cash month can be a small revenue month, and why buyers study the balance closely in due diligence.
Revenue schedules built by a generalist bookkeeper
Small recognition errors compound, and when an investor or auditor finds them, the fix can mean restating the balance sheet and income statement.
What You Get
01
Revenue recognized under ASC 606 every month
ASC 606 sets the rules in five steps. We apply it to annual prepay, multi-year contracts, usage-based and hybrid billing, implementation fees, and mid-term upgrades or downgrades, each handled as a contract modification.
02
Billing payouts tied out to the ledger
We match each payout to its invoices, record fees, refunds, and chargebacks separately, and tie the billing system to the ledger every month.
03
A monthly SaaS metrics pack with definitions
Each month you receive financial statements, a SaaS metrics pack, and burn and runway figures ready for your board deck.
04
Books ready for due diligence and audit
We prepare revenue schedules, a deferred revenue roll-forward, an ARR bridge, and reconciled financials in the format reviewers request.
What We Deliver
Monily's SaaS bookkeeping services keep your books on accrual, recognize revenue contract by contract, and tie your billing platform to the ledger.
Book a MeetingBookings, billings, revenue, and cash
Founders often treat these as one number. They are four, and investors ask for each.
Monthly
SaaS metrics we report
MRR, ARR, logo and revenue churn, net and gross revenue retention, CAC and CAC payback, LTV:CAC, gross margin, burn rate, runway, and cohorts.
Monthly
What belongs in SaaS COGS
For SaaS, that means hosting and infrastructure, third-party software built into the product, customer support, customer success, and payment processing.
Monthly
Sales tax on SaaS
Our nexus review shows where you have crossed a threshold.
As needed
Stock compensation, R&D, and software costs
We book it, keep the cap table consistent with the ledger, and capitalize sales commissions under ASC 340-40.
Monthly
Due diligence and audit readiness
Investors, acquirers, and auditors ask for revenue schedules by contract, a deferred revenue roll-forward, an ARR bridge, and reconciled accrual financials.
Monthly
MRR is one number. Growth Score is the whole picture.
Recurring revenue, churn, burn and payback move together. Growth Score puts them in one score so you know whether growth is efficient or just expensive.
MRR and growth rate: against the target you set.
Churn and retention: revenue you keep, month over month.
CAC payback: months to earn back acquisition cost.
Included on the Growth plan and above.
Growth Score DemoHow It Works
Recognize Revenue Contract by Contract
Identify the contract, identify the performance obligations, set the transaction price, allocate it across those obligations, and recognize revenue as each is satisfied.
Report Metrics With Definitions
Most bookkeeping services for SaaS companies list these metrics. Ours define them, so your board reads each one the same way every month.
Tie Billing Payouts to the Ledger
We record gross billings, book fees as expenses, clear failed payments, and tie every payout to its invoices in QuickBooks Online or NetSuite.
Keep Books Diligence-Ready
We keep revenue schedules, ARR bridges, and accrual financials updated monthly to ensure investor and audit readiness.
Software We Work In
SaaS Success Story
What our 5000+ clients say about Monily
Why partner with Monily
Accounting, tax and CFO support under one roof, from a team that has done this since 2006.
Experts on Your Books
- Certified accountants and QuickBooks Elite ProAdvisors
- A dedicated success manager who knows your account
- Teams across the US, Canada, the UK, the UAE and Pakistan
- Questions answered by people, usually the same day
Built to Grow With You
- Monthly financials delivered on schedule
- Bookkeeping, tax, payroll and CFO support in one place
- Works in the tools you already use
“The team is friendly, responds quickly, and is always open to answering questions. Monily has dealt with issues left by our previous firm, working hard to solve them and taking the lead on the project to deliver results within the requested timeline. The team is responsive and easy to reach, and they always provide valuable advice, support, and answers to questions.”
01 — 03
Pricing and what moves it
Pricing is a flat monthly fee based on transaction volume, contract count, and billing complexity. A seed-stage company billing one plan through Stripe costs far less than a Series B business with usage billing. We quote after a short scoping call.
Frequently
Asked Questions
Book a MeetingSaaS Accounting, Explained
A customer pays $24,000 upfront for an annual plan. Your bank balance jumps that month, but you have earned only $2,000 of it. The rest is recognized month by month as you deliver the service. That gap is the core of SaaS accounting, and it is why a subscription business needs accrual books from day one.
ASC 606 sets the rules in five steps. Identify the contract, identify the performance obligations, set the transaction price, allocate it across those obligations, and recognize revenue as each is satisfied. We apply it to annual prepay, multi-year contracts, usage-based and hybrid billing, implementation fees, and mid-term upgrades or downgrades, each handled as a contract modification.
Many SaaS companies reach us with revenue schedules built by a generalist bookkeeper. Small recognition errors compound, and when an investor or auditor finds them, the fix can mean restating the balance sheet and income statement.
Deferred revenue, or unearned revenue, is cash collected for service not yet delivered. It sits on the balance sheet as a liability and moves into revenue each month. That is why a big cash month can be a small revenue month, and why buyers study the balance closely in due diligence.
Founders often treat these as one number. They are four, and investors ask for each. Take a $36,000 three-year contract billed annually.
| Number | What it measures | In this example |
|---|---|---|
| Bookings | Contract value signed | $36,000 TCV, $12,000 ACV |
| Billings | Amount invoiced | $12,000 in year one |
| Revenue | Amount earned under ASC 606 | $1,000 each month |
| Cash | Money received | $12,000 when the invoice is paid |
Most bookkeeping services for SaaS companies list these metrics. Ours define them, so your board reads each one the same way every month.
| Metric | What it tells you |
|---|---|
| MRR and ARR | Recurring revenue per month and per year; committed MRR adds signed contracts not yet live |
| Logo and revenue churn | Customers lost, and recurring revenue lost, in a period |
| Net and gross revenue retention | Revenue kept from existing customers, with and without expansion |
| CAC and CAC payback | Cost to win a customer, and the months of gross margin needed to earn it back |
| LTV and LTV: CAC | Gross margin a customer produces over their lifetime, against what it cost to acquire them |
| Gross margin | Revenue left after the cost of delivering the product |
| Burn rate and runway | Net cash spent each month, and the months left at that pace |
| Cohort analysis | How customers won in the same period retain and expand |
| Rule of 40 | Growth rate plus profit margin; 40 or above signals capital efficiency |
Gross margin drives valuation, and gross margin depends on what sits in COGS. For SaaS, that means hosting and infrastructure, third-party software built into the product, customer support, customer success, and payment processing. Sales, marketing, and product development stay out. Investors typically expect SaaS gross margin above 70 percent, and a figure under 60 percent draws questions.
Many founders assume software sold online is not taxable. A growing number of states disagree. Taxability varies by state, and economic nexus can create an obligation based on sales volume alone, in a state where you have no office or staff. Our nexus review shows where you have crossed a threshold.
Option grants carry an expense under ASC 718, tied to your 409A valuation. We book it, keep the cap table consistent with the ledger, and capitalize sales commissions under ASC 340-40. On the product side, we separate development costs to capitalize from those to expense, and track research spending under Section 174, whose rules changed again in 2025.
Investors, acquirers, and auditors ask for revenue schedules by contract, a deferred revenue roll-forward, an ARR bridge, and reconciled accrual financials. Acquirers often add a quality of earnings review. We keep these current monthly, which is what separates the best bookkeeping services for SaaS startups from the rest.
Get SaaS Books Your Investors Can Trust
Our SaaS accounting services start with a review of how you bill and where your revenue schedules stand. Tell us what you are building toward, and we will show you what clean books look like.
Schedule a free consultation with our C-level experts today.
Know More. Grow More.