SaaS Bookkeeping
FAQs
General FAQs
What types of SaaS and AI companies do you work with?
Do you work with B2B or B2C companies?
Both.
While most of our clients are B2B SaaS and AI companies, we have a growing number of B2C companies, primarily through mobile apps and online subscriptions.
Do you work with AI companies?
Yes.
We have a growing number of AI companies using both subscription and usage-based revenue models.
Are you a good fit for bootstrapped SaaS companies?
Yes.
Many of our clients are bootstrapped and very intentional about cash, hiring, and growth. Clean books and smart tax planning matter even more when it’s your own money.
Do you work with VC-backed companies?
Yes.
We regularly support venture-backed SaaS companies and keep books at a level that can stand up to investor scrutiny, due diligence, and audits.
Why don’t you work with companies larger than $10M in ARR?
Our service model is built specifically for SaaS companies in the ~$1M–$8M ARR range. Most companies naturally outgrow us somewhere between $10M–$15M ARR.
At that stage, SaaS companies typically need a larger in-house finance team, more complex systems, and a higher level of on-demand support than our model is designed to provide. Lower-transaction businesses can sometimes stretch this a bit longer.
The systems and services optimized for $10M+ ARR companies are significantly more expensive. Our goal is to give you clean, scalable accounting and tax infrastructure early to prepare you for the next stage.
What is the sign-up process?
Step 1. Introduction
We start with a 30-minute Zoom call to confirm that our service model is a good fit for your needs. Schedule an introduction call here.
Step 2. Information Review
We will request access to your QuickBooks or Xero file so we can scope the work and prepare a price quote. If you would also like help with income taxes, we will request your prior-year tax returns.
Step 3. Sign-Up
You will receive a sign-up link with fixed pricing and a service agreement.
Step 4. Kickoff Call
We will schedule a one-hour kickoff call to walk through the process in more detail and begin gathering the information needed to get started.
How much of my time is needed for onboarding and ongoing work?
We are very efficient at onboarding SaaS companies. Most clients spend approximately 2 to 4 hours total during the onboarding process.
On an ongoing basis for bookkeeping, plan for about 1 to 2 hours per month. This typically includes answering questions, reviewing monthly financials, and providing occasional input as needed.
For tax services, plan for an additional 2 to 4 hours each year for gathering tax related information and tax strategy conversations.
How does pricing work?
Our pricing is a fixed monthly subscription.
Your monthly fee depends on the scope of services, the complexity of your accounting, and your transaction volume. You can find additional pricing details, including real customer pricing examples, here.
Why do you charge an onboarding price?
We spend additional time upfront to ensure new clients are set up for long-term success.
For bookkeeping clients, onboarding includes a detailed review of your chart of accounts and confirmation that all balance sheet accounts have proper beginning documentation.
For tax clients, onboarding includes a review of your current tax situation and positions, along with an understanding of your initial tax objectives.
How often is pricing adjusted?
We review pricing on a semi-annual basis to ensure it stays aligned with your transaction volume and accounting complexity. If you request changes to scope or services, pricing is updated as of the effective date of that change.
Pricing may also adjust due to broader factors such as market conditions, labor costs, or technology costs. The U.S. is currently experiencing a nationwide shortage of qualified accountants and rising accounting costs, so for an unchanged scope, you can generally expect annual increases in the range of 4 to 6 percent.
All pricing changes are communicated and agreed upon in advance of work being performed.
Am I locked into a long-term contract?
No.
Our agreements are month to month and can be canceled with 30 days’ notice.
There is one exception. If you sign up for our income tax services and we file your annual income tax return, the income tax subscription has a minimum six-month commitment. If we have not filed your annual income tax return, you may cancel income tax services with the same 30 days’ notice.
How often do clients cancel your service?
We focus heavily on delivering high-quality work and real value. As a result, our annual client retention rate is over 90 percent.
When clients do leave, it is typically for one of the following reasons:
1. Graduation
Our services are designed for SaaS companies under $10M in ARR. As clients approach this stage or prepare to move to a more complex ERP system, we proactively help them transition. This often includes preparing them to hire internal accounting staff or introducing them to a provider better suited for the next phase of growth.
2. Successful Exit
When a client is acquired by a strategic buyer, the accounting function is often absorbed into the parent organization.
3. Funding Challenges
Scaling a SaaS company is difficult. When cash flow becomes constrained, some clients choose to pause or cancel services until their next funding round.
4. Culture Misalignment
We evaluate client fit on a semi-annual basis. If a client is not aligned with our core values of proactive communication and mutual respect, we will initiate a transition to a different accounting provider.
This approach allows us to maintain a focused, high-performing client base while supporting long-term client success.
Do you have high employee turnover?
No.
Our annual employee retention rate is over 90 percent.
We work hard to create an environment where our team members can grow, develop, and thrive.
Bookkeeping FAQs
What does your SaaS bookkeeping service actually include?
We handle the core accounting work that SaaS companies need done right:
- Daily transaction coding
- Bank and credit card reconciliations
- Accrual-based accounting
- Adjusting journal entries
- Monthly close
- Diligence-quality supporting schedules
The goal is reliable accounting, not just “good enough for taxes.”
Will we have a consistent point of contact?
Yes.
Your primary contact person will be a U.S.-based controller who knows your business and stays involved. Your controller works exclusively with SaaS and AI companies.
Do you use offshore resources?
Each client is assigned a U.S.-based fractional controller who knows your business and serves as your primary point of contact. Your controller reviews the books each month and oversees all work.
Most day-to-day bookkeeping and preparation is handled by our dedicated offshore team, primarily based in the Philippines. These team members report to your assigned U.S.-based fractional controller and do not have direct client interaction.
Can I request a new controller?
Yes.
In the unusual situation that you don’t click with your assigned controller, you can request to be reassigned to a different controller.
Can you SaaS-ify my chart of accounts?
Yes!
As part of onboarding, we review your chart of accounts and make recommendations based on SaaS accounting best practices.
Can you help clean up messy books or catch up prior period?
Yes.
This is very common. We regularly do catch-up and cleanup work before moving into ongoing monthly support. Clean-up or catch-up work often triggers an additional one-time price. All pricing is provided in advance of the work.
Do you do cash or accrual accounting?
We use accrual accounting by default. It’s the most useful basis for SaaS metrics, management reporting, investor conversations, and making real business decisions.
Cash basis is available, if requested.
Do you reconcile the full balance sheet each month?
Yes.
All balance sheet accounts are reviewed and reconciled as part of our monthly close process.
Do you prepare supporting schedules for key accounts?
Yes.
Supporting schedules are maintained for items such as deferred revenue, prepaid expenses, fixed assets, and accrued liabilities.
How do you prevent errors or missed transactions?
We rely on standardized workflows, reconciliations, review procedures, and layered oversight by a U.S.-based controller.
How often are the books closed?
Monthly, on a defined schedule. We’re not an ad-hoc bookkeeping service. We run a repeatable close process so your numbers are consistent and trustworthy.
How soon will my close be completed after month end?
Our standard service includes a 30-day close, meaning your books will be closed within 30 days after month end.
We also offer a faster 15-day close as an upgrade. A premium 7-day close is available in very limited quantities.
Who owns the accounting data?
You do. Your accounting system and data always remain your property. We do not use priority accounting systems.
Which accounting systems do you support?
We currently only support QuickBooks Online, Xero and Puzzle. If you are not on these systems, but would like to be, we can convert you.
We do not currently support clients on Wave, FreshBooks, QuickBooks Desktop, Rillet, Campfire, Everest, NetSuite, Sage Intacct, Zoho Books or other systems.
What is the difference between daily bookkeeping and monthly close?
Daily bookkeeping focuses on recording your cash activity. This includes coding transactions that flow through your bank and credit card accounts.
Monthly close is where accuracy and structure come together. It includes:
- Reconciling bank and credit card accounts as a quality control step
- Calculating and recording adjusting journal entries such as deferred revenue, accrued liabilities, and prepaid expenses
- Reviewing and validating the monthly transaction coding
- Updating supporting schedules and documentation
Daily bookkeeping keeps the books current. Monthly close ensures the numbers are complete, accurate, and ready to be relied on.
What billing systems do your clients use?
Billing and invoicing systems vary depending on the SaaS business model.
For high-transaction-volume B2B SaaS and AI companies, we most often see billing handled directly through Stripe or via SaaS-specific billing platforms like Maxio or Chargebee.
For lower-transaction-volume B2B SaaS companies, billing is commonly generated from a CRM or handled directly in QuickBooks or Xero.
For B2C SaaS companies, billing is typically processed through Stripe or platform marketplaces such as the Apple App Store and Google Play.
Do you send invoices or collect payments from our customers?
No.
Accounts receivable stays with your internal team. We’ve found this works better for your customer relationships and day-to-day operations.
Do you handle deferred revenue and revenue recognition?
Yes.
This is core to what we do. We regularly handle:
- Annual and multi-year contracts
- Prepaid subscriptions
- Deferred revenue schedules
- Revenue recognition timing
This is one of the most common reasons SaaS companies come to us.
Do you review customer contracts to determine revenue recognition treatment?
Yes.
Upon request can review a small sample of customer contracts during onboarding or when your revenue policies change to help determine appropriate revenue recognition treatment.
We do not review every customer contract, and we are not involved in the contract approval or sales process. Our role is to establish and apply consistent accounting policies, not to review individual deals as they are signed.
Do you support hardware-enabled SaaS or complex contracts?
Yes, within reason.
We work with SaaS companies that include hardware or financing components as part of their offering.
That said, the accounting for these arrangements can become complex and time-consuming quickly. Companies with these structures often outgrow our services sooner than those with more traditional subscription or usage-based SaaS models.
Do you capitalize software development costs?
Do you track expenses by department or function?
Yes.
Departmental or class coding is available as an upgrade feature. We can structure your chart of accounts to support departmental reporting such as R&D, sales, and customer success.
What happens if we’re slow getting you information?
We work on a scheduled process, not an on-demand one. If information is not available by your scheduled monthly close, it will be incorporated into the following month’s close.
If you need the books reclosed for the current month after your scheduled close date, we will do our best to accommodate. In most cases, this will require additional work and result in an added fee.
What happens if changes are needed?
When you receive your monthly financials, we encourage you to review them to confirm they align with your understanding of the business.
If changes are needed, let us know and we will make the updates and provide revised financials. One round of revisions per month is included in your subscription.
If additional revisions are requested within the same month, we will do our best to accommodate. In most cases, this requires additional work and results in an added fee.
Included revisions do not cover changes related to information that was requested before the close but provided after the close was completed.
What payroll apps do your clients use?
When you receive your monthly financials, we encourage you to review them to confirm they align with your understanding of the business.
If changes are needed, let us know and we will make the updates and provide revised financials. One round of revisions per month is included in your subscription.
If additional revisions are requested within the same month, we will do our best to accommodate. In most cases, this requires additional work and results in an added fee.
Included revisions do not cover changes related to information that was requested before the close but provided after the close was completed.
Do you support payroll processing?
We do not process payroll on your behalf or handle day-to-day payroll or HR tasks. That includes entering or approving timesheets, onboarding or offboarding employees, updating compensation, calculating commissions or bonuses, managing benefits, or responding to payroll or HR-related questions from your team.
Our role is to make sure payroll is accounted for correctly in your books, not to run payroll operations.
Do you pay bills for clients?
Yes. Bill pay is available as an add-on service.
We support bill pay through Bill.com or Ramp using clear approval workflows and appropriate segregation of duties. Bill payments are processed weekly on Wednesdays.
Final approval of all payments always remains with an authorized member of your team. Because we cannot enforce internal controls, we do not initiate bank transfers, ACH payments, or wire transfers directly from your bank account.
Can you prepare and file 1099s for vendors and contractors?
Yes.
This is an available upgrade feature and billed annually in January.
Can you consolidate multiple entities?
Yes.
We can prepare consolidated reporting as an upgraded feature.
Do you provide commentary or explanations with financials?
Yes.
We provide a video walk through of the monthly financials with explanations for material items, unusual activity, or changes when relevant.
Do you provide fractional CFO services?
No.
We focus exclusively on bookkeeping, accounting, and tax.
That said, we regularly partner with fractional CFOs who rely on our work for clean, reliable financials. Our accounting provides the foundation they use for forecasting, modeling, and strategic decision-making.
Do you calculate SaaS metrics or provide KPI dashboards?
Not directly.
Our role is to ensure your accounting data is accurate and structured correctly so your CFO, fractional CFO, or analytics tools can calculate meaningful SaaS metrics.
Can you customize reports beyond standard financial statements?
Limited customization is available. Extensive custom reporting may require additional scope.
Do you provide cash forecasting or financial modeling?
No.
We focus on historical accounting and reporting only, not forward-looking forecasting or financial modeling. We regularly partner with fractional CFOs that can assist with this service.
Do you help with fundraising?
Not directly.
However, our monthly close process and supporting schedules are designed to prepare you for fundraising and investor diligence.
We do not interact directly with potential investors, create pitch decks, attend pitch meetings, or assist with fundraising negotiations. We regularly partner with fractional CFOs that can assist with this service.
Can you help with sales taxes?
Yes.
We can help with the administrative aspects of sales tax, including registrations and ongoing sales tax filings.
We do not provide sales tax consulting services such as taxability analysis or nexus studies.
Income Tax FAQs
Why do you offer three income tax service tiers?
SaaS companies have very different tax needs depending on stage, complexity, and how proactive they want to be. Some founders want basic compliance. Others want ongoing support or proactive planning.
Our three-tier model lets you choose the level of support that fits your situation today, with the flexibility to move up or down as your company evolves.
What is the most popular income tax service tier?
Our middle Plus tier is the most popular. It provides confidence that taxes are being handled correctly, includes access to tax consultations during the year, and supports better decision-making without the cost or intensity of full proactive planning.
Founders often start here and upgrade as complexity increases.
Are tax filing fees included in the subscription?
Yes.
Your annual tax return preparation and filing are included based on your selected tier and scope.
Who will complete my tax return?
Your tax return is prepared and reviewed by U.S.-based CPAs and Enrolled Agents with experience working with SaaS companies and founders.
Do you use offshore resources?
Yes. But in a limited and structured way.
Administrative and preparation support may be handled by our offshore team, primarily based in the Philippines, but all tax returns are reviewed and finalized by U.S.-based CPAs or EAs. Offshore team members do not provide tax advice or have direct client interaction.
Why am I assigned a tax coordinator?
Your tax coordinator manages document collection, timelines, and communication so your tax pro can stay focused on tax work and strategy. This keeps the process efficient and prevents delays during tax season.
Can you help with research and development tax credits?
Yes.
We can help determine whether R&D credits make sense and coordinate the appropriate level of analysis. More complex studies are handled as an add-on service.
What is the pricing for R&D tax credit studies?
R&D tax credit studies are priced at 15% of the tax credit claimed, with a minimum fee of $4,995.
Can you help with QSBS planning?
Yes.
We can help assess eligibility and planning considerations related to Qualified Small Business Stock.
Do we need to file a tax return if we had no revenue?
Yes.
Even pre-revenue SaaS companies are required to file tax returns. Filing preserves losses, maintains compliance, and avoids future penalties.
Will you extend my tax return or file by the original due date?
Yes.
Even pre-revenue SaaS companies are required to file tax returns. Filing preserves losses, maintains compliance, and avoids future penalties.
Is filing a tax extension a red flag for an IRS audit?
No.
Filing an extension does not increase audit risk. Extensions are routine and widely used by both individuals and businesses.
Why do you schedule out tax appointments?
Scheduling allows us to manage workload, ensure quality, and complete returns efficiently. It also creates clear expectations around when information is due and when work will be completed.
When will you complete my annual tax return?
Your return is completed based on your scheduled tax appointment and the date your documents are received. Returns are not started until all required information is available.
What happens if I don’t provide my tax documents before my tax appointment date?
If documents are not received by your scheduled appointment, your work will be rescheduled to a future available appointment window. This may result in a late filing.
Can you prepare my personal tax return?
Yes.
We can prepare personal tax returns for company founders, owners, and key executives.
Can you help with filing income taxes multiple states?
Yes.
Multi-state filings are common for SaaS companies with remote teams or customers. Additional state returns are available as add-on services.
Are state tax returns included in my subscription price?
Federal and one state return are included. Additional states are priced separately.
Can you help with international tax situations?
Yes.
We can help with U.S. income tax compliance for SaaS companies that have non-U.S. ownership, non-US bank accounts, a non-U.S. parent entity, or non-U.S. subsidiary entities, including Form 5471 and Form 5472.
Depending on the complexity of the structure, certain international tax components may be handled as add-on services or coordinated with specialized advisors. We do not provide transfer pricing studies.
Do you help founders think through entity structure?
Yes.
We regularly help founders evaluate entity structure and tax elections based on income level, ownership, and growth plans.
Can you help convert my entity to an S-corp or C-corp?
Yes.
Entity conversions are available as an add-on service and include both the tax analysis and execution.
Do you provide quarterly estimated tax calculations?
Yes.
Estimated tax calculations are included in higher-tier plans and available as an add-on for lower tiers.
Will I be able to submit my tax documents online?
Yes.
All documents are submitted through a secure online system designed to make document collection and communication simple and organized. We use modern documentation gathering apps with smart, dynamic questionnaires.
Will I be able to sign my tax return online?
Yes.
When your tax return is completed, you will be able to review and sign your filing authorization online.
Why do you charge a monthly subscription for tax returns instead of billing all at once?
We view tax as a year-round service, not a once-a-year event. A subscription model supports ongoing access to advice, planning, and responsiveness instead of a single transaction during tax season.
How does the tax subscription align with my annual tax return filing?
Your tax subscription is a retainer for us to serve as your tax advisor during the subscription period. It does not directly align with a single annual tax return filing.
The subscription covers year-round access to tax support, planning, and coordination, with your annual tax return prepared and filed as part of that ongoing relationship rather than as a one-time event.
Do you offer refunds if I cancel tax services mid-year?
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