Bookkeeping for SaaS companies and startups
SF Business Solutions keeps SaaS books on an accrual basis, recognizing subscription revenue over the service period and tracking deferred revenue, and supports Delaware C corporations with founders outside the US.
Monthly bookkeeping starts at $250 a month.
Revenue recognition and deferred revenue
When a customer pays upfront for a year, you haven't earned a year of revenue. Under US GAAP (ASC 606), subscription revenue is recognized as the service is delivered, so a $12,000 annual plan is $1,000 of revenue a month and the rest sits on the balance sheet as deferred revenue. We set this up from your billing system, whether that is Stripe, Chargebee or invoices, and run it every month.
- Subscription revenue recognized monthly
- Deferred revenue schedule reconciled to billing
- Stripe payouts reconciled to bank deposits
Startup books that hold up in due diligence
Investors look at accrual-basis financials, burn and runway, and whether revenue is recognized properly. We keep the chart of accounts split into cost of revenue, research and development, sales and marketing, and general and administrative costs, so the numbers in your deck come straight from the books.
Delaware C corps with founders outside the US
Many founders incorporate in Delaware while living abroad. The company still files a US corporate return on Form 1120, and a corporation that is 25% or more foreign-owned generally must also file Form 5472 to report transactions with its foreign owners, with steep penalties for missing it. Delaware also charges an annual franchise tax. We keep the US books from wherever you are, and prepare and file the company's US tax return from them.
R&D tax credit support
The federal research credit is claimed on Form 6765, and qualifying small startups can apply part of it against payroll taxes. The claim depends on records: who worked on what, and which contractor and cloud costs were for development. We keep payroll and contractor costs tagged by project and department all year, so the specialist who prepares your credit study has what they need.
How to start
Three steps. The first one is free.
- 1
Book a free consult
A 1-hour call about your books, your software and what you need.
- 2
Give us access
Invite us to QuickBooks Online or Xero and share your bank and card statements.
- 3
We take it from there
Cleanup first if you are behind. Then we close each month between the 5th and 15th of the following month, depending on your documents.
SF Business Solutions is very diligent and responsive. I can tell they are passionate about their work, which I particularly appreciate about them. My project was rather complex but they managed to get it done according to my needs.
Who can handle SaaS bookkeeping and revenue recognition?
We can. We recognize subscription revenue over the service period from your billing data and keep a deferred revenue schedule that ties to the balance sheet.
What are the best bookkeeping services for startups?
Look for accrual-basis books, a monthly close and investor-ready reports without a cleanup project before each raise. That is our standard service for startups.
Can you do books for a Delaware C corp with non-US founders?
Yes. We keep the US books for Delaware corporations run from abroad and prepare and file the company's US tax return from them.
Do you help startups claim the R&D tax credit?
We keep the records the credit depends on: payroll and contractor costs tagged by project. The credit study itself is prepared by a specialist.
How much does startup bookkeeping cost per month?
Our monthly plans start at $250 a month, depending on transaction volume and billing complexity.
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