Even cloud SaaS companies need to balance their books and keep accounts up to date, which is why many choose to work with third-party providers like the team from SRT Accounting. However, the accounting and bookkeeping services that work best for the average company might not always be ideal for SaaS providers, so our team have collected some important insight for you here.
One of the things that make SaaS providers unique from other companies is that many businesses in the sector are experiencing huge amounts of growth right now, as more and more businesses migrate to cloud data storage solutions. This means that any accounting and bookkeeping solutions need to be able to scale quickly to suit the needs of SaaS providers, delivering real-time reports and metrics on all financial aspects of the business.
When it comes to the payment process for SaaS customers, there are some key considerations to keep in mind from a bookkeeping and account standpoint. Payment gateways such as Square, PayPal, Visa, and others will either deposit funds into accounts after each transaction or batches of payments. However, it’s essential that any sales tax captured during the payment process is collected and recorded. This information is essential for your business to remain in compliance and ensure all tax information is up to date.
It’s important that payroll payments that are issued are captured and recorded in the actual month they were processed to maintain accounting and bookkeeping accuracy. This is because matching such records provides SaaS vendors with clearer insight into their overall month-to-month performance and financial status. For those that offer bi-weekly payroll solutions, there are two periods each year where there will be three paydays, which should also be accounted for.
Many businesses offer discounts for services paid in advance. However, this means it’s essential to account for deferred revenue accruals throughout the year. For example, many SaaS providers offer discounts to those that pay on an annual, rather than a monthly basis. However, it’s important that your accounting and bookkeeping software is able to separate these payments and add them to the monthly revenue data.
If you run a SaaS company in need of accounting and bookkeeping services, the experts from Accountants 2.0 can help. Additionally, we also provide comprehensive accounting for startups, self-employed tax services, and more.
Contact us online to speak with one of our experts today or call 888-634-4988.
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