Accounting in SAAS

Accounting in SaaS

Accounting in the SaaS vertical requires unique handling due to its subscription-based model, deferred revenue, and recurring billing cycles. Proper revenue recognition is crucial to accurately report earnings over the customer contract lifespan, aligning with standards like ASC 606 or IFRS 15. SaaS businesses also need robust systems for managing cash flow, tracking metrics like customer acquisition costs (CAC) and lifetime value (LTV), and handling churn rates. Effective SaaS accounting ensures compliance, provides insights for strategic growth, and maintains a clear financial picture to support scaling and investor confidence