Revenue Recognition
4 Steps For Writing a Solid Commission Policy
4 Steps For Writing a Solid Commission Policy Why Implement a Commission Policy? Like a revenue policy, a commission policy is a living document that helps you enforce the consistent application of FASB guidelines (specifically ASC 606). This document functions as an internal control that will dictate how your company accounts for expenses related to…
Read MoreSaaS Financial Audits: What to Expect and How to Prepare
SaaS Financial Audits: What to Expect and How to Prepare SaaS financial audits. There’s nothing else like it in a typical SaaS business. Imagine if your sales team had to go through last year’s opportunities with a fine-toothed comb and prove they followed the (often quite fluid) sales process with the expectation of zero inaccuracies…
Read MoreAccounting for SaaS Companies: Why Go GAAP Early in SaaS?
Accounting for SaaS Companies: Why Go GAAP Early in SaaS? In most emerging and growth SaaS businesses, the focus is on cash flow and growth. The bookkeeping — and choice of accounting method — is many times left to whoever is sending the invoices and paying the bills. And the method tends to be whichever…
Read MoreGetting SaaS Accounting and Financial Operations Right in 2021
Getting SaaS Accounting and Financial Operations Right in 2021 According to Gartner, the SaaS industry is projected to grow to a staggering $121B in 2021, a 15% increase from 2020. And this trend will continue. Based on a 2019 survey, Gartner forecasts that eighty-four percent of new software will be delivered as SaaS, and this…
Read MoreSwitching to Accrual Accounting? 5 Things to Consider
Switching to Accrual Accounting? 5 Things to Consider When you’re a small SaaS business with very few customers, cash-based accounting makes sense. It allows you to keep things simple and gives you a more accurate overview of your cash position, which is pivotal for small businesses where every dollar counts. However, as you grow, a…
Read MoreNeed Help Maintaining ASC-606 Compliance?
Spotlight on RevenueBooks: the SaaSOptics Workflow That Helps With ASC 606 Compliance In 2020, the Financial Accounting Standards Board (FASB) mandated the adoption of the ASC-606 accounting standards for private companies by December of 202o. While many large companies already adhered to the standards, it sent many smaller, private companies into a tailspin trying to…
Read MoreSaaS Revenue Recognition Challenges
SaaS Revenue Recognition Challenges with QuickBooks (& What You Can Do About Them) The relationship status of SaaS revenue recognition and Quickbooks accounting software? It’s complicated. Revenue recognition on its own is incredibly complex, due in part to stringent rules and guidelines established by standards boards and regulatory agencies. Things only get more complicated from…
Read More3 Practical Ways to Adopt ASC 606
3 Practical Ways to Adopt ASC 606 If it feels like you see the term “ASC 606,” everywhere you look, it’s probably because you do. The clock is ticking for private companies as the FASB has mandated that 606 must be adopted by December 15, 2020, to maintain GAAP/IFRS-15 compliance. Depending on your business processes,…
Read MoreSaaS Accounting: How to Button Up Revenue Recognition in Your Business
SaaS Accounting: How to Button Up Revenue Recognition in Your Business Let’s be honest. The cloud of fear and uncertainty hanging over 2020 didn’t get any lighter with the FASB’s announcement that 606 compliance for revenue recognition is now mandatory by the start of 2021. However, we here at SaaSOptics want to help distinguish fact…
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