Overview
This SaaS accounting and bookkeeping checklist outlines essential financial tasks for product-led growth companies. It includes recurring monthly, quarterly, and annual responsibilities designed to maintain clean, GAAP-compliant books and accurate SaaS metrics.
The goal is to help finance teams manage high transaction volumes, ensure compliance with accounting standards, and support scalable, investor-ready operations.
Monthly Accounting and Bookkeeping Tasks
Close Books and Reconcile Accounts
Reconcile all bank accounts, credit cards, and payment processors (such as Stripe) each month. Investigate unmatched transactions and confirm that every deposit and withdrawal is properly recorded. Clean reconciliations prevent surprises during audits or investor reviews.
Recognize Revenue (ASC 606 Compliance)
Recognize revenue when services are delivered, not when cash is received. Update deferred revenue schedules monthly and record only earned revenue. This ensures compliance with ASC 606 and provides accurate, transparent financial reporting.
Deferred Revenue Tracking
Maintain a detailed deferred revenue ledger. Confirm customer prepayments are recorded as liabilities and amortized monthly as services are delivered. Rising deferred revenue indicates growth, while declines may signal churn, monitor these trends closely.
Billing and Collections
Ensure all customers are billed correctly and on schedule. Review subscription changes, monitor failed payments, and initiate dunning or collection procedures for overdue invoices. Match payments to the correct customer contracts to keep accounts receivable accurate.
Expense Categorization and Accounts Payable
Record and categorize all expenses by department and function (e.g., R&D, sales, COGS, operations). Pay vendors on time and track cash outflows. Clean expense categorization enables better budgeting and performance tracking.
Accruals and Adjusting Entries
Accrue unbilled revenue and expenses each month to match revenue and costs accurately. Reverse prior month accruals where necessary. This ensures accurate monthly results even if cash timing differs.
Payroll and Benefits Recording
Record salaries, payroll taxes, and benefits. Reconcile payroll to HR data and verify tax withholdings are remitted on time. Track headcount and assess the impact of hiring on cash burn and budgets.
Prepare Monthly Financial Statements
Generate GAAP-based income statements, balance sheets, and cash flow reports each month. Review them for accuracy, completeness, and major variances from prior periods. Regular reporting keeps management and investors informed.
Update KPI Dashboard
Track Monthly Recurring Revenue (MRR), Annual Recurring Revenue (ARR), churn rate, CAC, LTV, and gross margins. For product-led growth models, also track conversion rates from free to paid users. A live KPI dashboard enables data-driven decisions.
Internal Reporting and Review
Provide a concise monthly report to leadership summarizing revenue, expenses, churn, and cash position. Early identification of negative trends allows for timely corrective action.
Continuous Contract Management
Collaborate with sales and customer success to review new contracts, renewals, and cancellations. Confirm all contract terms are reflected correctly in billing and revenue recognition schedules.
Quarterly Accounting and Reporting Tasks
Quarterly Financial Review
Perform a detailed quarter-end close. Review all revenue and expense cutoffs, and prepare comparative statements for the past quarters. Analyze trends in growth, margins, and cash flow to support strategic decisions.
Board and Investor Reporting
Prepare quarterly reports for your board or investors. Include financial highlights, budget vs. actuals, and updated SaaS metrics such as ARR, churn, CAC, and LTV. Clear visual reports build confidence and credibility.
KPI and Unit Economics Analysis
Reassess core unit economics, including LTV-to-CAC ratio, CAC payback period, and net revenue retention. Identify emerging churn patterns by segment or plan. Strong unit economics demonstrate sustainable growth to investors.
Budgeting and Forecast Support
Update forecasts quarterly with actual results. Adjust revenue projections based on MRR trends and expense forecasts for planned hires or projects. Keep your model aligned with real-world performance.
Tax Compliance and Filings
File quarterly sales tax or VAT returns as required. Pay estimated income taxes where applicable. Monitor tax nexus and register in new jurisdictions when you meet thresholds. Proactive compliance avoids penalties and protects your valuation.
Systems and Integration Check
Verify that your subscription billing, CRM, and accounting systems are properly integrated. Check data synchronization between Stripe, Chargebee, or other billing platforms and your general ledger. Resolve discrepancies before they compound.
Process Improvement
Each quarter, review the efficiency of your close process. Identify bottlenecks and automate repetitive tasks where possible. Continuous improvement shortens the close cycle and reduces error risk.
Annual Accounting and Scalability Tasks
Year-End Close and Audit Preparation
Perform a comprehensive year-end close, reconciling all accounts and resolving discrepancies. Prepare GAAP-compliant annual financial statements with disclosures. If audited, provide auditors with all PBC (Provided by Client) schedules and documentation.
Corporate Tax Returns
Coordinate with your CPA to file federal, state, and international tax returns. Ensure all 1099s and W-2s are distributed by the January deadline. Timely and accurate tax filings keep your company compliant and investor-friendly.
Deferred Revenue True-Up
Reconcile deferred revenue balances to confirm they align with unfulfilled service obligations. Split deferred revenue into short-term and long-term liabilities when necessary. This step validates proper ASC 606 compliance.
Policy and Documentation Updates
Review and update accounting policies annually, especially revenue recognition and SaaS metric definitions. Keeping documentation current ensures consistency across reports and audits.
Scalability and Tools Assessment
Evaluate whether your current finance tech stack supports your growth. Early-stage startups may use QuickBooks or Xero, while scale-ups often transition to NetSuite or other ERPs. Consider automation tools for billing and revenue recognition.
Data Room and Records Organization
Maintain an always-ready digital data room with financials, contracts, cap tables, and board minutes. Keeping due diligence materials organized saves time during audits or fundraising.
Strategic Planning and Budgeting
Collaborate with leadership to build the annual budget and strategic financial plan. Use ARR growth targets, churn trends, and CAC assumptions to create realistic financial projections.
Compliance and Regulatory Review
Perform an annual compliance audit for payroll, tax, and licensing obligations. Update your compliance calendar with new filing deadlines or regulatory changes. Staying current prevents fines and supports investor trust.
Conclusion
A structured SaaS accounting and bookkeeping checklist ensures your company’s financials are accurate, scalable, and investor-ready. By completing these monthly, quarterly, and annual tasks, finance teams can maintain GAAP compliance, streamline audits, and provide clear insights for management and investors.
Whether you are preparing for growth, fundraising, or audit readiness, following this checklist will help you build a solid financial foundation for your SaaS business.
Reviewed by YR, CPA
Senior Financial Advisor