B2B SaaS
MRR, ARR, and burn rate are three different conversations.
A B2B SaaS company runs on subscription revenue recognized over time, deferred cash sitting in liabilities, and a burn rate that has to square with your runway. We build books and models that speak fluent SaaS — so your board deck and your tax return start from the same number.
Why SaaS books break standard accounting
Cash in the door is not revenue.
Subscription businesses collect cash up front but earn it over the contract term — and every metric investors care about flows from getting that distinction right.
Deferred revenue & ASC 606
Annual contracts billed up front sit on the balance sheet as a liability until each month of service is delivered. Recognizing the whole invoice at signing misstates revenue and distorts every margin metric.
ARR is not the same as GAAP revenue
ARR is an operational metric — annualized committed subscription value. GAAP revenue is what ASC 606 lets you recognize in the period. Conflating them produces a board deck that contradicts the financials.
Churn hides in blended numbers
Gross revenue retention and net revenue retention tell opposite stories. A blended retention number obscures whether you have a churn problem, an expansion engine, or both.
COGS in a SaaS business
Hosting, customer-success headcount, and third-party APIs belong in cost of revenue — not in OpEx. Getting this wrong inflates gross margin and misrepresents the unit economics investors underwrite.
What a SaaS CFO tracks
Ten lines behind MRR. Most founders watch one.
MRR is a summary, not a signal. The real story lives in the components — and each one demands different action.
The ARR bridge
Know exactly why ARR moved — or didn't.
New, expansion, contraction, and churned MRR roll up into an ARR bridge that shows the board exactly where growth is coming from and where it's leaking. We build and maintain that bridge monthly so there are no surprises in the board deck.
The startup tax playbook
Credits and structures that fund the next sprint.
Software companies leave significant cash on the table by missing the credits and elections built specifically for them. Handled proactively, the difference shows up in runway.
Federal & state R&D tax credit
Qualifying research wages, contractor costs, and cloud-compute charges may generate a dollar-for-dollar credit against income or payroll tax. Pre-revenue startups can often monetize it against payroll — but only with contemporaneous documentation.
Qualified Small Business Stock (QSBS)
Founders and early investors in a qualifying C-corp may exclude a significant portion of gain from federal tax at exit. The exclusion requires meeting stock, holding period, and active-business tests — and needs to be tracked from day one, not at the term sheet.
409A independent valuation
A defensible 409A sets the fair-market value of common stock for option pricing. Issuing options below FMV triggers immediate tax and penalties for employees. Fresh 409As are required after material events — new rounds, acquisitions, significant revenue milestones.
Revenue recognition policy
ASC 606 requires a five-step framework for every contract type. Annual subscriptions, enterprise deals with variable consideration, and bundled implementation services each need a documented policy before your first audit.
Delaware franchise tax & state nexus
Delaware's authorized-shares method can produce a tax bill that dwarfs the assumed-par-value calculation. Remote employees and SaaS revenue also create income-tax and sales-tax nexus in states you may not have planned for.
Entity structure & equity planning
S-corp elections, 83(b) elections on restricted stock, and the timing of equity grants all have tax consequences that are hard to undo. Setting structure before the first hire and first funding saves real dollars.
What we actually run for you
Every service mapped to a SaaS problem.
The problem
Books built for subscription revenue
Monthly close with deferred revenue roll-forward, ASC 606-compliant recognition, and COGS vs. OpEx allocation — reconciled to your billing system so MRR and GAAP revenue stay in sync.
The problem
ARR bridge & financial model
A dynamic model with MRR waterfall, cohort-based retention, burn and runway forecast, and scenario analysis — built to survive board review and fundraise diligence.
The problem
R&D credit, QSBS & startup tax
Proactive credit studies, QSBS compliance tracking, Delaware franchise optimization, and state nexus mapping — filed correctly and documented before anyone asks.
The problem
Cap table, 409A & equity management
409A coordination, option grant documentation, and cap table hygiene through every round — so the next term sheet doesn't surface a structure problem.
Raising or getting acquired?
Numbers that survive due diligence.
Whether you're preparing a Series A data room or running a sale process, we build the financials and models investors and acquirers actually trust.
The numbers we put in front of you
Run the company on SaaS metrics, not just a P&L.
Reporting built for subscription businesses — the KPIs that tell you whether to hire, raise, or tighten before the board deck does.
Figures shown are illustrative.
Keep exploring
Go deeper — or just talk to us.
We also serve
Talk to someone who's read a SaaS P&L before.
A 30-minute call. Bring your MRR data and last year's returns — we'll show you what your books should be telling you about retention, burn, and the next raise, on a free intro call.
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