Series-A SaaS: ASC 606 done before the term sheet.
A vertical-SaaS company in active fundraise needed audit-ready financials in five weeks.
The situation
The company was on cash-basis QuickBooks Online with annual subscriptions billed up front. Investors had asked for ARR, deferred revenue, and gross margin — none of which existed in the books.
What we did
We migrated to accrual basis, implemented ASC 606 revenue recognition, set up a deferred-revenue rollforward, and built the ARR / NRR / gross margin exhibits the lead investor's analyst expected. Stock-comp expense was added per ASC 718 from the cap table.
Outcome
The round closed on the new financials. The lead's diligence Q&A was answered in three days because the underlying books supported every number.
Engagement profile
- Industry: B2B SaaS
- Annual revenue: ~$3.5M ARR
- Engagement type: Outsourced finance
- Time to first clean close: 5 weeks
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