SaaS accounting that gives you an overview - from MRR to runway

In a SaaS company, the revenue is subscription-based, and this fundamentally changes how the books must be handled. Customers often pay in advance for a quarter or an entire year, and that revenue must be recognised in the correct periods – it cannot be booked as revenue in the month payment is received.

In addition, SaaS companies use metrics that traditional accountants rarely work with: MRR, ARR, churn rate, customer lifetime value (CLV) and customer acquisition cost (CAC). Those metrics should be calculated from your accounting data – and that requires a well-thought-out chart of accounts and structure.

Correct revenue recognition of subscription revenue is crucial - both for your management team and for investors and the board. We set up the structure so:

• Revenue from prepaid subscriptions is automatically recognised over the contract period
• Monthly, quarterly and annual subscriptions are handled correctly
• Upgrades, downgrades and terminations are reflected in the revenue figures
• MRR and ARR can be calculated directly from the books

Most SaaS companies use Stripe to collect payments. We have extensive experience in integrating Stripe with e-conomic, so that payments, fees and payouts are automatically and correctly recorded. Read more about our Stripe accounting.

We provide monthly reporting with the metrics that are relevant for a SaaS company:

• MRR/ARR – monthly and annual recurring revenue
• Churn rate - how many customers you lose per month
• CLV – the average value of a customer over their lifetime
• CAC - what it costs to acquire a new customer
• Burn rate and runway – how quickly you spend money and how long it lasts
• Gross margin – your gross margin after direct costs

If you have investors or a board, they expect regular reporting in a format they know. We deliver board packs with the metrics, comments and forecasts, which give the board the overview they need to make decisions.

We have experience with reporting to Danish and international investors, including the Danish Growth Fund (Vækstfonden).

As a SaaS company, you probably devote a substantial part of your resources to product development. Where the accounting recognition criteria are met, relevant development costs can be recognised as an asset and amortised over time. Any tax credit for research and development expenditure requires a separate assessment under the tax rules; it does not follow automatically from capitalisation. See the Danish Business Authority’s capitalisation guidance and the Danish Tax Agency’s tax-credit guidance.

We help you assess whether your development costs qualify and ensure they are accounted for correctly.

At Ekstern CFO, we work with SaaS companies such as EasyPractice, Dreamdata.io and ResOS. We understand your business model, your metrics and the challenges that come with subscription-based revenue and rapid growth.

We are happy to have a no-obligation chat about your SaaS accounting. Contact us and let's see if we are the right match.

Read more: Stripe accounting · Accounting with Light · Controlling and reporting · Bookkeeping in e-conomic

Useful metrics depend on reliable records, reconciliations and clear responsibilities. See how an external finance function can work alongside your internal team, and explore scope and pricing factors. If you already have a bookkeeper, start with our handover guide.