Case Study: How a SaaS Company Regained Financial Visibility & Freed Up Leadership to Focus on Growth

OVERVIEW

A scaling B2B SaaS company with a proven product was ready for its next phase of growth, but their accounting systems hadn’t kept pace. One of the co-founders was personally managing much of the company’s financial operations, incurring substantial opportunity cost.

When they brought in kept.pro, our team quickly spotted issues that went beyond time management: their revenue recognition processes were not compliant with GAAP standards and needed urgent attention.

THE PROBLEM

As their SaaS company expanded, their internal accounting practices failed to evolve alongside increasingly complex revenue streams from subscriptions and services. A few specific issues stood out:

• Manual, Disconnected Reporting: Stakeholder reports were curated outside the system of record, creating inconsistencies from quarter to quarter.
• GAAP Non-Compliance: Revenue and in-licensing expenses were being recognized in separate periods, violating ASC 606 standards.
• Understated Revenue: Some revenue had not been captured correctly, which could have impacted both cash flow and credibility with future investors.

Without intervention, these issues could have created serious challenges during audits or fundraising, and made it difficult to make strategic decisions based on reliable data.

THE SOLUTION

Our fractional accounting team stepped in to design and implement accounting processes tailored to the company’s unique needs. Key improvements included:

• Revenue Recognition Policy: Built a policy and supporting workflows to ensure all revenue was recorded properly and consistently.
• Balance Sheet Schedules: Created schedules to support revenue recognition and other accrual accounts.
• Chart of Accounts Update: Refined the chart of accounts so it was the right size and structure for the business.
• Accrual-Based Reporting: Delivered accurate, compliant financial reporting directly from the system of record.
• Payroll Tracking Improvements: Ensured payroll was correctly tracked to support R&D tax credit applications and reduce year-end risk.

These updates ensured the company became ASC 606 compliant and could confidently rely on its financial data.

THE IMPACT

Once the new SaaS accounting systems were in place, the benefits were both immediate and meaningful – freeing up leadership, improving financial accuracy, and setting the company up for confident growth.

• Time Recovered: The co-founder who had been managing the books could re-focus on sales and product development.
• Board-Ready Financials: Within 90 days, the company had accurate, accrual-based financials for its board meeting – prepared directly from the system of record.
• Ongoing Visibility: Quarterly financial reports and monthly insights into performance metrics became part of their standard operations.
• Audit & Credit Readiness: With correct payroll tracking and ASC 606 compliance in place, the company reduced tax-year risk and positioned itself for future credit opportunities.

Together, these changes gave the company not just cleaner books, but the operational confidence and financial clarity they needed to grow without second-guessing their numbers.

LET’S BUILD YOUR FINANCIAL FOUNDATION

If your SaaS company is scaling and your accounting hasn’t kept up, you’re not alone. We’ve partnered with many software companies just like yours to bring them from chaos to clarity.

At kept.pro, our outsources accounting services tailored to the unique needs of SaaS help fast-growing companies like yours get compliant, unlock better reporting, and free up your leadership team to focus on what matters.