Technology Accounting
SaaS revenue recognition, startup accounting, and financial reporting for technology companies at every stage of growth.
Why Technology Accounting Requires Specialists
Technology companies — especially SaaS businesses — face accounting complexities that legacy firms often mishandle. ASC 606 revenue recognition requires analyzing every contract for performance obligations, variable consideration, and timing of revenue recognition. Deferred revenue schedules must be maintained for every subscription. R&D costs need proper categorization between expense and capitalization under ASC 350-40. Burn rate, runway, and unit economics are the KPIs that investors scrutinize during fundraising. Our technology accounting team includes specialists who have supported startups from seed stage through IPO readiness. We implement compliant ASC 606 revenue recognition frameworks, maintain deferred revenue waterfalls, categorize R&D expenses correctly, prepare board and investor reporting packages, and build the financial models that support fundraising conversations. Whether you are pre-revenue or scaling past $50M ARR, we deliver the financial rigor that your investors and auditors expect.
Technology Accounting Challenges We Solve
Common Challenges
SaaS Revenue Recognition (ASC 606)
ASC 606 requires analyzing every contract for performance obligations, variable consideration, and timing. Multi-element arrangements, usage-based pricing, and annual vs. monthly contracts each require different treatment.
Deferred Revenue & Subscription Tracking
Every subscription creates a deferred revenue balance that must be recognized ratably over the service period. Managing deferred revenue waterfalls across thousands of subscriptions requires specialized systems.
R&D Cost Capitalization
Distinguishing between research (expensed) and development (potentially capitalized under ASC 350-40) requires deep understanding of software development lifecycles and accounting standards.
Burn Rate & Runway Calculations
Investors and boards want accurate, real-time visibility into cash burn rate, runway, and capital efficiency. Getting these metrics wrong undermines fundraising credibility.
Investor & Board Reporting
Board members and investors expect professional-grade reporting packages with SaaS metrics (ARR, MRR, churn, LTV/CAC, NRR), financial statements, and forward-looking commentary.
How Plenexia Solves Them
ASC 606 Compliant Revenue Recognition
We implement and maintain revenue recognition frameworks that properly identify performance obligations, determine transaction prices, and recognize revenue as obligations are satisfied.
Subscription Revenue Tracking & Reporting
Automated deferred revenue waterfalls, MRR/ARR tracking, cohort analysis, churn calculations, and expansion revenue tracking — the full SaaS metrics stack.
R&D Expense Categorization & Capitalization
Proper classification of software development costs between research and development phases, with capitalization calculations and amortization schedules per ASC 350-40.
KPI Dashboards for Burn Rate & Runway
Real-time dashboards showing gross and net burn rate, cash runway, capital efficiency ratios, and unit economics that your board and investors expect.
Board-Ready Financial Packages
Monthly reporting packages including financial statements, SaaS operating metrics, budget vs. actual analysis, cash flow forecast, and management commentary.
What Technology Clients Say
“When we scaled from 50 to 200 employees in 18 months, our one-person finance team could not keep up. Plenexia brought in a virtual CFO, a senior accountant, and a bookkeeper who got our ASC 606 revenue recognition compliant in 60 days and compressed our monthly close from 15 days to 5. They were instrumental in our Series B fundraise.”
— David Chen, CFO at TechVenture Inc.
Ready for Expert Technology Accounting?
Get a dedicated virtual accounting team who understand the unique financial requirements of your industry — serving organisations in the US, UK, Australia, and UAE.