Gruv Logo
← Back to all topics

SaaS Accounting Articles

Browse 2 Gruv blog articles tagged SaaS Accounting. Coverage includes Payment Protection & Finance. Practical guides, examples, and checklists for cross-border payments, tax, compliance, invoicing, and global operations.

Financial Management16 min read

Revenue Recognition for SaaS Companies Under ASC 606

Use revenue recognition as an operating control, not a year-end cleanup task. If you make decisions from cash balance alone, you can spend against cash that is not earned yet. Under ASC 606, cash collected before you transfer the promised service is a [contract liability](https://dart.deloitte.com/USDART/home/codification/revenue/asc606-10/roadmap-revenue-recognition/chapter-14-presentation/14-2-contract-liabilities), commonly called deferred revenue, until that service is delivered.

asc 606saas accountingrevenue recognition+2 more
Read →
Deep Dives14 min read

Deferred Revenue Accounting for Client Prepayments

A client prepayment is not earned revenue on day one. Under ASC 606 and [IFRS 15](https://www.ifrs.org/issued-standards/list-of-standards/ifrs-15-revenue-from-contracts-with-customers), cash you receive before transferring the promised service is presented as a **contract liability**, often labeled deferred revenue, until the work is actually delivered.

deferred revenueunearned revenuesaas accounting+2 more
Read →