--- title: "Chart of Accounts for a SaaS Company: A Practical Setup" description: "A chart of accounts built for a subscription software business: revenue by type, deferred revenue, delivery costs, clearing accounts and how to keep it simple." url: "https://mcc-solutionsnj.com/bookkeeping/guides/chart-of-accounts-for-a-saas-company" --- Bookkeeping guide · Updated October 26, 2026 # Chart of Accounts for a SaaS Company: A Practical Setup A default chart of accounts is built for a shop or a service firm. A subscription software company needs a few extra accounts at the start, and it is much easier to set them up before the first year than to untangle them afterward. By [Matthew Coleman](/about), MCC Solutions Want this handled for you? Monthly bookkeeping, cleanup and year-end close for small businesses. Start with a free health check of your books. [Free health check](/bookkeeping/health-check)[Get a quote](/bookkeeping/#interest) **Related:** [NJ 1099 contractor rule (ABC test)](/bookkeeping/guides/nj-independent-contractor-rule-abc-test-2026) · [Trial balance explained](/bookkeeping/guides/trial-balance-explained) · [Owner contribution or loan](/bookkeeping/guides/owner-equity-and-capital-contributions) **Free tools:** [ROI and payback calculator](/bookkeeping/roi-and-payback-calculator) · [Net profit margin calculator](/bookkeeping/net-profit-margin-calculator) [![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77) Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) ## Revenue accounts Separate subscription revenue from usage fees, setup and onboarding fees and professional services. Each behaves differently, and a lender or investor will ask which part recurs. Splitting subscription revenue by plan is optional. Do it only if someone will use the split. Add a refunds and credits account that reduces revenue, rather than recording refunds as an expense. ## Liability accounts Deferred revenue belongs in its own account, split into current and long-term if you sell multi-year plans. Add a processor clearing account for each payment processor, and a sales tax payable account if you collect it. Each of these should return to a known balance every month. ## Cost of delivering the service Hosting and infrastructure, customer support, payment processing fees and third-party software that is part of the product each get a cost-of-delivery account. Keeping them together makes gross margin readable. Costs that exist whether or not you have customers, such as sales, research, administration, belong lower in the statement. ## Want us to handle it? We set up your books with you, or keep them for you every month, online for businesses in any state. **Price:** Free review of your books first, then a written quote before any work starts. [Get a free review and quote](/bookkeeping/#interest) [Done-with-you setup packages](/bookkeeping/done-with-you-bookkeeping-setup) ## Operating expenses Group them into sales and marketing, research and development, and general and administrative. If your accounting plan supports classes or departments, use them instead of making a separate account for every team. Keep the account list short enough that every transaction has an obvious home. ## Questions to settle early Some software development costs may be treated as an asset instead of an expense, and some sales commissions may be spread over a contract. These calls depend on facts and rules you should confirm with your CPA before the first close, so your accounts and reports are built for the answer. Review the chart every year. Unused accounts can be hidden, and accounts that hold a mix of things can be split. Do not renumber or delete accounts that have history without asking your CPA. ## A sample structure Revenue: subscription revenue, usage fees, setup fees, services, and refunds and credits. Cost of delivery: hosting and infrastructure, customer support, payment processing fees, and embedded third-party software. Operating expenses: sales and marketing, research and development, and general and administrative, with sub-accounts only where someone will read them. Liabilities: current and long-term deferred revenue, one clearing account per processor, and sales tax payable. Name accounts for what they hold, not for who uses them. A name like Hosting and infrastructure still makes sense in three years, and a name like Dev stuff does not. ## Processor accounts Record gross charges as revenue or as money owed to you, and record the processor's fees and any refunds separately. If the clearing account holds the net payout instead, you lose sight of fees and refunds, and your margin looks better than it is. Reconcile each clearing account to zero against bank deposits every month. ## Common questions **How many accounts does a small SaaS company need?** Fewer than you think. Start with the revenue, liability and cost-of-delivery accounts here and add only when someone will use the new detail. **Should every plan have its own revenue account?** Only if you will report on it. Plan-level detail is often better kept in the billing system and tied to the ledger in total. **Where do refunds go?** In a refunds and credits account that reduces revenue, so gross and net revenue are both visible. This guide is general information, not tax, legal or accounting advice. Rules, fees and due dates change; check with the IRS, the NJ Division of Taxation or a licensed professional for your situation. Let us handle it [### Monthly bookkeeping Categorizing, reconciling and monthly reports, with cleanup, payroll and NJ filings available. Bookkeeping →](/bookkeeping/) [### QuickBooks Online Monthly bookkeeping, cleanup and reconciliation in QuickBooks Online for New Jersey small businesses. Your account stays in your name. QuickBooks →](/bookkeeping/software/quickbooks-online)[### Xero Bookkeeping and reconciliation in Xero for New Jersey small businesses, including cleanup and moving from spreadsheets or another program. Xero →](/bookkeeping/software/xero) More guides - [Which Sales Channel Is Actually Profitable? A Method](/bookkeeping/guides/which-sales-channel-is-actually-profitable) - [Was That Craft Fair or Pop-Up Worth It? How to Tell](/bookkeeping/guides/was-that-craft-fair-or-pop-up-worth-it) - [Are My Books Ready for My CPA or a Lender? A Checklist](/bookkeeping/guides/are-my-books-ready-for-my-cpa-or-lender) - [How to Explain Month-Over-Month Variances in Your Books](/bookkeeping/guides/how-to-explain-month-over-month-variances) Free tool - [Bookkeeping health check](/bookkeeping/health-check) Related - [SaaS bookkeeping](/bookkeeping/saas-bookkeeping) - [Deferred revenue for SaaS](/bookkeeping/guides/deferred-revenue-for-saas-companies-explained) - [Stripe payouts and bookkeeping](/bookkeeping/guides/stripe-payouts-and-bookkeeping) [All guides](/bookkeeping/guides) Reach small business owners, freelancers and bookkeepers who read this guide: [advertise here](/advertise#bookkeeping). Do it yourself ### Monthly KPI Dashboard Workbook Type in each month's revenue, costs, receivables and cash, then pick a month and see the KPIs and charts that matter, with change from last month and the same month last year. [See what's inside ($29)](/toolkits/monthly-kpi-dashboard-workbook)14-day full refund Course: [Small Business Bookkeeping Basics](/courses/small-business-bookkeeping-basics) ($49) covers chart of accounts, reconciliations, the monthly close, payroll and 1099 basics for owners. It is training with a certificate of completion, not a credential. [![Cover of Bookkeeping Fundamentals (ebook) by Matthew Colt](/img/toolkits/bookkeeping-fundamentals-ebook/cover.webp)](/toolkits/bookkeeping-fundamentals-ebook) From the bookshelf ### Bookkeeping Fundamentals A college-level bookkeeping course, without the tuition. By Matthew Colt, $9.99 as an ebook (EPUB and PDF). [See the book](/toolkits/bookkeeping-fundamentals-ebook) [Read the first pages free](/toolkits/bookkeeping-fundamentals-ebook#free-starter) Excel library and CSV files ### Chart of Accounts and QuickBooks Import Pack Start your books with an account list built for your type of business, instead of the generic default, and compare it with the accounts you already have. [See what is inside ($24)](/toolkits/chart-of-accounts-quickbooks-import-pack) Also in the [Nonprofit Treasurer Bundle](/toolkits/nonprofit-treasurer-bundle): 3 products for $65 instead of $87 separately. ## Rather have us keep the books? Ask for a quote. [Get a Quote](/bookkeeping/#interest)[Call (908) 444-6373](tel:+19084446373)