--- title: "SaaS Month-End Close: A Checklist for Software Companies" description: "A close routine for a subscription software company: tie billing to the ledger, roll forward deferred revenue, reconcile payouts and accrue late hosting bills." url: "https://mcc-solutionsnj.com/bookkeeping/guides/saas-month-end-close-checklist" --- Bookkeeping guide · Updated October 26, 2026 # SaaS Month-End Close: A Checklist for Software Companies A SaaS close has two extra jobs that a typical small-business close does not: tying a billing system to the ledger and rolling deferred revenue forward. Done in the right order, it takes a predictable amount of time every month. 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:** [Trial balance explained](/bookkeeping/guides/trial-balance-explained) · [Owner contribution or loan](/bookkeeping/guides/owner-equity-and-capital-contributions) · [Closing entries and retained earnings](/bookkeeping/guides/closing-entries-and-retained-earnings) **Free tools:** [Net profit margin calculator](/bookkeeping/net-profit-margin-calculator) · [Early payment discount calculator](/bookkeeping/early-payment-discount-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) ## Start with the billing system Export the month's invoices, credits, refunds and new, changed and cancelled subscriptions from your billing tool. This is the source of everything else. If you close before this export is final, you will be rebuilding it after a late invoice lands. ## Roll deferred revenue forward Start with last month's closing balance. Add what you billed ahead of service this month. Subtract what you earned this month. The result should equal the balance on your books and the balance in your billing tool. A balance that does not tie is the most valuable thing a close can catch. ## Reconcile payouts and fees Processors pay you net of fees, refunds and disputes. Match each payout to a bank deposit, and record gross charges, fees and refunds as separate items. A processor clearing account that does not return to zero points to a payout you have not matched. See the guide to Stripe payouts. ## Want us to handle it? We close the year with you: accounts reconciled, 1099s sorted, and books your tax preparer can use. **Price:** Free review of your books first, then a written quote before any work starts. [Get a free review and quote](/bookkeeping/#interest) [1099 and year-end cleanup](/bookkeeping/1099-and-year-end-books-cleanup) ## Accrue costs that arrive late Hosting and infrastructure bills often arrive after the month ends but belong to it. Record an estimate based on usage, then replace it with the actual bill. Leaving them out flatters margin for a month and hurts the next. ## Payroll, contractors and commissions Reconcile payroll reports to the books. Check that contractor payments are in the right accounts and that you have a W-9 for each. Sales commissions can need special treatment when they relate to multi-month contracts, so ask your CPA how yours should be handled. ## Sales tax and the pack Software is taxed differently from state to state, so ask your CPA where you may have to collect before you sell broadly. When the numbers tie, save the reports, set the closing date and send a short pack to the founder: profit and loss, balance sheet, deferred revenue roll-forward and a one-paragraph explanation of anything unusual. The free monthly close checklist covers the general steps. ## A sample calendar One workable rhythm: on the first business day, export from the billing system and download bank and processor statements. By the third, finish the reconciliations. By the fourth, post deferred revenue, accruals and payroll. By the fifth, review the reports, fix questions and send the pack. These days are an example, not a rule, so pick dates your team can keep. What slows a close is rarely the math. Late invoices, payouts nobody matched, and plan changes made in the billing tool but not recorded elsewhere cause most of the delay. Fix those at the source and the calendar shortens by itself. Keep a short list of recurring surprises for the next close, so each month starts a little ahead of the last. ## Common questions **How long should a SaaS close take?** It depends on the number of customers and how clean your billing data is. Reconciling as you go shortens it more than anything else. **Do I need accrual accounting to close properly?** Most software companies need it for deferred revenue and accrued costs. Ask your CPA what your lender or investors expect. **Can the billing system do the close for me?** It can produce the reports. It cannot decide your accounting treatment or confirm that the totals match your ledger. 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)[### Square, Stripe and payment processors How sales from Square, Stripe, PayPal and other processors should flow into your accounting software, and why deposits never match sales. Square & Stripe →](/bookkeeping/software/square-and-stripe) More guides - [SaaS Metrics a Bookkeeper Can Hand the Founder](/bookkeeping/guides/saas-metrics-a-bookkeeper-can-hand-the-founder) - [Chart of Accounts for a SaaS Company: A Practical Setup](/bookkeeping/guides/chart-of-accounts-for-a-saas-company) - [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) Free tool - [Bookkeeping health check](/bookkeeping/health-check) Related - [SaaS bookkeeping](/bookkeeping/saas-bookkeeping) - [Monthly close checklist (Excel)](/bookkeeping/templates/monthly-close-checklist) - [SaaS revenue schedule (Excel)](/bookkeeping/templates/saas-mrr-and-deferred-revenue-schedule) [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) ## Rather have us keep the books? Ask for a quote. [Get a Quote](/bookkeeping/#interest)[Call (908) 444-6373](tel:+19084446373)