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What is a sample chart of accounts for SaaS companies?

Vanessa Kruze, CPA, is a leading expert in startup taxes and tax compliance. Her team at Kruze Consulting has filed thousands of tax returns for companies that have raised billions in VC funding, and her work has been diligenced by leading VCs, attorneys, and M&A teams at the largest technology companies.

Vanessa Kruze, a highly-experienced CPA, brings valuable tax expertise to startups, drawing from her rich background at Deloitte Tax and as a financial controller for a $20 million startup. As the leader of Kruze Consulting, recognized multiple times in the Inc 5000 list, she specializes in navigating the complex tax landscape for startups. Her firm is known for delivering precise and strategic tax solutions, delivering tax credits utilizing advanced tools to ensure compliance and optimize tax benefits for startups throughout the United States.

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Table of contents

We’ve helped SaaS companies (and other startups) raise billions of dollars in venture capital funding and grow to hundreds of millions of dollars in revenue - and having clean, accrual-based financial statements is a critical part of VC due diligence and running a metric driven organization. The goal of the Chart of Accounts is to make recording financial transactions, such as revenue, expenses, investments, etc. as fool-proof and logical as possible.

This template SaaS Chart of Accounts should help you organize your financial statements, and we suggest setting it up from the get-go. While it is possible to add to or update a Chart of Accounts as you build your company, it can become pretty expensive and time consuming if you make changes after you’ve collected a lot of revenue or spend a lot developing a product.

We are including an example of a typical SaaS business’ Income Statement, and then have a standard Chart of Accounts structure, and then a table with an example Chart of Accounts for a SaaS company below. Hopefully this is helpful! And if you are looking for an experienced SaaS accountant, reach out to us.

Sample SaaS Income Statement

	Jan 2021	Feb 2021	Mar 2021
Income
400000 Revenue
401000 Subscription	$ 17,708	$ 26,875	$ 37,188
Total 400000 Revenue	$ 17,708	$ 26,875	$ 37,188
Total Income	$ 17,708	$ 26,875	$ 37,188
Gross Profit	$ 17,708	$ 26,875	$ 37,188
Expenses
600000 Sales, General, and Administrative Expenses
604000 Professional Fees
604400 Contractors & Consultants	$ 13,197	$ 18,954	$ 28,493
604200 Accounting	$ 450	$ 450	$ 500
604100 Legal	$ 100	$ 250	$ 250
Total 604000 Professional Fees	$ 13,747	$ 19,654	$ 29,243
602000 Payroll Expense
602001 Wages	$ 16,617	$ 20,771	$ 41,542
602007 Payroll Processing Fees	$ 2,243	$ 2,804	$ 5,607
602004 Payroll Taxes	$ 1,334	$ 1,667	$ 3,335
602006 Workers’ Compensation	$ 15	$ 20	$ 38
Total 602000 Payroll Expense	$ 20,209	$ 25,262	$ 50,521
603000 Software & Web Services	$ 1,824	$ 2,502	$ 3,153
601000 Sales & Marketing
601001 Paid Ads	$ 3,790	$ 4,316	$ 9,248
Total 601000 Sales & Marketing	$ 3,790	$ 4,316	$ 9,248
610000 Office Supplies & General Expense	$ 180	$ 250	$ 450
609000 Office Furniture / Equipment	$ 101	$ 204	$ 252
613000 Bank Charges	$ 47	$ 105	$ 118
616000 Postage & Shipping	$ 0	$ 1	$ 1
Total 600000 Sales, General, and Administrative Expenses	$ 39,898	$ 52,294	$ 92,985
Total Expenses	$ 39,898	$ 52,294	$ 92,985
Net Operating Income	$ (22,190)	$ (25,419)	$ (55,797)
Net Income	$ (22,190)	$ (25,419)	$ (55,797)

High Level SaaS Chart of Accounts Map

This is the highest level map of how the accounting groups will be organized. All other accounts will be sub accounts based off of this list. The numbers will help you quickly identify where any particular child is grouped - i.e. 301000 is Common Stock, which is grouped under the 300000 Equity group.

Numbering System	Account Type
Number Grouping	Classification
100000	Asset
200000	Liability
300000	Equity
400000	Revenue
500000	COGS
600000	Sales, General & Administrative Expense
700000	Research & Development Expense
900000	Other (Income) / Expenses

Accounts that a SaaS startup might use

In a SaaS startup’s chart of accounts, various categories of accounts are essential These typically include revenue accounts, such as subscription fees and one-time sales, which reflect the income generated from providing the service. Operating expenses accounts cover day-to-day costs like salaries, marketing expenses, and software development. Other crucial categories encompass assets, liabilities, and equity accounts, detailing the company’s financial position. Asset accounts may include cash, accounts receivable, and equipment, while liabilities might involve accounts payable and accrued expenses. Equity accounts represent the owners’ stake in the business. Each account serves a distinct purpose in tracking financial transactions and facilitating strategic decision-making for the startup.

The table below shows some different types of accounts a SaaS startup could use, along with some examples of standard account types to illustrate how the accounts are structured. The account numbers follow Kruze’s standard numbering system, but individual account numbers could vary. NOTE: This is not a comprehensive list – this is just a sample of the accounts your SasS company may require.

Account Number	Account Name	Account Type	Detail Type
104000	Cash	Current Assets	Checking
120000	Accounts Receivable	Current Assets	Accounts Receivable
131100	Prepaid Expenses	Current Assets	Prepaid Expense
152000	Computers	Current Assets	Computer Equipment
159000	Accumulated Depreciation	Current Assets	Accumulated Depreciation
210000	Accounts Payable	Liabilities	Accounts Payable
220000	Credit Card	Liabilities	Credit Card
300000	Equity	Equity	Equity
401000	Subscription Revenue	Sales	Subscription Revenue
402000	Implementation Fees Revenue	Sales	Service/Consulting Income
403000	Professional Services Revenue	Sales	Service/Consulting Income
500000	Cost of Goods Sold	Cost of Goods Sold	Cost of Goods Sold
502002	Electrical	Cost of Goods Sold	Utilities
505000	Hosting Fees	Cost of Goods Sold	Other Costs of Services
601000	Marketing and Advertising Expenses	SG&A Expense	Marketing
602000	Payroll Expenses	SG&A Expense	Payroll
602104	Payroll Taxes Payable	SG&A Expense	Payroll Taxes Payable
614000	Rent Expenses	SG&A Expense	Rent
700000	Research and Development Expenses	R&D Expense	Research & Development
810000	Depreciation Expense	Other Operating Expenses	Depreciation
236100	Sales Tax Payable	LIabilities	Sales Tax Payable

For a company providing software as a service, there may be unique accounts specific to its operations that are not typically found in a standard chart of accounts. Here are some potential unique accounts:

Subscription Revenue. This account would track revenue generated from subscription-based models, where customers pay recurring fees for access to the company’s software platform.
Software Licensing Revenue. If the company sells licenses for its software to customers for perpetual use rather than on a subscription basis, it would need an account to track revenue from software licensing agreements.
Consulting Revenue. The company may offer consulting services to customers for implementation, customization, or training related to its software platform, necessitating an account to track revenue from consulting engagements.
Data Integration Services Revenue. If the company provides data integration services to customers, helping them connect their existing systems with the software platform, it would require an account to track revenue from these services.
Platform Usage Fees. Customers may be charged fees based on their usage of the software platform, such as the number of transactions processed, necessitating an account to track this revenue.
Software Development Costs. Given the continuous development and enhancement of the software platform, the company may incur expenses related to research, testing, and development efforts to improve the software’s functionality and features.
Integration Costs. This account would capture expenses related to integrating the company’s software platform with the existing systems and processes of clients, including customization and implementation costs.
Data Security Expenses. Given the sensitive nature of any financial data handled by the software platform, the company may incur expenses for implementing and maintaining robust data security measures, such as encryption, access controls, and security audits.

These unique accounts would provide more detailed insight into the financial aspects of the company’s operations and help in accurately tracking revenues and expenses specific to its business model.

Example SaaS Chart of Accounts Template

This is a sample Chart of Accounts that we have used with hundreds of VC backed SaaS startups.

Account Number	Account / Subaccount Name	Parent Account #	Parent Account Name	Detail Type
100000	Current Assets	N/A	N/A	Checking
101000	Bank 1	100000	Current Assets	Checking
102000	Bank 2	100000	Current Assets	Checking
103000	Bank 3	100000	Current Assets	Checking
104000	Bank 4	100000	Current Assets	Checking
105000	Bank 5	100000	Current Assets	Checking
106000	Bank 6	100000	Current Assets	Checking
107000	Bank 7	100000	Current Assets	Checking
108000	Bank 8	100000	Current Assets	Checking
109000	Bank 9	100000	Current Assets	Checking
110000	Bank 10	100000	Current Assets	Checking
111000	Bill.com Money Out Clearing	100000	Current Assets	Checking
112000	Bill.com Money In Clearing	100000	Current Assets	Checking
120000	Accounts Receivable	N/A	N/A	Accounts Receivable (A/R)
130000	Other Current Assets	N/A	N/A	Other Current Assets
131000	Prepaids	130000	Other Current Assets	Prepaid Expenses
131100	Prepaid Expenses	131000	Other Current Assets	Prepaid Expenses
131200	Prepaid Rent	131000	Other Current Assets	Prepaid Expenses
131300	Prepaid Benefits	131000	Other Current Assets	Prepaid Expenses
132000	Payroll Receivable	130000	Other Current Assets	Other Current Assets
133000	Clearing Account	130000	Other Current Assets	Other Current Assets
133100	Stripe Clearing	133000	Clearing Account	Other Current Assets
133200	Paypal Clearing	133000	Clearing Account	Other Current Assets
133300	Other Clearing	133000	Clearing Account	Other Current Assets
134000	Deferred Cost of Revenue	130000	Other Current Assets	Other Current Assets
135000	Deferred Refunds	130000	Other Current Assets	Other Current Assets
136000	Accrued Revenue	130000	Other Current Assets	Other Current Assets
137000	Loan to Shareholder	130000	Other Current Assets	Other Current Assets
138000	Undeposited Funds	130000	Other Current Assets	Other Current Assets
150000	Fixed Assets	N/A	N/A	Depletable Assets
151000	Furniture & Fixtures	150000	Fixed Assets	Fixed Asset Furniture
152000	Computers	150000	Fixed Assets	Fixed Asset Computers
153000	Office Equipment	150000	Fixed Assets	Fixed Asset Copiers
154000	Machinery & Equipment	150000	Fixed Assets	Machinery & Equipment
155000	Autos & Trucks	150000	Fixed Assets	Vehicles
156000	Building	150000	Fixed Assets	Buildings
157000	Land	150000	Fixed Assets	Land
158000	Leasehold Improvements	150000	Fixed Assets	Leasehold Improvements
159000	Accumulated Depreciation	150000	Fixed Assets	Accumulated Depreciation
160000	Intangible Assets	N/A	N/A	Intangible Assets
161000	Domain	160000	Intangible Assets	Intangible Assets
162000	Trademarks	160000	Intangible Assets	Intangible Assets
163000	Patents	160000	Intangible Assets	Intangible Assets
164000	Intangible Asset 1	160000	Intangible Assets	Intangible Assets
165000	Intangible Asset 2	160000	Intangible Assets	Intangible Assets
169000	Accumulated Amortization	160000	Intangible Assets	Accumulated Amortization
170000	Other Assets	N/A	N/A	Other Long-term Assets
171000	Security Deposit	170000	Other Assets	Security Deposits
172000	Interest Receivable	170000	Other Assets	Other Long-term Assets
210000	Accounts Payable	N/A	N/A	Accounts Payable (A/P)
220000	Credit Cards	N/A	N/A	Credit Card
220001	Credit Card 1	220000	Credit Cards	Credit Card
220002	Credit Card 2	220000	Credit Cards	Credit Card
220003	Credit Card 3	220000	Credit Cards	Credit Card
220004	Credit Card 4	220000	Credit Cards	Credit Card
220005	Credit Card 5	220000	Credit Cards	Credit Card
220006	Credit Card 6	220000	Credit Cards	Credit Card
220007	Credit Card 7	220000	Credit Cards	Credit Card
220008	Credit Card 8	220000	Credit Cards	Credit Card
220009	Credit Card 9	220000	Credit Cards	Credit Card
220010	Credit Card 10	220000	Credit Cards	Credit Card
230000	Other Current LIabilities	N/A	N/A	Other Current Liabilities
231000	401(k) Payable	230000	Other Current Liabilities	Other Current Liabilities
232000	Loan from Shareholder	230000	Other Current Liabilities	Other Current Liabilities
233000	Payroll Liabilities	230000	Other Current Liabilities	Payroll Clearing
234000	Payroll Tax Liabilities	230000	Other Current Liabilities	Payroll Tax Payable
235000	Accruals	230000	Other Current Liabilities	Other Current Liabilities
235100	Accrued Expenses	235000	Other Current Liabilities	Other Current Liabilities
235200	Accrued Rent	235000	Other Current Liabilities	Other Current Liabilities
235300	Accrued Vacation	235000	Other Current Liabilities	Other Current Liabilities
236000	Taxes Payable	230000	Other Current Liabilities	Other Current Liabilities
236100	Sales Tax Payable	236000	Other Current Liabilities	Other Current Liabilities
236200	Use Tax Payable	236000	Other Current Liabilities	Other Current Liabilities
236300	SF Tax Payable	236000	Other Current Liabilities	Other Current Liabilities
237000	Deferred Revenue	230000	Other Current Liabilities	Other Current Liabilities
238000	Sublease Deposit & Prepaid Rent	230000	Other Current Liabilities	Other Current Liabilities
239000	Employee Reimbursement Liability	230000	Other Current Liabilities	Other Current Liabilities
240000	Long Term Liabilities	N/A	N/A	Other Long Term Liabilities
241000	Notes / Bonds Payable	240000	Long Term Liabilities	Notes Payable
242000	Accrued Interest	240000	Long Term Liabilities	Notes Payable
300000	Equity	N/A	N/A	Preferred Stock
301000	Common Stock	300000	Equity	Common Stock
302000	SAFE Notes	300000	Long Term Liabilities	Preferred Stock
302001	SAFE Investor 1	302000	SAFE Notes	Preferred Stock
302002	SAFE Investor 2	302000	SAFE Notes	Preferred Stock
302003	SAFE Investor 3	302000	SAFE Notes	Preferred Stock
302004	SAFE Investor 4	302000	SAFE Notes	Preferred Stock
302005	SAFE Investor 5	302000	SAFE Notes	Preferred Stock
302006	SAFE Investor 6	302000	SAFE Notes	Preferred Stock
302007	SAFE Investor 7	302000	SAFE Notes	Preferred Stock
302008	SAFE Investor 8	302000	SAFE Notes	Preferred Stock
302009	SAFE Investor 9	302000	SAFE Notes	Preferred Stock
303000	Preferred Stock	300000	Equity	Preferred Stock
303100	Series Seed	303000	Preferred Stock	Preferred Stock
303200	Series A	303000	Preferred Stock	Preferred Stock
303300	Series B	303000	Preferred Stock	Preferred Stock
303400	Series C	303000	Preferred Stock	Preferred Stock
303900	Financing Costs	303000	Preferred Stock	Accumulated Adjustment
304000	Paid-In Capital	300000	Equity	Paid-In Capital or Surplus
305000	Treasury Stock	300000	Equity	Treasury Stock
308000	Opening Balance Equity	300000	Equity	Opening Balance Equity
400000	Sales	N/A	N/A	Sales of Product Income
401000	Product SKU 1	400000	Sales	Sales of Product Income
402000	Product SKU 2	400000	Sales	Sales of Product Income
403000	Product SKU 3	400000	Sales	Sales of Product Income
404000	Discounts	400000	Sales	Discounts/Refunds Given
405000	Refunds	400000	Sales	Discounts/Refunds Given
500000	Cost of Goods Sold	N/A	N/A	Other Costs of Services - COS
501000	Direct Labor	500000	Cost of Goods Sold	Cost of Labor - COS
504000	Overhead Allocation	500000	Cost of Goods Sold	Other Costs of Services - COS
505000	Hosting Fees	500000	Cost of Goods Sold	Other Costs of Services - COS
600000	Sales, General, and Administrative Expenses	N/A	N/A	Advertising/Promotional
601000	Sales & Marketing	600000	Sales, General, and Administrative Expenses	Advertising/Promotional
601001	Paid Ads	601000	Sales & Marketing	Advertising/Promotional
601002	Promotional Items	601000	Sales & Marketing	Advertising/Promotional
601003	Conferences	601000	Sales & Marketing	Advertising/Promotional
601004	Sales Commission	601000	Sales & Marketing	Advertising/Promotional
602000	Payroll Expense	600000	Sales, General, and Administrative Expenses	Advertising/Promotional
602001	Wages	602000	Payroll Expense	Payroll Expenses
602002	Bonuses	602000	Payroll Expense	Payroll Expenses
602003	Vacation Expense	602000	Payroll Expense	Payroll Expenses
602004	Payroll Taxes	602000	Payroll Expense	Payroll Expenses
602005	Employee Benefits	602000	Payroll Expense	Payroll Expenses
602006	Workers’ Compensation	602000	Payroll Expense	Payroll Expenses
602007	Payroll Processing Fees	602000	Payroll Expense	Payroll Expenses
603000	Software & Web Services	600000	Sales, General, and Administrative Expenses	Office/General Administrative Expenses
604000	Professional Fees	600000	Sales, General, and Administrative Expenses	Legal & Professional Fees
604001	Legal	604000	Professional Fees	Legal & Professional Fees
604002	Accounting	604000	Professional Fees	Legal & Professional Fees
604003	Recruiting	604000	Professional Fees	Legal & Professional Fees
604004	Contractors & Consultants	604000	Professional Fees	Legal & Professional Fees
605000	Travel Expenses	600000	Sales, General, and Administrative Expenses	Travel
606000	Meals	600000	Sales, General, and Administrative Expenses	Travel
607000	Entertainment / Team Events	600000	Sales, General, and Administrative Expenses	Other Business Expenses
608000	Insurance Expense	600000	Sales, General, and Administrative Expenses	Insurance
609000	Office Furniture / Equipment	600000	Sales, General, and Administrative Expenses	Office/General Administrative Expenses
610000	Office Supplies	600000	Sales, General, and Administrative Expenses	Office/General Administrative Expenses
611000	Telephone / Internet Expense	600000	Sales, General, and Administrative Expenses	Office/General Administrative Expenses
612000	Utilities Expense	600000	Sales, General, and Administrative Expenses	Office/General Administrative Expenses
613000	Bank Charges	600000	Sales, General, and Administrative Expenses	Bank Charges
614000	Rent Expense	600000	Sales, General, and Administrative Expenses	Rent or Lease of Buildings
700000	Research & Development Expenses	N/A	N/A	Other Business Expenses
900000	Other (Income) / Expenses	N/A	N/A	Other Miscellaneous Expense
901000	Interest (Income) / Expense	900000	Other (Income) / Expenses	Other Miscellaneous Expense
902000	Taxes & Licenses	900000	Other (Income) / Expenses	Other Miscellaneous Expense
903000	Depreciation Expense	900000	Other (Income) / Expenses	Depreciation
904000	Amortization Expense	900000	Other (Income) / Expenses	Amortization
905000	Bad Debt Expense	900000	Other (Income) / Expenses	Other Miscellaneous Expense

SaaS Company Chart of Accounts FAQ

What is a Chart of Accounts?

A Chart of Accounts is a legend/index/map of all of the “accounts” where financial transactions can be recorded in your company’s general ledger and accounting system. Each possible location, i.e. account, where a transaction can be listed is recorded in the Chart of Accounts.

Why does a Chart of Accounts matter?

A well designed Chart of Accounts should make it easy to know where to record a company’s transactions. Correctly recorded transactions help business owners and startup founders get better understanding into their company’s performance, and makes following GAAP and accounting standards much, much easier.

Where can you access your company’s Chart of Accounts?

QuickBooks Online is the defacto standard accounting software for venture capital backed startups in the United States, and you find your Chart of Accounts in QuickBooks by hovering over “Accounting” in the navigation column on the left, then clicking “Chart of Accounts.”

Chart of Accounts

Can you change your startup’s Chart of Accounts?

Yes, the COA is not set in stone! If you are using a modern accounting software, it is not too hard to add to your chart of accounts. However, adding in a new item to the chart can make you have to do some extra work. For example, you may have to go back and recategorize transactions that now fit into the new item - although you probably should not change closed tax periods.

Major changes to the COA are also possible, but can be quite a bit of work. We’d recommend working with an experienced startup accountant (like Kruze) if you are going to make serious changes. Additionally, making changes to prior years is not a good idea - those books should be closed when you file your taxes.

What is special about a SaaS company’s Chart of Accounts?

A financial analyst should be able to guess the industry your company is in by looking at your Chart of Accounts - and SaaS businesses are no exception. SaaS businesses are more likely than the average business to have Deferred Revenue, Accrued Revenue and Deferred Costs of Revenue on the balance sheet. SaaS businesses are less likely to have Inventory on the Balance Sheet, and are also less likely to need Direct Parts & Materials, Electrical and Freight & Delivery/Shipping on the Income Statement. This hints at part of the reason why investors love SaaS companies so much - those accounts correspond to cash-intensive activities, while traditional SaaS businesses are generally asset light and have easy to deliver software services!

Where should a SaaS company book non-recurring revenue?

Not all revenue will be recurring. VC’s like to know what recurring revenue is to calculate ARR - so it’s helpful to break it out into a separate account number in your SaaS company chart of accounts. In the template above, we’d suggest using number 401000 for recurring revenue and 402000 for non-recurring revenue.

Examples of non-recurring revenue - all of which could have their own account number in the COA - might be implementation revenue, overage charges, custom development work, one time access charges, one time support fees and more.

How does Deferred Revenue work at a SaaS company?

One of the most important elements of a SaaS company’s financial statements and Chart of Accounts is the interplay between Deferred Revenue, Cash and Recognized Revenue. MRR is generally calculated as the monthly recognized revenue (although different VCs do look at MRR differently; MRR is not an accounting defined term, so the actual definition can vary based on the business!) So how Deferred Revenue converts into Recognized Revenue matters quite a bit.

When a SaaS company is paid up front for a service that will be delivered over time (often over 12 months with standard SaaS company contracts), the company can not recognize all of that revenue at once. Instead, it recognizes the revenue over the 12 month period. The cash that is received goes onto the balance sheet, and the offsetting liability is Deferred Revenue. Each month, typically ratably, the Recognized Revenue goes onto the Income Statement, and the liability account of Deferred Revenue decreases. You can read more about deferred revenue on our financial modeling template page, as projecting and modeling deferred revenue can be tricky.

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