SaaS
Stripe, the SaaS dashboard and the accounts often disagree on MRR and ARR because of overdue customers, scheduled churn and contracts not yet started.
Finance for SaaSAccounting & Financial Reporting
When your financial reports don't match
The accountant has one revenue number, the dashboard another, the investor spreadsheet a third. Before deciding who is wrong, you need to know why they differ.
Why numbers become inconsistent
Different reports use different dates, definitions and data sources. Integrations change quietly, closed months get edited, and metrics like ARR mean something different in finance and sales. The result is a company that double-checks every number before acting on it.
- Three reports, three different revenue figures
- Old board packs no longer match the accounts
- Costs that look too low to be true
- Checking the source before trusting any report
How to get one set of numbers
Trust comes from knowing where each number comes from and making sure every report uses the same source and definitions.
- 1
Reconcile the reports
Trace each figure to its source and explain every difference: timing, definitions, missing data or errors.
- 2
Agree the definitions
A short metric dictionary for revenue, ARR, churn and margin that finance, sales and investors all use.
- 3
Lock closed periods
Close each month properly so reported numbers don't change afterwards without a documented reason.
- 4
Add simple controls
Monthly checks that catch missing costs, broken integrations and mapping errors early.
Where numbers diverge in tech companies
MSPs
Changes to how ConnectWise sends invoices and costs into the accounting system can shift revenue and COGS without anyone noticing.
Finance for MSPsIT services & agencies
The PSA shows work delivered, the accounts show work invoiced. The two need a documented bridge.
Finance for IT services & agenciesFrequently asked questions
Why do different financial reports show different revenue?
Common reasons are cash vs accrual basis, different date ranges or filters, invoices vs recognized revenue, and data that didn't sync between systems.
Why don't old board packs match the accounts anymore?
Usually because closed months were edited after the pack was produced. A proper month-end close and period lock prevents it.
What should a metric dictionary contain?
The name, definition, formula, data source and owner for each metric, such as ARR, churn, CAC and NRR.
How do we define ARR when systems disagree?
Decide explicitly how to treat overdue customers, scheduled churn and signed but not started contracts, write it down, and calculate it from one source.
Our P&L shows lower expenses than expected. How do we check?
Compare bank and card spend against recorded costs by supplier. Missing bills, uncategorized transactions and broken feeds are the usual causes.
Can another accountant review our books without replacing our accountant?
Yes. An independent review can check whether the accounts are reliable and recommend fixes while your accountant stays in place.
What's the difference between a book review, a financial statement review and an audit?
An informal review checks the books for errors. A formal review gives limited assurance. An audit gives reasonable assurance and is the most thorough and expensive.
Your company has enough moving parts already.
Start with a clear look at where things stand and what should improve.