Technology, SaaS & IT Services

Technology companies — early-stage SaaS, mid-market IT services firms, or multinational software groups — operate in a financial environment defined by technically demanding revenue recognition, complex equity structures, multi-state tax exposure, and growth that consistently outpaces internal finance capacity.

ASC 606 is where most of the difficulty concentrates. A SaaS contract bundling a subscription, an implementation service and a discounted first year has to be decomposed into performance obligations, allocated across them on standalone selling price, and recognised on a pattern that matches transfer of control. Add usage-based pricing, mid-term upgrades and multi-year prepayments and the deferred revenue waterfall becomes the single most-examined schedule in the file.

Then there is nexus. Economic nexus thresholds now capture SaaS businesses that have never had an employee or an office in the states taxing them, and around twenty states treat SaaS as taxable — with definitions that differ from each other. A company can accumulate registration and filing obligations across a dozen states without noticing.

Our technology practice brings current working knowledge of exactly these areas, giving CPA firms and finance teams the offshore capacity to manage them properly rather than approximately.