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SaaS Chart of Accounts Template
A SaaS chart of accounts is a list of ledger accounts set up for subscription revenue: it adds deferred revenue, contract assets, capitalized commissions and revenue by stream to a standard chart. This free template maps all 45 accounts to their Xero type and their QuickBooks Online type and detail type, in one Excel workbook.
- Free Excel workbook, 45 accounts
- Mapped to Xero and QuickBooks Online account types
- Built around the ASC 606 and IFRS 15 accounts SaaS needs
Get the SaaS chart of accounts template
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Excel workbook (.xlsx), 45 accounts, 10 KB.
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Book a DemoWhat a SaaS chart of accounts needs
Four groups of accounts separate a SaaS chart of accounts from a generic one.
Deferred revenue (a contract liability)
SaaS customers usually pay before the service is delivered: an annual plan billed upfront is twelve months of revenue still to be earned. That balance sits in deferred revenue, a liability, and moves to subscription revenue month by month. ASC 606 calls it a contract liability: an obligation to transfer goods or services to a customer for which the entity has received consideration, or the amount is due. Split it into current (recognized within 12 months) and non-current for multi-year prepayments. For the bookkeeping, see how to record deferred revenue.
Contract assets (unbilled revenue)
The reverse case: revenue you have earned but cannot yet invoice. Under ASC 606, a contract asset is a right to consideration that depends on something other than the passage of time, such as finishing an implementation milestone. A receivable is unconditional: only time has to pass before payment is due. Keeping the two in separate accounts stops unbilled revenue from inflating accounts receivable and your days sales outstanding.
Capitalized commissions
ASC 340-40 requires the incremental costs of obtaining a contract, with a sales commission as the standard example, to be recognized as an asset when you expect to recover them, then amortized over the period the customer is expected to stay. A practical expedient lets you expense them as incurred when that period would be one year or less. Most SaaS companies with multi-year customers therefore need deferred commissions accounts (current and non-current) and a commissions expense account for the amortization.
Revenue by stream
Subscription revenue, usage revenue, implementation fees and professional services behave differently, so give each its own account. Recurring subscription revenue is the base for MRR and ARR; one-time services are not. Matching cost of revenue accounts, such as hosting against subscriptions and services payroll against services revenue, let you read gross margin by stream instead of one blended figure.
The template at a glance
These are the SaaS-specific accounts from the template. The download has all 45, from the bank account to income tax, each with its Xero type and its QuickBooks Online type and detail type.
| Code | Account | Xero type | QuickBooks Online type / detail type |
|---|---|---|---|
| 1150 | Contract assets (unbilled revenue) | Current Asset | Other Current Assets / Other Current Assets |
| 1200 | Prepaid expenses | Prepayment | Other Current Assets / Prepaid Expenses |
| 1250 | Deferred commissions, current | Current Asset | Other Current Assets / Other Current Assets |
| 1500 | Deferred commissions, non-current | Non-current Asset | Other Assets / Other Long-term Assets |
| 2200 | Deferred revenue, current | Current Liability | Other Current Liabilities / Other Current Liabilities |
| 2250 | Deferred revenue, non-current | Non-current Liability | Long Term Liabilities / Other Long Term Liabilities |
| 4000 | Subscription revenue | Revenue | Income / Service/Fee Income |
| 4100 | Usage revenue | Revenue | Income / Service/Fee Income |
| 4200 | Implementation and onboarding revenue | Revenue | Income / Service/Fee Income |
| 4300 | Professional services revenue | Revenue | Income / Service/Fee Income |
| 5000 | Hosting and infrastructure | Direct Costs | Cost of Goods Sold / Other Costs of Services – COS |
| 5300 | Professional services payroll | Direct Costs | Cost of Goods Sold / Cost of labor – COS |
| 6050 | Commissions expense | Expense | Expenses / Commissions and fees |
Check the types against your own dropdowns before you import. Xero and QuickBooks Online label account types slightly differently by region and change them over time, and an import fails on a label it does not recognize. In Xero, go to Accounting > Chart of accounts > Import and copy the columns into Xero’s own example file. In QuickBooks Online, go to Settings > Import data > Chart of accounts; to keep the codes, turn on account numbers first under Settings > Account and settings > Advanced.
Once the accounts are in place, ScaleXP can automate revenue recognition from Xero or QuickBooks Online, so deferred revenue moves to the right revenue account each month without a spreadsheet.
Sources: FASB, ASU 2014-09, Revenue from Contracts with Customers (Topic 606), May 2014, including the contract asset, contract liability and receivable definitions and Subtopic 340-40 on the costs of obtaining a contract. IFRS Foundation, IFRS 15 Revenue from Contracts with Customers, issued May 2014, effective for periods beginning on or after 1 January 2018. The template is a starting point, not accounting advice.
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SaaS chart of accounts FAQs
What is a SaaS chart of accounts?
A SaaS chart of accounts is the list of ledger accounts a subscription software company uses to record its finances. It starts from a standard chart and adds the accounts subscription revenue needs: deferred revenue, contract assets, capitalized commissions, and revenue and cost of revenue split by stream, so MRR, ARR and gross margin can be read straight from the books.
What accounts does a SaaS company need that a standard chart of accounts lacks?
Four groups: deferred revenue (current and non-current) for billing in advance, contract assets for revenue earned but not yet billable, deferred commissions for sales commissions capitalized under ASC 340-40, and separate revenue accounts for subscription, usage, implementation and professional services, each matched by its own cost of revenue account.
Where does deferred revenue go in a SaaS chart of accounts?
Deferred revenue is a liability: cash or invoices received for service not yet delivered. Put the portion recognized within 12 months under current liabilities and multi-year prepayments under non-current liabilities, and release it to subscription revenue as the service is delivered. What is deferred revenue? covers the definition in more detail.
What is the difference between a contract asset and accounts receivable?
Both are amounts a customer owes. Accounts receivable is unconditional: only time has to pass before payment is due. A contract asset is conditional on something else, usually more work from you, such as completing an implementation milestone. Under ASC 606 the two are presented separately.
Should SaaS companies capitalize sales commissions?
Under ASC 340-40, yes, when the commission is an incremental cost of winning the contract and you expect to recover it: record it as an asset and amortize it over the expected customer relationship. If that period would be one year or less, the practical expedient lets you expense it as incurred.
Can I import this template into Xero or QuickBooks Online?
Yes, once you have checked it. The workbook gives each account a Xero type and a QuickBooks Online type and detail type, but both systems label types slightly differently by region, so compare them with the dropdowns in your own file before importing. Keep the system accounts you already have, such as accounts receivable, accounts payable and retained earnings.
More on SaaS finance automation and revenue recognition.
For the monthly reporting that sits on top of these accounts, get the free management accounts template and board pack template.
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