SaaS revenue recognition checklist for the monthly close

A monthly SaaS revenue review starts by identifying which agreements changed. Gather new contracts, renewals, amendments, cancellations, service start dates, and implementation commitments. Billing records alone may omit a negotiated credit or an obligation recorded in the agreement.

Keep a register linking the signed contract to its customer, invoices, service dates, and accounting policy. Identify which reporting framework applies. IFRS 15 is an authoritative reference for IFRS reporters; a U.S. GAAP company needs its own applicable policy and reviewer.

Prepare a bridge from opening receivables through invoices, credits, payments, and closing receivables. Check invoice dates and customer IDs against the billing export. Investigate duplicate invoices, canceled subscriptions still billing, and payments assigned to the wrong customer.

Review deferred revenue separately where the policy requires it. Tie the opening balance, new deferrals, recognized amounts, and closing balance to the ledger. The schedule should identify the customer or contract behind a material amount.

Flag bundled implementation, variable consideration, minimum commitments, service credits, free periods, and contract modifications. Ask the accounting reviewer what evidence is needed and document the treatment. A billing-system automation should implement an approved policy rather than create one.

Consider an illustrative annual service sold for $24,000. An evenly delivered single service may produce $2,000 per month under the applicable policy. A bundle with a separate delivery commitment can require a different allocation. The contract determines whether the simple example fits.

Record every unresolved item with its amount, affected month, owner, and next action. Separate an immaterial missing reference from a contract issue that could change reported revenue. Agree which items prevent release of the statements.

Retain the billing export, reconciliation, schedules, journal support, and reviewer approval together. When a material adjustment changes a released month, preserve the reason and identify which reports need updating. Next month's preparer should be able to roll the schedule forward without rebuilding the contract history.