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Industry · Software and SaaS

Accounting and tax for software and SaaS companies.

From the first paying customer to a Series B audit or acquisition, software companies need clean revenue recognition, the right sales tax footprint and every available research credit. We support founders and finance teams at each stage.

Forms & standards
ASC 606South Dakota v. WayfairIRC § 41IRC § 174AIRC § 1202IRC § 409A

Serving United States, Virginia, Washington, DC, Maryland.

What we handle

What software companies need

Subscription revenue must be recognized over the service period under ASC 606, with deferred revenue, contract modifications and multi-element arrangements handled correctly, especially before an audit or due diligence. Many states tax SaaS or digital products, and economic nexus after Wayfair means sales tax can apply in states where you have no employees.

Development work often qualifies for the federal research credit, startups can use it against payroll taxes, and domestic research costs can be deducted immediately under section 174A. Founders need 83(b) elections, 409A valuations and C corporation structures that preserve QSBS. Remote teams create payroll registrations in each state.

Speak with an advisor
  • Revenue recognitionASC 606 policies, deferred revenue and audit readiness.
  • SaaS sales taxTaxability by state, nexus studies and registrations.
  • R&D credit and 174ACredits, payroll offset and immediate expensing.
  • Equity and QSBS83(b), 409A, option exercises and section 1202 planning.
  • Investor auditsFinancial statement audits and reviews for investors and lenders.
  • Multi-state payrollRemote employee registrations and compliance.

Where we help

Rules that matter

Standard

ASC 606

Subscription and implementation revenue recognized as performance obligations are satisfied.

2018

South Dakota v. Wayfair, 585 U.S. 162

Economic nexus allows states to require sales tax collection from remote sellers.

Statute

IRC § 174A

Immediate deduction of domestic research costs for tax years after 2024.

Statute

IRC § 1202

QSBS exclusion for qualifying C corporation stock, which California does not follow.

Our approach

How the engagement runs.

Review

A senior advisor reviews your facts and documents.

Plan

Scope, fees and timeline in an engagement letter.

File

Returns, elections and forms prepared and reviewed.

Support

IRS contact and planning all year.

Questions

Frequently asked

If your question isn't here, call (703) 880-8412 and you'll reach a person.

Is SaaS subject to sales tax?

In some states. Taxability varies widely, so we map where you have customers and nexus.

Can a pre-revenue startup use the R&D credit?

Yes, a qualified small business can apply up to $500,000 a year against payroll taxes.

Should we be a C corporation or an LLC?

Venture-backed companies are usually C corporations, which also allows QSBS. Bootstrapped companies sometimes start as LLCs. We model both.

When do we need an audit?

Often when investors, lenders or acquirers require one. We perform audits and reviews as a PCAOB-registered firm.

Latest updates

IRS & federal tax

All IRS & federal tax updates
Nov 5, 2026IRS & federal tax

IRS releases 2027 inflation adjustments (Rev. Proc. 2026-35)

For 2027 the joint-return standard deduction rises to $33,200, the estate tax basic exclusion to $15,480,000, the annual gift exclusion to $20,000 and the Section 179 expensing limit to $2,640,000. Our advisors recommend revisiting year-end gifting and equipment purchase plans with these figures in mind.

Source: IRS (IR-2026-133)

Our guidance

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