Quality of Earnings and CFO services for SaaS companies
Buyers pay for recurring revenue they can verify. We reconcile ARR to billing and the general ledger, test churn by cohort, and put revenue on a proper ASC 606 basis.
Talk about a deal Talk about the businessReply within one business day · Fixed fee in writing · No obligation
Recurring revenue gets a premium, if it's real
- Since October 1, 2026, SBA 7(a) acquisitions of $3 million or more need an independent Quality of Earnings, and lenders size the loan on its normalized earnings. The rule explained →
We work with lenders and buyers in Utah, Denver, Phoenix, Dallas-Fort Worth, Boise, Las Vegas, and nationwide.
ARR growthNet revenue retentionGross revenue retentionGross marginRule of 40CAC payback
ARR that doesn't tie to billing and the general ledger is the first thing a buyer's diligence team will find.
What buyers and lenders test in a SaaS QoE
ARR vs. GAAP revenue
A clear definition of ARR, reconciled to billing and recognized revenue.
Deferred revenue and ASC 606
Multi-year prepayments, implementation fees, and multi-element contracts recognized correctly.
Capitalized software
Development costs capitalized under ASC 350-40, and what that does to EBITDA.
Churn and NRR
Cohort retention rebuilt from billing data, not from a slide.
Customer concentration
Revenue by customer and contract renewal dates.
Sales tax nexus
Exposure from selling into states without collecting tax.
SaaS & software QoE: what's included
- ARR and MRR bridge to billing and the GL
- Cohort churn and net revenue retention
- Deferred revenue and ASC 606 review
- Capitalized software review
- Customer concentration and renewal schedule
SaaS & software add-ons
| ARR, cohort, and ASC 606 revenue analysis | $2,500 |
| Each additional legal entity | $2,500 |
| Sales tax nexus exposure estimate | $2,500 |
Fees by deal size
| Purchase price / EV | QoE fee |
|---|---|
| Under $3M | $11,500 (sell-side $9,000) |
| $3M to $4M | $12,500 |
| $4M to $5M | $14,500 |
| $5M to $10M | $19,500 |
| $10M to $15M | from $26,500 |
| Lower middle market & PE add-ons | typically $25,000 to $70,000 |
Larger deals are quoted from revenue, entities, inventory, and report format. Pre-LOI earnings screen $1,950. All fees →
Before an LOI, run the seller's numbers through our free add-back sanity check. Terms like SDE, cash proof, and DSCR are explained in the QoE glossary.
Where SaaS founders lose money
- Revenue booked on invoice, with no deferred revenue schedule
- SaaS metrics that don't tie to the books
- Board decks built by hand every month
- Sales tax exposure no one has measured
Priced for your industry
Founders need GAAP revenue and trustworthy metrics before raising capital or selling.
Start with a $2,500 finance diagnostic, credited to your first month. Interim CFO or controller coverage is also available, part time from $10,500/mo or full time.
Books & close
- Monthly bookkeeping and reconciliations
- Accrual close by business day 10
- Monthly financial package
- Quarterly review call
Controller
- Everything in Books & close
- KPI dashboard for your industry
- Payroll, AP, and sales tax oversight
- Quarterly 13-week cash forecast
- Monthly review call
CFO
- Everything in Controller
- ASC 606 revenue and deferred revenue schedules
- SaaS metrics dashboard tied to the GL
- Board and investor reporting
- Budget, cash runway, and hiring plan
- Monthly CFO meeting
Fixed monthly fees, month to month after three months. Day-to-day bookkeeping may be done by trained staff working to our checklists, always with CPA review and sign-off by Edwin van Stam. Talk about the right package →
SaaS & software engagements Edwin has led
- Current interim controller for two restaurant technology software companies (online ordering and delivery integration), including month-end close, revenue, and variance reporting
- CFO work for a data center power management software company
- Interim CFO for more than a year at a technology-enabled dental services company
Includes engagements Edwin performed with prior and affiliated firms. Client names are confidential.
SaaS & software questions
Does an SBA loan for this kind of acquisition need a QoE?
Under SBA SOP 50 10 8.1, a 7(a) change-of-ownership loan with a business purchase price of $3 million or more needs a Quality of Earnings, and the lender sizes the loan on the QoE's normalized earnings. Below $3 million many lenders still ask for one. Check your deal →
Why doesn't our ARR match our revenue?
ARR is an annualized run-rate of contracts in force; revenue is what was earned in the period under ASC 606. Both matter, and buyers expect a reconciliation between them.
Do you work with smaller software companies?
Yes. Lower-middle-market SaaS and software companies are a core part of our CFO and QoE work.
Buying, selling, or scaling a SaaS company?
Buying, financing, or selling? Start with a QoE conversation. Running the business? Start with a finance diagnostic.