Specialist Accounting for the Digital Economy

Accounting for Tech, SaaS & IT Businesses

Fixed-fee, automation-ready accounting for SaaS founders, software firms, and IT consultants.
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Why Tech Businesses Need Specialist Accounting

SaaS & Tech Accounting Built for Speed, Scale, and Subscription Growth

SaaS and tech companies don’t fit the old accounting model. You’re managing recurring revenue, multi-currency payments, R&D tax claims, and deferred income — all while scaling globally.

Our accountants speak both languages — finance and technology.

We design accounting systems that handle revenue recognition, deferred income, multi-entity structures, and automation — so your financials evolve as quickly as your software.

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Smart Accounting, Smarter Decisions

SaaS Accounting & Advisory Services Tailored for Growth

From startup to scale-up, our fixed-fee model keeps your business compliant and strategic.
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Where Finance Meets Innovation

How We Combine Accounting and Technology

We don’t just use tech — we integrate it.
Our systems sync with your existing tools to create a single source of truth for your finances.
Whether it’s Zapier automations, Power BI dashboards, or Xero API workflows, we bring your accounting stack to life.

 

How to combine accounting and tech?

By connecting your accounting software with automation tools that handle billing, reporting, and analysis in real time, you can reduce human error and free up time for growth.

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Understanding SaaS Accounting Standards

From Revenue Recognition to the Rule of 40: What Every SaaS Founder Should Know

SaaS accounting isn’t just about bookkeeping — it’s about aligning growth metrics with profitability.
We help you track and manage performance using key SaaS financial indicators.

What is SaaS-based accounting?

SaaS accounting recognises income over the life of a contract rather than upfront.

This treatment ensures accurate measurement of Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR) and prevents overstatement of income.

What is the accounting treatment for SaaS?

Under AASB 15, revenue is recognised when services are delivered. Deferred income ensures compliance and investor confidence

Amounts invoiced in advance are recorded as contract liabilities (deferred revenue) and released to income over the service period..

What is the Rule of 40 in SaaS

The Rule of 40 is a financial performance benchmark used in the SaaS sector.
It states that a company’s revenue growth rate (%) plus EBITDA margin (%) should equal or exceed 40%.

While not an accounting standard, it is widely used by investors and acquirers to assess the balance between growth and profitability in SaaS businesses.

How do SaaS KPIs impact financial reporting

SaaS Key Performance Indicators (KPIs) — like MRR, churn, CAC:LTV, and Rule of 40 — aren’t just metrics; they influence how your financials are interpreted by boards, lenders, and investors.


At 42 Advisory, we map these KPIs directly into your management and board reporting, aligning them with your AASB-based financial statements. This ensures your growth narrative is consistent, compliant, and investor-ready.

Your Melbourne Accounting Partner for Innovation

Melbourne Accountants for Startups, SaaS, and Tech Businesses

We’re based in Chadstone, serving clients across Melbourne’s south-east and the broader Australian tech ecosystem.
From seed-stage founders to scaling SaaS platforms, we partner with those who value clarity, compliance, and confidence.
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Accredited. Connected. Trusted.

Certified Melbourne Accountants Backed by Australia’s Leading Platforms

Trusted by Melbourne’s medical professionals, ecommerce brands, and local service businesses. We simplify your tax, accounting, and growth strategy.
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Founders, Clinics, and Brands Who Trust Our Numbers

What Our Clients Are Saying

Fantastic service and such an easy experience from start to finish. My accountant made everything clear and stress-free. Highly recommend!

Maria P
Founder of MWM Pilates

42 have been outstanding for our clinic. They handle our Tax, BAS, payroll, and complex medical structures with absolute precision.

Belinda C
PM of Family First Medical Centre

As an online retailer, our sales move quickly across multiple platforms. 42 Advisory built clear reporting, managed our inventory accounting

Katerina P
CEO of Watches of Mayfair

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YOU MAY NEED TO KNOW

Frequently Asked Questions About Tech & SaaS Accounting in Melbourne

What is SaaS accounting?`

SaaS accounting refers to the specialised financial management of subscription-based software businesses.

Unlike traditional businesses, SaaS companies must manage:

  • Recurring revenue
  • Deferred revenue
  • Revenue recognition rules
  • Customer acquisition cost (CAC)
  • Monthly recurring revenue (MRR)
  • Annual recurring revenue (ARR)
  • Burn rate and runway

Accurate reporting is critical for founders, investors and lenders.

How is revenue recognised for SaaS companies in Australia?

SaaS businesses typically recognise revenue over the period services are delivered — not when cash is received.

For example:

  • Annual subscriptions paid upfront are recognised monthly
  • Deferred revenue is recorded as a liability
  • Revenue is recognised progressively

Incorrect revenue recognition can distort financial statements and mislead investors.

What is deferred revenue in SaaS accounting?

Deferred revenue represents cash received for services not yet delivered.

It is recorded as a liability until the service period is fulfilled.

For subscription businesses, deferred revenue management is essential for:

  • Accurate reporting
  • Investor transparency
  • Audit readiness
Do SaaS startups need specialised accountants?

Yes — particularly when:

  • Revenue exceeds $500,000 annually
  • External investors are involved
  • R&D Tax Incentive claims are being made
  • Equity or ESOP structures are introduced
  • Capital raising is planned

SaaS accounting requires an understanding of subscription models and funding dynamics.

What financial metrics matter most for SaaS companies?

Key SaaS metrics include:

  • Monthly Recurring Revenue (MRR)
  • Annual Recurring Revenue (ARR)
  • Customer Acquisition Cost (CAC)
  • Lifetime Value (LTV)
  • Churn rate
  • Gross margin
  • Burn rate
  • Runway

Financial reporting should integrate these metrics alongside statutory accounts.

What is the R&D Tax Incentive for tech companies?

The R&D Tax Incentive provides eligible Australian companies with:

  • A refundable tax offset (for eligible early-stage companies)
  • A non-refundable offset (for larger entities)

It supports expenditure on genuine research and development activities.

Proper documentation and eligibility assessment are critical.

What is the ESIC incentive and does my startup qualify?

The Early Stage Innovation Company (ESIC) incentive is an Australian tax incentive designed to encourage investment in early-stage startups.

If your company qualifies as an ESIC:

  • Eligible investors may receive a 20% non-refundable tax offset
  • Investors may receive capital gains tax concessions
  • It can make your startup significantly more attractive to angel investors

To qualify, a company must meet criteria including:

  • Early-stage requirements (age and income tests)
  • Innovation tests (either the 100-point test or principles-based test)
  • Growth and scalability potential
  • High-growth business model characteristics

ESIC eligibility requires careful assessment and documentation.

How much does SaaS accounting support cost?

Fees depend on:

  • Revenue scale
  • Complexity of funding
  • Reporting requirements
  • R&D claim involvement
  • Advisory frequency

Many SaaS businesses operate on structured advisory retainers rather than transactional compliance arrangements.

Model Your Property Decisions Before You Commit

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