Accounting for Software-as-a-Service (SaaS) is the process of recording, measuring, and analyzing SaaS transactions to ensure accuracy and compliance with financial regulations. It involves tracking important data points such as monthly recurring revenue and non-recurring revenue, cost of sales, customer churn rates, and future projected expenses. Every business needs to maintain accurate records to ensure their finances remain in order; SaaS accounting takes this to a whole new level. By recording transactions in an efficient and organized way, businesses can better understand their customers and make better decisions about where to invest limited resources. In short, it’s a smart way to manage money!