Deferred Revenue VS Accrued Revenue (How to Set Your SaaS Company Up for Success)

What’s the difference between deferred revenue VS accrued revenue? In this episode, you’ll learn how to select and set up the best accounting method for your software business to succeed.

DOWNLOAD: Precision Scorecard™ – Keep Your Leadership Team Focused & Accountable To Growth –

Listen to the audio version on…
+ Spotify:
+ Apple Podcasts:

Let’s connect on…
+ Instagram (behind the scenes):
+ Facebook (live trainings + Q&A):
+ Twitter (what I’m reading):

Join my exclusive Scaling SaaS Founders Facebook Group:

I didn’t want to shoot this video.

Honestly, I didn’t even think it was necessary.

I assumed that all scaling SaaS founders must be doing accrual accounting, right?

But I soon discovered about 15% of those that I coach were using cash accounting, and they weren’t clear on the difference between deferred revenue vs accrued revenue.

…or why it matters.

Don’t worry, I’m not pointing fingers.

Over the years, I made almost every business mistake there is, so there’s no shame or judgement here.

But today I want to sell you on what accrual accounting is, WHY your accountant should be doing it…

And how it will set up your SaaS company for success.

In this video, I’m going to give you the perspective of an entrepreneur, a CEO, or a founder… NOT an accountant. You’ll learn:

1. Why lots of SaaS founders start with cash accounting
2. Deferred revenue vs. accrued revenue
3. How to move to accrual accounting
4. Why it will make you financially rock-solid
5. How it can save you from overpaying taxes
6. What bookkeeping software will do it for you

“But Dan, I pay an accountant so I don’t have to think about this stuff.”

So do I.

For every company I’ve ever started, I had accountants… and I’ve learned more about accounting than I ever wanted or planned to.

But you need to know that your business isn’t a leaky bucket of profits and that you’re optimized for scalable growth. That means knowing some high-level accounting principles.

It’s like eating vegetables. They might not be as tasty as chocolate, but trust me – it’s good for you.

Dan “eat your vegetables” Martell

Don’t forget to share this entrepreneurial advice with your friends, so they can learn too: 0


“You can only keep what you give away.” That’s the mantra that’s shaped Dan Martell from a struggling 20-something business owner in the Canadian Maritimes (which is way out east) to a successful startup founder who’s raised more than $3 million in venture funding and exited not one… not two… but three tech businesses:, Spheric, and Flowtown.

You can only keep what you give away. That philosophy has led Dan to invest in 33+ early stage startups such as Udemy, Intercom, Unbounce, and Foodspotting. It’s also helped him shape the future of Hootsuite as an advisor to the social media tour de force.

An activator, a tech geek, an adrenaline seeker and, yes, a romantic (ask his wife Renee), Dan has recently turned his attention to teaching startups a fundamental, little-discussed lesson that directly impacts their growth: how to scale. You’ll find not only incredible insights in every moment of every talk Dan gives – but also highly actionable takeaways that will propel your business forward. Because Dan gives freely of all that he knows. After all, you can only keep what you give away.

DOWNLOAD: Precision Scorecard™ – Keep Your Leadership Team Focused & Accountable To Growth –

#DanMartell #SaaSAcademy

You May Also Like