Revenue recognition can be a complex area of accounting, especially for software as a service (SaaS) companies. Accounting Standards Codification 606 (ASC 606) brings additional challenges and considerations to subscription revenue recognition. At Maxwell Locke & Ritter, we understand the complexities of SaaS revenue recognition and are ready to help you tackle those challenges. The […] The post Revenue Recognition for SaaS Companies appeared first on Maxwell Locke & Ritter ..read more

When we deliver our written report at the end of a three- to four-week due diligence engagement, our client will have already received our key findings throughout the engagement in real time. The post Stay Ahead of the Curve: How Real-Time Insights Drive Deal Success appeared first on Maxwell Locke & Ritter ..read more

It’s no secret that monthly recurring revenue with high growth and low churn is the key value driver for SaaS businesses.  For that reason, obtaining confidence in an acquisition target’s historical MRR and customer retention data is vital to a successful transaction, and Maxwell Locke & Ritter's Due Diligence Team can help you in achieving this. The post Cleaning Up MRR to Understand the Key Value Drivers appeared first on Maxwell Locke & Ritter ..read more

When we deliver our written report at the end of a three- to four-week due diligence engagement, our client will have already received our key findings throughout the engagement in real time. The post No surprises! Providing our clients data and feedback in real time throughout the quality of earnings process appeared first on Maxwell Locke & Ritter ..read more

In the ever-evolving landscape of internal auditing, staying informed of the latest standards and guidelines is paramount for ensuring efficacy and compliance. The Institute of Internal Auditors (IIA) has introduced significant updates to the International Professional Practices Framework (IPPF) audit standards, now referred to as the Global Internal Audit Standards (“Standards”), that will go into […] The post Global Internal Audit Standards: 4 Crucial Insights for Internal Auditors appeared first on Maxwell Locke & Ritter ..read more

The IRS issued new guidance on April 16, 2024 in Notice 2024-35, providing relief for taxpayers facing the “10-year rule” for required minimum distributions (RMDs) from inherited IRAs or inherited defined contribution plans. This marks the third consecutive year the IRS has offered such relief. However, Notice 2024-35 also indicates that final regulations concerning the rule are forthcoming and will be applied in determining RMDs for accounts in 2025 and beyond. There are two main categories of people who inherit retirement accounts: Eligible Designated Beneficiaries (EDBs): If you’re the spo ..read more

When it comes to making an acquisition, stock and asset purchases have their advantages and disadvantages but there might be a way to combine the best of both worlds. Buying a target corporation’s stock is a relatively simple legal step. The buyer gains control of the target’s assets with no hassle because it will own the other corporation’s stock. A taxable asset purchase, on the other hand, requires transferring the legal title to each asset the buyer acquires. If the target has a multitude of assets, the time and money spent can quickly mount up. In addition, with a direct asset purchase, y ..read more

Audits have become more important due to increased public and government scrutiny of not-for-profit organizations, their management, and their boards. Audits provide you with a fair assessment of your organization’s financial health and can reveal vulnerabilities such as weak internal controls, insufficient cash reserves, and poor investment policies. Most importantly, regular audits reassure your donors, members, and other stakeholders that you run a fit organization. Ins and Outs of Financial Audits Audits come in two forms, serving different purposes: 1. Internal audit. This type of audit i ..read more

Monthly recurring revenue (“MRR”) is a fundamental metric for the valuation of SaaS-based businesses. While SaaS-based businesses generate MRR through their subscription products, some companies also generate transactional (or “re-occurring”) revenue by earning a transaction fee via payment processing platforms (e.g., Stripe Connect, PayPal, Card Connect, or proprietary systems).  For SaaS-based businesses that process end-user payments, monthly payment processing revenue (“payment revenue”) trends and volume (“payment volume”) can play a key role in the investment theses of investors. T ..read more

In the context of mergers and acquisitions, potential investors often feel a level of comfort when their investment target is audited.  However, relying solely on a target’s audited financial statements when making an investment decision may be shortsighted.[1]  An audit’s purpose is to provide assurance that management has presented a true and fair view of a company’s financial performance and position [2], but audited financials often do not identify significant issues likely to be of interest to a buyer or seller. The financial due diligence process typica ..read more