Each year (or Quarter) when providing our accounting reports to our CPA, we performed the same manual process of spread sheets to provide GAAP accounting of our Maintenance Revenue, our SaaS (Software as a Service) revenue for accrual based revenue recognition. This worked fine until the manual process became unwieldy.
Providing audited or reviewed financial statements to investors, the bank, partners, CPA, and Auditors became a time consuming and potentially expensive process. Each year we were spending thousands.
We looked at the Intuit partner offerings and did not find a good solution. They either were all encompassing CRM/Help Desk/ etc. or were not easy to use or set up.
We had a choice: Upgrade to a significantly more expensive accounting product (spending $20,000 to $45,000 or more) or keep doing the same old dance. The accounting packages that support ‘revenue recognition’ out of the box are a lot more complicated and expensive than our needs. We decided the cost and effort necessary to replace QuickBooks® was too high, and developed DeReToo as a logical extension of QuickBooks® for businesses that have Saas, subscription, or maintenance offerings.
We were also confronted with questions about the reporting for revenue recognition, churn rate, and other metrics related to our subscription based business, so we developed additional reports to provide management insight. When we entered any type of discussion with a potential investor or someone interested in purchasing a business this is always a requirement.
Our goal was to design a lightweight QuickBooks® application that would automate the labor intensive process and eliminate the group of spreadsheets we use to manage our maintenance and subscription revenue. We are adding features to automate maintenance renewal invoices and management reports related to ‘deferred revenue’ classes of sales.