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What a short per-seat close takes

Per-seat SaaS, annual prepays, constant seat changes, and a trace an auditor can replay.

Anubhav DubeyFounder, Verlix · 6 min read

Take a per-seat analytics workspace sold on annual contracts, whose customers change seat counts constantly. That combination is what made the close hard: every mid-cycle change meant a proration, and every proration meant a manual journal entry.

The problem was not volume

Forty-eight accounts is not a lot. But 212 mid-cycle seat changes a month is, when each one is priced by hand and then explained twice, once on the invoice and once in the recognition schedule.

We were not slow. We were doing the same arithmetic in 3 places and hoping it matched.

What changes

  • Contracts became the billing schedule, so prorations priced themselves to the day
  • Recognition ran off the same contract, not off the invoice
  • Journal entries mapped to their existing chart of accounts, as a file their ledger imports

See it in the product: Revenue recognitionASC 606 schedules and journal entries built from the contract, without the spreadsheet.

The result

The close goes from 9 days to a day and a half, and the audit goes from a reconciliation exercise to a read. The auditor asks what changed; the answer is a replayable trail behind every figure, which is a shorter conversation than a folder of bridge files.

ARR over the same period grows from $4.18M to $5.05M, with no addition to the finance team.

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