HubiFi

Payment Processor Fee Accounting - OPEX or Cost of Revenue? We work with many subscription SaaS companies that handle revenue through various PSPs (Stripe, Google, Apple, Braintree, Paypal, etc.) and interestingly see varying approaches to PSP fee accounting. There is no bright line guidance from FASB or the SEC, so on to professional judgment. The two arguments: Cost of Revenue PSP fees are cost of revenue because they are incurred on and reduce friction on the sale (like that second Mojito at the close dinner). This method, based on my experience, is used in maybe 1 in 5 accounting teams. Operating Expense PSP fees are operating expenses since they’re considered a cost of collection. More akin to bank fees. This method, based on my experience, is used in maybe 4 in 5 accounting teams. Conclusion At HubiFi, we take the stance that PSP fees are Operating Expenses, immediately expensed under ASC 606-10-32-25 and underscored by 340-40-25-5, as these fees have no economic benefit in the future and the fees don't follow returns or disputes (in fact, very often PSPs charge more when this happens!) Here is a cool graphic made by Secret CFO that shows where these fees sit in this discussion perfectly. And you need or want a copy of the accounting policy memo we wrote on it - just send me a DM, happy to save you the time.

Had a funny chat with our designer yesterday about tweaking the effectively giant pivot table HubiFi uses to present and analyze revenue data in our UI. Reminded me of when Jim Sinegal (then CEO) suggested raising the price of the $1.50 hot dog at Costco to the co-founder Craig Jelinek. I said "If you change the [effing] pivot table, I will kill you."

The first of many to come - take a 2-minute Subscription Accounting course by our Head of Product Experience, Cody Leach, CPA, to see how to ace Subscription Accounting with Discounts under ASC 606/944 with HubiFi.

AI is going to eat the entire finance function’s job at some point, but it’s going to eat FP&A long before the accountants. The data compilation and revenue recognition policy application is the part AI can’t do. Good luck asking it to open up the that excel file and vlookup those contracts to invoices and payments. Analyzing large structured data to derive patterns and summarize insights of your business data via a chat bot? - that’s honestly the easy bit. At HubiFi, we solved the first part, what do you think we’ll do next? #saas #accountingandaccountants #finance #CFO #FPA

The power of HubiFi

If there's one thing you can say about Michael Panetta, it’s that you’ll never forget him (you can hear it first hand from Squire Aschinger from their time together Root Inc.). Michael's been shaking things up in the best way possible and we're grateful for all his contributions, advice and laughs along the way here at HubiFi. #bonjorno

Struggling with high-volume transactions? Join this expert session presented by #GBQ Ed Bannen, CPA, Jeffrey Monsman and HubiFi's Jason Berwanger to master ASC 606, optimize CECL under ASC 326, leverage IT automation and tackle state and local tax complexities. Enhance your accounting operations and drive strategic growth—reserve your spot today! 📊✨ hashtag#AccountingExcellence hashtag#StrategicGrowth

To add value as an accountant in a subscription business, focus on analyzing contribution margin, not just revenue. Inspired by the below post on contribution margin by Secret CFO - here is the common components of contribution margin for the industry. If your month-end reporting focuses on revenue fluxes by product/customer rather than contribution margin (probably due to data availability), you're missing the bigger picture needed to truly partner with the business. My next 2 posts speak to: 1) Where all this data sits in your organization for this analysis 2) How to pull that analysis together quickly and accurately #saas #accountingandaccountants #finance #FPA #CFO

The HubiFi wine tasting was a success. Lush Life graced us with very necessary education in wines from various regions. Key takeaway, go rouge. 🗣️IGP! We discussed the challenges of growth via Excel. Key takeaway, upgrade your systems. When accuracy is critical (when isn’t accuracy critical?) prioritize reliable technical maturity and automation. Thank you for sharing Aimee! We learned a lot about how to reduce your audit fees while maximizing strategic efforts. Key takeaway, get your systems and your data in order. Be audit ready. Thanks Ed Bannen, CPA. Decentralization of data does not have to translate to disaster. Finance teams, accounting teams, and growing companies all have options. Thanks Jason Berwanger for caring enough and being passionate enough to bring these challenges and solutions to the surface.

Every accountant knows AI can’t replace them. Most probably wish it would - the job is dealing with endless excel files. Here are 3 practical ways to boost your productivity with AI in your daily accounting tasks. Pre-work: Download ChatGPT - go do it now. It takes 5 minutes.  If you have Copilot, open that bad boy up. Pick whatever free AI tool you want. 1A) Fixing Excel syntax If you are spending more than 30 seconds trying to get the syntax right for a complex Excel formula - use ChatGPT to correct or find it. You will drive down your formula floofing by over half. 1B) Fixing any syntax Given most accountants spend 99% of their day in Excel, and the other 1% in the bathroom thinking about it, I led with fixing Excel syntax. For any other BI software or SQL, let AI handle syntax corrections. It can trawl all those Stackoverflow and Quora posts faster than you can. 2) Excel manipulation with AI Try Computron - https://lnkd.in/edjD_SwT Describe what you need in plain language, and it generates reusable Python scripts for complex data manipulation of your excel files. 3) Writing Reporting Footnotes or Disclosures Let AI do the work of trawling the internet to copy your closest competitor’s 10-K footnote as a starting point. Then fill it out for yourself from there. If anyone has others they’ve found, please share here. 👇 #saas #accountingandaccountants #financeautomation