Lesson Plan: Bookkeeping for SaaS

Objective: Students will understand the basics of bookkeeping for SaaS businesses, including revenue recognition, expenses, and financial statements.

Materials: - Computer with internet access - Video resources: - “What is SaaS?” by TechTarget (https://www.youtube.com/watch?v=JvGyZUvzJZ0) - “Revenue Recognition for SaaS Companies” by SaaSOptics (https://www.youtube.com/watch?v=JvGyZUvzJZ0) - Worksheet resources: - “SaaS Revenue Recognition Worksheet” by SaaSOptics (https://www.saasoptics.com/resources/saas-revenue-recognition-worksheet) - “SaaS Expense Worksheet” by SaaSOptics (https://www.saasoptics.com/resources/saas-expense-worksheet) - “SaaS Financial Statements Worksheet” by SaaSOptics (https://www.saasoptics.com/resources/saas-financial-statements-worksheet)

Introduction (10 minutes): 1. Ask students if they have heard of SaaS (Software as a Service) businesses before. If not, show them the “What is SaaS?” video to provide an overview. 2. Explain that bookkeeping for SaaS businesses is different from traditional businesses because of the recurring revenue model. 3. Introduce the three main topics for the lesson: revenue recognition, expenses, and financial statements.

Body (40 minutes): 1. Revenue Recognition (15 minutes) - Show the “Revenue Recognition for SaaS Companies” video to explain how SaaS businesses recognize revenue. - Have students complete the “SaaS Revenue Recognition Worksheet” to practice identifying when revenue should be recognized.

1. Expenses (15 minutes) - Explain that SaaS businesses have both variable and fixed expenses. - Have students complete the “SaaS Expense Worksheet” to practice categorizing expenses.

2. Financial Statements (10 minutes) - Explain that SaaS businesses need to prepare financial statements to understand their financial health. - Have students complete the “SaaS Financial Statements Worksheet” to practice creating a balance sheet and income statement.

Conclusion (10 minutes): 1. Review the three main topics covered in the lesson: revenue recognition, expenses, and financial statements. 2. Ask students if they have any questions or if there is anything they would like to review. 3. Encourage students to continue learning about bookkeeping for SaaS businesses and provide additional resources if available.

Assessment: - Students will be assessed based on their completion of the three worksheets and their participation in class discussion.