Case Study: ARR Reconciliation for SaaS

Automated contract comparison and billing variance analysis reduced reconciliation timelines by 28%. Finance teams gained a live dashboard for churn/ARR tracking and faster month-close cycles.


Expanded Narrative:
A mid-market SaaS company with $120M ARR faced recurring month-close delays and discrepancies between booked contracts and billed revenues. Manual spreadsheet-heavy processes caused reconciliation to take over 3 weeks, delaying financial reporting and frustrating investors.

Our Approach:

  1. Contract Ingestion: 4,800 SaaS contracts were ingested into our AI-driven parser.
  2. Automated Compare: Each contract’s key terms (MRR, renewal, churn clauses) were compared with billing system records.
  3. Variance Engine: Billing mismatches and contract override cases were flagged in real time.
  4. Finance Dashboard: A reconciliation dashboard gave finance leadership visibility into ARR, churn %, and concentration risks.

Days to Reconcile — Before vs. After Automation

Baseline ← Phase-in (-28%) ← Steady-state (-67%)

Baseline
Phase-in
Steady-state
4,800 contracts parsed 312 mismatches flagged Live ARR & churn dashboard
Illustrative, de-identified. Bars scale to the baseline max (21 days).

Impact:

  • Reconciliation timeline dropped from 21 days → 15 days → just 7 days.
  • Finance teams gained real-time visibility into ARR, renewals, and churn signals.
  • Investors received faster and more reliable monthly reporting, increasing trust.

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