Puzzle Automates Revenue Recognition for Stripe Users

Evin Wick, CPA
Category: Product Updates

Puzzle, real-time accounting software tailored for startups, is thrilled to announce a major breakthrough in accounting– a suite of Automated Revenue Recognition features for startups using Stripe for subscription billing.

This breakthrough makes tricky calculations like accrued revenue, deferred revenue, MRR (Monthly Recurring Revenue), ARR (Annual Recurring Revenue), etc., super easy to access with just a single click, saving you from the hours previously spent updating spreadsheets.

This is a game-changer for Stripe and Puzzle users. Here's why:

  • Seamless Integration: Link your Stripe subscription billing within Puzzle's accounting system. This ensures that Puzzle automatically logs your revenue in the format preferred by the IRS and investors.
  • Time Saver: You can now save time by skipping the need for complex calculations to recognize your revenue. Puzzle and Stripe will handle it for you.
  • Key Metrics at a Glance: Access crucial figures like Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR), and automatically track customer retention and churn. This provides valuable insights for your business.

For the first time, any company using Stripe subscription billings can use Puzzle to ensure revenue is recorded properly for accounting purposes within their accounting system. Traditionally, founders and accountants relied on complex spreadsheets for revenue calculations. Stripe users can now directly see their subscription revenue, automated deferred revenue, and other real-time revenue insights (like MRR/ARR) in Puzzle. This has multiple benefits: 

Time savings and increased efficiencies

Stripe users traditionally use a manual process to correctly record their revenue between Stripe and legacy accounting systems, like QuickBooks.  These include: 

  • correctly record their revenueThird-party connectors that are prone to breaking, disconnecting, and other connection issues
  • Manual journal entries which require manual effort and are prone to error
  • Labor-intensive manual calculations in complex spreadsheets to get accrued revenue, deferred revenue, MRR, ARR,  and more 

Now, with Puzzle's Stripe integration, there is a more efficient, accurate, and automated way to record revenue in your accounting system. Puzzle saves time and eliminates errors by automating the recording of revenue (accrued, deferred, MRR, ARR, and more). These automated system calculations translate into significant time savings that allow everybody to redirect efforts from manual tasks to more strategic, valuable work.

Puzzle’s native integration also simplifies data management for Stripe users. Instead of purchasing and learning two additional systems on top of Stripe (an accounting software and a third-party connector), Stripe users can access everything they need directly in Puzzle’s accounting system. 

Accurate revenue recorded right from day one

Puzzle’s automation around the revenue recognition process reduces the risks of outdated data and errors from manual calculations. 

With Automated Revenue Recognition, Stripe users can get the following schedules directly in Puzzle within seconds, not days: 

Automated revenue recognition schedules
Automated cash and accrued revenue schedules

Automated MRR, ARR, Net Churn, Net Retention, and more


Guaranteed compliance

Revenue recognition is a timing exercise tied to subscription products and contract durations. Startups need it for compliance with investor, lender, and regulatory requirements. Puzzle’s Automated Revenue Recognition addresses the need for companies to maintain accrual-basis revenue when they need compliant financial records that align with international Generally Accepted Accounting Principles (GAAP). 

With accurate and reliable accrued revenue information now available directly in their accounting system, companies can confidently provide accurate data to the IRS, investors, stakeholders, and financial institutions, ensuring compliance and trustworthiness.

Real-time insights for informed decisions


Startup founders need revenue analytics to understand growth, retention, and business trends to help with fundraising. MRR, ARR, Churn Rate, and Retention Rates from Stripe subscriptions are all instantly accessible in Puzzle now. This eliminates the need for manual spreadsheet calculations and system cross-referencing. 

How Puzzle and Stripe work together

Puzzle and Stripe, in combination, make the complex process of calculating accrued revenue, deferred revenue, MRR, ARR, and more - seamless, efficient, and accurate.

  • Stripe is the de facto payment processor for startups to process revenue. Startups use Stripe to manage subscription billing, send invoices, and process payments. 
  • Puzzle is the only accounting system built native to Stripe. Puzzle pulls all Stripe data into Puzzle’s general ledger for inclusion in real-time financial reports and insights.
  • Since Stripe transactions are 100% auto-categorized in Puzzle, Puzzle can automatically categorize, manage, and create revenue recognition schedules based on the service period dates from Stripe. 
  • This direct sync creates reliable, real-time revenue insights in Puzzle’s revenue dashboard, eliminating the need to track revenue schedules in spreadsheets. 

To learn more about how this integration works, review our Automated Revenue Recognition user guide.

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Evin Wick, CPA

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