What it means
Google Drive doesn't hold money and isn't an account. It holds the source documents behind the balances on your balance sheet. When a CPA or investor asks why a number is what it is, the answer ends with a file.
Bank and card statements back the cash and card balances. Signed customer contracts back deferred revenue, because the term and price decide how much is earned each month. A signed lease backs the lease schedule under ASC 842. Loan agreements back the loan balance and the interest on it, and SAFEs and stock documents back equity.
The signed version is the one that counts. A draft can carry a different price or start date from what the customer actually agreed to.
Download each bank and card statement as soon as it closes and file it by account and month. File any contract signed during the month and check it against the schedules: a new customer contract should have a matching invoice and revenue schedule, and a new lease should have its own schedule.
Then link each balance sheet account to the file that supports it. A lead schedule with a source for every line is what makes a year-end review short.
Leases and deferred revenue are the two schedules that most depend on a signed document. Gmail is usually where those documents arrive first.
Why it matters. Every schedule needs a source. Deferred revenue comes from customer contracts, and an ASC 842 lease schedule comes from the signed lease.
Google Drive isn't a ledger, and we don't connect to it. We work only in QuickBooks Online and Xero. This page covers how Google Drive shows up in the books kept there.
Common questions
What documents does my CPA need at year end?
Bank and card statements for every month, signed customer and vendor contracts, leases, loan agreements and your cap table documents.
How should I organize finance documents?
Statements by account and month, contracts by customer or vendor. That way every schedule can link straight to its source.
Are scanned or downloaded copies acceptable records?
Yes. The IRS accepts electronic records as long as they're complete, legible and can be produced when asked. Keep the original PDF a bank or vendor sends rather than a photo of a printout.
Read further
- Accounts payable process for startups: intake to paymentFounder guide · 7 min
- Audit-ready books before your Series AFounder guide · 4 min
- SaaS revenue recognition under ASC 606, step by stepFounder guide · 6 min
- Lead scheduleRelated · Convention
- LeasesRelated · US GAAP · ASC 842
- Audit trailRelated · Control
- GmailRelated · Inbox
General information for US companies, not tax, legal or accounting advice. Check the specifics with a CPA before you act on them.