One of the most critical aspects of SaaS financial management is having clear and distinct revenue streams. A well-structured SaaS P&L provides fundamental data for analyzing margins, operational efficiency, and business health. However, many SaaS companies do a poor job of clearly defining their revenue streams. This has major impacts on how you manage your […]
Revenue
Bookings vs Invoicing vs Revenue | The SaaS Revenue Cycle Explained
The SaaS revenue cycle all starts with bookings. But what is a booking? And how does a booking differ from invoicing and revenue? SaaS is full of metrics, but in this case, we are mixing SaaS and accounting terminology to make things even more confusing. In this post, I will explain the differences among a […]
SaaS Revenue Forecast Model
SaaS Revenue Forecast Model I try to keep my financial statement models as simple as possible. I don’t forecast on one tab, but I also don’t have 30+ tabs of assumptions and formulas. I build my models around the operations of the business and the important metrics. Enough detail to be accurate and supportable but […]