Revenue Projections

revenue projections

What are Revenue Projections? Revenue projections are the estimated amounts of Revenue your company will earn over a certain period of time. Revenue projections can give businesses insights into their future financial performance. How do you create Revenue projections in a SaaS or subscription business? To generate Revenue projections or a Revenue forecast, you must…

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Billing Cycles

billing cycles

Billing Cycles A billing cycle is the best way to ensure your company has a consistent flow of cash coming in the door. Most companies focus only on if cash is coming in and forget that when cash comes in is sometimes just as important. So important, in fact, that 82% of small businesses fail…

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Revenue Recognition Policy

revenue recognition policy

What is a Revenue Recognition Policy? A revenue recognition policy is a single document which summarizes your processes and methodologies used to recognize revenue. Download our free revenue recognition policy template¬†and say goodbye to rev rec headaches this audit season.”

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The Revenue Recognition Principle and How it Affects SaaS Operations

revenue recognition

What is Meant by Revenue Recognition? Revenue recognition, commonly referred to as “rev rec” or “revenue rec”, is an accounting principle and a process for reporting revenues by recognizing the monetary value of a transaction or contract over a period of time as the revenue is “earned.” The method of allocation and the period of…

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Customer Revenue

customer revenue

Customer Revenue Definition for SaaS Customer Revenue is the revenue associated with the customer or customer contract. When someone refers to Customer Revenue, he or she could be referring to any number of different revenue numbers: reportable annual GAAP revenue, ARR, Customer Lifetime Revenue, even Customer Lifetime Value. In a subscription business, the type of…

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Deferred Revenue

Deferred revenue

What is deferred revenue in a SaaS or subscription business? Revenue Recognition, commonly referred to as rev rec or revenue rec, is an accounting principle and a process for reporting revenues by recognizing the monetary value of a transaction or contract over a period of time as the revenue is “earned.” The method of allocation…

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Revenue Backlog

Revenue Backlog Defined Revenue backlog is the value¬†of contracted revenue that has yet to be recognized in your SaaS or subscription agreement. While Revenue backlog can occur in traditional and subscription businesses, the accrual¬†nature of revenue recognition in subscription models¬†results in almost all subscription companies having revenue backlog. How do you calculate backlog? Revenue Backlog…

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