the encyclopedia of
subscription & SaaS finance terms and metrics
Annual Recurring Revenue
There can be significant confusion over the term ARR, its use and the measurement of ARR because it feels and sounds like a measure of “revenue” in the context of revenue recognition. However, ARR is not necessarily a measure of recognized revenue.
Monthly Recurring Revenue
MRR is an acronym for Monthly Recurring Revenue or, very simply, a measure of your predictable revenue stream. The primary purpose of MRR is to permit performance reporting across dissimilar subscriptions terms.
SaaSOptics on SaaSOptics: How to Achieve a Clean Audit
SaaSOptics CFO Adam Morson and Manager of Financial Operations Charles Dye discussed how they achieved a clean audit in record time using our own product.
Learn what to expect during a financial audit, how to make sure your process is timely and accurate, and how to use specific SaaSOptics reports and features to produce a clean audit!
Revenue Recognition 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.”
You manage cash flow, but "finance" is left to the accountant that prepares your taxes. If this is you, read on and be sure to watch the essential finance concepts video.