Remove AI Remove Deferred Revenue Remove Subscription
article thumbnail

Revenue backlog definition: SaaS subscription revenue backlogs

ProfitWell

And one of the types that a lot of companies miss is revenue backlog : the total unrecognized revenue across the term of a given subscription agreement. In fact, it’s not recorded in any meaningful way that’s comparable to other revenue statistics (particularly deferred revenue, which it’s often confused with).

article thumbnail

SaaS Financial Audits: 5 Tips for a SaaS Company's Financial Audit

ProfitWell

SaaS companies sell their software on monthly subscription models, whereby the user has to pay a monthly fee to continue using the software. The monthly subscription revenue model, unfortunately, is not enough to ensure consistency of income in the long-term. The cost of goods goes beyond monthly subscriptions.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

SaaS Sales Tax and What You Need to Know [2020] | ProfitWell

ProfitWell

Keep track of subscription payments Subscription billing management can be complex. It's important for the operation of your business that you choose a subscription management platform that has the features needed to reliably capture revenue from your customers. Audit-proof revenue recognition.

article thumbnail

Revenue Backlog: How to Define, Calculate, and Help Your SaaS Business?

SmartKarrot

The ultimate stake of a SaaS business lies in the number of successful subscriptions it can generate in time. The amount of revenue generated by each subscription can sometimes become quite difficult to gauge. This is where revenue backlog occurs in a SaaS business. What does revenue backlog mean in B2B SaaS business?