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The Top 10 Important Finance Mistakes First Time Founders Make

SaaStr

SaaS accounting and finance has gotten pretty complicated, and the impacts of getting it wrong have gone up substantially. I’ve worked with numerous start-ups that used outsourced accounting services with zero SaaS experience, and these firms didn’t even recognize automatic upsells, additional seats, etc. Cash is king.

Finance 328
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The Principles of SaaS Accounting

Baremetrics

This article will dive into the main principles of accounting for SaaS. The Baremetrics blog has a ton of articles about accounting, so be sure to check out some of our other favorites! What Makes SaaS Accounting Different from Traditional Accounting? can drive massive swings in cash flow.

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Understanding Subscription Revenue Management with a New Approach

Subscription Flow

In this blog, keeping this context in mind, we will first go over what exactly entails effective subscription revenue management, before going over a list of best subscription revenue management software to help you decide which you should then opt for.

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8 Finance Mistakes Growing SaaS Businesses Make and How to Fix Them

OPEXEngine

these figures are going to be WRONG because you haven’t properly accounted for your headcount costs in Sales & Marketing. NOT UTILIZING A PROPER SAAS CHART OF ACCOUNTS. You will need to modify their standard chart of accounts by adding various cost components like hosting costs, customer success costs, etc.

Finance 52
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Revenue Realization vs Revenue Recognition: Explained for SaaS Businesses

OPEXEngine

It is found on the bottom line of the income statement, carrying over to the cash flow statement. In a cash business, revenue may be realized immediately as it comes in. The Accrual Accounting Method and Deferred Revenue. Are you fully realizing all of your sales deals on your income statement? Definition Of Revenue.

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The Need for Two Types of Payback Period Calculations

OPEXEngine

Contract A requires annual prepayment – all the cash will be paid tomorrow. The payback period metric doesn’t capture the difference in the quality of the revenue/cash collections. But there is a viable GTM strategy for startups to book multi-year deals with pre-payment and use that cash to finance GTM growth.

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How to Choose SaaS Billing Software

Baremetrics

The benefits of a well-thought-out process includes increased visibility to your revenues, expenses, and cash flows, and a faster feedback loop to make your forecasting more operationally focused. How should the platform work with your accounting & operations stack? You want the right tool for the job.