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Is Deferred Revenue a Liability?

Baremetrics

But, if you want to know why, you might need to read a bit more of this article — this article will dive into what are liabilities, what is deferred revenue, and how you need to document these values in your accounting. Sign up for the Baremetrics free trial , and start monitoring your subscription revenue accurately and easily.

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The Mental Mapping from Annual to Monthly and Usage-Based SaaS Metrics

Kellblog

And what’s the impact on your other SaaS metrics? What’s your churn rate? What if a customer fluctuates across months: do I count churn each month they shrink and expansion each month they expand? What is Net Revenue Retention? What Does Recur Mean? So many questions. What is the Net Expansion?

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Revenue Modeling for a Subscription vs. Non-Subscription Business

SaaSOptics

The primary differences between revenue modeling for a subscription vs. non-subscription business is how revenue is recognized over time vs. up-front and how your billings will affect your balance in deferred revenue. . Revenue Modeling: Revenue Growth Over Time. Churn: Loss of existing customers .

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SaaS Metrics 101

OPEXEngine

Here’s a shout out to Dave Kellogg’s Key SaaS Metrics podcast, recently released on Aznaur Midov’s SaaShimi series. Dave does a terrific job explaining the current state of the art on important SaaS metrics. The podcast is an excellent SaaS Metrics 101 listen even for experienced SaaS finance experts.

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SaaS Balance Sheet Examples

Baremetrics

Speaking of your users, it is important to understand how much revenue they are generating with the best possible estimates of your MRR and ARR. It is also important to track the contracts to minimize churn and prevent dunning. Baremetrics brings you metrics, dunning, engagement tools, and customer insights.

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What Is Working Capital?

Baremetrics

While the equations are all fairly simple, finding the data to calculate all of these metrics is not. For a SaaS business, the deferred revenue category is particularly important. Get deep insights into MRR, churn, LTV and more to grow your business. Many SaaS businesses have zero inventory. What are current liabilities?

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What Is Unearned Revenue and How to Account for It

Baremetrics

This puts you in the position of having “unearned revenue”. Unearned revenue, sometimes called deferred revenue, is when you receive payment now for services that you will provide at some point in the future. Sign up for the Baremetrics free trial , and start monitoring your subscription revenue accurately and easily.