SaaS Accounting Tips for Founders

SaaS Acounting Tips for Founders

SaaS Accounting Tips SaaS accounting is probably not every SaaS founder’s favorite topic.  However, as you scale, it is critical that you implement an accounting framework that will provide you and your team the necessary data to manage your business.  In this post, I offer several actionable SaaS accounting tips for founders and their accounting […]

Committed Monthly Recurring Revenue (CMRR) Defined

Committed Monthly Recurring Revenue Chart

What is Committed Monthly Recurring Revenue (CMRR)? Committed monthly recurring revenue (CMRR) is a forward-looking SaaS metric that combines actual monthly recurring revenue (MRR) data with known bookings and churn data.  It begins with your existing MRR (say, last month’s recognized MRR), adds known new bookings, and subtracts known cancellations and downgrades. For businesses who […]

The SaaS P&L Explained – Where Metrics and Margins are Born

SaaS P&L Explained

The SaaS P&L Explained – Where Metrics and Margins are Born You can’t manage a SaaS business by only using the standard financial statements.  To really understand the underlying economics of your business, you must have a properly structured “software” P&L (Profit and Loss Statement), and you must calculate the relevant SaaS metrics and margins […]

What the SaaS Magic Number of One is Not Telling You

SaaS Magic Number

Why the SaaS Magic Number of One is So Lonely The SaaS Magic Number is a sales-related SaaS metric that determines your efficiency in generating incremental recurring revenue.  In the SaaS community, a SaaS Magic Number of 1 or greater is considered ideal, but should you really pour more money into sales and marketing if […]