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MQL vs. PQL vs. SQL: What You Need to Know
Before the advent of lead qualification, sales teams would spend days and months trying to convert leads generated during marketing campaigns.Without a proper way of filtering leads to find the ones...
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The Perfect SaaS Landing page
First impressions matter. This concept applies to businesses every bit as much as it does to people.So what’s the first thing a prospect sees in relation to your business?In most cases, it’s the...
View ArticleMatching and Revenue Recognition Principles
While companies are a bit more free to perform bookkeeping according to their own needs, accounting is a very organized and rigid discipline. While that can make it daunting at first—with so many rules...
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Revenue vs. Profit
When discussing the financial metrics for a SaaS company, revenue vs. profit is among the most common comparisons encountered. This is because these two terms are essential determinants of a company’s...
View ArticleWhat is equity in accounting?
If you’ve ever owned stakes in a company, then you may already know what is meant by equity. However, equity accounting is not just about the shares owned by founders, investors, and shareholders. The...
View Article10 Examples of Revenue Models for SaaS
Before we look at the promised SaaS revenue models, let’s get a couple definitions out of the way. We need to differentiate among three similar sounding but very different concepts: revenue stream,...
View ArticleWhat Is Price Leadership?
When one company, or a group of companies, has a large enough market share in an industry, it may be able to push the price away from the equilibrium. This is called price leadership. This mainly...
View ArticleExamples of Assets in SaaS
In general terms, assets are anything of value owned by someone or something. Assets can be anything from a building to a copyright. They are items that can be converted into cash, and assets can be...
View ArticleSaaS Balance Sheet Examples
The balance sheet is one of the three main financial statements, along with the income statement and statement of cash flows, that show your company’s financial health. Unlike the statement of cash...
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What Is a Payment Ledger?
A payment ledger is one of the basic tools of bookkeeping. It helps to record payments related to a specific purpose. This might be anything from a small project within a company to the full...
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The Principles of SaaS Accounting
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!Here we will...
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What Is an Income Statement for SaaS?
The income statement is one of the three main statements that show the financial health of a company (along with the balance sheet and the statement of cash flows).Check out an example income statement...
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Best Accounting Tools for Small Businesses
Very few people like bookkeeping or accounting, and even fewer can do it well. However, these are the core processes to any successful business, and a failure to keep up with bookkeeping and accounting...
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What Is Accrual Accounting?
If you remember our discussion on bookkeeping (where you can find useful definitions of many of the terms used here), which discusses the difference between bookkeeping and accounting, accounting is...
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Monitor Your Revenue Performance with Baremetrics
Revenue Performance Management (RPM) is when a company monitors its revenue performance, tracks how revenue is affected by strategic decisions, figures out revenue drivers, and then optimizes...
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Calculating Growth Rates in SaaS
Before people ever started calculating growth rates for economic activity, governments used the growth rate formula to determine population growth. Ever since then, calculating growth rates has become...
View ArticleWhat Is Net Cash Flow?
Simply put, the net cash flow is all the money coming in minus all the money going out. This metric is usually surfaced on your statement of cash flow.The statement of cash flow summarizes all of the...
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Perpetual License vs. Annual License vs. Subscriptions
The ultimate goal of any developer with an idea for some useful software is monetization. Software monetization is simply the act of generating revenue from software. Let’s say you have developed an...
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What Is Operating Income?
Operating income is essentially the money left over after you deduct all direct and indirect expenses from net revenue. It is one of the many totals that might be shown on the income statement,...
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What Is Working Capital?
Working capital is the difference between a company’s current assets and its current liabilities. It is sometimes referred to as net working capital, and it is one of the measures of a company’s...
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