Introducing Tabs Revenue Recognition
In the ever-evolving world of financial technology, staying ahead of the curve means constantly innovating and improving the tools businesses rely on to manage their finances. At Tabs, we are...
What is ACV and How Does It Compare to ARR?
ACV, or Annual Contract Value, is the average amount of money a customer pays your business each year for their subscription. It’s a key metric for understanding how much revenue you can expect from...
A Field Guide to SaaS Accounting
Software-as-a-Service (SaaS) has revolutionized how businesses operate, offering scalable, cloud-based solutions that have transformed industries across the globe. However, with this new business...
Value-Based Pricing: A Field Guide
With a value-based pricing strategy, you set prices based on the perceived value a product or service provides to your customers rather than on production costs or competitor prices. This approach...
What is a Tiered Pricing Model?
Pricing strategies are the magic elixir for driving revenue and customer satisfaction. Tiered pricing is one strategy gaining significant traction, especially in the SaaS industry. This model...
How To Calculate Your Revenue Run Rate
Revenue run rate is a critical metric for businesses of all sizes, particularly for startups and growing companies. It allows you to forecast your annual revenue based on current performance, make...
Billings vs. Bookings vs. Revenue—Oh My!
Just like Dorothy making her way through the winding path to Oz, SaaS businesses often find themselves navigating a complex landscape of financial metrics. In this world, billings and bookings and...
Accrued Revenue: A Practical Guide
If you work for an SMB or a mid-market SaaS company, you know the importance of accurate financial reporting. It can be stressful if your company’s income statement doesn’t reflect the revenue earned...
Cash Application: Definition and Importance
At the heart of every efficient accounts receivable (AR) process lies a meticulous task: matching payments to invoices, known as cash application. By accurately matching payments to invoices, you can...
What is a Cash Conversion Cycle?
The cash conversion cycle (CCC) is a powerful metric that measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. In simpler...