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...
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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...
Direct Method Cash Flow: A Field Guide
When it comes to cash flow statements, the direct method provides a crystal-clear picture of your business's financial health. Unlike the indirect method, which can be convoluted, the direct method...
A Guide to Accounts Receivable Management Software
Technology has transformed accounts receivable management. Using advanced software tools helps you improve cash flow, reduce Days Sales Outstanding (DSO), and bolster customer relationships. These...
Is Accounts Receivable Debit or Credit?
Accounts receivable is an integral part of your business's finances. It's the money customers owe you for goods or services you've provided on credit. However, figuring out whether accounts...
Order-to-Cash (O2C) Explained in 5 Minutes
The order-to-cash (O2C) process can make or break your business. From the time your customer places an order to the moment you receive their payment, every step in between must be carefully...
What is Annual Recurring Revenue (ARR)?
Does your business charge clients regularly (like every month or year)? If so, it's helpful to know about Annual Recurring Revenue (ARR). This represents the total amount of money your company...