What is the ASC 606?

September 23, 2021

The Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) set out in 2014 to p...

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How to Do Price Analysis for SaaS

September 23, 2021

Price analysis is a shortcut to understanding what the market considers a fair and reasonable price. Instead of examinin...

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Willingness to Pay: What It Is and How to Find It

September 23, 2021

Unlike some economic terms, this one is pretty self-explanatory. Willingness to pay is the maximum amount a customer is ...

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Revenue vs. Income

September 22, 2021

Revenue and income are sometimes used synonymously in day-to-day conversation, however they are very different terms in ...

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What is unit economics in SaaS?

September 22, 2021

Unit economics is the expression of all the direct revenues and costs associated with a single unit. This makes it the m...

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Understanding Purchase Cycles

September 19, 2021

Most businesses are aware their customers go through different phases before they reach a decision. Very broadly, these ...

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How to Increase LTV for E-commerce Businesses

September 16, 2021

What journey does a person pass to become your customer? Visitors go to your online store and get acquainted with your p...

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ProfitWell vs. Baremetrics

September 15, 2021

For a SaaS business to survive, it needs to track its business data. For a SaaS business to thrive, it needs to deeply u...

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What Is Working Capital?

September 15, 2021

Working capital is the difference between a company’s current assets and its current liabilities. It is sometimes refe...

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What Is Operating Income?

September 15, 2021

Operating income is essentially the money left over after you deduct all direct and indirect expenses from net revenue. ...

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Perpetual License vs. Annual License vs. Subscriptions

September 15, 2021

The ultimate goal of any developer with an idea for some useful software is monetization. Software monetization is simpl...

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What Is Net Cash Flow?

September 15, 2021

Simply put, the net cash flow is all the money coming in minus all the money going out. This metric is usually surfaced ...

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Calculating Growth Rates in SaaS

September 15, 2021

Before people ever started calculating growth rates for economic activity, governments used the growth rate formula to d...

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Monitor Your Revenue Performance with Baremetrics

September 15, 2021

Revenue Performance Management (RPM) is when a company monitors its revenue performance, tracks how revenue is affected ...

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What Is Accrual Accounting?

September 14, 2021

If you remember our discussion on bookkeeping (where you can find useful definitions of many of the terms used here), wh...

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Best Accounting Tools for Small Businesses

September 14, 2021

Very few people like bookkeeping or accounting, and even fewer can do it well. However, these are the core processes to ...

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What Is an Income Statement for SaaS?

September 14, 2021

The income statement is one of the three main statements that show the financial health of a company (along with the bal...

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The Principles of SaaS Accounting

September 14, 2021

This article will dive into the main principles of accounting for SaaS. The Baremetrics blog has a ton of articles about...

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What Is a Payment Ledger?

September 10, 2021

A payment ledger is one of the basic tools of bookkeeping. It helps to record payments related to a specific purpose. Th...

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SaaS Balance Sheet Examples

September 10, 2021

The balance sheet is one of the three main financial statements, along with the income statement and statement of cash f...

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Examples of Assets in SaaS

September 10, 2021

In general terms, assets are anything of value owned by someone or something. Assets can be anything from a building to ...

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What Is Price Leadership?

September 10, 2021

When one company, or a group of companies, has a large enough market share in an industry, it may be able to push the pr...

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10 Examples of Revenue Models for SaaS

September 10, 2021

Before we look at the promised SaaS revenue models, let’s get a couple definitions out of the way. We need to differen...

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What is equity in accounting?

September 9, 2021

If you’ve ever owned stakes in a company, then you may already know what is meant by equity. However, equity accountin...

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Revenue vs. Profit

September 9, 2021

When discussing the financial metrics for a SaaS company, revenue vs. profit is among the most common comparisons encoun...

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