Founders Journey

Bookkeeping and accounting are two of the least liked tasks for both budding entrepreneurs and seasoned founders alike. They are unforgiving tasks where This article discusses Sage 50cloud, details...

Marginal cost is essentially the cost of producing one more unit, whether a product or service. When looking at the income statement, there are two This article explains marginal cost and how it...

There might not be an industry more addicted to its metrics than SaaS, and there is good reason for it. Coming from data and engineering backgrounds, most This article goes over many of the key...

Equity financing is a method of capital raising via the selling of stock. Businesses grow money for a variety of reasons. They may need cash to meet What is Equity Financing and should you consider...

A while ago on Quora I read an answer to a question discussing a syndrome called "the Duck Syndrome" which refers to severely stressed college students at Mental Health is extremely important in...

Ever heard about the golden ratio? No, not that nerdy Fibonacci number thing. I am talking about the SaaS golden ratio. It’s 3:1. Where did this even come Understand the LTV to CAC ratio, how to...

Learn to identify the willingness to pay, or the maximum amount a customer is willing to pay for your product.

The Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) set out in 2014 to provide a framework to attain This article describes ASC 606, its origin and...

Price analysis is a shortcut to understanding what the market considers a fair and reasonable price. Instead of examining the specific cost and profit Learn to perform price analysis for SaaS...

Revenue and income are sometimes used synonymously in day-to-day conversation, however they are very different terms in business, and it is important to This article explores revenue vs. income, how...

Most businesses are aware their customers go through different phases before they reach a decision. Very broadly, these phases are known as the Purchase This article is about a magic formula for...

For a SaaS business to survive, it needs to track its business data. For a SaaS business to thrive, it needs to deeply understand what the business This article outlines the differences between...

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 This article discusses working capital,...

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 This article discusses operating income, how...

The ultimate goal of any developer with an idea for some useful software is monetization. Software monetization is simply the act of generating revenue Learn the difference between Perpetual License...

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. This article describes net cash flow, how to...

Learn the growth rate formula and how to calculate SaaS growth rates for MRR, active customers, ARPU and churn, with examples from Baremetrics dashboards.

If you remember our discussion on bookkeeping (where you can find useful definitions of many of the terms used here), which discusses the difference This article explains the accrual accounting...

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 Learn about the best accounting tools for small...

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 Learn about income statements, items commonly...

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 SaaS accounting is different from typical...

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 This article discusses the payment ledger,...

SaaS balance sheets are one of the three main financial statements you need for your SaaS company. Learn how to make one with this SaaS balance sheet example.

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 We provide examples of assets, how assets are...

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 article explains how price leadership works...