Founders Journey

Psychological pricing is one of the many pricing strategies employed by companies in an attempt to increase their revenue and/or profit. In the case of This article explains psychological pricing,...

A liability is a financial or legal obligation or debt that a person or company owes to another party. Liabilities are settled through the transfer of What are liabilities in SaaS? Understand the...

In addition to calculating subscription data and metrics, Baremetrics also monitors important customer events like upgrades, downgrades, cancellations,

Gone are the days where you can throw a dart to pick your starting price and work towards the correct one (okay, maybe this was never the case). While This article offers many pricing strategies...

Currency, as well as how it is used for financial transactions, has evolved considerably over time - and it has only accelerated in recent years. While This article explains what payment processors...

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...

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...

Before people ever started calculating growth rates for economic activity, governments used the growth rate formula to determine population growth. Ever Here's an article on how you can calculate...

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...