Understanding Financial Reporting for SaaS Companies
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Summary In a growing trend, companies increasingly seek to educate their employees on financial reporting and incorporate an understanding of financial metrics into the company‚Äôs culture. Over the past twenty some years, the adoption of systems and collection of internal data generated within companies has grown exponentially. Today more than…Read More

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Optimizing Your Customer Lifetime Value Calculation: SaaS Companies
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3 Methods for Calculating Customer Lifetime Value and Choosing the Right One for your SaaS Business Executive Summary The Customer Lifetime Value to Customer Acquisition Cost (CLTV / CAC) ratio is one of the most important SaaS metrics, but it is not designed to fit all companies. Calculating CLTV is…Read More

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Calculating Gross Margin for Enterprise SaaS Businesses
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One of the thorniest issues in Enterprise SaaS accounting is not what you would expect. Accountants will always respond that establishing revenue recognition in accordance with ASC-606 is the most difficult process to implement. In my experience, producing a policy for gross margin accounting is much more challenging because there…Read More

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Understanding Unit Economics for the Enterprise SaaS “Go-To-Market” Strategy
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Executive Summary The direct field-sales “go-to-market” strategy dominates in Enterprise SaaS companies serving large corporations with high value-add products requiring extensive integrations and high-touch customer service. This article discusses the unit economics of the direct field sales model and shows how it leads us to the LTV/CAC ratio. Enterprise SaaS…Read More

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