Founders Journey

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...

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...

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...

Need a SaaS revenue model for your business? We've got you covered. Check out these revenue model examples to find the best option for your SaaS business.

If you’ve ever owned stakes in a company, then you may already know what is meant by equity. However, equity accounting is not just about the shares owned This article will teach you all about equity...

When discussing the financial metrics for a SaaS company, revenue vs. profit is among the most common comparisons encountered. This is because these two In this article, you will find discussions on...

While companies are a bit more free to perform bookkeeping according to their own needs, accounting is a very organized and rigid discipline. While that We are going to look at two of those...

Before the advent of lead qualification, sales and marketing teams would spend way too much trying to convert leads generated during marketing Find out all you need to know about MQL vs. PQL vs. SQL...