What is IFRS15? — The IASB introduced IFRS15, a global accounting standard that explains how to recognise revenue from customer contracts. Guess what? If you’re preparing financial statements using IFRS, you’ve got to follow IFRS15. And it doesn’t matter if you’re a public or private company, a not-for-profit organisation, or even a government entity. …

Share this article: Facebook Twitter LinkedIn Reddit Introduction The purpose of this article is to explain the link between Annual Recurring Revenue, ARR, and valuation. It provides a quick overview of how to calculate ARR, explains the direct link to valuation and provides some practical tips to increase ARR. What is ARR? ARR stands…

Share this article on: Facebook Twitter LinkedIn Reddit Churn is the silent killer of ARR and ARR Growth. It saps momentum from SaaS businesses, adds unnecessary costs and can leave companies chasing their tails. In this article, we offer some practical steps to assess and reduce churn. What is ARR, and why does it matter for SaaS companies? ARR, short for…

Facebook Twitter LinkedIn Reddit This article on 2022 SaaS benchmarks focuses on ARR and ARR multiples, answering the following questions: What is ARR? What is an ARR valuation multiple and how is it calculated? How does ARR affect your company’s ability to secure funding? What are ARR valuation trends in…

Introduction to Deferred Revenue Expenditure — Definition and importance of deferred revenue expenditure Deferred revenue expenditure refers to expenses incurred by a business that provides benefits over multiple accounting periods. These expenses are not capitalized but are written off over a specified period. The importance of deferred revenue expenditure lies in its role in accurate financial reporting and business management. …

What is Deferred Revenue? — Deferred revenue represents the amount of money that has been received from customers for goods or services not yet delivered. For example, if a university invoices its students at the start of the term, it will record deferred revenue at the start of the term and recognise the revenue equally…

Setting up deferred revenue on Xero and QuickBooks can be a complex process, but with this step-by-step guide, you can easily set up and automate your deferred revenue calculations on both platforms. Setting Up Deferred Revenue on Xero Step 1: Set Up a New Liability Account The first step in setting up deferred revenue on Xero…

Deferred revenue and accrued revenue are two essential concepts in accounting that are often confused with one another. As a Finance Director, understanding the similarities and differences between these two types of revenue is crucial for accurately recording and reporting your company’s financial performance. Both deferred revenue and accrued revenue…

Well, well, well, let’s talk about SaaS revenue recognition, shall we? So, SaaS is a business model where companies provide access to software applications over the internet on a subscription basis. And when we talk about SaaS revenue recognition, we’re talking about how these companies account for their revenues from…