SaaS Accounting (Revised): Bookings, Billings, Revenue, Deferred Revenue, and More

In this tutorial, you’ll learn how SaaS accounting works and how line items on the financial statements change as a SaaS company bills customers, delivers services, and recognizes revenue.
Files & Resources:
breakingintowallstreet.com/kb...
Table of Contents:
0:00 Introduction
1:26 Part 1: Bookings vs. Billings vs. Revenue
2:22 Part 2: Simple Excel Schedule
5:11 Part 3: Accounts Receivable and Deferred Revenue
9:05 Part 4: 3-Statement Model Example
11:30 Recap and Summary

[@financialmodeling]

Files & Resources:
breakingintowallstreet.com/kb/venture-capital/saas-accounting/
Table of Contents:
0:00 Introduction
1:26 Part 1: Bookings vs. Billings vs. Revenue
2:22 Part 2: Simple Excel Schedule
5:11 Part 3: Accounts Receivable and Deferred Revenue
9:05 Part 4: 3-Statement Model Example
11:30 Recap and Summary

[@Anita-ls1sb]

Trying to get into SaaS, thank you for this video!!

[@financialmodeling]

Thanks for watching!

[@DJ-yc5qk]

I’ve been in software as a service on the go to market side and have been trying to learn more about accounting and finance to take on a general manager role, thank you for this content.

[@financialmodeling]

Thanks for watching!

[@dajacobson]

Looks good!

[@financialmodeling]

Thanks for watching!

[@gthxyz780]

Thanks a ton.
It's really helpful also please can you please educate on the expense side for SaaS companies..and top 5 SaaS Kpis.

[@financialmodeling]

Thanks. Please see the tutorial on SaaS metrics for more examples: ruclips.net/video/WPk2iExiiyg/видео.html

[@MichaelHolder24]

Hey, this is great - thanks. Any chance you can do something on (1) Book to BIll ratio and (2) Backlog, two metrics that would tie into these concepts but more in context of semiconductor manufacturing.

[@financialmodeling]

As you said, those are more hardware/semiconductor metrics and less related to SaaS. We might feature something on hardware in the future.

[@qwobify]

SaaS investor here. Good video but I think you miss one of the key features of Enterprise SaaS that investors like which is upfront cash collection for the ACV or TCV.

[@financialmodeling]

Thanks, but we do mention this and discuss some of the key numbers in the SaaS Metrics video from last year. I'm now trying to limit videos in this channel to a max of ~10-15 minutes, so they need to be a bit more focused on specific topics without getting into overview discussions of everything.

[@AishaAlbinali]

Can it used in a nonprofit semi government medical organization?

[@financialmodeling]

I'm not sure I understand your question. Non-profit accounting has some differences, but the principles here for SaaS and subscription models still apply.