SaaS Accounting Standards and Best Practices: What You Need to Know in 2024
There isn’t a specific set of SaaS accounting standards to follow. SaaS businesses use the same generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS), depending on their location. However, we find some specific considerations when applying these standards to the SaaS business model. In this post, we’ll go over these along […]
SaaS Accounting Simplified: Boosting Efficiency and Profitability for Business Owners
SaaS accounting operates on the same principles as old school accounting, but has some cool features. In this post, we’ll go over what you can do with it and how that can help your business. Understanding SaaS Accounting SaaS accounting, or cloud-based accounting software, lives online. The software stays on remote servers that […]
How to Calculate Year Over Year Growth | Definition & Formula
To make the best decisions for your business, you need to understand where you are financially, what areas of your products and services have grown, and where changes might be necessary. Having the right financial information in place can assist you in analyzing your business and crafting budgets that support future growth and expansion. […]
Owner’s Draw vs Salary | How to Pay Yourself
While we all have different reasons that made us decide to start a business, the truth is that we also need to make a living. Working for free is not a likely option for most business owners, but figuring out how to get a paycheck from your business can be challenging, especially in the […]
Owner’s Equity Guide: Definition, Calculation, & Statement
Running your business means investing time, energy, and capital. However, when you look at your financial statements, there isn’t a line item that indicates what you contributed to both start and keep your business running. Or is there? Today, let’s dive into this owner’s equity guide and learn how it translates your investment into […]
Accrual Accounting vs Cash Accounting | A Simple Guide
Building a business involves understanding how cash flows in and out. Your financial statements are key to that process, but to make sure your financial statements can allow for accurate comparisons across time, you need to have a consistent form of accounting in place. With that in mind, let’s talk about what types of […]
Bookkeeper vs Accountant | What Makes Them Different?
Building a business takes hard work, but at the end of the day, you like to see your bottom line reflecting a profit as evidence of all your time and effort. Still, as your business grows, you may find there is less time for you to sit down and “do the books.” Outsourcing this […]
Seller’s Discretionary Earnings (SDE): Definition, Formula, & Examples
Growing your business is the goal of every business owner. To truly understand whether your business is thriving, you need to be able to define various aspects of the financials, including the seller’s discretionary earnings. Let’s dive into what those are and how they can help you to be more informed about the financial well-being […]
What Are Business Expenses? Examples, Types, & Tips
What Are Business Expenses? To successfully manage the finances of your company, you need to be clear about what is being spent and where it is being spent. That means tracking your business expenses, which are any costs incurred in the ordinary course of business. Every business, whether a Fortune 500 or a […]
What Is Annual Recurring Revenue? Definition, How to Calculate, & Examples
Owning a business means understanding critical aspects of the finances and how to maximize every bit of capital to grow and sustain your company. This is even more critical with a SAAS, or subscription service business. With that in mind, let’s talk about annual recurring revenue, including what it is and why it […]
