Ordway EntityMap

Ordway

Ordway is the finance platform for innovative business models, providing an all-in-one suite for subscription invoicing, SaaS accounting, recurring billing, and usage-based billing for growing SaaS, fintech, and healthcare companies.

• OFFERS Subscription Billing
• OFFERS Usage-Based Billing
• OFFERS Revenue Recognition
• OFFERS SaaS Metrics Reporting
• OFFERS Accounts Receivable Automation
• OFFERS Ordway AI Capabilities
• OFFERS Subscription Management
• INCLUDES Third-Party Integrations

Ordway's mission is to liberate finance teams from mundane, repetitive tasks and make billing and revenue recognition processes as effortless as possible.Ordway - Billing & Revenue Automation Software for SaaS Business - published by Ordway

Ordway's all-in-one platform combines Subscription Invoicing Software, SaaS accounting software, Recurring Billing Software, and SaaS Billing & Metered Billing Software to automate complex pricing models, streamline revenue recognition, and accelerate financial close for growing SaaS companies.Order-to-Revenue Automation for SaaS - Ordway Labs - published by Ordway

Subscription Billing

Ordway's Subscription Billing supports per-user and multi-tiered pricing, pay-as-you-go and prepaid models, and free trials, with prorations, discounts, and custom billing cycles.

• ENABLES Revenue Recognition

Subscription Billing: per user and multi-tiered pricing, pay-as-you-go, prepaid, and free trials.Subscription Billing Software for SaaS & Recurring Revenue | Ordway - published by Ordway

Ordway supports prorations, trials, discounts, and custom billing cycles.Subscription Billing Software for SaaS & Recurring Revenue | Ordway - published by Ordway

Usage-Based Billing

Ordway's Usage-Based Billing handles rollovers, overage fees, monthly minimums, and prepaid credits with drawdowns for metered and hybrid pricing models.

• ENABLES Revenue Recognition

Usage-Based Billing: rollovers, overage fees, monthly minimums, prepaid credits with drawdowns.Subscription Invoicing Software - Ordway Labs - published by Ordway

Ordway supports usage-based and hybrid billing alongside customizable invoices and billing logic.Recurring Billing Software for SaaS & Subscriptions | Ordway - published by Ordway

Revenue Recognition

Ordway's Revenue Recognition automates ASC 606 and IFRS 15 compliant reporting, helping SaaS finance teams stay compliant while accelerating financial close.

• DEPENDS_ON Subscription Billing
• DEPENDS_ON Usage-Based Billing
• IMPROVES SaaS Metrics Reporting

Revenue Recognition: stay compliant with automated GAAP/IFRS reporting.Recurring Billing Software for SaaS & Subscriptions | Ordway - published by Ordway

Ordway's reporting is ASC 606 / IFRS 15 compliant.Recurring Billing Software for SaaS & Subscriptions | Ordway - published by Ordway

SaaS Metrics Reporting

Ordway tracks core SaaS metrics including MRR/ARR, net dollar retention, bookings, expansions, renewals, and churn, with real-time analytics in a single dashboard.

• DEPENDS_ON Revenue Recognition

SaaS Metrics: MRR/ARR, net dollar retention, bookings, expansions, renewals, churn.Order-to-Revenue Automation for SaaS - Ordway Labs - published by Ordway

Ordway offers real-time analytics to track MRR, churn, and revenue metrics in one dashboard.Subscription Invoicing Software - Ordway Labs - published by Ordway

Accounts Receivable Automation

Ordway's Accounts Receivable tools include aging reports, dunning emails, a customer self-service portal, and cash application to speed up collections.

• PREVENTS Revenue Leakage

Accounts Receivable: aging reports, dunning emails, customer self-service portal, and cash application.Subscription Invoicing Software - Ordway Labs - published by Ordway

Ordway AI Capabilities

Ordway applies AI agentic workflows to billing and accounting tasks and offers natural language interfaces for SaaS metrics reporting.

• IMPROVES SaaS Metrics Reporting
• IMPROVES Failed Payment Recovery

Artificial Intelligence: AI agentic workflows for billing and accounting, with natural language interfaces for SaaS metrics reporting.Order-to-Revenue Automation for SaaS - Ordway Labs - published by Ordway

Revenue Leakage

Revenue leakage in subscription businesses arises from failed payments, missed renewals, and billing errors, and directly reduces collected revenue.

• RELATES_TO Failed Payment Recovery

Revenue Leakage: failed payments, missed renewals, and billing errors cost SaaS businesses money.Recurring Billing Software for SaaS & Subscriptions | Ordway - published by Ordway

Failed Payment Recovery

Ordway uses automated retries and smart dunning workflows to recover failed payments and reduce involuntary churn.

• PREVENTS Revenue Leakage

Failed Payment Recovery: automated retries and smart dunning workflows.Recurring Billing Software for SaaS & Subscriptions | Ordway - published by Ordway

Ordway uses automated failed payment retries and smart recovery workflows to recover missed payments and reduce churn.Subscription Invoicing Software - Ordway Labs - published by Ordway

Subscription Management

Ordway's Subscription Management lets customers easily upgrade, downgrade, or pause subscriptions without manual intervention.

• ENABLES Subscription Billing

Subscription Management: easily upgrade, downgrade, or pause subscriptions.Recurring Billing Software for SaaS & Subscriptions | Ordway - published by Ordway

Third-Party Integrations

Ordway connects via APIs to third-party CRM, ERP, tax, and accounting applications, including payment processors like Stripe, PayPal, and Adyen, and tax automation vendors Avalara and Anrok.

• ENABLES Subscription Billing

Integrations: APIs and connections to third-party CRM, ERP, tax, and accounting applications.Order-to-Revenue Automation for SaaS - Ordway Labs - published by Ordway

Ordway has pre-built integrations with specialized sales tax automation software from vendors such as Avalara and Anrok.Subscription Billing Software for SaaS & Recurring Revenue | Ordway - published by Ordway

Integrations with Stripe, PayPal, Adyen, and more.Recurring Billing Software for SaaS & Subscriptions | Ordway - published by Ordway

Recurring Billing

Automate dunning, prorations & renewals. Support multi-tier, per-seat & hybrid pricing. Reduce churn with smart dunning, and ensure compliance (ASC 606/IFRS 15).

• RELATES_TO Subscription Billing

Recurring Billing Software Automate & scale your subscription revenue with powerful recurring billing software. Automated Recurring Billing – Set up once and let the system handle the rest. Subscription Management Easily upgrade, downgrade, or pause subscriptions. Failed Payment Recovery Automated retries and smart dunning workflows. Revenue Recognition Stay compliant with automated GAAP/IFRS reporting.Recurring Billing Software for SaaS & Subscriptions | Ordway - published by Ordway

Metered Billing

Automate metered and usage-based billing for API calls, compute, storage, seats, and other consumption metrics. Track usage, rate charges, and generate accurate invoices with Ordway.

• RELATES_TO Usage-Based Billing

Metered Billing Software Automate Usage-Based Pricing with Precision. Charge customers fairly—down to the last usage event. Our metered billing software empowers SaaS, cloud, API, and IoT businesses to bill customers accurately based on real consumption—no estimates, no surprises. Eliminate Revenue Leakage Bill for every unit consumed. Improve Customer Trust Transparent, usage-based invoices Scale Without Complexity Automate billing as your customer base grows.Metered Billing Software – Accurate Usage-Based Billing | Ordway - published by Ordway

Billing Cycle

Defines the billing cycle, its typical duration, and how closing dates impact invoices. Includes real-world examples for SaaS and utilities.

• RELATES_TO Subscription Billing
• COVERS Proration
• COVERS Advance Billing
• COVERS Deferred Billing

The Billing Cycle A billing cycle is the recurring interval—typically 28 to 31 days—between consecutive statement closing dates. It is the window during which transactions, fees, and usage accumulate on an account before an invoice is generated and a new cycle begins. Key Takeaways The Model: Cycles can be based on Anniversary Billing (sign-up date) or Calendar Billing (fixed date for all).Billing Cycle Explained: Definition, Duration, and Real-World Examples - published by Ordway

Proration

Proration adjusts customer charges for contract changes mid-billing cycle. It ensures fair billing for partial service access in SaaS.

Proration (also known as prorated billing) is the practice of adjusting the charges a customer owes when there is a change to their contract during a billing cycle. Examples of changes might include upgrades, downgrades, or early cancellations. Proration ensures fairness by billing only for the portion of service the customer had access to, rather than the full standard cycle.Proration - published by Ordway

Invoice Automation

Ordway’s Subscription Invoicing Software automates recurring billing, invoicing & revenue recognition. Reduce errors, ensure compliance, and get paid faster.

• RELATES_TO Subscription Billing
• COVERS Customer Statements
• COVERS Negative Invoice
• COVERS Invoice Design
• COVERS Invoice Number
• COVERS Batch Invoice Generation
• COVERS Credit Memo vs Debit Memo

Subscription Invoicing Software Streamline Your Billing with Smart Subscription Invoicing Software Automate recurring billing, reduce errors, and get paid faster with Ordway’s powerful Subscription Invoicing Software. Flexible Billing Schedules Prorations, trials, discounts, and custom billing cycles. Dunning Management Automated failed payment retries and smart recovery workflows.Subscription Invoicing Software - published by Ordway

Parent-Child Billing

Streamline billing for enterprise customers with parent-child account structures. Covers common models and automation for subscription and usage-based pricing.

• RELATES_TO Subscription Billing

Enterprise customers rarely operate as a single entity. A corporate headquarters with regional offices, a franchisor with dozens of locations, a holding company with multiple subsidiaries—these structures require billing systems that can mirror the organizational complexity. Parent-child billing solves this by linking related accounts in a hierarchy where invoices, payments, and reporting flow between parent and child entities according to configurable rules.How to Automate Parent Child Billing Across Complex Account Hierarchies - published by Ordway

Usage-Based Pricing

Usage-based pricing charges customers based on consumption. Covers packaging strategies, value metrics and billing automation for SaaS and cloud.

• COVERS Prepaid Credits
• COVERS Overage Fees
• COVERS Spend Commitment
• COVERS Outcome-Based Pricing
• COVERS AI Credits
• COVERS AI Tokenomics
• COVERS SaaS Entitlements

Usage-Based Pricing A usage-based pricing model (often called consumption billing) charges customers based on their actual consumption of a cloud or SaaS service rather than a flat monthly subscription. It aligns costs directly with customer value, meaning if a customer doesn't use the product, they don't pay.Guide – Usage-Based Pricing For SaaS and Cloud | Ordway - published by Ordway

Prepaid Credits

Managing prepaid credits in usage-based billing requires precise balance tracking, automated depletion, and accurate invoicing. See how to implement it.

Prepaid Usage Credits: The Short Version Prepaid usage contracts offer customers a compelling way to secure discounted rates by forecasting and prepaying for their consumption. This model involves a rating engine meticulously tracking an initial credit balance, applying ongoing debits from usage, and managing any additional credits or expirations. Understanding how these systems calculate opening balances, process monthly drawdowns, and handle potential overages is crucial for both providers and consumers leveraging this flexible pricing structure.Usage-Based Billing for Prepaid Credits - published by Ordway

Overage Fees

Explains how overage fees work in subscription models, covering ASC 606 revenue recognition, customer communication, and automation for finance teams.

Overage Fees An overage fee is an additional charge applied when a customer exceeds the usage limits defined in their subscription plan. This model allows SaaS and cloud providers to offer affordable base pricing while scaling revenue based on the consumption of heavy users. Key Takeaways The Model: Providers set a specific allowance (e.g., API calls, storage, or seats).Understanding Overage Fees in Subscription and Usage Based Billing - published by Ordway

Spend Commitment

Manage spend commitments in usage billing: track monthly usage, true-up invoices, and recognize revenue correctly. Includes an ASC 606 compliant guide with examples.

Usage-Based Spend Commitments: The Short Version Spend commitments offer a flexible billing model for SaaS and cloud providers, allowing customers to secure discounted rates by agreeing to a minimum spend over a defined period. This approach is ideal for high-volume users uncertain about their exact product consumption patterns. Understanding how these commitments are billed monthly, including calculating current spend and tracking balances, is crucial.Usage-Based Billing for Spend Commitments - published by Ordway

Freemium

Compares free trial and freemium models for SaaS customer acquisition, detailing tradeoffs, tactics, and when each drives growth.

Free trials offer full product access for a limited time, driving urgency, while freemium provides limited features indefinitely. The optimal choice for SaaS depends on aligning with sales, onboarding, and GTM strategies. Success requires designing clear activation paths and conversion triggers post-signup, ensuring users quickly reach their 'aha' moment, regardless of the initial acquisition model.Free Trial vs Freemium: Which Model Wins for SaaS Customer Acquisition? - published by Ordway

ASC 606

Easily manage multi-element arrangements, SSP allocations, and deferred revenue. Ordway automates complex revenue recognition for SaaS and usage-based pricing models.

• RELATES_TO Revenue Recognition

Revenue Recognition Software ASC 606 and IFRS 15 Accounting Automate calculations for ASC 606 and IFRS 15 Ordway supports US GAAP and international standards for Revenue for Customer Contracts Multiple element arrangements Stand-alone selling prices Deferred revenue schedules Straight line & event recognition Deferred Revenue Schedules Configure rules to automate how and when revenue is recognized.Revenue Recognition Software for ASC 606/IFRS 15 – Ordway - published by Ordway

IFRS 15

Easily manage multi-element arrangements, SSP allocations, and deferred revenue. Ordway automates complex revenue recognition for SaaS and usage-based pricing models.

• RELATES_TO Revenue Recognition

Revenue Recognition Software ASC 606 and IFRS 15 Accounting Automate calculations for ASC 606 and IFRS 15 Ordway supports US GAAP and international standards for Revenue for Customer Contracts Multiple element arrangements Stand-alone selling prices Deferred revenue schedules Straight line & event recognition Deferred Revenue Schedules Configure rules to automate how and when revenue is recognized.Revenue Recognition Software for ASC 606/IFRS 15 – Ordway - published by Ordway

Deferred Revenue

Deferred revenue is cash received for services not yet delivered. It's crucial for accurate financial reporting and compliance with ASC 606.

• RELATES_TO Revenue Recognition

Deferred revenue is money you’ve been paid—but haven’t earned yet. If a customer pays upfront for a year, you can’t call it revenue right away. It sits as a liability until you deliver the service. Example A customer pays $1,200 for a 12-month subscription.Deferred Revenue - published by Ordway

Remaining Performance Obligations

Defines RPOs, explains their calculation under ASC 606, and details why this metric is critical for SaaS investor reporting. Includes real-world examples.

• RELATES_TO Revenue Recognition

Remaining Performance Obligations: The Short Version Remaining Performance Obligations (RPOs) represent the total value of future revenue from customer contracts that a company has signed but not yet recognized on its financial statements. This crucial financial metric provides insight into a company's backlog and future earnings potential, particularly for SaaS and cloud businesses.Remaining Performance Obligations - published by Ordway

Contract Assets

Defines contract assets and their accounting treatment under ASC 606. Includes examples of when to recognize, reclassify, and test for impairment.

• RELATES_TO Revenue Recognition

Contract Assets A contract asset (often called unbilled revenue) represents a company's right to payment for work already completed, but where that payment is conditional on something other than just the passage of time—such as hitting a future milestone or completing a bundled service. Key Takeaways The Model: Contract assets arise when revenue recognition outpaces the contractual billing schedule.What Are Contract Assets? Definition and Accounting Treatment - published by Ordway

Annual Recurring Revenue

Annual Recurring Revenue (ARR) is the annualized value of recurring subscription revenue. Covers how to calculate, report and use ARR for valuation and growth.

• RELATES_TO SaaS Metrics Reporting

Annual Recurring Revenue (ARR) Annual Recurring Revenue (ARR) is a forward-looking financial metric used by SaaS and subscription businesses to project the total amount of recurring revenue they expect to receive from their current customer base over the next 12 months. It serves as a vital health indicator, stripping away one-time fees to show the predictable core of a company's revenue.Annual Recurring Revenue Guide | Ordway ARR Calculation Tips - published by Ordway

Monthly Recurring Revenue

Monthly Recurring Revenue (MRR) is the predictable revenue earned monthly from subscriptions. It's a key metric for tracking SaaS business health.

• RELATES_TO SaaS Metrics Reporting

MRR is the total predictable revenue you earn every month from subscriptions. It’s steady, trackable, and a core health metric for any SaaS business. Example - MRR Calculation If you have 50 customers paying $200 each per month, your MRR is $10,000. Why MRR is Important to SaaS Finance Teams This is the number SaaS teams live and die by. MRR tells you how much recurring revenue you are generating every month—and whether that’s trending up, down, or flat.Monthly Recurring Revenue (MRR) - published by Ordway

Net Revenue Retention

Net Revenue Retention measures recurring revenue retained from existing customers after churn, contraction and expansion. Includes the formula, benchmarks and tactics.

• RELATES_TO SaaS Metrics Reporting

Net Revenue Retention (NRR) Net Revenue Retention (NRR) is a core SaaS metric that measures the percentage of recurring revenue retained and expanded from an existing customer base over a specific period. It is a vital indicator of product-market fit, customer satisfaction, and long-term business health.Net Revenue Retention Guide | Boost SaaS Growth | Ordway - published by Ordway

Gross Revenue Retention

GRR measures retained recurring revenue from existing customers, excluding expansion. Includes the formula and benchmarks.

• RELATES_TO SaaS Metrics Reporting

What You'll Learn About Revenue Retention Gross Revenue Retention (GRR) is a vital metric for SaaS companies, revealing how effectively they retain recurring revenue from existing customers over time. This metric specifically tracks revenue lost due to churn or downgrades, offering a clear snapshot of customer loyalty and product value. Understanding your GRR is crucial for assessing business health, attracting investors, and identifying areas for improvement in customer satisfaction.Gross Revenue Retention for SaaS - published by Ordway

Customer Churn

Churn rate is the percentage of customers or revenue a company loses over a specific period. It is a critical metric for SaaS billing.

• RELATES_TO SaaS Metrics Reporting

Churn rate (also known as customer churn rate, attrition rate, or customer turnover) is the percentage of customers—or, in some cases, revenue—that a company loses during a defined period of time. It’s a fundamental metric in subscription-based and SaaS (Software as a Service) business models. Types of Churn Customer vs Revenue Churn Rate: Customer Churn Rate: The proportion of customers who stop using a service or fail to renew their subscription within a given period.Churn Rate - published by Ordway

Expansion Revenue

Expansion revenue is additional recurring revenue from existing customers through seats, usage, tiers and add-ons. Includes how to calculate expansion rate.

• RELATES_TO SaaS Metrics Reporting

Expansion ARR: The Short Version Expansion ARR, or Expansion Annual Recurring Revenue, is a critical SaaS metric that provides deep insight into a company's ability to grow revenue from its existing customer base. This measure specifically quantifies the increase in annual recurring revenue generated through strategic upsells and cross-sells to customers who are already using a company's products.Expansion ARR - published by Ordway

Rule of 40

The Rule of 40 is a SaaS metric that adds revenue growth rate and profit margin. Covers the formula and benchmarks by company stage.

• RELATES_TO SaaS Metrics Reporting

Rule of 40: The Short Version SaaS companies constantly navigate the delicate balance between aggressive growth and sustainable profitability, a challenge critical for valuation and long-term success. The Rule of 40 offers a powerful financial benchmark to guide this decision, asserting that a company's revenue growth rate combined with its profit margin should total at least 40%.What is the Rule of 40 in SaaS? - published by Ordway

Days Sales Outstanding

Days Sales Outstanding measures the average time to collect payment after a sale. Covers ways SaaS finance teams reduce DSO, including AR automation and payment options.

• RELATES_TO Accounts Receivable Automation

DSO Reduction: What Finance Teams Need to Know Optimizing cash flow is vital for any SaaS business, especially where recurring revenue fuels growth. Small delays in collecting payments can lead to significant operational challenges and strain resources. By implementing a proactive, customer-friendly collections process, leveraging automation, and ensuring payment flexibility, companies can drastically reduce Days Sales Outstanding (DSO) and enhance financial stability.10 Ways SaaS CFOs Can Improve Days Sales Outstanding (DSO) - published by Ordway

Dunning

Dunning is the process of recovering failed and overdue subscription payments. Covers retry logic, customer communications and self-service portals.

• RELATES_TO Accounts Receivable Automation

Dunning Management: The Short Version Dunning is the automated process of communicating with customers about invoices and payments, crucial for managing financial transactions effectively. Optimizing these communications enhances the customer experience, boosts operational efficiency for accounts receivable teams, and significantly accelerates cash flow. This proactive approach not only reduces disputes and potential fraud but also ensures your collection processes are tailored to your business needs and customer relationships.How to Optimize Dunning Processes - published by Ordway

Bad Debt

Compares GAAP-compliant allowance and direct write-off methods for uncollectible accounts, with tax implications and prevention tips for finance teams.

• RELATES_TO Accounts Receivable Automation

Bad Debt Write-Offs at a Glance: What it is: An accounting process that removes uncollectible customer invoices from Accounts Receivable (AR) and records the amount as a financial loss. When to write off: Typically after 90–180 days of unpaid status combined with exhausted collection attempts, customer bankruptcy, or unreachable accounts. Accounting Methods: Allowance Method: Preferred under GAAP; estimates bad debt in advance to match revenues and expenses accurately.Bad Debt Write Off: How to Handle Uncollectible Accounts - published by Ordway

Payment Processing

Scale your subscription revenue with Ordway’s recurring payment solution. Support for SEPA, BACS, and BECS, plus automatic card updates to prevent failed transactions.

• COVERS ACH Payments
• COVERS Credit Card Payments
• COVERS Pre-Authorized Debit
• COVERS Check Payments
• COVERS Payment Facilitation
• COVERS Transaction Pricing
• COVERS Refund

Recurring Payments Software For Subscription Billing Auto-Pay via Card or Bank Transfers Auto-Pay and Pay Now Offer customers flexible options Improve the predictability of cash flows with automated payment runs that collect recurring fees monthly. Auto-pay Enable customers to set up recurring payments with a credit card on file or through direct debit bank transfers.Best Recurring Payments Software for SaaS | Ordway - published by Ordway

ACH Payments

Compares recurring ACH payments to credit cards for SaaS, detailing how to reduce processing fees and improve payment success rates.

Recurring ACH Payments: The Short Version Recurring ACH payments offer a streamlined and cost-effective method for SaaS and subscription-based businesses to manage customer billing. This system automatically debits customer bank accounts, similar to credit card auto-pay, but often with lower fees and increased reliability. Discover how these payments operate, the optimal times to enroll customers, and the essential technology required to implement them effectively.Recurring ACH Payments - published by Ordway

Credit Card Payments

SaaS finance teams get a framework for selecting payment gateways, reducing transaction fees, and preventing involuntary churn from failed credit card payments.

• COVERS Credit Card Surcharging
• COVERS PCI DSS Compliance
• COVERS Card Account Updater
• COVERS Interchange Fees
• COVERS Chargebacks

Credit Card Payments for SaaS: The Short Version Credit cards have emerged as the leading payment method for SaaS subscriptions, a significant shift from their limited business use decades ago. This evolution is driven by reduced software prices and the unparalleled convenience cards offer. Understanding the intricate process, from secure payment capture to managing recurring charges, is vital for both businesses and consumers.Credit Card Payments for SaaS - published by Ordway

Self-Service Billing Portal

A self-service billing portal lets customers view invoices and manage payment details. Includes a feature checklist and best practices for finance teams.

• RELATES_TO Accounts Receivable Automation
• COVERS Self-Service Checkout

Self-Service Billing Portals: The Short Version A billing portal offers customers a powerful self-service channel to independently manage all financial aspects of their relationship with a business. These portals empower users to view account balances, download invoices, make payments, and access historical transaction data without needing direct customer service interaction.Self-Service Billing Portal - published by Ordway

General Ledger

A general ledger is the master accounting record consolidating all financial transactions. It's crucial for accurate SaaS financial reporting.

• COVERS Journal Entry
• COVERS Month-End Close
• COVERS Foreign Currency Accounting
• COVERS Segregation of Duties

The General Ledger - A Definition A General Ledger (GL) is the master accounting record that consolidates all financial transactions of a company and its subsidiaries into a complete, balanced system of accounts. It consolidates every asset, liability, equity, income, and expense into one system, acting as a single source of accounting truth. All subledgers (e.g., billing, accounts receivable, accounts payable, payroll, revenue) ultimately roll up to the GL, ensuring every dollar has a trail.General Ledger (GL) - published by Ordway

Journal Entry

A journal entry is a chronological record of a financial transaction, applying equal debits and credits to accounts. It's crucial for maintaining balanced books.

A journal entry is the formal, chronological record of a financial transaction within the double-entry bookkeeping system. It documents a transaction by applying equal debit and credit amounts to the affected accounts, ensuring the accounting equation (Assets = Liabilities + Equity) always remains balanced. Journal entries translate business activity into structured, auditable data, forming the foundational building blocks of the general ledger and all financial statements.Journal Entry - published by Ordway

Month-End Close

Five strategies to cut SaaS month-end close from weeks to days, including real-time reconciliation, automated revenue recognition, and streamlined approvals.

SaaS Month-End Close: The Short Version SaaS companies experience significant pressure to accelerate their month-end close as they grow and attract more investors. While growth introduces complex factors like more customers, vendors, and legal entities, traditional manual processes often lead to delays, errors, and audit risks. This guide reveals how to dramatically reduce your month-end close cycle for SaaS, leveraging automation, robust data integrity, and efficient, repeatable workflows that prioritize both speed and accuracy.Five Ways to Shorten Month-End Close for SaaS Companies - published by Ordway

Quote-to-Cash

Examine the quote-to-cash process for SaaS, including key stages, common finance challenges, and best practices for revenue automation.

• INCLUDES CPQ Software
• INCLUDES Order-to-Cash Automation
• INCLUDES Sales Commissions

Quote-to-Cash: The Short Version The quote-to-cash (QTC) process encompasses every financial interaction from initial quote generation to final payment collection and renewal, extending far beyond the initial sale. For SaaS and subscription businesses, optimizing QTC is crucial for ensuring predictable growth, efficient cash flow, and sustained customer relationships.The Quote-to-Cash Process for Subscriptions and SaaS - published by Ordway

CPQ Software

Compare essential and advanced CPQ features for SaaS, covering product configuration, pricing rules, quote generation, and critical integrations for accurate billing.

CPQ software automates the process of configuring products, applying pricing rules, and generating accurate sales quotes—replacing manual spreadsheets and ad-hoc calculations with a rules-driven system that prevents errors before they reach customers. For subscription and SaaS companies, CPQ complexity goes beyond simple product selection. Tiered pricing, usage-based components, multi-year ramps, and mid-contract amendments all require calculation logic that spreadsheets handle poorly and billing systems expect to receive correctly.CPQ Software Features Guide: How to Evaluate the Right Solution - published by Ordway

Sales Tax

Understand SaaS sales tax obligations, including nexus triggers, state-specific exemptions, and the four-step compliance lifecycle for finance teams.

SaaS Sales Tax SaaS sales tax is a consumption tax applied by various U.S. states to cloud-based software subscriptions. Because there is no federal sales tax, taxability is determined by a complex patchwork of state-level classifications, where SaaS may be treated as tangible property, a digital service, or remains exempt entirely. Key Takeaways The Model: Tax obligations are triggered by "nexus"—either a physical presence (employees/offices) or economic thresholds (revenue/transaction volume) within a specific state.Complete Guide to SaaS Sales Tax - published by Ordway

VAT and E-Invoicing

Explains the two models of VAT e-invoicing (clearance vs. post-audit), the four-step lifecycle, and key mandates in Italy, Saudi Arabia, Mexico, and India.

• INCLUDES Continuous Transaction Controls

VAT E-Invoicing Requirements, Rules, and Mandates VAT e-invoicing is the exchange of tax-compliant invoices in a structured, machine-readable format (such as XML or UBL) that governments can validate automatically. Unlike traditional PDF invoices sent via email, true e-invoices eliminate manual data entry, enable real-time government auditability, and help tax authorities close the global VAT gap.VAT E-Invoicing Requirements, Rules, and Mandates - published by Ordway

Credit Card Surcharging

Implement a compliant credit card surcharge program with this playbook for finance teams. Covers legal checks, customer communication, and automation.

Credit Card Surcharges A credit card surcharge is a fee added by a business to a customer's transaction to recoup the 2-3% processing costs charged by payment networks. Key Takeaways The Model: Surcharging allows companies to protect their bottom line by passing processing fees directly to the customer rather than absorbing them as an operating expense.Credit Card Surcharges – The Finance Team’s Playbook - published by Ordway

PCI DSS Compliance

Breaks down PCI DSS compliance levels, 12 requirements, and Self-Assessment Questionnaires (SAQs) for secure credit card processing.

PCI DSS Compliance PCI DSS (Payment Card Industry Data Security Standard) is the global security framework that governs how businesses handle credit card data. It is a mandatory requirement for any organization that accepts, stores, processes, or transmits cardholder information, designed to prevent data breaches and financial fraud. Key Takeaways The Model: Compliance is organized into four levels based on annual transaction volume.Understanding PCI DSS Compliance for Credit Card Processing - published by Ordway

Card Account Updater

Explains how credit card auto updaters work, their benefits for subscription businesses, and key limitations for finance teams.

Credit Card Auto Updater A credit card auto updater is a service that automatically refreshes stored payment card credentials—such as new expiration dates or reissued card numbers—behind the scenes. This ensures recurring charges continue processing without requiring customers to manually update their information, effectively preventing payment failures and involuntary churn.What Is Credit Card Auto Updater and How Businesses Use It - published by Ordway

Pre-Authorized Debit

Canadian PAD is a secure payment method for recurring revenue. Understand Payments Canada's Rule H1, authorization steps, and how it reduces churn.

Canadian Pre-Authorized Debits (PAD) Pre-authorized debit (PAD) is a secure payment method that allows Canadian businesses to "pull" funds directly from a customer’s bank account. Governed by Payments Canada’s Rule H1, it is the standard for reliable, high-volume recurring billing within Canada. Key Takeaways The Model: Unlike credit cards where the customer "pushes" payment, PAD allows the business to initiate withdrawals based on a signed agreement.Understanding Canadian Pre-Authorized Debit Payments - published by Ordway

Payment Matching

Identifies the core reasons SaaS invoice payments don't align—proration, usage, disputes, fees, and sync errors—plus strategies to prevent them.

• RELATES_TO Accounts Receivable Automation
• COVERS Remittance Advice

Payment Mismatches: The Short Version Mismatches between invoices and payments are a common yet significant challenge, often leading to skewed financial reporting and operational inefficiencies. These discrepancies stem from various factors, including proration, usage charges, and system sync errors, directly impacting crucial metrics like ARR and MRR. Understanding the root causes of these payment discrepancies is essential for maintaining accurate financial records and ensuring compliance.Reasons Payments Don’t Match Invoices: Causes, Examples, and Fixes - published by Ordway

Auto-Pay and Auto-Apply

Compare Auto-Pay and Auto-Apply features in SaaS billing platforms. See how each automates payments and credits to streamline AR and reduce manual effort.

• RELATES_TO Accounts Receivable Automation

Automated Billing: The Short Version SaaS finance and billing teams frequently dedicate extensive hours to manual invoice reconciliation, payment collection, and credit application. Auto-Pay and Auto-Apply are powerful automation features designed to streamline these critical operations. These modern capabilities, often native to advanced billing platforms, significantly reduce manual tasks, ensure predictable cash flow, and ultimately optimize payment processing for recurring revenue businesses.Automating Payments and Credits in SaaS Billing: Auto-Pay and Auto-Apply Explained - published by Ordway

Debt Collection

Reduce bad debt with 8 essential considerations for SaaS finance teams before escalating unpaid invoices to a third-party collection agency.

• RELATES_TO Accounts Receivable Automation

SaaS Debt Collection: Key Takeaways Escalating unpaid SaaS invoices to a debt collection agency should be a last-resort, data-backed decision reserved only for genuinely lost accounts. Before handing a balance to an external firm, finance teams must run a complete internal AR workflow, document every outreach attempt, align with Sales and Customer Success, and issue a formal pre-collections notice.SaaS Debt Collection: 8 Essential Considerations Before Escalating Unpaid Invoices - published by Ordway

Customer Statements

Clarifies the distinct roles of customer statements and invoices in SaaS billing, detailing when to use each to optimize cash flow and reduce DSO.

Customer Statements vs. Invoices: Essential Distinctions In the world of SaaS finance, clearly distinguishing between invoices and customer statements is paramount for healthy cash flow and strong customer relationships. This guide explains why these two documents, often confused, serve fundamentally different purposes and when each should be deployed. Mastering their correct application can significantly reduce payment delays, minimize disputes, and streamline your accounts receivable processes.Customer Statements vs. Invoices: When to Use Each in SaaS Billing - published by Ordway

Billing Contact Management

Examines why a single billing contact fails for scaling B2B SaaS, outlining the process for multi-layered contact data to prevent payment delays and churn.

• RELATES_TO Subscription Billing

Billing Contact Management Billing contact management is the process of identifying and maintaining the specific individuals at a customer organization responsible for invoice approval and payment. In B2B SaaS, distinct management of these contacts is essential to prevent payment delays and involuntary churn caused by communication gaps. Key Takeaways The Role: A billing contact is the financial bridge to a customer’s Accounts Payable team.Billing Contact Management for Subscription Businesses - published by Ordway

Mid-Contract Changes

Automate prorations, credits, and invoicing for mid-contract upgrades and cross-sells. Streamline SaaS billing for accuracy and compliance.

• RELATES_TO Subscription Billing

SaaS Mid-Contract Changes: The Short Version Scaling a SaaS company brings complex billing challenges, especially when customers upgrade or add services mid-contract. This often leads to manual errors, compliance headaches, and frustrated customers for finance teams. Discover how to streamline mid-contract upgrades and cross-sells with automation, ensuring accuracy, compliance, and a smoother experience for both your team and your customers.Handling Mid-Contract Upgrades and Cross-Sells in SaaS Billing - published by Ordway

Billing System Implementation

An 8-step framework for finance leaders to deploy a new SaaS billing system as a strategic financial project, avoiding common errors and ensuring compliance.

• RELATES_TO Subscription Billing

SaaS Billing Migrations: Common Pitfalls SaaS billing migrations are complex financial system deployments, often leading to misfired invoices, revenue recognition errors, and missed renewals that impact finance leaders and customer satisfaction. These issues can unexpectedly blindside finance leaders and impact customer satisfaction.Step-by-Step Process to Successfully Implement a New SaaS Billing System - published by Ordway

Order-to-Cash Automation

A framework for SaaS finance teams to automate the full order-to-cash cycle, moving beyond partial solutions to cut close time and reduce audit risk.

Order-to-Cash Automation: Key Takeaways for Finance Leaders Many SaaS teams mistakenly believe their accounting is fully automated once revenue schedules are system-generated, overlooking significant friction points across the entire order-to-revenue cycle. Manual processes like billing error correction, cash matching, GL rework, and audit preparations still consume valuable time and introduce risk.Automating the Order-to-Cash Cycle in SaaS Businesses - published by Ordway

Invoice-to-Pay Automation

Invoice-to-pay automation connects invoicing, payment collection and cash application into one workflow. Covers its cost, speed and cash management effects for finance teams.

• RELATES_TO Accounts Receivable Automation

Invoice-to-Pay Automation: The Short Version Transforming the invoice-to-pay cycle is no longer just about efficiency; it's a critical strategy for modern CFOs. By automating everything from invoice receipt to final payment reconciliation, organizations can shift accounts payable from a costly operational burden to a powerful driver of financial agility. This guide explores how embracing automation not only slashes costs and accelerates processes but also unlocks significant strategic advantages, empowering finance teams to thrive.How CFOs Automate the Invoice‑to‑Pay Cycle for Strategic Cash Management - published by Ordway

Sales Commissions

Compares SaaS sales commission models tied to bookings, billing, or collections, detailing the pros and cons of each for finance and sales teams.

SaaS Sales Commissions: The Short Version Crafting the ideal sales commission structure in a dynamic SaaS environment, especially with diverse payment schedules, presents a significant challenge for both sales and finance departments. This guide delves into the distinct advantages and disadvantages of linking commissions to bookings, billing, or actual cash collections.Mastering SaaS Sales Commissions: Bookings, Billing, or Collections? - published by Ordway

Outcome-Based Pricing

Outcome-based pricing shifts risk to vendors. See how this model works, its ROI impact, and the critical billing infrastructure needed for finance teams.

Outcome-Based Pricing (OBP) Outcome-based pricing is a value-centric model where customers pay only after achieving specific, measurable results (e.g., revenue generated or tasks completed) rather than paying for access or usage upfront. This shifts the performance risk from the buyer to the vendor. Key Takeaways The Model: Unlike traditional subscriptions, OBP ties cost directly to ROI.What Is Outcome Based Pricing and How Does It Work? - published by Ordway

Product-Led Growth

Product-led growth (PLG) is a go-to-market strategy where the product drives acquisition and retention. See how PLG works with examples and implementation steps.

Product-Led Growth (PLG) Product-led growth (PLG) is a go-to-market strategy where the product itself serves as the primary driver of customer acquisition, conversion, and expansion. By allowing users to experience immediate value—often through freemium or free trial models—companies reduce reliance on traditional sales and marketing teams to fuel growth.What is Product Led Growth? Definition, Examples, and Best Practices - published by Ordway

Self-Service Checkout

Self-service checkout lets customers buy and pay without sales involvement. Covers five UX patterns: minimal fields, trust signals, clear pricing and global payment options.

Self-Service Checkout: The Short Version Optimizing your B2B SaaS self-service checkout is paramount for both maximizing conversions and achieving revenue goals. Just like e-commerce, B2B buyers expect a fast, easy, and effortless purchasing experience that mirrors their consumer interactions. This requires a careful balance between minimizing friction to boost sign-ups and strategically encouraging upgrades, longer commitments, and comprehensive data collection for recurring payments.Designing Self-Service Checkout for SaaS - published by Ordway

AI Credits

AI credits are usage-based tokens for compute-intensive features. This guide outlines how they work, their lifecycle, and common pricing models.

AI Credits AI credits are usage-based tokens used by SaaS and AI companies to charge for compute-intensive actions like text, image, and video generation. They function like arcade tokens, allowing providers to align customer costs with the actual variable expense of AI inference. Key Takeaways The Model: Credits act as a virtual currency. Customers receive an allocation (via subscription or purchase) and spend them based on the "weight" of an AI task—e.g., a simple text summary might cost 1 credit, while a video could cost 50.AI Credits: What They Are and How They Work - published by Ordway

AI Tokenomics

Learn how tokens are priced, what drives consumption growth, how to calculate AI unit economics, and the pricing models that help companies monetize token-based products without eroding margins.

AI tokenomics is the practice of measuring, managing, and optimizing the consumption of AI tokens—the fundamental units of text that large language models read and generate—to connect variable intelligence costs directly to business value. Unlike traditional software with fixed per-seat pricing, AI costs scale with every prompt, every response, and every reasoning step your application performs.AI Tokenomics – A Practical Guide to Token Based Unit Economics - published by Ordway

AI Token Limits

Explains how AI token limits work across GPT-4o, Claude, and Gemini, with strategies to manage text processing constraints and avoid truncation.

AI token limits define the maximum amount of text a large language model can process in a single request—including both your input and the model's response. When you hit that ceiling, the model either truncates your content, shortens its reply, or returns an error. This guide covers how tokens work, why limits exist, current limits across major models like GPT-4o, Claude, and Gemini, and practical strategies for working within these constraints.Understanding AI Token Limits in Large Language Models - published by Ordway

AI Agents

Explains how AI agents use an Observe-Think-Act loop with LLMs to automate multi-step business processes, including implementation steps and use cases for finance.

AI Agents AI agents are autonomous software systems that use artificial intelligence to perceive their environment, reason through problems, and take actions to achieve specific goals without constant human supervision. Unlike standard chatbots, they can break complex objectives into subtasks and utilize external tools to complete end-to-end workflows.Understanding AI Agents: How They Work and Why They Matter - published by Ordway

Cohort Analysis

See real-world SaaS customer cohort analysis examples from public companies, demonstrating how to track retention and identify growth drivers.

• RELATES_TO SaaS Metrics Reporting

SaaS Cohort Analysis: The Short Version SaaS customer cohort analysis is a vital financial trend used to showcase a company's ability to expand existing accounts through upsell and cross-sell initiatives. By grouping customers based on their acquisition year and tracking their revenue over several years, this analysis provides a clear visual of net growth, factoring in expansions, contractions, and churn.SaaS Customer Cohort Analysis Examples - published by Ordway

GMV

See how fintech and e-commerce SaaS companies calculate Gross Merchandise Value (GMV). Includes real-world examples and why investors prioritize this metric.

• RELATES_TO SaaS Metrics Reporting

SaaS GMV: The Short Version Gross Merchandise Value (GMV) serves as a crucial indicator for SaaS companies, particularly those involved in payment processing. While distinct from traditional revenue, GMV offers valuable insight into the total transaction volume handled by a platform. Understanding how various companies calculate this metric, and the nuanced policy elections they make, is essential for accurately assessing market performance and growth potential.SaaS GMV Calculation Examples - published by Ordway

Product Attach Rate

Product attach rate is the share of customers who adopt an additional product. Covers calculation methods, benchmarks and ways to increase adoption.

• RELATES_TO SaaS Metrics Reporting

Product Attach Rates: The Short Version Understanding product attach rates is crucial for SaaS companies aiming to demonstrate sustained growth and customer value. This metric reveals how effectively a business expands its relationship with existing customers by selling additional products and services. Mastering the definition, calculation, and reporting of these rates provides invaluable insights into business health and investor appeal.Product Attach Rates for SaaS Companies - published by Ordway

SaaS Renewals

A SaaS renewal pipeline provides visibility into customer contracts and identifies churn risks. Covers key stages, metrics, and best practices for finance teams.

• RELATES_TO SaaS Metrics Reporting

SaaS Renewal Pipeline A SaaS renewal pipeline is a structured CRM workflow that tracks existing customers from contract signing through expiration, applying the same stage-gated rigor you would use for net-new business. Instead of relying on passive calendar reminders, it provides visibility into upcoming retention windows, flags churn risks, and uncovers expansion opportunities.SaaS Renewal Pipeline: Key Stages, Metrics, and Best Practices - published by Ordway

APIs and Webhooks

Compares APIs and webhooks, detailing how each enables data exchange between SaaS apps. Includes use cases for automating billing and revenue workflows.

• RELATES_TO Third-Party Integrations

APIs and Webhooks for Finance: An Overview Software solutions communicate and share data through APIs, or Application Programming Interfaces, which you interact with daily across your phone apps, social media, and other digital platforms. These powerful tools act as vital intermediaries, enabling seamless data exchange between applications and servers. Understanding how APIs function, alongside the real-time efficiency of Webhooks, is key to optimizing data flow and system integration for better performance and user experience.What are APIs and Webhooks? How do they Differ? - published by Ordway

ERP Systems

Compares cloud and on-premise ERP deployment models, detailing the financial implications, scalability, and control for each option.

• RELATES_TO Third-Party Integrations
• COVERS QuickBooks to NetSuite Migration

Enterprise Resource Planning (ERP) Enterprise Resource Planning (ERP) is a unified software platform that integrates core business processes—including finance, HR, supply chain, and customer management—into a single system. It serves as the "central nervous system" of a business, providing a single source of truth for all departments. Key Takeaways The Model: ERP systems replace fragmented spreadsheets and disconnected databases with a centralized architecture.ERP Systems: What They Are and Why They Matter - published by Ordway

CRM Systems

Breaks down CRM system core functions, different types (operational, analytical, collaborative), and its critical role in finance and RevOps for SaaS.

• RELATES_TO Third-Party Integrations

CRM Systems Explained A Customer Relationship Management (CRM) system is a centralized platform designed to manage all company interactions with prospects and customers. It serves as a single source of truth, moving businesses away from fragmented spreadsheets and into automated, data-driven workflows. Core Functions: CRMs centralize customer data, track multi-channel interactions (email, calls, tickets), and automate routine tasks like lead routing and follow-ups.What Is CRM System and How Does It Work? - published by Ordway

QuickBooks to NetSuite Migration

Covers costs, timelines and a data migration checklist, including deferred revenue, for migrating from QuickBooks Online to NetSuite ERP.

Migrating from QuickBooks Online to NetSuite ERP Migrating from QuickBooks to NetSuite is a strategic transition for growing businesses (typically $10M+ in revenue) that have outgrown entry-level accounting and require a full Enterprise Resource Planning (ERP) platform to manage increased complexity. Key Takeaways The Model: While QuickBooks is designed for small business accounting, NetSuite is a unified ERP that handles financials, inventory, CRM, and multi-entity operations.Migrating from QuickBooks Online to NetSuite ERP - published by Ordway

Foreign Currency Accounting

Calculate and record foreign exchange realized gains and losses for multi-currency transactions, with journal entries under ASC 830 and IAS 21.

A foreign exchange realized gain or loss is the profit or loss that occurs when a foreign currency transaction settles at a different exchange rate than when it was originally recorded. The gain or loss becomes "realized" at the moment cash changes hands—whether collecting payment from a customer or paying a vendor—and the amount is locked in permanently. For companies billing internationally, these gains and losses can accumulate quickly across hundreds of invoices in multiple currencies.Accounting for Foreign Exchange Realized Gains and Losses - published by Ordway

Continuous Transaction Controls

Explains how continuous transaction controls (CTCs) are adopted globally, detailing real-time reporting, clearance, and centralized exchange models.

Continuous Transaction Controls (CTCs) are government mandates that require businesses to submit invoice data to tax authorities in real time or near-real time, replacing traditional post-audit tax returns.Continuous Transaction Controls How Real Time Tax Reporting Works - published by Ordway

SEPA Direct Debit

US companies can use SEPA Direct Debit to pull Euro payments across 36 countries. This guide details the process, benefits, and implementation steps.

SEPA Direct Debit for Businesses SEPA Direct Debit (SDD) is a standardized, pan-European payment method that allows businesses to pull Euro-denominated payments directly from bank accounts across 36 countries. It eliminates the need for multiple local banking relationships, providing a single, cost-effective "pull" payment rail for the entire SEPA zone.SEPA Direct Debit for Businesses - published by Ordway

UK Faster Payments

A guide to UK Faster Payments, detailing transaction limits, typical timelines for transfers, and optimal use cases for finance teams.

UK Faster Payments The Faster Payments Service (FPS) is the UK’s 24/7 real-time electronic transfer network operated by Pay.UK. It enables near-instant sterling transfers between UK bank accounts, moving funds directly using a sort code and account number, and has largely replaced slower legacy systems for urgent transfers. Key Takeaways The Model: FPS processes single immediate transactions up to £1 million in real-time, with funds typically arriving within seconds (or up to 2 hours) across any day of the year.UK Faster Payments Guide: Limits, Timelines, and Use Cases - published by Ordway

CHAPS Payments

CHAPS is the UK's system for high-value, same-day sterling transfers. Understand how it works, its benefits, costs, and ideal use cases for businesses.

CHAPS Transfers Explained CHAPS (Clearing House Automated Payment System) is the UK’s specialized network for high-value, same-day sterling transfers. Operated by the Bank of England, it is the gold standard for transactions that require absolute certainty and immediate settlement. How it Works: Payments are processed individually in real-time through the Bank of England’s RTGS (Real-Time Gross Settlement) system.CHAPS Transfers Explained: Your Guide to UK Same-Day Payments - published by Ordway

Wire Transfers

A breakdown of wire transfer costs, the step-by-step process for domestic and international payments, and typical settlement timelines.

Wire Transfers A wire transfer is an electronic payment method that moves funds directly between bank accounts. It is characterized by its speed (often same-day) and finality, as the transaction is generally irrevocable once accepted by the receiving bank. Key Takeaways The Model: Transfers use secure messaging networks like Fedwire (domestic US) or SWIFT (international).Wire Transfers Explained: Costs, Process, and Timeline - published by Ordway

Digital Wallet Payments

Digital wallets let customers pay with stored payment credentials. Covers their effect on failed payments and churn for subscription businesses.

Digital Wallet Payments A digital wallet is a secure, app-based mobile system that stores digital versions of payment methods on smartphones or wearable devices, allowing users to make seamless contactless or online payments. Key Takeaways The Technology: Digital wallets use encryption and tokenization—replacing real card numbers with a one-time encrypted code—and Near Field Communication (NFC) to transmit payment information securely.Digital Wallet Payments: How They Work and Why They Matter - published by Ordway

Stablecoin Payments

Stablecoins offer fast, low-cost global B2B payments. See practical applications for international invoicing, vendor payouts, and digital commerce.

Stablecoin Payments Stablecoin payments allow businesses to process transactions globally using digital tokens pegged 1:1 to fiat currencies like the U.S. dollar. For modern finance teams, they offer a fast, low-cost, and continuous alternative to traditional banking rails, making them highly effective for cross-border transactions and global B2B payments.Stablecoin Payments: How Modern Businesses Are Adopting Them - published by Ordway

Check Payments

Explains the multi-day check payment cycle, ideal contexts for B2B use, and steps to mitigate risks like fraud and NSF with automation.

• COVERS Bank Lockbox

Check Payments A check payment is a written order directing a bank to pay a specific amount from the payer’s account to a named recipient. Despite the rise of digital alternatives, it remains a "workhorse" for B2B transactions, particularly in industries like construction, healthcare, and government. Key Takeaways The Model: Check payments operate on a multi-day cycle (typically 2–5 business days) involving issuance, deposit, interbank clearing, and final settlement.Check Payments Explained: Definition, Process, and Best Practices - published by Ordway

Bank Lockbox

Explains how a bank lockbox service works, its operational impact on cash flow and DSO, and the key benefits for businesses handling high volumes of check payments.

Bank Lockbox A bank lockbox is a specialized payment collection service where a bank manages a dedicated P.O. box on behalf of a business. The bank retrieves mailed customer check payments, scans the checks, and deposits the funds directly into the business's account—streamlining remittance processing and keeping physical checks entirely out of the company's internal workflows.Bank Lockbox Explained: Streamlining Business Check Processing - published by Ordway

Interchange Fees

Breaks down credit card interchange fees, their impact on SaaS profit margins, and actionable steps to reduce these non-negotiable costs.

• COVERS Level 3 Credit Card Data

Credit Card Interchange Fees Credit card interchange fees (or "swipe fees") are transaction charges paid by a merchant’s acquiring bank to the customer’s issuing bank every time a card payment is processed. Set by major card networks, these fees typically range from 1.5% to 3% of each transaction plus a small fixed fee, serving as the largest single component of payment processing costs for most businesses.Credit Card Interchange Fees: Definition, Rates, and How to Reduce Them - published by Ordway

Level 3 Credit Card Data

Qualify for reduced B2B interchange rates by submitting Level 3 credit card data. Understand the specific data points required and how to automate capture for recurring payments.

Level 3 Credit Card Data Level 3 credit card data is the most detailed tier of transaction information that merchants can submit to card networks like Visa and Mastercard. By including granular line-item details such as product descriptions, quantities, and commodity codes, merchants can qualify for significantly lower interchange rates on B2B and B2G payments.Understanding Level 3 Credit Card Data for B2B Payments - published by Ordway

Payment Facilitation

Explains the Payfac model, its operational burden, and economic structure. Ideal for SaaS platforms needing instant onboarding and frictionless payment integration.

Payment Facilitator (Payfac) A Payment Facilitator (or payfac) is a service provider that allows businesses to accept card and ACH payments without establishing their own individual merchant accounts. By aggregating multiple sub-merchants under a single master merchant account, they streamline onboarding and handle the complex compliance requirements that banks typically demand from individual merchants.Payfac Explained: How Payment Facilitation Works and Who It Is For - published by Ordway

Transaction Pricing

Breaks down payment transaction fees, compares flat-rate to interchange-plus models, and covers calculating effective rates and billing customers.

Transaction pricing for payments refers to the fees charged each time a payment is processed—typically 1.5% to 3.5% of the transaction amount plus a fixed fee per sale. For SaaS and platform businesses, the term also describes a revenue model where you charge your own customers a percentage of the payment volume they process through your platform.Transaction Pricing for Payments Explained: Fees, Models, and Costs - published by Ordway

High Water Mark Billing

Defines high water mark billing, its core formula, and why SaaS and cloud companies use this pricing model to protect revenue and align costs.

• RELATES_TO Usage-Based Billing

High Water Mark Billing is a usage-based pricing model that charges customers based on the single highest usage peak recorded during a billing period—rather than an average, total cumulative count, or end-of-month snapshot. The Core Formula: High Water Mark Charge = Peak Usage Quantity X Unit Price Why SaaS & Cloud Companies Use It: It protects vendor revenue and aligns pricing with underlying infrastructure costs when provisioned capacity must be reserved to handle temporary usage spikes.What Is High Water Mark Billing and How Does It Work - published by Ordway

SaaS Entitlements

Clarifies how SaaS entitlements connect to billing and revenue recognition, detailing types and practical implementation approaches.

SaaS entitlements are the permissions and access rights that determine what a customer can do with software based on their subscription plan. They sit between the billing system and the product, translating commercial terms—feature access, usage limits, seat counts—into technical controls that the application enforces at runtime. Without entitlements, there's no mechanism to differentiate a free user from an enterprise customer, or to meter API calls against a monthly quota.Understanding SaaS Entitlements Access Limits and Monetization - published by Ordway

Auto Renewal

Optimize auto renewals for SaaS and subscription companies. Implement best practices for transparent notifications and smart recovery mechanisms to reduce churn.

• RELATES_TO Subscription Billing

Auto Renewal Management An auto renewal is a contract clause that automatically extends a subscription and charges the customer’s payment method at the end of each billing cycle unless they actively opt out. It transforms one-time purchases into predictable recurring revenue streams for SaaS and subscription companies. Key Takeaways The Model: Auto renewals operate on an opt-out basis, meaning the subscription continues automatically without customer action, typically following the original pricing and duration terms.Auto Renewal Management for SaaS and Subscription Companies - published by Ordway

Subscription Business Model

Examines the three main subscription business model types, how recurring revenue works, and key strategies for long-term profitability and growth.

• COVERS Ramp Deal
• COVERS User Based Pricing
• COVERS Coupons and Discounts

Subscription Business Model A subscription business model is a recurring revenue strategy where customers pay a set fee at regular intervals (monthly, quarterly, or annually) for ongoing access to a product or service. This model shifts the focus from one-time transactions to long-term, predictable customer relationships. Key Takeaways The Model: Success is built on a three-stage lifecycle: Acquisition (signing up users), Value Delivery (ongoing service), and Retention (minimizing churn).Subscription Business Model Guide - published by Ordway

Revenue Forecasting

Projects future recurring income by analyzing historical performance, churn rates, expansion trends, and pipeline data.

• RELATES_TO SaaS Metrics Reporting

SaaS Revenue Forecasting SaaS revenue forecasting projects future recurring income by analyzing historical performance, churn rates, expansion trends, and pipeline data. Unlike traditional businesses that forecast discrete sales, SaaS companies track revenue that compounds month over month—each period's recurring revenue carries forward, modified by new bookings, customer growth, and losses.SaaS Revenue Forecasting: Methods, Models, and Best Practices - published by Ordway

Negative Invoice

Use negative invoices to correct billing errors or process adjustments. See their impact on AR, revenue recognition, and SaaS metrics.

A negative invoice (or credit memo) is a billing document with a negative total balance used to reverse charges, issue refunds, or apply credits/discounts after an original invoice has been issued. Why Use It: Deleting or voiding issued invoices creates gaps in accounting records. Finance teams use negative invoices to correct errors or process adjustments while preserving a clean, audit-compliant trail.What Is a Negative Invoice and When Should You Use One - published by Ordway

Invoice Design

Five design improvements for recurring revenue invoices that reduce disputes and accelerate collections, including payment links and clear line items.

Invoice Design: What Finance Teams Need to Know Effective recurring revenue invoice design is often overlooked but profoundly impacts business operations and cash flow. A strategically crafted invoice minimizes customer inquiries and accelerates collections, transforming a simple bill into a powerful financial tool. This guide explores the critical balance of information to present and offers actionable strategies to optimize your recurring invoices, especially when implementing a new billing system.Five Ways to Improve Your Recurring Revenue Invoice Design - published by Ordway

MCP Server

Specific finance use cases for MCP server access, covering subscription billing, revenue recognition, and ARR reporting, plus implementation steps.

Finance teams have spent years building custom integrations between billing systems, ERPs, and reporting tools—only to rebuild them when vendors update their APIs or when a new AI capability comes along. Model Context Protocol (MCP) changes this dynamic by giving AI agents a standardized way to connect directly to finance systems, query live data, and execute workflows without custom code.How Finance Teams Are Using MCP Server Access Today - published by Ordway

Segregation of Duties

Explains the four core functions of SoD and how finance teams can implement compensating controls to prevent fraud and errors.

Segregation of Duties Segregation of Duties (SoD) is a foundational internal control principle requiring at least two people to complete a business-critical task. By distributing responsibilities, it prevents any single employee from having unchecked power to commit fraud, hide mistakes, or misappropriate company assets. Key Takeaways The Four Functions: True SoD divides critical workflows into four distinct buckets: Authorization (approving), Custody (handling assets), Recordkeeping (logging entries), and Reconciliation (independent verification).Segregation of Duties: Definition, Examples, and Best Practices - published by Ordway

Contract Abstraction

AI contract abstraction extracts key terms such as pricing and renewal dates from contracts. Covers its use in billing accuracy and ASC 606 compliance.

• RELATES_TO Revenue Recognition

AI Contract Abstraction AI contract abstraction is the process of using Natural Language Processing (NLP) and Machine Learning to automatically extract and organize key data points (like pricing, renewal dates, and obligations) from legal documents. Key Takeaways Efficiency Boost: Reduces manual review time from 3–5 hours per contract to just minutes.AI Contract Abstraction Explained: How It Works - published by Ordway

FedNow Payments

Compare FedNow's real-time settlement with ACH for B2B payments. See how instant transfers impact DSO, cash flow, and AR workflows for subscription businesses.

FedNow Payments FedNow is the Federal Reserve’s instant payment infrastructure that enables bank-to-bank transfers in real-time, 24/7/365. Unlike ACH, which processes in batches over several days, FedNow settles transactions in seconds, providing immediate access to funds and irrevocable payment finality. Key Takeaways The Model: FedNow operates as a "rail" that financial institutions connect to.FedNow Payments – What Finance Needs to Know - published by Ordway

BECS Payments

BECS is Australia's direct debit network for bulk electronic payments. Covers how it works for recurring revenue, its benefits and the shift to PayTo.

BECS Payments in Australia BECS (Bulk Electronic Clearing System) is Australia’s primary network for automated bank-to-bank transfers, processing over $15 trillion AUD annually. It is the go-to solution for businesses managing recurring revenue due to its cost-efficiency and reliability. How it Works: Businesses "pull" funds from customer accounts using a BSB and account number after obtaining a signed Direct Debit Request (DDR).What Are BECS Payments? Australia Direct Debit Explained - published by Ordway

Advance Billing

Advance billing is invoicing customers before the service period begins. It's common in SaaS for improving cash flow and managing deferred revenue.

Advance billing is the practice of invoicing customers before the service period begins. It’s common in SaaS where subscriptions are billed annually or quarterly upfront. Why Advance Billing is Important to Finance CFO: Advance billing improves cash flow and reduces billing ops frequency Financial Controller: Creates deferred revenue that must be recognized over time Revenue Operations: Enables flexible pricing and annual prepay incentives Customer Success: Reduces churn risk by locking in prepaid commitments What is an Example of Advance Billing?Advance Billing - published by Ordway

Deferred Billing

Deferred billing delays invoicing for delivered services, common in SaaS for trials or annual contracts. It impacts revenue recognition and cash flow.

Deferred Billing refers to the practice of delaying invoicing or payment for goods or services even after they have been delivered or accessed. It’s often used in scenarios like annual contracts, credit arrangements, trial periods, or promotional offerings. Deferred billing is commonly used in SaaS (Software-as-a-Service) as a new customer acquisition strategy.Deferred Billing - published by Ordway

Billing Waterfall

A billing waterfall is a scheduled sequence automating invoice events and payment schedules over a contract's term for SaaS companies.

• RELATES_TO Subscription Billing

A billing waterfall is a scheduled sequence that automates invoice events and payment schedules over a contract’s term—turning complex, multi-element agreements into predictable billing milestones. Example of a Billing Waterfall A customer signs a 24-month agreement with a $30,000 annual subscription plus usage fees with quarterly billing.Billing Waterfall - published by Ordway

Ramp Deal

A ramp deal is a SaaS contract with scheduled pricing increases over time. It allows customers to start small and grow into a larger contract.

A ramp deal is a SaaS contract with scheduled pricing increases over time. It allows a customer to start small and grow into a larger contract—usually aligned with expected usage or adoption. Ramp deals are sometimes also referred to as step-up pricing or declining discount contracts. Example Year 1: $2,000/month Year 2: $4,000/month Year 3: $6,000/month The contract is signed upfront but ramps over time.Ramp Deal - published by Ordway

Subscription Pause

A subscription pause temporarily suspends billing and service for a customer without canceling their contract. It helps reduce churn.

• RELATES_TO Subscription Billing

A subscription pause temporarily suspends billing and service for a customer—without canceling their contract. It lets customers take a break while keeping their account active for future reactivation. Example A customer on a $500/month plan pauses their subscription for two months. During the pause, they aren’t billed and can’t access premium features—but their plan resumes automatically at the start of month three.Subscription Pause - published by Ordway

Subscription Plan

A subscription plan defines the pricing, billing frequency, and feature entitlements a customer receives for a recurring fee in SaaS.

• RELATES_TO Subscription Billing

A subscription plan defines the pricing, billing frequency, feature entitlements, and usage allowances a customer receives in exchange for a recurring fee. It’s the core commercial line item in SaaS billing and revenue models. Example A SaaS company offers three subscription plans: Basic ($50/month), Pro ($150/month), and Enterprise ($500/month).Subscription Plan - published by Ordway

User Based Pricing

User-based pricing is a SaaS model where customers pay per user or seat. It's crucial for finance teams to manage scaling revenue accurately.

User-based pricing means customers pay based on how many users or seats they have. The more users they add, the more they’re billed. It’s one of the simplest and most common SaaS pricing models. Example A company pays $20/user/month. If they have 10 users, their monthly bill is $200.User Based Pricing - published by Ordway

Invoice Number

An invoice number is a unique, sequential identifier assigned to each invoice. It ensures accurate tracking, reconciliation, and audit readiness for SaaS finance teams.

To the average person the invoice number is just that—a number stamped on a bill. But in SaaS finance, it's more than a label. It's how billing systems keep track of who owes what, when, and why. Every invoice sent to a customer needs a unique ID to stay compliant, traceable, and audit-ready. Example Let’s say you batch-generate 3,000 invoices on the 1st of the month.Invoice Number - published by Ordway

Batch Invoice Generation

Batch invoice generation is the automated process of producing multiple invoices in a single billing run, crucial for efficient SaaS operations.

Batch invoice generation is the automated process of producing multiple invoices in a single billing run. It consolidates all billable records for a set of customers based on billing triggers like subscription frequency, usage thresholds, or contract milestones. SaaS Workflow Example A usage-based SaaS provider bills monthly.Batch Invoice Generation - published by Ordway

Credit Memo vs Debit Memo

A credit memo reduces what a customer owes, while a debit memo increases it. Both are crucial for correcting invoices in SaaS billing.

A credit memo reduces what a customer owes you. A debit memo increases it. In SaaS, both are adjustments to invoices—used when things change after the original bill goes out Example You overcharged a customer $100. A credit memo subtracts that from their balance.Credit Memo vs Debit Memo - published by Ordway

Refund

A refund is the return of cash to a customer for previously collected amounts. They directly reverse revenue recognized and impact cash flow forecasts.

A refund is the return of cash to a customer for previously billed and collected amounts that are deemed invalid, incorrect, or otherwise unjustified. In recurring-revenue businesses, refunds typically arise from billing errors, overpayments, early contract terminations, service-level failures, or policy-based concessions. Refunds differ fundamentally from account credits in that they reverse actual cash out of the company's bank account rather than simply offsetting a future invoice or balance.Refund - published by Ordway

Chargebacks

A chargeback is a payment reversal initiated by a customer's bank after a disputed credit card charge. It creates accounting complexity for SaaS revenue.

A Chargeback is a payment reversal initiated by a customer's issuing bank (or card issuer) after the customer disputes a credit or debit card charge. It represents a forced clawback of funds previously collected and often recognized as revenue by the recurring-revenue company. For recurring-revenue companies, chargebacks create operational interruption and accounting complexity: cash is withdrawn without notice, fees are assessed, and any revenue previously recognized must be reversed under ASC 606 / IFRS 15.Chargebacks - published by Ordway

Disputes

A dispute occurs when a customer challenges an invoice or charge. These financial events distort AR aging and delay cash collection and revenue recognition.

• RELATES_TO Accounts Receivable Automation

A dispute occurs when a customer challenges the accuracy or validity of an invoice, charge, or contract term. In recurring-revenue businesses, disputes typically stem from billing discrepancies, usage misunderstandings, service-level issues, or unclear contract language. Once a dispute is raised, the collections process pauses; the invoice must be reviewed, validated, and resolved before payment can be applied or revenue can be recognized.Disputes - published by Ordway

Remittance Advice

Remittance advice is a document from a customer confirming payment and detailing invoices covered. It's crucial for accurate cash application and reconciliation.

A Remittance Advice is a document or electronic message sent by a customer (the payer) to a vendor (the recurring-revenue company) that confirms a payment has been made and details exactly which outstanding invoices the payment is intended to cover. In SaaS finance, remittance advice is the critical link between the cash receipt (which hits the bank account) and the corresponding invoice in the Accounts Receivable (AR) subledger.Remittance Advice - published by Ordway

Product Catalog

A SaaS product catalog centralizes SKUs, pricing, and usage metrics for billing and revenue recognition. It ensures finance teams maintain data integrity and automate workflows.

• RELATES_TO Subscription Billing

A SaaS product catalog is the central record of every SKU, pricing tier, add-on and usage metric a company sells. Each entry carries the metadata that billing and finance rely on: currency, tax codes, revenue recognition rules and general ledger mapping. Linking the catalog directly to billing automation prevents manual sync errors, and governing it with naming conventions, approval workflows and regular SKU clean-up keeps it reliable.SaaS Product Catalog Q&A: Finance and Billing Essentials - published by Ordway

Coupons and Discounts

SaaS discounts and coupons are financial mechanisms impacting billing accuracy, ASC 606 compliance, and revenue recognition. Proper management reduces CAC.

Coupons, discounts and free trials are financial mechanisms as well as marketing ones: they affect SaaS billing accuracy, ASC 606 revenue recognition, deferred revenue schedules and MRR and ARR reporting. A discount lowers the transaction price, so flat-rate discounts should be time-bound, mapped to a SKU and configured with expiration rules. Coupon codes need to integrate with billing and subscription systems so deferred revenue stays clean, and discounts post to contra-revenue accounts.Coupons & Discounts in SaaS Billing: Explained - published by Ordway

Professional Services Billing

SaaS companies bill for professional services using fixed-fee, time & materials (T&M), or hybrid models. Billing is separate from recurring software subscriptions.

• RELATES_TO Subscription Billing

SaaS companies bill for professional services using structured methods such as fixed-fee milestones, time and materials (T&M), or blended hybrid models. Billing is typically triggered by project phases, time logs, or completion events and handled separately from recurring software subscriptions.How do SaaS companies handle billing for professional services? - published by Ordway

Subscription Cancellation

Cleanly handle SaaS cancellations by automating the offboarding process: issue final invoices or credits, update subscription status, and notify the customer.

• RELATES_TO Subscription Billing

To handle SaaS cancellations cleanly, automate the entire offboarding process: flag the cancellation event, update the subscription status, issue final invoices or credits, and notify the customer. This ensures billing accuracy, prevents revenue leakage, and provides a smooth customer exit experience.How do I handle billing and offboarding for SaaS customer cancellations? - published by Ordway

BACS Payments

Compares BACS Direct Debit and Direct Credit, detailing their three-day cycle and ideal use cases for UK recurring billing and payroll.

BACS (Bankers’ Automated Clearing Services) BACS is the UK’s primary electronic system for secure, low-cost bank-to-bank transfers. It is the gold standard for high-volume, non-urgent payments where cost efficiency is prioritized over instant speed. Key Takeaways The Model: BACS operates on a three-working-day cycle. It facilitates two main types: Direct Debit (payee "pulls" funds) and Direct Credit (payer "pushes" funds, common for payroll).Introduction to BACS and UK Payment Processing - published by Ordway