Glossary

Subscription Billing, Revenue Recognition, SaaS Metrics

A B C D E F G H I J K L M O N P Q R S T U V W X Y Z

A

July 30, 2025 in A, Glossary

Account Hierarchy

What is Account Hierarchy? Learn how SaaS companies bill & report across parent-child accounts for enterprises. Simple definition + example.

September 10, 2025 in A, Glossary

Accounts Receivable

Learn how accounts receivable works in SaaS. Discover its impact on cash flow, DSO, revenue audits, and billing-to-cash sync.

November 20, 2025 in A, Glossary

Accounts Receivable Collections

Learn how collections work in SaaS finance, how automation reduces DSO, and why disciplined AR workflows strengthen cash flow and audit control.

August 14, 2025 in A, Glossary

ACH Payment

What’s an ACH Payment? How SaaS companies use bank transfers to reduce fees & failed payments. Setup guide + benefits for finance.

July 8, 2025 in A, Glossary

Advance Billing

What is Advance Billing? How SaaS companies invoice upfront & recognize revenue over time. ASC 606 compliant guide with examples.

July 23, 2025 in A, Glossary

Annual Recurring Revenue (ARR)

What is ARR in SaaS? Simple definition, calculation formula & real examples. Learn what counts (and what doesn’t) in ARR reporting.

August 13, 2025 in A, Glossary

ARR Movements

Learn how SaaS finance teams track ARR movements—new, churn, contraction, and expansion—to explain growth and improve forecasting accuracy.

B

July 29, 2025 in B, Glossary

Billing Waterfall

What is a Billing Waterfall? Learn how it automates invoice timing, payment allocation & ensures ASC 606 compliance. Simple guide.

August 8, 2025 in B, Glossary

Batch Invoice Generation

What is Batch Invoice Generation? How SaaS companies automate monthly billing runs for 1000s of customers. Reduce errors & save time.

C

July 17, 2025 in C, Glossary

Credit Memo vs Debit Memo

Credit Memo vs Debit Memo: Clear definitions, when to issue each, & how to automate without errors. Essential for SaaS finance teams.

September 12, 2025 in C, Glossary

Churn Rate

Learn what churn rate means in subscriptions and SaaS. Understand types of churn, how to calculate it, and benchmarks for customer and revenue retention. Improve churn with data-driven strategies.

November 7, 2025 in C, Glossary

Chart of Accounts (CoA)

What a Chart of Accounts (CoA) is, how it structures financial reporting, and why a clean CoA is vital for SaaS revenue accuracy and audit readiness.

December 11, 2025 in C, Glossary

Chargebacks

Learn what a chargeback is, how it works in SaaS billing, and how it affects revenue recognition, reconciliation, and audit readiness.

D

December 4, 2025 in D, Glossary

What Is a Dispute in SaaS Finance?

Understand what a dispute means in SaaS billing, how it affects AR and revenue recognition, and why automated dispute management reduces financial risk and customer churn.

July 17, 2025 in D, Glossary

Deferred Revenue Waterfall

What is a Deferred Revenue Waterfall? Step-by-step visual guide for recognizing revenue monthly under ASC 606. Download template.

July 23, 2025 in D, Glossary

Deferred Revenue

What It Means (Simple Explanation) 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…

August 29, 2025 in D, Glossary

Deferred Billing

What is Deferred Billing? How it differs from deferred revenue. Use cases in SaaS & impact on cash flow & financial reporting.

F

August 14, 2025 in F, Glossary

Financial Statements

What are Financial Statements? Simple breakdown of P&L, Balance Sheet & Cash Flow for SaaS startups. Why investors care. Read guide.

G

October 27, 2025 in G, Glossary

General Ledger (GL)

Learn what a general ledger (GL) is, how it works in SaaS finance, and why it’s the foundation for accurate financial reporting and audit readiness.

I

August 13, 2025 in Glossary, I

What’s an Income Statement?

What’s an Income Statement (P&L)? Simple breakdown for SaaS founders. Learn how to read revenue, COGS, expenses & net profit.

July 30, 2025 in Glossary, I

Invoice Number

What is an Invoice Number? Why unique, sequential IDs matter for SaaS billing, payments & audits. Best practices + examples.

J

October 29, 2025 in Glossary, J

Journal Entry

what a journal entry is, how it works in accounting, and why automated entries are essential for GAAP compliance and audit-ready SaaS financial reporting.

M

July 23, 2025 in Glossary, M

Monthly Recurring Revenue (MRR)

What is MRR in SaaS? Simple definition, calculation formula & how it differs from ARR. Track growth accurately with real examples.

N

August 28, 2025 in Glossary, N

New ARR

What is New ARR? How it differs from Expansion ARR. Formula, examples & why it’s a key growth metric for SaaS companies.

July 23, 2025 in Glossary, N

Net Revenue Retention (NRR)

What is NRR? Step-by-step formula, benchmarks & 3 proven ways to improve it. Essential SaaS metric for investors & growth.

P

August 28, 2025 in Glossary, P

Proration

What is Proration? How SaaS companies calculate partial charges for mid-cycle upgrades/downgrades. Formula + automation best practices.

R

December 1, 2025 in Glossary, R

Renewal

Learn how renewals work in SaaS finance, how automation supports ARR stability, and why renewal accuracy is critical for revenue recognition and forecasting.

December 16, 2025 in Glossary, R

Remittance Advice

Learn what remittance advice means, how it works in SaaS finance, and why it’s essential for accurate invoice matching and cash reconciliation.

December 9, 2025 in Glossary, R

Refund

Navigate refunds in recurring revenue businesses. Understand definitions, workflow, accounting impacts, and challenges. Discover how automation ensures accuracy & compliance.

July 16, 2025 in Glossary, R

Ramp Deal

What is a Ramp Deal? How SaaS companies structure gradual price increases. Automate billing & rev rec with ASC 606 compliance.

S

July 23, 2025 in Glossary, S

Subscription Upgrade

When a customer moves to a higher-priced plan or adds more features, seats, or services to their existing subscription.

August 12, 2025 in Glossary, S

Subscription Plan

Defines the pricing, billing frequency, feature entitlements, and usage allowances a customer receives in exchange for a recurring fee.

July 16, 2025 in Glossary, S

Subscription Pause

What is a Subscription Pause? How to temporarily suspend billing & rev rec without churn. Use cases + automation tips for SaaS.

November 5, 2025 in Glossary, S

SOX Compliance

U.S. federal law that requires public companies to maintain strong internal controls over financial reporting (ICFR)

U

July 22, 2025 in Glossary, U

User Based Pricing

What is User-Based Pricing? How per-seat billing works, common pitfalls & how to scale revenue without leakage. Real SaaS examples.

December 23, 2025 in Glossary, U

Usage-Based Billing

Usage-based billing charges customers based on actual consumption. Learn how to operationalize it for ASC 606 compliance and SaaS revenue accuracy.