Traditional GAAP financials have some limitations when presenting the value of digital companies. Learn about these limitations, and what to do about them.
The traditional income statement has been around for decades. While it has its uses, it’s not specifically designed for a SaaS business. What format would a SaaS-optimized income statement have? SaaS Capital has an example.
SaaS metrics like MRR and Churn get lots of attention. Gross Margin might not have the buzz of other metrics, but it’s just as important to monitor. In fact, Gross Margin is commonly used among high-level analysts when they evaluate the strength of your business.
Should SaaS businesses capitalize software development costs? This is an area where common practice might differ from legacy GAAP.