the encyclopedia of
subscription & SaaS finance terms and metrics
Annual Recurring Revenue
There can be significant confusion over the term ARR, its use and the measurement of ARR because it feels and sounds like a measure of “revenue” in the context of revenue recognition. However, ARR is not necessarily a measure of recognized revenue.
Monthly Recurring Revenue
MRR is an acronym for Monthly Recurring Revenue or, very simply, a measure of your predictable revenue stream. The primary purpose of MRR is to permit performance reporting across dissimilar subscriptions terms.
Achieving FinOps Maturity: Best Practices for B2B SaaS Finance Teams
Many SaaS finance teams experience growing pains in Financial Operations (or FinOps) throughout their growth and funding journey. Each stage of growth often brings its own challenges around people, process, and technology that put extra strain on your Finance team.
Learn best practices from our customers, Trella Health, Chili Piper, and StructionSite on scaling the "FinOps Maturity Curve."
Revenue Recognition is an accounting principle and a process for reporting revenues by recognizing the monetary value of a transaction or contract over a period of time as the revenue is “earned.”
You manage cash flow, but "finance" is left to the accountant that prepares your taxes. If this is you, read on and be sure to watch the essential finance concepts video.
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