How to Properly Record Deferred Revenue in SaaS
Originally published: 14/12/2018 11:21
Last version published: 14/12/2018 11:57
Publication number: ELQ-89589-2
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How to Properly Record Deferred Revenue in SaaS

This is a template helping your SaaS business to record Deferred Revenue.

This is a ready-to-use deferred revenue excel template for your SaaS business accounts.

This excel file provides the basis for correctly recording your deferred revenue, something which is crucial to any Software as a Service business.

Deferred revenue is important as it gives greater clarity on the longer term financial performance of your SaaS business.

By neglecting deferred revenue calculations, it becomes very difficult to track a number of things:

- Recurring revenue growth.

- You will be unable to properly work out recurring gross margin

- Difficult to calculate Customer Lifetime Value (CLV) or Customer Acquisition Cost (CAC)

As a result of this, it can be harder for investors and banks to assess the performance of your business.

This template will have to calculate your deferred revenue and avoid these pitfalls.

Accompanying this excel download is a PDF document with useful information regarding deferred revenue, explaining what it is and why it is therefore important to implement when running a Systems as a Service business.

If you have any questions or problems, please do not hesitate to contact by starting either a discussion below, or messaging privately via my author channel.

To access more of my tools, please visit my author channel.

This Best Practice includes
1 Excel, 1 PDF

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