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New ARR and CAC in Price-Ramped vs. Auto-Expanding Deals

Kellblog

I’ve been asked about this a few times lately, less because people value my accounting knowledge [1] but rather because people are curious about the CAC impact of such deals and how to compensate sales on them. The question on my mind is how do I look at this from a new ARR bookings, ending ARR, CAC, and sales compensation perspective?

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What is GAAP Accounting?

Baremetrics

Revenue recognition, as per GAAP, states that payment is recognized as revenue after delivering the product or service in its entirety. Of course, that’s not how SaaS revenue works. (We We wrote more about revenue recognition here!) This often has an impact on SaaS businesses with deferred revenue streams.

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The Best SaaS Blog Posts and Resources Library

Chart Mogul

Guide to SaaS Revenue Recognition and Deferred Revenue in SaaS by Ben Murray, The SaaS CFO SaaS revenue recognition is an ongoing priority for SaaS accounting teams. Software subscriptions are the life of every SaaS business and must be accounted for properly in your general ledger.

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