Having an overview of your revenue lag is a start. But you need to go much further if you want to get the most out of your sales achievement. Even with a fully standardized sales recording process, even if it`s automated (or repeated monthly by your team), tracking, reporting, and calculating revenue takes up a lot of time from your finance team`s schedule. This is a high-precision and often time-consuming process that takes a lot of time. In addition to the huge time it takes to write these reports, they can of course be subject to errors – and even a small collection error can be very fraught with consequences when it comes to revenue. With ProfitWell Recognized, we have perfected a sales realization system, a solution dependent on AI and algorithms, capable of creating accurate subscription financial ratios with new precision. This graph paints a positive picture of the company concerned for stakeholders and investors. They managed their revenues (i.e. their actual provision of services) well enough in relation to their delay (i.e. the total value of the service to be provided) that the two figures remain largely equal, even though many new contracts entered and the company grew. The numbers got closer at the end of the fourth year – perhaps at the end of that period there were few customers who emigrated or a little fewer customers were boarded. According to Jeff Brown, one of the things that can make it difficult for a SaaS business to operate is the number of different types of revenue you need to keep in mind.

And one of the species that many companies lack is the delay in turnover: the unrec recognition of turnover over the duration of a particular subscription contract. This is not a glamorous statistic – it is not displayed in diplomas. Indeed, it is not accounted for in a significant way comparable to other turnover statistics (in particular with delimited turnover with which it is often confused). But that`s no reason to sleep on it. Revenue Backlog is loved by investors for the image it draws of the future of your business, and it can be a useful way to comment on your company`s business development. . . .