Price hikes are always a delicate business decision to make. You don’t want to raise your prices too high and scare your consumers or clients off, but you want to address your business needs.
CLOUD CFO BLOG
Accounting advice, made awesome.
A common question for growing companies who are considering outsourced accounting is: “What is the difference between bookkeeping and accounting?”
The Rule of 40 is a SaaS-specific metric to track your company’s financial health. It combines your profitability and growth into a measure of health. Put simply, if your growth rate and profit margin total more than 40%, then you can assume your SaaS company is in a good financial position.
In a crisis, restricted cash flow can be a double-edged sword. To stay afloat, a business must improve liquidity for fluctuating priorities. Many will focus solely on cutting costs, but there are a few other ways to get creative with cash flow in a crisis.
We often see prospective clients paying special attention to the profit and loss statement (P&L), but ignoring the balance sheet. That’s a mistake, as both are important. Let’s drill into their difference between the balance sheet and the P&L with this cheat sheet:
To apply for a business line of credit, a lender is going to want to know that your company is in good financial health. Additionally they will want to know what kind of collateral your business can offer to secure the line of credit. There are a few key accounting metrics that you should track: Your liquidity KPIs and your borrowing base calculation. (Includes borrowing base calculator)