Startup Accounting
Bookings vs Revenue vs Cash: The Three Lenses Every SaaS Founder Needs
Collated by Aparna Devalla, CPA
Curated by Rubric Financial
1 / 4
Three Numbers, One Customer
- Bookings: the dollar value of contracts signed in a period. Forward-looking; captures momentum.
- Revenue: the dollar value of services delivered in a period. Reported under GAAP (ASC 606). Backward-looking.
- Cash: the dollar value of money received in a period. Determines runway. Aligns with billing cycle, not contract or delivery.
- Example: $36K signed today for a 3-year SaaS contract, paid annually upfront = $36K bookings (today) + ~$1K monthly revenue (over 36 months) + $12K cash (today).
Related Resources
Startup Accounting
Gross vs. Net Revenue (Principal vs. Agent)
Whether you report revenue gross or net turns on one ASC 606 question, and getting it wrong is a classic diligence finding.
Startup AccountingRefunds, Credits, and Clean Reconciliation
How to record refunds and credits correctly so revenue, cash, and customer balances always reconcile in the books.
Startup AccountingDeferred Revenue Explained
Why annual SaaS contracts create a liability on your balance sheet, and what investors look for in your deferred revenue.
