BS Forecasting for software companies

Hi everyone,

Few weeks ago I posted a question about LBO modeling for SaaS companies and I appreciated the responses. As I am digging into forecasting financials some questions are surfacing:

  • When you are forecasting key BS items (AR, AP, Deferred revenue), do you use the traditional methods (% of revenue or COGS) or are there other drivers?

  • Are there other things to consider when forecasting financials / building a 3-statement model for SaaS companies?

5 Comments
 

You should check out some VCs blog posts / VC Financial models. Tons of great templates over there. You will also have different metrics such as churn and customer cohort, lifetime value etc. PM me and i can send you a sample model. Once this base mode is set then you should build upon the traditional LBO model

 

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