B2B / SaaS

Financial modeling for B2B and SaaS businesses

Model B2B revenue the way it actually behaves: per-customer contracts, ACV, churn, and expansion, driven by a sales-led and marketing-led funnel rather than a growth percentage.

Contracts, ACV, churn

The problem

Why this is hard today

Most B2B models start with last month's revenue and a growth percentage. That number is a guess dressed up as a plan, and it cannot answer the only questions that matter. Does the pipeline support next quarter. What happens to the run rate if churn moves a point. Whether the two account executives you are about to hire pay for themselves, and when.

What a SaaS template gets wrong

A revenue line that grows by a fixed percentage hides the two things that decide a B2B outcome: how many customers you actually win, and how many you keep. Both are the direct result of decisions you control, and neither shows up in a growth rate.

The drivers

What the forecast is actually built on

  1. Spend and sales effort
  2. Leads by channel
  3. Won customers
  4. Contract value (ACV)
  5. Churn and renewal
  6. Expansion on the base

How YourCFO models it

The engine behind the numbers

  1. 1

    Acquisition, by motion

    Sales-led and marketing-led motions run side by side, each with its own spend, conversion, and cycle length. Paid and content channels feed the same pipeline without being averaged into one blended number.

  2. 2

    Revenue per customer, not per month

    Revenue is the customer base multiplied by contract value, so subscription, usage-based, and service-fee streams can sit in the same forecast and still behave differently.

  3. 3

    Churn and renewal on the base

    Customers who leave stop paying from the month they churn, and the base you keep is what expansion compounds on. Retention is a driver, not a footnote.

  4. 4

    Initiatives on top

    A hire, a campaign, or a pricing change is layered as an initiative tied to the specific driver it moves, then checked against actuals through variance.

If

you hire two account executives in March

Then

payroll rises in March, pipeline rises at their ramp, and the won customers and revenue land two to three months after that.

The numbers that matter

What you actually watch

ACV and contract mix

What an average customer is worth, and how that shifts as you move upmarket or add tiers.

Gross and net retention

How much of the base you keep, and whether expansion covers what churn takes out.

CAC and payback

What a won customer costs across each motion, and how many months of contract value it takes to earn it back.

Runway against the plan

What the hiring and spend behind the plan do to cash, month by month.

The chart of accounts seeds subscription and service revenue lines, hosting and support cost of sales, and departmental operating expenses, so gross margin is real rather than a plug.

Common questions

Questions operators ask

See it on your own numbers

Set up the model that matches your business, then watch what your next decision does to the bottom line.