Is Revenue Recognition Messing Up Your Retention Numbers?

Does your retention data feel off—or even meaningless—because of catch-up invoices, credit notes, or daily revenue recognition? In episode #301, Ben Murray explains how proper revenue recognition practices can sometimes interfere with clear retention reporting and what SaaS operators can do about it. Learn how to build a pro forma MRR schedule that strips out accounting noise and gives you clean, consistent retention metrics you can actually rely on. What You’ll Learn Why revenue recognition can distort retention metrics, even if your accounting is correct The difference between GAAP-based MRR and a pro forma MRR schedule How Ben built and used a pro forma model during a private equity exit process How to build your own pro forma MRR schedule using invoice data The critical role of invoice data as your source of truth Tools & Resources BackOfficeTools App: Upload your invoice data and generate retention metrics. Check out the tutorial here to learn more and sign up: https://www.thesaasacademy.com/offers/zz3ZR2WL Key Quote from Ben “We still follow proper revenue recognition, but when it comes to retention, sometimes we need a second view. A pro forma MRR schedule helps us cut through the noise.”