I want to transfer my revenue recognition model from Sheets to Causal and would like to hear thoughts from the community on best practices.
- Our revenue is comprised of one year subscriptions recognized monthly by product.
- We have over 1000 rows of contracts, which we then convert to a monthly revenue stream.
- Today, I transfer the monthly recognition from Google Sheets to Causal. However, I believe there’s an opportunity to import our contract list into causal directly and perform the calculations there
Here’s an example of how our google sheet is set up today - the ‘monthly recognition’ variable is broken out by product type in a different sheet and uploaded into Causal
- Is Causal the best fit for this? Or am I using the wrong tool for the job? (Just because I ‘can’ doesn’t mean I should…)
- If this is a good fit for Causal, do you have any recommendations on how to set this up?
a. I care about recognition on the ‘edges’ many of our contracts span 13 months. Example - Contract starts on 1/15/22 → revenue should be recognized Jan to Jan not Jan to Dec.
b. In other words, 15 days of revenue should be recognized in Jan 2022 and Jan 2023.
- Does anyone have a template they can share with a similar setup? Happy to start there!
I think this potentially a good use case for cohort modeling, but I haven’t dug into that feature enough to decide one way or the other.