If you want to know how much money your business makes from all the products and services you sell, you need to track your full gross .
full tax income tells you precisely how much money your business generates before expenses. And since gross is key for growth, it ’ s a metric unit that every inauguration needs to track and understand .
In this article, we ’ rhenium going to break down everything you need to know about sum gross .
Table of Contents:

What is Total Revenue?

sum tax income, besides known as gross gross, is your total tax income from recurring ( MRR ) and non-recurring tax income streams .
In other words, it ’ s the sum come of income your company brings in from selling your products/services .
For case, if you ’ re a SaaS inauguration that offers monthly packages plus ad-hoc services like consulting, your entire gross would be the union of the money you earned from the monthly subscriptions plus the consult services .
You ’ ll typically find total gross at the acme of an income statement before expenses have been taken out .

How to Calculate Total Revenue

To calculate sum gross, just add up all your gross sources .

Total Revenue Formula

MRR + Non-recurring gross

here ’ s an exemplar .
Let ’ s say you run a SaaS company that sells accounting software. You have three tax income streams :

  1. Monthly subscriptions for your software
  2. Ad-hoc tax preparation services
  3. An educational course to teach businesses how to manage finances

here ’ s what your tax income might look like over a four-month period when you factor in growth and churn :
total revenue
Made With Finmark !
In the screenshot above, you can see the three tax income streams, with the monthly gross for each. The “ Total ” highlighted at the buttocks is your total tax income for each month .
When you ’ re calculating sum gross, make indisputable you include all of your different gross streams, flush if they only make up a little share of your business .
Add-ons, erstwhile fees, monthly subscriptions, and any other reservoir of tax income from your occupation needs to be accounted for. It ’ ll give you a full picture when it ’ mho time to analyze your by gross performance or prognosis for the future .

Why Total Revenue is Important

Without tracking your sum gross, it ’ s impossible to know whether or not your commercial enterprise is growing .
Whether you ’ re creating a fiscal prognosis, pitching investors, or analyzing your current gross streams, entire tax income is critical. here are a few reasons every startup needs to track sum tax income :

Find Out What’s Working (Or Not Working)

When you look at your entire gross by tax income current, it ’ s a quick way to see where the bulk of your money is coming from .
Let ’ s look at an case in Finmark. Sticking with our fictional account software company, our tax income comes from three sources :

  • Monthly subscriptions
    • Basic plan
    • Premium plan
    • Enterprise plan
  • Course
  • Tax preparation service

When we look at what percentage of our sum tax income comes from each, we can start to understand a distribute about the business .
revenue by product
Looking at this datum, we can see :

  • Our monthly Enterprise plan is where the bulk of our revenue comes from. If we were to add more enterprise sales reps, could we increase that even more?
  • The business finance course and tax preparation service drives almost a third of our total revenue. If we were to increase our monthly growth by 5%, what would our runway look like in 12 months?
  • Our premium and basic plans aren’t driving as much revenue as our other revenue streams. If we were to invest more in marketing, could we get those numbers up?

These are all questions you can answer by building a fiscal model and forecasting different scenarios. But it all starts with knowing your total gross .
If you ’ rhenium interested in doing this level of analysis for your commercial enterprise, you can give Finmark a judge free for 30 days .

Calculate Your Runway

In order to see how much cash runway your occupation has, you need to know your tax income. You besides need to be able to forecast based on your gross and expected increase.

When you plug in all your data into a fiscal model tool, you can forecast your burn rate, runway, and growth course over the following 6, 12, or however many months into the future you want to plan .
forecast runway
Forecast Your Runway With Finmark !

Budget for Expenses

Speaking of runway, in order to grow efficiently, you need to balance your tax income with your expenses .
While it ’ mho typical for startups to have more expenses than tax income in the early stages, finally you ’ ll want ( and need ) to shift that ratio .
Your expenses can merely outpace your full tax income for then long before you find yourself in a badly fiscal situation .
For example, let ’ s say our accounting software company didn ’ thymine do such a great job of managing expenses. We can compare what the cash track would look like in that scenario ( bolshevik ) vs. our service line scenario ( blue ) .
runway scenarios
In the crimson scenario, we can either cut expenses or calculate out a way to boost tax income in order to extend our cash runway .

Plan For Fundraising

Building a startup can be expensive. And sometimes, your tax income isn ’ t enough to fuel your growth goals .
When that happens, fundraising can be an option to extend your runway and continue to build your business without the concern of running out of cash .
Tracking your total tax income can help you figure out when to fundraise, and how a lot to raise .

How to Increase Total Revenue

Whether your tax income is trending upwards, downwards, or staying flatcar, there ’ randomness always board for improvement .
here are some tips to increase your top line gross :

Double Down on What’s Working

As tempt as it is to experiment with fresh growth strategies, sometimes the best course of action is to double down on what ’ s working .
Like we showed in our accountancy startup model, if you can identify your biggest gross drivers, you have a begin point for where to put your focus .
revenue streams
once you take into history the amount of expenses needed to drive each tax income pour, it ’ ll be easier to make a data-informed decision on how to increase your total tax income .

Think Short and Long-Term

There are things you can do to increase your gross in the brusque term like offering discounts and incentives to boost sales. While those tactics can give you a flying inflow of cash, you besides need to consider the long-game .
For exemplify, if you were to increase your pricing for all plans by 20 %, what will your cash runway look like in 12 months ?
Let ’ s make that scenario in Finmark and compare, using our report software inauguration model .
In the persona below, the blue agate line represents what gross looks like at regular price, and the green line shows what happens if we increase all the monthly pricing plans by 20 % .
forecast revenue price increase
Mapping out diverse scenarios like this is a effective means to forecast gross based on any number of factors. From price to new tax income sources and more, you can see the impingement that changes will have on your startup ’ s future.

Those are some big-picture approaches to increasing gross. For more tactical strategies, check out these resources :

The Bottom Line on Total Revenue

If your business was a car, then total tax income would be like the gasoline. Without gross, your business international relations and security network ’ metric ton going to be able to keep moving fore .
Want to know how much accelerator you have in the tank, or how far you can drive your “ business ” with your current tax income ? Give Finmark a attempt today .

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