Bookings vs Revenues vs Collections

When a customer commits to spend money with your company, that is a “booking”. A booking is often tied to some form of contract between your company and the customer. The contract can be simple or very complicated. And some bookings do happen without a contract. Examples of these contracts with customers include an insertion order in advertising, a license agreement in enterprise software, and a subscription agreement in “software as a service” businesses. Revenue happens when the service is actually provided.

 

(Full Post: http://www.avc.com/a_vc/2010/08/bookings-vs-revenues-vs-collections.html)


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Fred Wilson 

Fred Wilson has been a venture capitalist since 1987. He currently is a managing partner at Union Square Ventures and also founded Flatiron Partners. Fred has a Bachelors degree in Mechanical Engineering from MIT and an MBA from The Wharton School of Business at the University of Pennsylvania. Fred is married with three kids and lives in New York City.

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Filed Under:
Collection: Operations
Category: Accounting & Finances