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Karthik is experience rich yet very humble and down to earth! He was kind enough to instantly agree for a 30 minute call despite his busy schedule, like most other finance folks! What stands out in Karthik is his transformational journey from TCS to Oracle - all the way to scaling a startup like Chargebee!
About the call
30 minutes was too less for this call, so we asked him specific questions and tried to extract as much info as possible!
Detailed notes
What are the sub-functions within FLC
- Controllership
- FP&A
- Legal (409A, Customer Contracts)
Key Financial Metrics that you track for yourselves?
- Burn Efficiency
- New ARR
- Runway
- Granularity is important in Expense Reporting
- Standardize & Categorize the ledger names into something as follows:
- Employee Costs
- Legal & Consultancy
- Software Expenses
- Program Costs
- Utilities
- Travel
- Staff Welfare
- Others
- Add more dimensions to the CashFlow Report
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ARR - What’s included
Principle- Assume that Transaction Revenue & Metered Revenue of a particular month will recur at the same amount at least.Eg: If we are earning Transaction Revenue in Jan and next is expected in May, then income of Jan should be spread across Jan-April.
- Subscription Revenue - Included in ARR
- One Time Revenue - Not Included in ARR
- Transaction Revenue - Included in ARR
- Usage Based Revenue - Included in ARR (Metered Revenue)
Prepaid Expenses
For material items (say >$1000) Prepaid expenses is booked and amortized on a monthly basis. Similar to Deferred Revenue.
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