24. Customers
Year # new
clients
# total
clients J F M A M J J A S O N D
Year 0 - - - - - - - - - - - - - -
Year 1 3 3 3 3 3 3 3 3 3 3 3 3 3 3
Year 2 9 12 12 12 12 12 12 12 12 12 12 12 12 12
Year 3 25 37 37 37 37 37 37 37 37 37 37 37 37 37
25. Customers
Year # new
clients
# total
clients J F M A M J J A S O N D
Year 0 - - - - - - - - - - - - - -
Year 1 3 3 3 3 3 3 3 3 3 3 3 3 3 3
Year 2 9 12 12 12 12 12 12 12 12 12 12 12 12 12
Year 3 25 37 37 37 37 37 37 37 37 37 37 37 37 37
• Are you really going to jump from 12 to 37 customers from Year 2
December to Year 3 January? Then why would you forecast it?
Other reasons:
• Timing and seasonality
• Basis for cash forecasting
Accounting
Timelineness
Accrual vs. Cash
GAAP vs. Non-GAAP?
e.g. where do you book health insurance deduction from payroll? Salaries? Health insurance?
Could represent cash or just a myth
How creative is the accounting?
Management accounting
Standard Cost Accounting
Activity Based Accounting
Separating cost of sales/service from operating expenses
See new employees, etc.
Don’t fall into the yr-to-yr trap.
See new employees, etc.
Don’t fall into the yr-to-yr trap.