Did the Rule of 78 Doom Your 2021 SaaS Revenue Plan?
It’s hard to make up for lost time thanks to ASC 606
19 min readOct 7, 2021
In SaaS businesses, the Rule of 78 is used to plan how much revenue is needed each month to achieve a certain target. The target number is divided by 78 to determine how much revenue needs to be generated each month. The requirements of contemporary accounting standards (ASC 606) mandate…
