What's new on Summit

Financial Planning Software as a Service

November 29, 2020

πŸ”€ Branching models

(NOTE: Branching is limited to adding events. Parent events cannot yet be edited within a branch without modifying the parent model as well.) Sometimes you want to experiment with an alternate universe or two: one where you bootstrap, one where you fundraise; one where things go awesome, one where that partnership doesn't work out.

Previously, the best way to experiment with these branches of reality was to create an entirely separate model (via copy) or use the mute feature to toggle individual events on and off.

What if you could instead extend your base model in separate directions while leaving the base model constant?

Enter Branches!

You can now create a branch off of any of your named models (not your Draft) by clicking the symbol below the build button, like so:

This button will instantly create a branch, nested underneath your selected model, and switch focus to that branch:

You can rename this branch at the top of the page as you normally would:

The list of events in the left-hand side shows the quantity of events in the base model and then the quantity in the branch.

Happy branching!

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November 28, 2020

A (More) Proper P&L Format πŸ€“

As we prepare to integrate accounting systems, we're improving the way we organize and display your financial model output to conform to generally accepted accounting practice. As a part of this, we've released a major improvement to the way we organize the financial output table, such that it now matches common profit and loss statement format as you might see in Quickbooks, Xero, etc.

In this new format, Balance Sheet terms - such as cash and debt, and runway calculation, are at the bottom of the output, below the Profit & Loss rows.

This new display also includes an automatic calculation of your Gross Margin (%), a question founders of software companies frequently get asked about, but aren't always sure how to answer. As you'll see, Customer Success and Support costs are categorized under Costs of Goods Sold, along with data subscriptions used to support your subscribers. This makes for a fairly accurate calculation out of the box! As your business improves and your sales offset your fixed costs, so will your margins.

By translating your business inputs to outputs that can be understood by finance professionals, Summit aims to build bridges between team members that are experts at running the business and those that are experts at running the numbers.

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November 26, 2020

Table improvements πŸ”’

In the spirit of small changes that make a big difference, we've upgraded the financial model output table with a pinned left column as well as row and column highlighting to make scanning easier. The column heads also show the year-month instead of the full year-month-date, removing the ugly ellipses that used to fill the header before.

P.S. Happy Thanksgiving to all our modelers in the U.S.!

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November 25, 2020

Accounting Terms πŸ‘€

Yesterday we introduced a small change to how we label event categories. The goal of this change is to help those familiar with accounting categories make a smoother transition into modeling with Summit.

The "Finance" event type has been renamed "Balance Sheet".

"Product" has been renamed "Cost of Goods".

"Operations" has been renamed "Expenses."

These traditional categories are reflective of the events contained in each category, with the added benefit of bringing the worlds of traditional accounting and Summit together with less mental friction.

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November 21, 2020

Per Customer COG's πŸ’Έ

Sometimes when a customer signs up for a subscription plan, there is a specific, corresponding cost incurred to the business. Often this is the result of data connections or usage-based pricing agreements with other SaaS companies (that you use to provide your own service).

To model these costs, Summit now has a "Per Customer Cost (Recurring)" event type under the "Product" category.

Events of this type can be attached to subscription plans. When subscribers sign up for these plans, these costs will increase automatically, and decrease automatically as subscribers churn.

Knowing how these costs scale is the key to negotiating fair rates with vendors and managing margins on a software business with real costs attached.

Here's an example of attaching these costs.

The percentages can be used to show that not everyone that signs up for this plan causes this cost to exist. In the above example, only half of our subscribers to this plan cause us to incur a Codat Connection charge, for example.

These costs will automatically appear in your financial model output as separate line items, like so:

Of course, attaching costs like this is totally optional, as some subscriptions are pure margin.

However, for many of us, this new event type will allow us to model our software margins much more accurately.

Happy modeling!

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November 17, 2020

🎯 Segmented MRR, line item expenses

Your model output now includes separate MRR rows per revenue event and expense rows per operating expense event.

These row headers will automatically pick up on the names you choose for your subscriptions and expense events.

This makes it possible to create stacked column charts showing revenue breakdown over time:

And here's an example of itemized expenses:

Happy modeling!

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