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.
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.!
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.
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:
Leads generated through inbound organic or outbound sales channels now have their total lead counts by month appearing in the model output view, like so:
This does not (yet) include paid channels, but we hope this adds some clarity to the source of your revenue each month in the generated output. As always, we welcome your feedback.
You can now selectively disable events by clicking the "Mute" icon in the bottom toolbar:
This has an incredible number of applications. We put together this demo video to show you one use-case: