Checklist

What a buyer checks in your ARR

These questions are based on the 23 checks in my tool. Every question you cannot answer with a confident yes today becomes a topic in a due diligence if the other side asks it first.

Answered yes: 0 of 27

01Contracts and line items

Does every won deal have a contract with line items?
Is every service under contract only once?
Does every contract line item have a monthly value (MRR) and a billing frequency?
Do all active contracts have a signature date?
Are price and quantity changes recorded as a new version of the line item, with the date from which it applies?

02Invoices

Does every active contract have a current invoice?
Does billing stop when the contract ends?
Can every recurring invoice be matched to a contract?
Does every debtor also exist as a company in the CRM?
Is every duplicate invoice cancelled?
Does every invoice state a service period?
Does the invoice currency match the contract currency?

03Payments and accounting

Is every incoming payment matched to an invoice?
Are receivables that have been open for more than 90 days resolved?
Do the revenues in the books match the invoices month by month?
Are manual postings on revenue accounts explained, such as accruals or goodwill credit notes?

04CRM data

Is every company created only once?
Does every active customer have a debtor number?
Does the Amount field hold the same measure on all deals, either the annual value everywhere or the total value everywhere?
Is the lifecycle stage “customer” used only where there is an active contract?
Does the “customer since” field match the contracts?
Are lost opportunities recorded with a reason?
Are the HubSpot fields for recurring revenue maintained?

05Key figures

Can the ARR at the cut-off date be derived from the contract line items, without a manual spreadsheet?
Does the ARR bridge over twelve months reconcile per customer without a remainder?
Are NRR, GRR and cohorts by starting year available?
Do you know how much ARR still depends on maintenance contracts and how many of these customers have already moved to subscription?

More than a few questions open?

Then I’ll take a look at your data. From data access to the list of findings, I plan two to three weeks. The analysis runs locally on my own computer, and 30 days after handover I delete all data.

Book an intro call dominik@arrproof.com