Table 3From “What is growth accounting? Separate new, retained, expanded, and lost revenue”
How does growth accounting differ from reported revenue growth?
Table 3How does growth accounting differ from reported revenue growth?
| Question | Reported growth rate | Growth-accounting bridge |
|---|---|---|
| What is the output? | A beginning total, ending total, and percentage change. | The same totals plus named positive and negative components. |
| What is the unit? | Often a company or reporting segment. | A stated contract, customer, line, currency, and service boundary. |
| What is the explanation? | Usually left open or written as a narrative. | Reconciled through new, expansion, contraction, churn, and declared residuals. |
| What can be inferred? | That the total changed under the reporting definition. | That the components add to the ending total under the bridge definition. |
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Growth that compounds
What is growth accounting? Separate new, retained, expanded, and lost revenue
Growth accounting reconciles recurring revenue through new, expanded, contracted, and lost components. Keep revenue and customer counts separate.
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