How To Calculate ARR Booking Target in Kronos | Arithmix
Learn how to calculate your ARR booking target in Kronos with this comprehensive guide. Discover the key metrics you need to consider and the step-by-step process to set your target and achieve your business goals.
If you're running a business, it's important to have a clear understanding of your financial goals. One way to measure your success is by calculating your ARR (Annual Recurring Revenue) Booking Target. This metric helps you determine the amount of revenue you need to generate in order to meet your annual goals. In this article, we'll explore what ARR Booking Target is, when it's valuable to calculate it, and how you can calculate it for your business.
What Is ARR Booking Target?
ARR Booking Target is the amount of revenue you need to generate in a year in order to meet your financial goals. This metric takes into account your current revenue, your growth rate, and your target revenue for the year. By calculating your ARR Booking Target, you can determine how much revenue you need to generate each month in order to meet your annual goal.
For example, if your current revenue is $100,000 and you want to grow your business by 20% this year, your target revenue would be $120,000. Your ARR Booking Target would be $120,000 divided by 12 months, which equals $10,000 per month.
When Is It Valuable To Calculate ARR Booking Target?
Calculating your ARR Booking Target is valuable in a number of situations. If you're a startup, it can help you determine how much revenue you need to generate in order to break even or become profitable. If you're an established business, it can help you set realistic financial goals and measure your progress towards those goals.
Additionally, calculating your ARR Booking Target can help you make informed decisions about your business. For example, if you know that you need to generate $10,000 per month in order to meet your annual goal, you can evaluate whether a particular marketing campaign or sales strategy is likely to generate that amount of revenue.
How to Calculate ARR Booking Target
Calculating your ARR Booking Target is a straightforward process. Here are the steps:
- Determine your current revenue.
- Determine your growth rate. This can be a percentage or a dollar amount.
- Calculate your target revenue for the year by adding your current revenue to your growth rate.
- Divide your target revenue by 12 months to get your ARR Booking Target.
For example, let's say your current revenue is $50,000 and you want to grow your business by $10,000 per month. Here's how you would calculate your ARR Booking Target:
- Current revenue: $50,000
- Growth rate: $10,000 per month
- Target revenue: $50,000 + ($10,000 x 12) = $170,000
- ARR Booking Target: $170,000 / 12 = $14,166.67 per month
By following these steps, you can calculate your ARR Booking Target and use it to set realistic financial goals for your business.
How Do You Calculate ARR Booking Target in Kronos
Kronos itself isn't naturally geared towards letting you calculate complex metrics like ARR Booking Target. As an alternative, teams typically use products like Arithmix to import data from Kronos and build out dashboards.
What is Arithmix?
Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that's powerful yet easy to use. With Arithmix you can import data from systems like Kronos, combine it with data from other systems, and create calculations like ARR Booking Target.
In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.
Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.
Calculating ARR Booking Target in Arithmix
Calculating metrics like ARR Booking Target is simple in Arithmix. Once you've created your free account, you'll be able to import your Kronos data, and use it to create natural language formulas for metrics like ARR Booking Target.
Arithmix is designed to give you the power to build any calculations you want on top of your Kronos data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.Use Arithmix free