# How To Calculate Pipeline Coverage in Quickbooks Online | Arithmix

Learn how to calculate pipeline coverage in Quickbooks Online with our step-by-step guide. Improve your sales forecasting and make better business decisions with this essential tool.

Calculating pipeline coverage is an essential aspect of any business that wants to ensure its sales team is meeting its targets. Pipeline coverage is a metric that helps you determine the number of deals in your sales pipeline that are likely to close within a specific period. It is a crucial metric that helps you understand the health of your sales pipeline and make informed decisions about your sales strategy. In this article, we will discuss pipeline coverage, why it is valuable to calculate it, and how to calculate it.

## What Is Pipeline Coverage?

Pipeline coverage is a metric that measures the number of deals in your sales pipeline that are likely to close within a specific period. It is calculated by dividing the total value of deals in your pipeline by the average deal size and the number of days in the sales cycle. The result is a percentage that represents the likelihood of closing deals within the specified period.

For example, if you have \$100,000 worth of deals in your pipeline, and your average deal size is \$10,000, and your sales cycle is 90 days, your pipeline coverage would be 11.11% (100,000 / (10,000 x 90)). This means that you have enough deals in your pipeline to cover 11.11% of your sales target for the specified period.

## When Is It Valuable To Calculate Pipeline Coverage?

Calculating pipeline coverage is valuable in several situations. Firstly, it helps you understand the health of your sales pipeline. If your pipeline coverage is low, it means that you do not have enough deals in your pipeline to meet your sales targets. In this case, you need to focus on generating more leads and closing more deals to increase your pipeline coverage.

Secondly, pipeline coverage helps you make informed decisions about your sales strategy. If your pipeline coverage is high, it means that you have enough deals in your pipeline to meet your sales targets. In this case, you can focus on improving the quality of your deals and closing them faster to increase your sales velocity.

Lastly, pipeline coverage helps you identify potential risks in your sales pipeline. If your pipeline coverage is low, it means that you are at risk of missing your sales targets. In this case, you need to identify the reasons why your pipeline coverage is low and take corrective action to mitigate the risks.

In conclusion, calculating pipeline coverage is an essential aspect of any business that wants to ensure its sales team is meeting its targets. It helps you understand the health of your sales pipeline, make informed decisions about your sales strategy, and identify potential risks in your sales pipeline. By following the steps outlined in this article, you can easily calculate your pipeline coverage and take the necessary steps to improve it.

## How Do You Calculate Pipeline Coverage in Quickbooks Online

Quickbooks Online itself isn’t naturally geared towards letting you calculate complex metrics like Pipeline Coverage. As an alternative, teams typically use products like Arithmix to import data from Quickbooks Online 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 Quickbooks Online, combine it with data from other systems, and create calculations like Pipeline Coverage.

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.