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Overview

Fincelo maintains a real-time ARR waterfall — every movement in and out of ARR is tracked to its source with full audit trail. The waterfall feeds the CFO Morning Brief, NRR calculation, and churn predictions.

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ARR Waterfall Components

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ARR vs Revenue — Critical Distinction

ARR and revenue are tracked independently in Fincelo:
  • ARR decrements on the actual termination date — always
  • Revenue recognition depends on CFO view selection:
    • View A (no refund) — revenue recognised through original end date
    • View B (refund issued) — revenue stops at termination, credit note raised
The AI suggests the correct view based on contract language. The CFO always decides. The decision is logged.

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NRR Calculation

Fincelo calculates NRR at:
  • Customer level
  • Cohort level (by acquisition month)
  • Plan/tier level
  • Overall workspace level

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Contraction vs Churn

These are separate waterfall buckets:
  • Churn = full termination (customer leaves entirely)
  • Contraction = partial reduction (customer reduces seats/tier but stays)
Mixing these distorts NRR. Fincelo enforces the distinction automatically.

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ARR Anomaly Detection

The Revenue Anomaly Agent monitors:
  • Unexpected ARR movements above statistical threshold (Z-score > 2)
  • ARR that doesn’t match invoiced amounts
  • Expansion signals from usage data
  • Customers approaching usage limits (tier-based alerts)
Alerts appear in the CFO Morning Brief and trigger CSM Hub notifications.