model backlog

2 quickies 1. can we say backlog is same as def rev balance on balance sheet liability section? 2. how do you guys best model bookings? how does modeled bookings flow into backlog forecasts? Thx

What’s your industry? 1) Nope, backlog is generally just an executory contract, it won’t become deferred revenue until the company has received prepayments/deposits. 2) Check and see how firm the backlog is- is it cancelable and what are the penalties for cancellation? I generally try to keep a separate roll-forward of the backlog and at the very least that will create a floor for my revenue forecast. Depending on the business, this can get really complicated because percentage of completion accounting can be hard to model- it can be hard to disaggregate/understand on the financial statements.