Reconciling "MRR" against the bank: a 6-month gap

Reconciling "MRR" against the bank: a 6-month gap

Everyone quotes their affiliate MRR. Almost nobody reconciles it to deposits.

An affiliate claimed $6,000 "recurring MRR" from the dashboard. I asked them to match it to actual bank deposits over six months. The gap:

— Dashboard MRR (active referred subscriptions x their cut): $6,000.
— Average monthly deposit: $4,150.

Where the $1,850 went:
— Mid-month cancellations the dashboard hadn't reflected yet.
— Failed-payment dunning periods where the sub showed "active" but billed $0.
— Pro-rated downgrades.
— A 5% network processing reserve.

The dashboard counts subscriptions that exist; the bank counts subscriptions that paid. Those are different sets every single month.

If your "MRR" hasn't been checked against deposits, it's a wishlist with a chart on it.