Running a subscription-based business requires a clear understanding of bookings, billings, and revenue, which are often confused but crucial for financial reporting and forecasting. Bookings provide insight into potential future revenue from signed contracts, while billings reflect the actual invoices sent to customers, indicating expected short-term cash flow. Revenue is the money a company has actually earned. As SaaS pricing models evolve towards dynamic and usage-based systems, sophisticated billing infrastructure is necessary to handle the complexity of tracking and converting bookings into accurate billings and revenue. Modern billing platforms automate these processes, ensuring precision and reducing manual errors. By understanding the distinctions and relationships between these metrics, companies can make informed strategic decisions, improve financial health, and support sustainable growth.