Adding Customer Acquisition Cost (CAC) to your finances

Tracking Customer Acquisition Cost (CAC) is key to understanding how much you spend to gain customers. CAC represents the total expense of bringing customers on board, including marketing, advertising, and sales efforts. Since it falls under marketing expenses, it should be added as an expense entry in your financial forecast.

By adding CAC to your forecast, you can decide whether your marketing efforts are cost-effective, how many customers you need to achieve your revenue goals, and whether your current strategies are sustainable.

To provide flexibility, you can configure CAC using different input methods based on your business model and forecasting needs.

This guide will walk you through the step-by-step process of adding Customer Acquisition Cost (CAC) to your financial projections.

Adding Customer Acquisition Cost:

1

Open the finance forecast module and navigate to the Expenses tab. To categorize your costs efficiently, click on Add Expense Group.

2

Here you'll need to name the group consider naming it directly Customer Acquisition Costs to keep track easily and click on Save & Next.

3

After creating an expense group, add the specific cost item name. Label it clearly.

i.e. Marketing Cost

Choose how you want to record this expense, whether as a  constant amount, per unit, % of revenue, or % of other expenses. This helps in aligning the expense calculation with your business model.

4

Specify  when the expense begins and when it ends by selecting the start and end dates from the calendar in the forecast form.

Click on the Save button to finalize the expense entry.

Adding CAC helps you see exactly how much you're spending to gain new customers, making it easier to budget wisely. It helps you see the real costs of your marketing efforts, enabling better planning and more effective spending.