Key considerations for SaaS finance professionals
SaaS companies have some unique challenges when it comes to interpreting critical financial data and managing the financial process. And depending on where you are in the growth cycle, those challenges can change. Here are some key things to keep in mind.
Each growth stage has its own benchmark.
As you seek financing, investors will want to see what you’ve accomplished before you move on to the next stage. Simplifying your data analysis and providing consistent KPIs help demonstrate your achievements.
Reconsider the Rule of 40.
You need to consider issues beyond just growth and profitability, including key SaaS metrics like CAC/LTV ratio and churn rate. And for young companies, too much focus on profit can lead to inadequate investment in growth during critical early stages.
Automate your quote-to-cash process.
It’s never too soon to implement an automated quote-to-cash process. Bring in your sales department early and establish a workflow that gives both sales and finance the functionality and data visibility you need.
There is value in collaboration.
Does your community have a finance networking group? Consider participating as a way to learn from others in your field.
SaaS finance professionals, including CFOs, controllers, and investors, recently attended the Modern SaaS Finance Summit, hosted by Sage Intacct, to learn more about these important considerations and other key issues for growing SaaS companies. Want to know more about the insights shared by top industry presenters? Click here to read the full Sage Intacct blog.
At MicroAccounting, your long-term growth and profitability are the measure of our success. Call us today at 855-876-3773 to find out more about our full range of ERP solutions, including Sage Intacct.