Aiming for IPO? Why SaaS Businesses Need Accounting Automation First

Jeff Bezos, CEO and President of Amazon, once said, “In today’s era of volatility, there is no other way but to re-invent. The only sustainable advantage you can have over others is agility, that’s it.” For SaaS companies, this message might ring truer than in any other line of business. Depending on your market, your SaaS business might be watching others replicate your ideas or grow increasingly competitive in other ways. Agility is the name of the game in today’s SaaS world. One of the ways you can secure an agile operation is through accounting automation software.

The right accounting solution gives you many advantages in a fast-paced world. It shows you the strength of your financials in real-time, helps you report on multiple aspects of operations with accuracy, and ensures your compliance—a must-have. But beyond these capabilities, it gives you the information you need to make quick, smart decisions—keeping you nimble in an economically volatile time. We explain exactly how in our eBook How SaaS Organizations Can Thrive in Every Stage of Growth. Download it to learn how:

Moving Through Growth Toward IPO Requires Three Things
1. A knowledge of the financial metrics you need to track at every stage of growth
2. The right enterprise resource planning (ERP) technology to track those metrics
3. An expert partner committed to SaaS success and who helps you get the most out of your ERP

 

Early Challenges Are Made Worse by Manual Processes

The earlier you implement accounting automation, the better. Early-stage businesses often continue to use spreadsheets and perform financial reporting tasks manually, even when onboarding technology is within their grasp. Why? Old habits die hard—especially when wallets are tight. Take it from The Answer Company, an expert with three decades of experience: ditching manual accounting now is well worth the trouble.

Automation Is Your Friend in Your Growth Phase

You’ll be glad you tossed the spreadsheets at this stage of your journey. You’ll be drawing the eyes of investors who will want more and more information on your revenue model and its repeatability and predictability. Accounting solutions that automate things like accounts payable will be crucial. You need to accelerate growth and manage different subscription models and any cancellations—all done more easily with the right data.

Late Stage Means Going Deeper into Financials

Granularity is required in this phase to demonstrate the underpinnings of your financial health. Investors will want to know not just basic churn numbers, but how you distinguish between voluntary and involuntary churn, for example. Download the eBook to learn more about how to do that.

IPO = Even More Scrutiny

When you go public, it can feel like finding the Holy Grail. But without strong financial management, you could fall victim to the poking and prodding of an audit. The right accounting solution will enable you to produce any report necessary and stay compliant.

How Do You Choose the Right Solution?

With all the providers and award-winning systems out there, it can be difficult to know which tool is best for your business. At The Answer Company, we have seen the greatest transformation for SaaS companies using Sage Intacct.

Sage Intacct is a cloud-based financial management solution that delivers everything a growing SaaS business needs to thrive in every stage of growth. And if your sights are set on IPO, it’s your accounting software of choice. In 2021, $67 billion in market capitalization went IPO on Sage Intacct. You’re next!

The Answer Company has helped hundreds of businesses in technology and SaaS move through the four main growth phases using Sage Intacct. Our experts understand the unique needs of your organization, and we’d be happy to explain more about how we can help support your goals.

Download the eBook for a deeper dive into Sage Intacct and financial management for SaaS growth or get in touch with us today to see a demo.

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