SaaS Subscription CFOs Are Key Success Drivers
As the CFO for a SaaS subscription company, you’ve seen firsthand how the role of a CFO has shifted significantly over the past five years. SaaS CFOs today are expected to accomplish all the tactical tasks they’ve always been charged with — while also providing strategic, decision-powered insights to stakeholders both in and outside the organization. And more recently, CFOs are playing the lead role in their organization’s adoption of digital transformation1. It’s a demanding role, but a role filled with opportunity. SaaS subscription software equips SaaS CFOs with the keys and the fuel to drive success and growth.
Recently Sage Intacct shared statistics and triumphs surrounding SaaS subscription companies using the solution to grow their businesses. You can view the complete infographic here: How SaaS Subscription CFOs Drive Growth and Success. Below are some highlights of successes SaaS companies using Sage Intacct are realizing.
Reduced day sales outstanding by 50%
The faster your SaaS company collects cash, the quicker you can reinvest that money in growing the business. Reducing the day’s sales outstanding is perhaps the simplest way to keep cash flowing, something established companies need as much as startups do.
Cut monthly close time from 20 days to five
A faster monthly close not only frees staff time for more strategic work, but also puts decision-making information in management’s hands that much sooner. By reducing the monthly close time, this company’s CFO can lead from the front rather than navigate through the rearview mirror.
Reduced Series C due diligence reporting to three weeks
Many, if not most, SaaS startups will eventually seek venture capital investors or even an acquisition deal. Investors want to see auditable financials, something entry-level applications like QuickBooks don’t provide.
Improved gross margin 67% using insights from new reporting
An impressive metric for any SaaS organization. This company achieved the gross margin increase in part by eliminating all the manual work they were performing around revenue recognition, deferred revenue, billing, and reporting.
Improved quote-to-cash cycle time by 30%
The quote-to-cash cycle is an important metric for SaaS companies and is notoriously difficult to measure. SaaS subscription software like Sage Intacct provides deep integration with Salesforce. That integration helps SaaS companies not only measure the quote-to-cash cycle time but reduce it through automated workflows and deep visibility.
Grew revenue by 75%, while only increasing G&A by 5%
General and administrative (G&A) expenses eat into profits, and these expenses tend to grow as your company grows. However, SaaS subscription software like Sage Intacct automates routine tasks, streamlines subscription billing and revenue recognition, and speeds multi-entity consolidations, helping SaaS subscription companies grow without growing their G&A costs.
Reduced cash forecasting variance by 80% while becoming ASC 606 compliant
This Sage Intacct customer needed a more robust subscription management solution as the QuickBooks and Excel’s manual processes and workarounds became increasingly burdensome and error-prone. They now manage more than 1,600 customer contracts effectively, accurately, and efficiently in Sage Intacct for subscription companies.
The SaaS subscription industry is poised for continued explosive growth. The opportunities are clear, and the challenges are real. As a SaaS CFO, you can position yourself as the clear leader in your company’s efforts to drive growth and success by adopting SaaS subscription software. The Answer Company works with SaaS companies in all phases of growth and we’d welcome the opportunity to share our experience with you.
- CFO 3.0 — Digital Transformation Beyond Financial Management, Sage Intacct