When it comes to being an effective and efficient SaaS CFO, a fintech automation tool can be one of your best friends. Your company probably uses a communication tool like Slack or Microsoft Teams, right? It enables people to stay organised and accomplish more in smaller increments of time.
Think of your accounting automation tool in the same light. It’s a technology-driven extension of you and your team that helps you keep your reporting organised and perform at your peak capacity.
Let’s take a deeper dive into five primary reporting essentials for SaaS CFO’s and how an automation platform can help put them in your grasp.
We don’t have to tell you that accurate reporting is one of your top responsibilities. You already know that.
But you might not know how essential staying organised is to creating a profitable year for your company. Savvy finance leaders utilise automation to massively cut down on manual processes and the mental and physical clutter they create.
They opt for software solutions that can give them access to all their essential SaaS metrics at a glance:
Having all of these SaaS metrics immediately available in one location is critical (this is known as data centralisation):
It’s not enough to report accurately and efficiently, however. As a C-level finance professional for a subscription revenue company, you need to make accurate, actionable forecasts that enhance your company’s bottom line.
An accounting automation platform can help you make reliable forecasts by:
Now that we’ve discussed the importance of staying organised in your reporting and forecasting, let’s take a quick look at enhancing personal accountability for SaaS finance teams.
When you’re giving a presentation in front of your company’s board, few things are more important than being able to trace accountability back to your team members for their exact contributions.
It may look good when you layout your grand strategic vision for the coming quarter. But no matter how inspiring that vision is, you’re going to need to come back and prove a few things to your board:
Sage Intacct’s streamlined role-based dashboard will enable you to answer these critical questions with clarity and confidence. And if things don’t go as planned for a given quarter, you’ll be able to formulate an effective plan to get back on course:
Also called the book-to-bill ratio, your bill-to-order ratio measures how many orders you’re receiving versus how many orders are being billed and fulfilled.
So if you’re fulfilling every order in real-time or close to it, you’d have a ratio of 1. That’s par for the course. The bill-to-order ratio becomes more important when your ratio falls above or below 1.
A number above 1 shows you’re receiving more orders than you’re completing and billing across a particular period. It shows that you might need to look for payment processing issues and other problems stemming from excessive user demand.
A number below 1, on the other hand, implies that user demand might be starting to wane a bit. Even though this may not seem like great news, it gives you a chance to analyse which customer and product segments might be losing steam.
Remember, knowledge is power, and if you can figure out how to fix bad news, you’re still well-positioned. An automation tool like Sage Intacct can help you and your team keep track of your bill-to-order ratio accurately and effectively, so you can develop strategies and solutions in real-time.
When it comes to reporting and forecasting, aim to maintain a firm grip on two things at once: the daily developments occurring in your business and a forward-looking sense of the coming months and years.
As you can imagine, this can be a tall order for even the most experienced CFO’s. Automation is one of the best and fastest ways to reduce data isolation, and increase your team’s strategic bandwidth.
Eliminating manual processes will enable you to orient your entire department around long-term strategic thinking and high-value activities.
Automation is the only way to report and forecast with maximum reliability and effectiveness, and utilising Sage Intacct’s automation capabilities can be the way forward to help transform and empower your finance team’s capabilities to further and better heights.
The Akuna Solutions Team