One of the biggest roadblocks encountered by SaaS companies involves a lack of data centralisation. An approach that puts all your company’s data in one centralised location across employees and departments is known as a single source of truth (SSOT).
Scattering different data sets for various employees and departments across an array of programs or spreadsheets is always a bad idea. It leads to logistical problems and lost revenue because:
Let’s delve a bit deeper into what an SSOT is and how it can help your business maximize its recurring subscription revenue generated.
Data integrity (a fancy term for the accuracy of your data) is a fundamental concept in the world of SaaS companies.
We already touched on some of the negative consequences of inaccurate or disorganised data, but some additional issues include:
Many CFOs mistakenly believe that their CRM or ERM acts as an SSOT. While these are valuable tools in your business arsenal, they fall short of the revenue benefits that a true SSOT can offer.
Implementing a fully automated SSOT is one of the most important ways for any company to optimise its revenue management.
Think of manual or spreadsheet-based revenue management as being a chain of information. Each exchange of information between employees or departments represents a link in that chain. Sometimes the links are strong, and there’s no problem at all.
But there’s an inherent flaw in the design of any chain. All it takes is for one link to fail–one manual billing mistake, an incorrect CAC or CLTV–and the entire chain snaps.
An automated SSOT, on the other hand, is more like a rope than a chain. All your data–revenue stats, KPI’s, role-based dashboards, and more–is seamlessly woven together like the strands of a strong rope. And everyone in your company has a firm grip on that rope at all times.
Switching from manual processes to an SSOT like Sage Intacct will ensure that:
Businesses are in a constant state of flow and flux, so you need a flexible system to flow with those changes in real time as they develop. To Learn more about this and the importance of embracing digital transformation you can also read this blog article, “Digital Transformation Enabled by Cloud Financials“.
The Akuna Solutions Team