Even for seasoned SaaS CFO’s that have been in the subscription revenue sector for years, reporting and forecasting can be daunting processes. Not to mention the tight deadlines finance teams frequently operate under.
However, reporting and forecasting doesn’t have to be frustrating or even difficult. Modern automated accounting tools make both of these strategic tasks seamless and straightforward.
But before we dive further into the magic of automation, let’s get better acquainted with reporting and forecasting. Why do they matter so much? And how do the most successful SaaS companies use them to rise above their competitors in a multidimensional industry?
Some people fall into the mistaken belief that financial reporting is purely about rehashing numbers. Nothing could be further from the truth.
Effective, fast, and accurate financial reporting gives your entire company an incredibly valuable real-time snapshot of how you stack up in the competitive SaaS ecosystem.
More specifically, excellent reporting serves as a company-wide strategic asset because it:
Financial reporting is more than just mindlessly putting numbers up on a screen ─ those numbers serve as the scaffolding on which you construct your forecasts.
And if the inputs for your forecasts (your SaaS reporting data) are inaccurate or incomplete, your entire company will pay the price. If you’re not targeting the right customers, your churn rates will start to increase and your ARR and MRR will start to decline.
That’s a pretty gloomy picture. So how do you prevent it from turning into a reality?
As with financial reporting, forecasts involve much more than just playing with numbers. That might be what they are on the surface, sure, but once you peel back a few layers, you’ll see that there’s more going on.
CFO’s who put in the time and effort to finesse their forecasts contribute massively to the rise and results of their companies. Predictable forecasting might seem counterintuitive. After all, forecasting implies a certain degree of unpredictability.
But reliable forecasting can be repeatedly achieved if you follow a few practical guidelines:
There’s one last element of reporting and forecasting for SaaS companies that we haven’t touched on yet.
The most effective SaaS CFO’s realise that automation is the only way to guarantee accurate, actionable, and reliable forecasts. Automation removes every ounce of guesswork and manual processes from your reporting and forecasting.
SaaS accounting automation software also:
The future of SaaS reporting and forecasting is all about efficiency. By minimizing unproductive processes and leveraging relevant technology, you can save yourself and your team time and money.
The Akuna Solutions Team