SaaSOptics Blog

Will a SaaS Revenue Management Team Help My SaaS Company?

[fa icon="calendar'] Sep 15, 2017 2:30:42 PM / by SaaSOptics

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 Orginially posted on Incisive Edge.

Whether your Software as a Service company is a mature, successful corporation or start-up in your first years of operation, you will most likely have multiple revenue channels:

  • Direct sales representatives (either field sales representatives or telesales)
  • Value Added Resellers/Integrator Referral Partners
  • Application marketplaces of complementary SaaS solutions
  • Self-service customers who proactively subscribe for your paid or freemium services

Keeping track of these revenue streams, and creating the marketing campaigns to generate leads for all of them takes careful planning and execution and therefore the question is, do you need a specific SaaS revenue management team? Find out in this blog by David Bowler.   

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Ernst & Young Revenue Recognition Survey finds many companies not ready for ASC 606

[fa icon="calendar'] Sep 8, 2017 3:36:48 PM / by Bryan Schuler

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Originally posted on ey.com.

SaaS companies are staring down the 2018 deadline to implement the new Revenue Recognition Standard (ASC 606). According to the recently released EY Revenue Recognition Survey, 85% of CIOs believe the IT team is providing the support and skills needed to meet these standards, but only 60% of CFOs agree. Although this survey references public companies, we've seen that SaaS business are trending the same way. In our webinar earlier this year, we surveyed attendees on their preparedness to adapt to the new revenue recognition standard and 47% said they have not taken steps to identify how the new standard will affect their GAAP financials.

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The Proper Use of the SaaS Quick Ratio

[fa icon="calendar'] Aug 30, 2017 3:23:13 PM / by SaaSOptics

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Originally posted on The SaaS CFO.

Here at SaaSOptics, we talk a lot about SaaS financial performance metrics. Why? Because they provide you with the insight you need into your growing business. We're always looking for new metrics to evaluate the health and performance of a SaaS business.

The SaaS Quick Ratio, from The SaaS CFO, measures bookings growth versus bookings contractionWhy is this metric important? From the article: "MRR or ARR is everything to a subscription business. It keeps you going, so you need to know each month if you are net positive (recurring revenue will continue to increase) or net negative (expect recurring revenue to decrease)."

Check out the full article here and don't forget to download the sample formula sheet for your business.

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SaaSOptics Delivers Advanced Salesforce Integration

[fa icon="calendar'] Aug 24, 2017 11:18:30 AM / by SaaSOptics

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Enables Total Visibility of Customer Subscription and Financial Data Across Sales, Finance and Customer Success Teams

Atlanta, GA, August 23, 2017 – SaaSOptics, the only subscription management platform designed specifically for growing B2B SaaS and subscription-based businesses, announced today a new, advanced version of its plug and play connector with Salesforce.com for improved workflows and customer subscription visibility. Driven by customer demand, the integration extends the benefits of the SaaSOptics order-to-renewal process workflow and enables cross-functional collaboration between QuickBooks and other general ledgers, and SaaSOptics. It also delivers visibility of financial data beyond finance and sales to account management and customer success teams, providing one source for customer financial records. 

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How to Measure the Maturity of Your Finance Operations

[fa icon="calendar'] Aug 11, 2017 4:58:00 PM / by Bryan Schuler

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For a B2B SaaS or subscription business, finance operations are no longer just a back office function. Finance executives are playing a larger role in their businesses' strategic direction and growth. How do you know if your systems and processes are set up to provide the necessary insight into your growing business? 

To help, we created the B2B Finance Operations Assessment. We derive our assessment from the Capability Maturity Model (CMM) which was originally created by the Software Engineering Institute (SEI) in the 1980s to assess the ability of government contractors to implement software projects. 

CMMs typically use a five-level system to define and score process maturity. We use a three-level system covering three main B2B finance functions: Revenue Recognition, Invoicing & Payments, and Subscription Metrics & Analytics. Our three output scores are Basic, Transitional and Optimized.

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Fine-Tune Your SaaS Business with CLV Metrics

[fa icon="calendar'] Jul 28, 2017 10:04:25 AM / by Tim McCormick

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Customer lifetime value (CLV) is one of the most critical metrics used to evaluate a SaaS company’s financial health and to predict its future success. Unfortunately, it’s also one of the trickiest things to measure. Traditional business metrics fail to capture the key factors that drive SaaS performance. With revenue coming in over an extended period of time, the customer lifetime, it changes the way management, investors and potential acquirers determine whether the SaaS business is financially viable.

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Nightmare on Excel Street - Multi-currency Accounting with Deferred Revenue Recognition

[fa icon="calendar'] Jul 21, 2017 1:56:44 PM / by Clayton Whitfield

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Managing subscriptions in a global economy doesn’t have to be scary. But it sure feels that way sometimes. To compound matters, the finance team is frequently the most under-resourced department in a growing SaaS business. When you’re struggling to do more with less—and to maintain accurate revenue recognition—adding to the growing maze of spreadsheets and manual processes that now accompany your general ledger sounds like a nightmare.

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Buttoned Up Revenue Recognition Metrics for SaaS Businesses

[fa icon="calendar'] Jul 13, 2017 4:54:36 PM / by Clayton Whitfield

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Chance are, your early-stage SaaS business has a business-casual dress policy, but your financial metrics still need a buttoned-up Wall Street polish to attract savvy investors or potential acquirers. Much like a bespoke power suit would break the clothing allowance, powerful financial management suites are far too expensive to install and implement just to gain accurate revenue recognition metrics. So, you make do with a haphazard assortment of tools like QuickBooks and SalesForce manually pieced together with Excel spreadsheets and a lot of copying and pasting. Needless to say, this doesn’t achieve the cohesive look you’re going for.

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Revenue Recognition in the Age of ASC 606

[fa icon="calendar'] Jul 6, 2017 4:54:16 PM / by Chris Weber

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U.S. businesses have been subject to financial reporting regulations for more than 80 years. ASC 606 is one of the latest and will have a particular impact on SaaS businesses.

Revenue recognition has never been easy for SaaS companies without the right accounting and subscription management in place, but the new rules could add another layer of complexity to an already troublesome area. The standards will affect private companies starting this December (public companies are already subject).

That means the time is now to ensure your revenue recognition is in accordance with current and new guidelines.

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SaaSOptics Named CODiE Award Finalist for Best Subscription Management Software

[fa icon="calendar'] Jun 22, 2017 2:45:56 PM / by SaaSOptics

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The SIIA CODiE Awards are the premier awards for the software and information industries, and have been recognizing product excellence for over 30 years. The awards offer 93 categories that are organized by industry focus of education technology and business technology. SaaSOptics was honored as a finalist for the Best Subscription Management Solution category and one of 205 finalists across the 59 business technology categories.

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