SaaSOptics Blog

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

[fa icon="comment"] 0 Comments

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.

Read More [fa icon="long-arrow-right"]

SaaSOptics Delivers Advanced Salesforce Integration

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

[fa icon="comment"] 0 Comments

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. 

Read More [fa icon="long-arrow-right"]

How to Measure the Maturity of Your Finance Operations

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

[fa icon="comment"] 0 Comments

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.

Read More [fa icon="long-arrow-right"]

Fine-Tune Your SaaS Business with CLV Metrics

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

[fa icon="comment"] 0 Comments

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.

Read More [fa icon="long-arrow-right"]

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

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

[fa icon="comment"] 0 Comments

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.

Read More [fa icon="long-arrow-right"]

Buttoned Up Revenue Recognition Metrics for SaaS Businesses

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

[fa icon="comment"] 0 Comments

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.

Read More [fa icon="long-arrow-right"]

Revenue Recognition in the Age of ASC 606

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

[fa icon="comment"] 0 Comments

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.

Read More [fa icon="long-arrow-right"]

SaaSOptics Named CODiE Award Finalist for Best Subscription Management Software

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

[fa icon="comment"] 0 Comments

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.

Read More [fa icon="long-arrow-right"]

Customer Spotlight: Driven Insights

[fa icon="calendar'] Jun 14, 2017 4:03:19 PM / by SaaSOptics

[fa icon="comment"] 0 Comments

In 2014, two long-time business partners and entrepreneurs noticed an increasingly common challenge facing most small business owners – the lack of good financial data and metrics. So, they founded Driven Insights and today, provide expertise on a fractional basis to growing businesses.

You may be wondering, “what is a fractional CFO?”

As a business grows, the need for buttoned up financial operations and more accurate metrics increases, but a full-time CFO might not be necessary (or in the budget). In this case, many businesses hire a “fractional CFO,” someone who is highly skilled and has deep experience in financial operations, to become part of the management team on a part-time basis.

Read More [fa icon="long-arrow-right"]

16 Startup Metrics for SaaS Businesses

[fa icon="calendar'] May 18, 2017 12:47:45 PM / by SaaSOptics

[fa icon="comment"] 0 Comments

While we write a great deal about SaaS financial operation metrics (like MRR/ARR, CLV and churn), there are many other important general business and product metrics for SaaS businesses. Metrics like gross profit and burn rate are important for any fast-growing SaaS business.

From the article below: "Ultimately, though, good metrics aren't about raising money from VCs - they're about running the business in a way where founders know how and why certain things are working (or not) … and can address or adjust accordingly." 

See the complete post here from A16Z.com.

Read More [fa icon="long-arrow-right"]