If you’re a high-growth company working in the Software as a Service (SaaS) industry, you’re on the cutting edge of technology, delivering important digital solutions to your customers. But these high-tech capabilities don’t always transfer over to the complexities of SaaS financials. While your expertise lies in software, our accountants’ expertise is in SaaS financial services such as finance and accounting. Compass East makes finance and accounting simple for SaaS companies with a bottom-up approach that scales with your fast-growing business.
How Our Accountants Tackle SaaS Finance & Accounting
At Compass East, we do more than accounting. Our process starts with building a holistic financial infrastructure from the ground-up. This foundation is built for scalability and your organization’s other unique needs.
For SaaS clients, we first focus on solving three initial challenges:
- Implementing our best practice cloud-based technology stack: With these tools, we can deliver automation and efficiencies around financial data collection and data integrity, allowing technology companies to scale their F&A operations.
- Establishing a streamlined process for revenue recognition and contract management: Better revenue cycle management aids in efficient data collection and revenue recognition methods that are vital to SaaS financial reporting.
- Aligning the Chart of Accounts to quality key performance indicators (KPIs): This helps us provide actionable financial insights into SaaS metrics like Average ARR, lifetime value (LTV), customer acquisition cost (CAC) and churn, as well as strategic pictures on productivity with metrics, such as Gross Profit Margin, Recurring Revenue per Employee and operating leverage. These will later aid in strategic decision making as your continue to encounter growth opportunities in your business.
SaaS is a unique industry, and you have a unique business. Our process accounts for that with holistic financing and accounting that starts with revisiting the basis of your finances.
Our SaaS Accounting Services
After we’ve implemented this comprehensive technology ecosystem, our expert finance and SaaS accounting service team provides:
- Advanced bookkeeping services.
- Accounts Receivable/Accounts Payable (AR/AP) management.
- Payroll.
- Revenue recognition.
- Controller review and financial statement preparation.
- Cash forecasting.
- KPI dashboard management.
- Fundraising advisory.
- Board reporting.
- Financial Modeling.
- 1099 management.
- Sales Tax management.
Compass East’s SaaS financial experts work alongside your fast-paced, growing team. You get to focus on your product, customers and operations, while we deliver a meaningful SaaS financial strategy — including SaaS budget planning, actionable financial reports, KPI dashboards and cash forecasting — that supports your strategic growth initiatives. These insights can help you tackle capital efficiency, revenue recognition and more.
Why Outsource Your SaaS Financial Planning
For fast-growing companies, managing finances in-house can be a tricky and costly undertaking. When you outsource these services, you’re turning to the people who specialize in that area. We’ve spent years optimizing our services for high-growth businesses and have extensive experience with SaaS clients. That means you’re working with a partner prepared to handle your organization’s ever-changing needs with ease, scalability and professionalism — all at a much lower cost than an in-house team of the same caliber.
At Compass East, our SaaS accountants deliver wide-reaching benefits to different parts of your organization through outsourced:
- Cost savings: An in-house F&A team is a significant expenditure. You’d need to pay several salaries, such as that of the Chief Financial Officer (CFO), controller and accountants, plus their benefits, training and turnover costs. SaaS CFO services and SaaS outsourced accounting allows us to take on these jobs for a fraction of the cost. We can provide similar services without the expenses associated with developing an in-house team, from office space to payroll taxes.
- Team expertise: All those services are done with the help of an entire team of professionals. You get more bang for your buck with the level of expertise that comes with an outsourced Compass East team. That team can include Controllers, Certified Professional Accountants (CPAs), analysts and other professionals that work together on your SaaS financial strategy. We have experience with a wide range of companies, including self-funded and private equity/venture-capital-backed businesses.
- Greater insights: With our ground-up approach, we build a solid platform for further development across your company. Our accounting strategy includes SaaS board reporting, a KPI dashboard and forecasting capabilities, so you can make more informed business decisions to boost profits and further growth. We can often find data in places you never even thought to look and bring in significant results.
SaaS can be a complex industry, and our accountants know the ins and outs of it. If you want to get out of the financial weeds, gain valuable insights and drive growth in your company, you need people on your side who understand the business. Compass East is that partner.
Working With Compass East
At Compass East, we do more than just take over your finances. We rework them. Many high-growth SaaS companies are still at the point where their books aren’t up to date. You might be working with out-of-date spreadsheets and systems that are inefficient for your staff’s size or don’t offer the insights you need. Our team will bring your accounting system up to par and match it with your current business model, complete with a technological ecosystem fit for the organization.
Compass East has worked with many SaaS companies, so whether you’re focused on serving businesses or consumers, we’ve got you covered with private or venture-capital funding. Even if you’re in the stage of SaaS fundraising, our accounting experts know just what to do. Some of our specialties include SaaS revenue recognition and SaaS cash flow management, two notoriously tricky subjects in this type of business.
In addition to extensive SaaS experience, we offer a comprehensive landscape and can provide everything from CFO services to insights and basic accounting.No financial stone is left unturned.
One of our primary goals with each client is to simplify your finances. We know they can get stressful —from year-end audit coordination and reports to forecasting and organization, they’re far from straightforward. Compass East is committed to making the process easier, so you can spend less time on the minutiae of accounting and more time focusing on what your company does best.
