Companies in the Software as a Service (SaaS) industry have high-tech capabilities to deliver digital solutions to their customers. These high-growth companies often have complex finances that require specialized expertise — your focus should be on software, so let us handle the accounting.
Compass East provides SaaS accounting services for technology companies. Our solutions are backed by a team of professionals with expertise in SaaS finance and accounting. We take a bottom-up approach to building a financial infrastructure that will scale with your fast-growing organization.
How Outsourcing Benefits SaaS Financial Planning
As your SaaS company grows, managing your finances can become more complex and costly, especially if your accounting team is in-house. Outsourcing your accounting services to experts like Compass East is the cost-effective, logical solution for this need. While your personnel focus on delivering digital services for your customers, our SaaS accountants will manage your financial needs.
Compass East has years of experience working with SaaS companies. We know the SaaS industry can be complex, but we are fully versed in the challenges and requirements you face. We optimize our services for high-growth companies like yours, so we’re prepared to adapt to your ever-changing needs.
Our outsourced SaaS accountants benefit financial planning through:
Cost Savings
Setting up and maintaining an accounting department within your company is a significant financial undertaking. An in-house team would require you to pay for:
- The salaries of each accountant, Controller and Chief Financial Officer (CFO).
- Benefits for each employee.
- Training and onboarding.
- Turnover costs.
- Office space.
- Payroll taxes.
With SaaS outsourced accounting and outsourced CFO services, Compass East will take on your accounting operations. Choosing our scalable services costs less than keeping your finances in-house since outsourcing eliminates these expenses.
Greater Insights
Compass East uses a bottom-up approach to build a solid platform incorporating SaaS board reporting, a key performance indicator (KPI) dashboard and forecasting capabilities. Your executives can make informed decisions backed by data trends to drive business and profit growth.
Team Expertise
Our team of professionals will handle your various accounting and finance needs. Our Controllers, analysts and other professionals will work together on your SaaS financial strategy. Our level of expertise and experience with various SaaS businesses make Compass East an asset for your operations.
Challenges Our SaaS Finance and Accounting Solutions Solve
Our SaaS accounting services start with building a financial infrastructure from the bottom up. This infrastructure is tailored to your company and unique needs. It will scale as your company grows.
After this step, our process focuses on solving three initial challenges for SaaS businesses:
- Implementing our cloud-based technology stack: The tools in our technology stack deliver automation and efficiencies for financial data collection and data integrity, allowing SaaS companies to scale finance and accounting operations.
- Establishing streamlined processes: We establish processes for contract management to make revenue recognition methods and policies more efficient. These processes are vital for SaaS financial reporting.
- Aligning Chart of Accounts to KPIs: The alignment between Chart of Accounts and quality financial KPIs provides actionable financial insights and SaaS metrics like gross profit, churn, annual recurring revenue (ARR), lifetime value and customer acquisition cost. This step will also provide strategic insights on productivity with metrics like operating leverage, recurring revenue per employee and gross profit margin. These KPIs will help your company identify and take advantage of growth opportunities.
SaaS Accounting Services at Compass East
When the SaaS accounting team at Compass East works in tandem with your fast-paced, growing team, your company benefits on all fronts. Your team can focus on products, customers and operations while we provide actionable financial reports, KPI dashboards and cash forecasting to support your strategic growth initiatives.
Once we have implemented our comprehensive technology ecosystem, our expert finance and accounting team will provide:
Advanced Bookkeeping Services
SaaS companies need bookkeeping to ensure the integrity and accuracy of financial data since these records are the foundation of strategic business decisions. Our advanced bookkeeping services keep your finances in order, going beyond basic accounting with financial report compilation, vendor invoice management, product and service billing, and accounts receivable (AR) tracking.
Invoice Management
Invoice management and AR are important for reducing costs and maximizing cash flow. Our invoice management solutions use cloud-based technologies to automate existing workflows. We’ll improve your accounting operations through recordkeeping, credit policies and technology implementation to save time and increase cash flow.
Billing and Accounts Payable (AP) Management
Accurate books and timely payables are essential for your operation. Our billing and AP services use a bottom-up approach to optimize your finances, streamline payables and improve accuracy. With our AP team, you can code your expenses accurately, develop new strategies, implement new technologies and automate workflows to save time.
Payroll Administration and Reporting
Payroll can be complex for SaaS companies, making compliance, integration and scalability difficult. Our outsourced payroll services manage your payroll, so you can focus on other tasks. Our internal and external auditors understand the SaaS industry and will streamline your financial processes for profitability.
Revenue Recognition
SaaS companies that offer various payment terms and report to multiple stakeholders need accurate revenue recognition. Compass East enhances your accounting with revenue recognition solutions. Our practices follow the industry standard Accounting Standards Codification (ASC) 606 for accurate reports.
Controller Review
Our Financial Controller services streamline your internal processes by managing financial data such as reporting, payroll, budget preparation and compliance management. Our team of qualified accountants provides expert guidance and tailored services for your company’s unique needs.
Financial Statement Preparation
Accurate financial statements guide decisions, manage operations and grow businesses. Compass East offers financial statement preparation services to help you stay on track with your balance sheets, profit and loss, cash flows and more.
Cash Forecasting
SaaS companies often manage complex billing cycles due to customized contracts. Our cash flow management services help you gain control over your cash flow, which is critical during high-growth phases. We also offer forecasting to give insight into your business practices and assist with scenario planning.
KPI Dashboard Management
KPI dashboards allow you to monitor your operational health by tracking and presenting the data points that matter most. Our KPI development and dashboard services deliver comprehensive dashboards and visualization resources. You can identify trends, take action and grow your business.
Financial Modeling
Financial modeling for SaaS companies can be difficult due to the complexity of revenue contracts. Our financial modeling and projections offer insights into your growth strategy. Use this data to minimize risks and predict future revenue and spending. Our models come from quality historical financial data and advanced tools.
1099 Management and Filing
Many SaaS companies use contractors to scale their business. Our 1099 filing services ensure compliance and accuracy with these critical forms to lighten the workload on your accounting team during tax season. Our team will collect W-9 forms and verify time worked and payments made to accurately report contractor income on 1099 forms.
Sales Tax Management
Sales tax management can be complex and take valuable time away from your core business. Our sales tax compliance and reporting services simplify management using cloud-based technology and streamlined processes. Our team can help you improve your financial operations while making data collection processes more efficient.
Benefits of Working With Compass East for SaaS Finance Services
Compass East is the trusted partner for finance and accounting solutions for high-growth companies. We have worked with B2C and B2B SaaS companies of all sizes to enhance their financial systems.
When you choose Compass East for SaaS financial planning, your business will gain many advantages, including:
- Simplified finances: We do more than basic accounting — we rework and simplify your finances. We understand reports, forecasting, record management, audit preparation and other financial tasks can be complicated, so we make the process as easy as possible. You can focus more on your core offerings and less on accounting.
- Updated technological systems: If your high-growth SaaS company has outdated books and spreadsheets or inefficient systems, our team will update your accounting system to match your business model. Your technological ecosystem will fit your organization and offer insights.
- Knowledge about SaaS challenges: If you’re a new SaaS business acquiring funds from private and venture capital sources, our accounting team can help.
- Comprehensive services: With our extensive SaaS experience, we offer a wide variety of solutions, from basic accounting to CFO services.
