Software as a Service (SaaS) companies continue to grow rapidly as more businesses rely on their solutions to operate. With accelerated growth comes unique financial management demands that require accuracy, expertise and efficiency. At Compass East, we recognize the requirements of this industry and offer Financial Controller services to streamline your internal processes.
The Challenges of Financial Management for SaaS Companies
SaaS companies operate on subscriptions and contracts for revenue, which presents various challenges in financial management. Standard revenue recognition practices do not apply in the case of subscriptions. A customer agrees to pay a rate for the month, but contract terms can present various payment expectations. You might receive annual payments from one customer and monthly payments from another.
With revenue recognition presenting a challenge, budgeting and projections can also become a hurdle. When your company has a limited understanding of the revenue it may earn in a quarter, preparing for the next one is far from easy. Additionally, development and acquisition costs are often in flux, making it more challenging to gauge how much you can expect to spend.
Yet another hurdle for SaaS companies is sales tax. These businesses typically operate in multiple jurisdictions and have various sales tax obligations around the country. Between revenue recognition, budgeting and tax compliance, SaaS accounting teams may find time for little else. Or worse yet, with the constant pressure of ensuring customers are invoiced timely, bills are paid and payrolls are run, then these important duties can go neglected.
Financial Controller Services With Compass East
Financial Controllers mainly operate in accounting, but they’re also in charge of managing all financial data. Their responsibilities can include reporting, payroll, internal control development and management, budget preparation and compliance management. Financial Controllers can even help streamline accounting systems and make departments more efficient overall. While you can hire a Financial Controller in-house, you can experience the benefits of this role by outsourcing to Compass East.
When you work with us, you gain access to an experienced team of qualified accountants who handle the Financial Controller role with accuracy and efficiency. We bring value from building hundreds of companies accounting departments for maximum scale in your business operations. As we manage ongoing financial responsibilities, we also develop financial strategies tailored to your long-term goals.
Financial Controller services we offer include:
- Accounting services
- Audit preparation and support
- Financial forecasting
- Cash flow management
- Financial statement preparation
- Processes and systems management
Our team tailors our Financial Controller services to your company’s unique demands. We focus on one or multiple areas to provide the support your financial team needs to thrive.
The Benefits of an Outsourced Financial Controller for Your SaaS Company
Outsourcing your Financial Controller responsibilities to our team comes with the following benefits:
- Expert guidance: The Compass East team consists of experienced financial professionals who deliver tailored services for your SaaS company. From accounting expertise to tax compliance management and financial projections, our professionals build a reliable financial foundation for your company.
- Cost-effectiveness: You have the option to hire a Financial Controller in-house, but this will come with additional payroll, overhead, retention and turnover expenses. Outsourcing your Financial Controller responsibilities allows you to reap the benefits of the expertise for a lower cost at a high value.
- Advanced technology: Great Financial Controllers understand the importance of process efficiency and are well-versed in the technologies that make this efficiency possible. By implementing these tools, you can optimize your accounting workflows and make processes more manageable for your team.
- Increased efficiency: Due to the many challenges in financial management for SaaS companies, many teams fall behind on deadlines or overextend themselves to complete every process. Financial Controllers facilitate these financial procedures to keep them moving and maintain accuracy. Additionally, process and system management involves identifying inefficiencies and making adjustments wherever possible to increase overall effectiveness.
- Optimized time management: Your team may be overloaded with financial responsibilities that take time away from growth initiatives and other high-value projects. With a Financial Controller on your side, you can reduce the time demands of these responsibilities and focus on other aspects of running your company.
- Improved decision-making: A Financial Controller supports accuracy and compliance within your financials, but they also prepare you for the future. With a more precise picture of your financial standing, your company can make informed decisions about future actions, investments and strategies.