Accurate financial statements are vital for any Software as a Service (SaaS) company, regardless of size or service type. These statements are especially critical for growing businesses because they present precise data that guide decision-making and management operations. SaaS companies without the internal capacity to efficiently and accurately prepare their financial statements often find themselves overextended, overwhelmed, and operating blind.
Compass East can help you stay on track with your cash flows, profit and loss and balance sheets with our outsourced financial statement preparation services. We also ensure your financials are accrual-based and follow the Generally Accepted Accounting Principles (GAAP) set forth by the Financial Standards Accounting Board. GAAP sets out to standardize the classifications, assumptions, and procedures used in accounting in industries across the US. The purpose is to provide clear, consistent, and comparable information on organizations’ financials. Compass East ensures your financial statements are accurate, timely, and actionable.
Streamlining Month-End Reporting With More Accurate Financial Statements
A financial statement is a detailed record showing all your company’s business activities and financial performance. The three core components include:
- Balance sheet: A balance sheet summarizes your company’s financials at a specific time point. The top half of the sheet typically contains your assets, while the bottom half indicates your liabilities and net worth. Assets equal your Liabilities plus Equity.
- Income statement: Income statements cover the profits and losses (P&L) over a specific period of time, such as the month, quarter or year. It represents the operating performance and success of the business. Profits will reflect a positive cash and balance sheet position in the future.
- Statement of cash flows: Cash flow statements show the money generated and spent during a specific period. They determine how money moves through your business, indicating how much cash goes to creditors and how much stays for investments and growth. While often overlooked, this is a vital financial statement to run any business.
Compass East’s outsourced financial statement preparation services can help you maintain precise information to indicate your company’s overall performance with greater detail.
Making More Informed Business Decisions With Precise Financial Statements
When SaaS businesses partner with Compass East for outsourced financial statement preparation services, they are better equipped to make more informed decisions for enhanced business growth. Our services help create statements with a clear view of company performance, showing future stakeholders why your operation is a valuable investment. These partnerships help develop trust and are instrumental in establishing new relationships over the long haul.
Financial statements are also valuable tools for internal decision-making and budgeting because they identify growth areas, trends, and potential roadblocks in development. Gaining a better understanding of your financial positioning allows you to develop more effective strategies for future growth.
Financial Statement Preparation Services for SaaS Companies
Compass East offers comprehensive financial preparation services that help SaaS companies with precise month-end reporting. Our senior accountant and controller review functions will examine and evaluate your statements for completeness and accuracy in your income statement, balance sheet and cash flow statement.
Benefits of Financial Controller Review Services From Compass East
Our financial prep and controller review services provide many benefits for SaaS companies of all sizes, including:
- Improved accuracy: Using a skilled team of advisors with decades of combined experience eliminates costly errors that could have otherwise occurred internally. Our professionals will optimize your tracking processes, ensuring you have a precise picture of your company’s financials. Increased accuracy results in better decisions that promote growth.
- Minimized risk: Financial reporting often involves compliance requirements that some SaaS companies find challenging. Our financial services assist you with audit preparation, helping you avoid the stiff penalties of inaccurate reporting.
- Optimized budgeting: With a more detailed view of your company’s financial landscape, you can allocate your funds based on relevant cash flow trends. A more accurate budget often results in healthier revenue growth.
- Increased efficiency: By outsourcing your financial statement prep duties to a reliable provider, you allow personnel to focus on the core tasks that matter most to your company. Our services help you create precise and timely reports without overextending your internal resources.
- Streamlined debt management: Debts you do not monitor carefully often lead to losses and negatively impact your financial statement. Our services provide you with all the tools you need to manage your liabilities effectively.
Besides our financial statement prep and controller review services, we offer other solutions to help grow and manage your SaaS business, including financial liaison and key performance indicator (KPI) services. We also help you meet compliance requirements with sales tax management, audit preparation and 1099 management solutions.