INSIGHTS IN ACTION

Your SaaS firm is growing, and it’s time to hire a new CFO or to explore outsourced CFO services. In both cases, generic interview questions for a CFO just won’t cut it. To find financial leadership that’s as unique as your SaaS company's financial...

Spreadsheet financial models for SaaS companies stink, whether built in Microsoft Excel or Google Sheets. There, we've said it.

That doesn't mean that spreadsheet models don't provide some value in the very beginning stages of a SaaS business or...

Sometimes for business owners, pushing your business into growth mode feels like being stuck in the mud. You think you're gaining traction but suddenly you find yourself sliding right back into the muck.

As your SaaS company evolves from an early stage startup and reaches key milestones, your finance and accounting inevitably need to change. Leveling up to a new stage of growth can be the right time for most SaaS companies to assess those needs –...

As the founder, CEO, or key stakeholder of a SaaS business, you need a clear picture of the day-to-day health of your business. In theory, SaaS metrics can satisfy this need with basic formulas for calculating a variety of performance data. In...

Your SaaS company is growing, and each stage brings new finance and accounting (F&A) challenges. As your focus shifts from achieving product/market fit, to building a repeatable sales process, to scaling the business, F&A roles and responsibilities...

What's the average Chief Financial Officer (CFO) salary in the United States in 2024? Well, the typical CFO salary depends on the size of your business and whether your business is located in Keya Paha, Nebraska (lowest salary) or San Francisco,...

Have you ever stopped to wonder if the staff you have running your firm's finance function is helping or hurting? You might be surprised to learn that the model used to manage accounting in most small businesses is flawed. It’s important to...

Raise your hand if you're a nonprofit executive director (or you serve on a nonprofit board) and have a long list of mission-advancing ideas but scarce resources to make them a reality. Keep it in the air if your board has limited financial...

Why do startups flop? The team at Startup Genome found a common thread. A survey of 3,200 startups showed that, of the companies which crumbled, 70% of themtried to scale too quickly.

SaaS metrics software - also known as subscription billing management software or recurring billing software - should be one of the most powerful weapons in a SaaS CEO's arsenal. The complexities of managing subscriptions are real and the costs of...

Now more than ever, startups and corporates are looking for ways to run lean. There is pressure to make cuts to staff and outsource when possible, and this has led to a trend of hiring virtual CFO services over the more traditional in-house...

What is the difference between a controller and a CFO? Which does my business need? Do we need both?

One of the most powerful ways to monitor the operational health of SaaS companies is through SaaS dashboards. Dashboards bring together your most important SaaS KPIs and present them in a clear and concise way that allows for data-driven...

When it comes to key SaaS metrics, Annual Recurring Revenue (ARR) is the one every stakeholder has their eyes on. When a SaaS company is experiencing ARR growth, it’s a signal to founders, CEOs, investors, and others that the subscription business...

As your SaaS business grows, your finance and accounting capabilities are being stretched thin. Frequent errors, omissions, and inconsistencies point to the need for more experienced SaaS financial professionals in leadership, and that means adding...

How constructive was your last board meeting? Can you name at least 2 or 3 specific insights or outcomes that will add meaningful value to your enterprise? You're not alone if you view these quarterly meetings as a necessary evil, standing in the...

Optimizing your accounting practices for the SaaS space is critical to running a healthy SaaS business, but it’s not enough to transform it into a market leader. For that, SaaS finance expertise is essential. In this article, you'll learn how...

Two of the primary forms of SaaS capital—debt and equity financing—are often defined by their drawbacks. Debt financing, as the name implies, requires taking on a loan and repaying principal with interest. Equity financing avoids the need for...

Your SaaS company is poised for rapid growth. As you scale, solid financials are the key to growing efficiently and maximizing valuation—but your finance department is already getting stretched thin. You’ll need more resources, more expertise, and...

Your SaaS business is going from strength to strength. You’re bringing in more customers, building your ARR (annual recurring revenue), and positioning your firm to tackle the next stage of growth. 

Your Virtual CPA (certified public accountant) is a crucial part of your finance team. They must turn a year’s worth of accounting entries and financial data from your accounting department into final yearend financial statements that ultimately...

Are you frustrated with the state of your firm's finances? You're not alone. That happens to a lot of small business and nonprofit leaders.

Valuing SaaS companies is complicated. Every business model is unique, every deal is nuanced, and markets are constantly evolving. With so many factors involved, it’s no wonder that buyers, investors, and sellers often arrive at very different...

Identifying the right SaaS subscription management platform is one of the most important decisions a growth-minded SaaS business will make. There are plenty of options to consider, from entry-level subscription billing software to full-scale ERP...

If you receive accurate, insightful financial reporting and operation reports each month -- without taking time away from where you need to be adding value -- and that information fuels the decisions that drive your business month after month,...

There are so many reasons why anyone would want to consider a career in accounting and finance. This article addresses the most compelling motivations below, but first, we thought it was important to clearly define what an accountant is and describe...

As operators, we know how many balls a small business owner needs to keep in the air. Sales, operations, crisis management, and the crucial yet often neglected realm - financial administration. This is where the services of a virtual CFO can prove...

As a business owner, it’s natural to be hesitant to hand over the reins of your accounting processes and financial reporting to an outsourced virtual bookkeeping firm. You trust your in-house bookkeeper to file the taxes, get the bills out on time...

Your SaaS business is gaining traction and you’re outgrowing the basic accounting software that’s gotten you this far. With recurring and non-recurring revenue streams, varying contract terms, and higher volume, revenue recognition has become a real...

SaaS metrics are more than cookie-cutter formulas for tracking high-level KPIs. They are dynamic growth tools that should inform the decisions your leadership team, management, and board make on a routine basis. Used well, they highlight trends,...

For early stage SaaS companies, simple, easy-to-use accounting software makes sense. Many startups combine an accounting platform like QuickBooks Online with a subscription billing tool like SaaSOptics. This can be an effective solution—up to a...

Sure, every small business could use a new salesperson who can “make it rain,” but this year, we recommend you look to another – less obvious – position to fill the most important gap on your team or that of your client or portfolio company. Most...

Venture capital (VC) and private equity (PE) are among the most common sources of SaaS equity funding, but which is the right choice for your company? Understanding the unique advantages and drawbacks of each is a great place to start. While PE...

For a SaaS business, knowing exactly when and how much to invest in growth is critical to success. Overspending in areas like sales and marketing will cause a SaaS firm to burn through cash too quickly. While it’s tempting to pile on sales reps in...

Every SaaS founder wants to maximize their company’s value—a goal that requires high performance in two key areas: growth and profitability. In fact, the more you can demonstrate a combination of revenue growth and operational efficiency, the better...

One of the most critical decisions a SaaS founder or CEO must make is when to invest in scaling the business. When the timing is right, a strategic investment in sales and marketing will fuel exponential revenue growth. But, when the timing is off,...

Picture this: you walk into your monthly board meeting, exchange hellos, and then you get hit with this question — “what did we book last month?”

Both your CEO and Head of Sales each give different answers, and it becomes clear to your board and...

The financial priorities of your SaaS business will change as you move through each growth stage. In the initial phases, you’ll likely be working toward product/market fit, with a strong focus on bringing in customers, regardless of the acquisition...

The CEO of a high-growth SaaS company has plenty of things to worry about on a daily basis. One of their biggest anxieties, however, can simply be the fear of running out of money. One successful client SaaS CEO recently characterized that sense of...

When you're on a road trip, how often do you check the gauges on your car’s dashboard? Routinely, if you're like most people. Those indicators tell you important information like where you are in your journey, how you’re tracking relative to...

Working remote, but not working alone

The Best Financing Option May Surprise You

If you are a new business owner, you have undoubtedly already tackled many decisions regarding your company operations. However, one of the most impactful choices to make is whether you should use the cash or accrual accounting method. Since this...

No one likes to imagine the worst-case scenario. But if you are planning a new product or service in your business, forecasting failure is necessary to demonstrate your firm can withstand a slower than projected start or an unanticipated hiccup....

Small businesses and non-profits may benefit from interim CFO services in a variety of circumstances. Your current CFO may be absent for what is expected to be a few weeks to a few months due to illness or maternity leave. Or you may need someone to...

Most CFO consulting services include a one-time engagement. The consultant comes in and looks at a snapshot of your business in its current state.

Let's face it, the vast majority of small business CEOs and nonprofit executive directors are flying blind when it comes to having sound, data driven insights upon which they can base their decisions. For a variety of reasons, the finance functions...

You're in good company if you're being pulled in countless directions as you work to grow your firm. Keeping all those balls in the air is tricky and tiring. Prioritization is a constant battle.

Large firms have the finance staff and business intelligence tools to inform their decision making and provide a competitive edge. Here are 5 simple, cost-effective steps to level the playing field for your small business, for 2018 and beyond.

Your small business has reached the point where you're considering shared CFO services - otherwise known as fractional, part-time or contract CFO services. The decision to bring in the right financial leadership is a milestone unto itself as many...

Before selecting an outsourced CFO service, companies must weigh the pros and cons. How long does it take for the business to get a positive ROI? How big does the company need to be to experience all the great benefits that a contract CFO service...

Last weekend, I took my retriever, Fletch, for a run in the woods and found myself post-holing through the snow. With every stride, I sank ankle deep into the soft snow, slowing me to a crawl as the mud below tried to suck the shoes from my feet....

Is cash tight? Are you frustrated with the state of your organization's finances? Do you need confidence that you're tracking the right metrics?

Much has been written (and spoken) about navigating the winding road to startup success. So much so that it’s hard to know which resources to trust and when each should be tapped. It’s also not trivial to find resources that truly align with your...

Sooner or later, circumstances lead many small business owners to consider engaging a temporary CFO. When you find yourself in that mode, you might wonder, is now the right time to engage a CFO? What is the opportunity cost of waiting to hire one?...

How long has it been since you last went on a road trip, or even to a new destination, and didn’t have an app on your phone (eg: Google Maps) to guide you, step-by-step, towards your goal? Five years? A decade? Maybe even longer. GPS and map apps...

One of the top issues keeping your business from growing the way you would like is its financial management. That is, you just can't get the numbers together to tell you where your biggest risks and opportunities are going forward, let alone the...

Are you considering CFO professional services? It's a fantastic option for some small businesses and nonprofits, but don't make the mistake of thinking every CFO services company is a good match for you.

We were invited by the GoDaddy Garage blog to write a guest article for small business owners detailing what comprises a great finance dashboard. Click here to read it now.

The term “competitive advantage” might trigger thoughts of a company with a defensible market position, best product, lowest price (and cost), superior customer service or consistent client outcomes. But the truth is, there are many sources of...

Where to start when you've committed to take control of your firm's financial management? A small business owner could look to the current reporting, reevaluate the accounting technology or even thumb through the accounting manual. But what about...

As we move further into the fourth quarter, small business owners everywhere begin to breathe a sigh of relief as their most pressing tax deadlines fade into the distance.

Halloween isn’t the only frightening event in October; there are several October small business tax deadlines looming ahead. Here’s the list of important due dates next month.

Summer may be drawing to a close, but the IRS turns up the heat in September with several important tax deadlines for businesses. Mark these dates on your accounting calendar so you have time to get the necessary information to your accountant and...

Nearly all small businesses struggle with hiring experienced staff at one time or another. The most recent NFIB Small Business Problems and Priorities Report ranks “locating qualified employees” as one of the top 10 struggles of small businesses....

Does your company experience ebbs in revenue at times? Or periods of particularly heavy costs? Is growth constraining your cash position? Creating cash flow projections will help ensure you'll always have adequate cash to pay the critical bills,...

There are many ways to measure the effectiveness of your firm’s finance function. For starters, there’s the accuracy, frequency, timeliness and utility of the reports your finance team produces. Are those reports digestible at a glance? And don’t...

Ask any small business owner what a budget is and they will likely respond with something like this: a financial plan for a firm's future that projects revenue and expenses. Ask them if they have one, however, and you may get a variety of excuses...

First things first, for those new to reconcilation, to reconcile a bank account means to identify and explain the differences between the entries in your accounting system and the corresponding transactions listed on your bank or credit card...

August is right around the corner and although there isn’t much heat in the way of upcoming tax deadlines, there are a few target dates that may apply to your business.

As a business owner, you know that your gross profit is an important figure, to you and to potential (or existing) lenders, investors and acquirers. For starters, your pricing strategy, ability to benchmark your performance and even you firm's value...

As a refresher, a financial close is the process of entering all of your expense and revenue transactions from the most recent period, reconciling your bank and credit card accounts and a handful of others steps that tie up loose ends to set the...

The accounting world is ruled by deadlines and missing them can prove costly to your business. To help you avoid any such repercussions, we like to use our weekly tips to remind you of the most essential upcoming accounting deadlines. The summer...

Are you tired of inaccurate financial reports? Do you lay awake at night wondering if someone might be exploiting your systems for personal gain? Are you confident your data is secure?

In a former career, I analyzed hundreds of small business acquisition opportunities through the lens of a private equity investor. If there's one thing I learned from that experience, it's that the firms with the highest valuations, biggest profits...

The minute the bookkeeper hands you the latest financial reports, you check the top and bottom lines. But once you have the big picture, you’re ready to dig into the details. All too often, the out-of-the-box income statement, balance sheet and cash...

A small business owner places a great deal of faith and responsibility on their financial controller. If you don’t yet have a financial controller, read on to ensure you or other members of you team are filling this critical need. Much of your...

Are you thirsting for more business information?

You know that feeling when you’re so thirsty that you just can’t stand it anymore? Sweat is beading on your brow, you’re parched and all you can think about is a pint of cold water (or beer!). 

Let’s face it: As the CEO or leader of a growing Software-as-a-Service (SaaS) firm, you have your hands full. Whether you’re busy onboarding new customers, retaining existing customers, hiring to meet anticipated demand, managing your board or...

As strange as it may sound, many small business owners are reluctant to engage with their bookkeeper as often as they should. Most report that they don’t feel qualified to proactively manage someone in finance, which can be intimidating to those...

Gross profit is gross profit, right? The math is simple enough. Revenue less the cost of goods yields your gross profit. Divide that figure by your total revenue for the same period and you have your figure. Unfortunately there's more to it than...

So you have your next great growth idea in hand.  The catch is you need cash to implement it.  Before dusting off your suit and marching off to the bank, consider these five critical elements to get a business loan that best meets your specific needs. 

Profits don’t pay bills, cash does. Just because a firm is profitable doesn’t mean it won’t run out of cash. Cash flow projections may be the single most important business planning activity you perform, in good times or bad. Whether you are...

Many small business owners aren't certain where to look for key insights. Balance sheet vs income statement? After two articles dedicated to balance sheets - on why and how to use your firm's balance sheet - it's time to turn our attention to the...

You’re in good company if you aren’t comfortable reading a balance sheet. So create some separation from your competitors by following these 3 ways to understand and begin using your small business balance sheet.

Lots can be found online about how to read a balance sheet. In fact, our next blog article, written with the small business owner in mind, will cover how to read and use yours in a few simple steps. But what’s less clear is why a small business...