Managing your SaaS company’s finances making your head spin?
Don’t worry. You’re not alone!
Especially if you’re the tech founder and spend most of your mental energy getting your product to work. At My SaaS Advisor, we work with owners just like you – to make sense of your numbers and help you build a viable plan for smarter scaling.
This list of unique financial challenges SaaS companies face is just the tip of the iceberg – but we’re here to prevent you from sinking.
- Complying with ASC 606’s complex rules for revenue recognition
- Managing deferred revenue and how advance payments for future services impacts cash flow
- Determining optimal subscription pricing models and envisioning how different outcomes will influence future budgets
- Calculating how greatly customer acquisition costs (CAC) are reducing profit margins
- Planning financially for an appropriate level of customer churn
- Getting a handle on cash flow management in a business model with high upfront costs and delayed revenue
- Keeping a finger on burn rate to make sure you have enough runway to make it to profitability
- Navigating complex sales tax regulations across different jurisdictions
- Making tough decisions on when to prioritize growth over profitability
- Optimizing R&D tax credits available for software development
- Creating a budget that invests in the infrastructure and technology your SaaS venture needs without overextending financially
- Meeting aggressive growth and profitability targets set by investors
- Having immediate access to the financial models and projections you need to attract and secure investors
- Figuring out the right speed to scale, balancing cost increases with rapid user growth
- SaaS companies selling more expensive enterprise products experience long sales cycles which complicates cash flow and forecasting
- Raising capital at the right time
- Structuring the business for the exit you want, when you want it
- Revenue leakage is common, due to billing errors and unoptimized payment processing systems
- SaaS businesses that operate overseas must deal with international taxation and fluctuating numbers caused by volatile currency exchange rates
Get strategic
Managing SaaS finances doesn’t have to overwhelm you. At My SaaS Advisor, we help you understand your numbers, from cash flow to revenue recognition, and create a tailored plan for growth. Let us take care of the financial complexities, so you can focus on what you do best—growing your business.
