As the owner of a software company (SaaS), you have to focus on your development and scaling processes.
Readying a new software for market, adding new clients, and scaling client add-ons are all vital to your company’s success. But how do you prepare for these growth demands and ensure you’re making sound financial decisions?
At Fully Accountable, our fractionalized financial experts understand the software industry and how quickly you have to respond to rapidly changing demands.
That’s why our financial controllers and CFOs issue reliable reporting, up-to-date compliance protocols, and financial forecasting that positions you for sustained growth and success. Come see what a fully managed accounting firm can do for you and focus on scaling your business sustainably.
What are Software/SAAS Companies?
Software companies are companies that focus on software development. They’re like IT companies but their specialty is developing programs to help teams communicate and collaborate. They also create useful products for everyday consumers use such as social media apps or games.
SAAS firms focus on the following three business areas:
Development is the first step to creating mutually beneficial products for both consumers and organizations, but it’s not always easy to stay on top of current trends such a fast-paced industry. The speed of change in the SaaS industry makes it important for companies to encourage teams to focus on continuous integration and collaboration. Doing so helps companies innovate better than their competition and win over new customers.
Design is key to ensuring software functionality, user experience, and the user interface. Software companies take the project requirements into consideration and turn it into a product that the end-user can navigate.
This requires a deep understanding of who will be using the software, as well as testing to get it right because what’s good for one user won’t work for another.
Designers and programmers work closely together in the creation of software, but it is up to developers to ensure that they are coding for the correct audience. They do this by making code changes on a regular basis depending upon how much businesses change from one day to another
What Makes Accounting for SaaS Different?
Perhaps the most glaring difference between SaaS accounting and other industries is the revenue tracking aspect.
The subscription fees and add-on fees require routine maintenance as customer upgrades. As customers upgrade or downgrade, their needs change, and so to, does the SaaS company’s necessary bookkeeping and accounting resources.
Tools such as subscription management software and recurring billing platforms make accounting challenging for these companies. That’s why using controllers and fractionalized CFOs can help minimize your stress implementing accounting software and procedures.
Why Outsourced Accountants Are Essential for SaaS Companies
In today’s rapidly expanding SaaS business atmosphere, companies need to have the infrastructure to respond to adapting needs. Having access to insight and support while your company expands is a critical component of whether your company can keep up with the emerging trends and changing demands.
Fractionalized CFOs like those at Fully Accountable don;t simply keep your books in order. They can also provide financial advice for raising essential capital and ensuring compliance with all state and federal tax requirements. When you use full-service, outsourced accounting operations, you also maximize your R & D tax credits.
Standardize Your SaaS Metrics
SaaS companies require specific metrics to measure their success. Outsourced accounting firms not only ensure that all of the metrics are up to date. They also analyze these metrics and give actionable insight on how to approach them.
Meet Market Demand
As a SaaS company, you need to pivot depending on your business output. Software companies grow at an alarming average rate of 20 percent each year and they have a 92 percent failure rate.
That’s why continuous updates to your accounting approach and infrastructure can either make or break your business. If you don’t have these resources in place, you can easily fall behind to your competitors. Additionally, the continuous updates outsourced accounting services provide will help you stay on top of your adapting business needs.
Around the Clock Support
SaaS accounting procedures require constant attention and adaptation. You need your developers to focus on what’s most important: development. Hiring an in house accountant can simply prove too much and trying to have your team fulfill accounting activities and state and federal requirements is a risk you shouldn’t have to take.
Outsourced accounting services let your team focus on constant development cycles and evolving scaling issues. Outsourced accounting ensures the key roles within yout operation stay focused on their particular roles.
Schedule Your Free Consultation Today
As an SaaS provider, you need to concern yourself with the constant development cycle and how that affects your bottom line. You don’t need to add complex accounting procedures, financial analysis, and compliance standards to the mix.