SaaS Finance and Accounting Dept Best Practices

/ August 25, 2020/ Accounting

Ever wondered how your Finance and Accounting Department compares to other SaaS businesses of similar size? Below is a “back-of-the-napkin” summary of SaaS Finance and Accounting best practices. It was inspired by the SaaS Funding Napkin from Christoph Janz.

Note re: Size: The table below assumes average contract value (ACV) is < $50k. When ACV is > $50-100k, the transaction volume is lower and requires less finance & accounting staff effort. This difference is apparent when working with clients with ACV ranging from $10k to $500k.

Christoph also has an article to help you determine when to hire a CFO.

“QBO” = QuickBooks Online

“ERP” = Enterprise Resource Planning Software

“SMS” = Subscription Management Software

“CTM” = Cap Table Management Software

“M” = “Million”

SaaS Finance & Accounting Department — Best Practices
 ARR $0.1 M $1 M $5 M $10 M
Staffing Founder or
Office Manager
Bookkeeper &
Contract CFO
Controller &
Contract CFO
Controller &
CFO
Taxes CPA CPA CPA CPA
Accounting System  QBO QBO QBO QBO or ERP
Revenue Recognition  Excel  Excel or SMS SMS SMS
Cash Forecast Model Yes Yes Yes Yes
SaaS Metrics Excel Excel or SMS  SMS SMS
Subscription
Management
Excel Excel or SMS SMS SMS
Cap Table Management Excel CTM CTM CTM
Business Partner
with Founder*
Contract CFO Contract CFO CFO

*Especially for fund raising due diligence.

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