SaaS businesses have been on the rise in the past decades, making things easier for customers and businesses alike. While customers enjoy subscription-based services at their demand for an affordable fee, businesses make monthly and yearly incomes by delivering these services.
Despite the profitability, SaaS businesses aren’t very easy to run, especially when it comes to investments, metrics, and business models. It is often most beneficial to hand over these areas to SaaS accountants who are skilled at handling them.
Table of Contents
Why do SaaS Startups need SaaS Accountants?
Due to the nature of SaaS business operations, they often need expert handling to ensure smooth running and productivity. For instance, handling a subscription-based business means that the seller will often need to invest funds in advance to ensure that the product or service is continuously available before the customer can subscribe to it.
When it comes to subscription-based services, you need to properly track cost and revenue to break even, and an experienced SaaS accountant can do this for you to avoid running at a loss.
SaaS Accountants will handle your Tax Planning
Proper tax planning can help startups save money and avoid issues that many SaaS businesses face, such as the need to restructure their business entity, how to navigate tax deductions or credits, as well as how to handle team stock options.
An experienced accountant will handle your taxes and help you save money even as you fulfill your tax requirements.
SaaS Accountants can handle Investors
Due to the capital-intensive nature of SaaS businesses, you’ll often need people to invest in your business to keep the product or service going.
SaaS accountants can help you secure external investments by presenting your business to investors in a positive light so that they can see potential and invest in it. An experienced SaaS accountant will tailor your business’s finances so that investors will be interested in it.
SaaS Accountants Can Scale with Your Startup
You need a new system as your business grows because what worked with a few customers won’t work with a large number of customers and services. An experienced SaaS accountant will help you build a system that will scale up your entire business process including accounting, customer, and employee management systems.
SaaS Accountants Will keep track of the Metrics
For a successful SaaS business, you’ll need to constantly track several metrics, which you might not be aware of, but an experienced accountant is familiar with. They include:
- Monitoring Returns on Ad spending to distinguish between profitable and unprofitable ad spending.
- Tracking the average support ticket time to ensure customer issues are solved quickly.
- Measures how efficient your lead interactions are, as well as marketing and sales efforts.
- Keeps up with cash flow to understand how well the business is doing.
- Being abreast of runway, which entails how long it would take before your business runs out of cash.
An experienced SaaS accountant will not only track these indicators but ensure that they are improved to ensure improved value and profit for your business.
