Presented by Sage Intaact

Automation is essential to understanding the monetary place of a SaaS firm. It quickens quote-to-cash and shut cycles, frees up money, improves forecasting, and extra. Learn extra about harnessing the ability of automation for forecasting on this VB Live occasion.

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Once the ultimate product-market match is finished and dusted, how can a brand new SaaS firm chart its subsequent steps? It requires at all times understanding your money and monetary place in real-time, says David Appel, head of software program and SaaS at Sage Intacct. That calls for a single view of your entire buyer life cycle and contract life cycle.

The drawback? The shifting elements transfer rapidly. The knowledge streaming between gross sales and billing processes is dense and complicated. When an organization is on the lookout for agility amidst change, it could discover that Excel spreadsheets or QuickBooks can’t present the fitting info when it’s wanted. That’s when it’s crucial to automate.

How automation helps Saas firms manage uncertainty (VB Live)

“Automating the sales process and billing process empowers companies to forecast further into the future, and more rapidly respond to competitive threats,” Apple says. “When your top competitor makes a move, instead of guessing what to do, you can show your CEO and board your cash and financial positions. Then the team can respond strategically — making acquisitions, reallocating resources, or investing in customer success. It’s a matter of proving not just your financial value, but the value of your business model too.”

Automation has quite a lot of concrete advantages proper out of the gate, based on Appeal.

“Companies can get new billing models out in days instead of weeks, cut the time it takes to process a new order invoice down by up to 99 percent,” he explains. “We see them cut days-sales-outstanding (DSO) by half a month to a whole month, which creates a month of operating cash flow. By understanding an entire customer contractual obligation, it’s possible to double the customer lifetime value over time.”

All these new efficiencies assist make the client subscription forecast for the contract time period — income, money, and billings — a lot clearer. A transparent buyer forecast provides higher confidence within the fundamentals, which is the muse of your corporation mannequin once you’re navigating sooner or later at a time.

Appel says the brink for automation differs for each firm. It might be at 200 invoices, 2,000 income schedules, needing to consolidate two or extra entities, going worldwide, making an acquisition, second and third subscription contract modifications, and plenty of others. But the tipping level will at all times change into clear, in a short time. That’s when it’s most necessary to be agile, leap into automation, and ensure the corporate can align and management its selections.

What does that appear like in actual life? Trying to prove-out the income mannequin requires environment friendly quoting and billing instruments. Developing a two-to three-year monetary mannequin means attempting to grasp the income, money, and billing expectations over the client subscription lifetime. Establishing promising preliminary unit economics requires SaaS and subscription metrics in a dashboard, and automating quote-to-cash, billing, and expense administration within the monetary reporting.

In the top, Appel says, all it is a mixture of individuals, course of, and know-how. The tech stack can solely automate a properly thought-out course of. Hierarchies have to be abolished. Because it’s the client lifecycle that’s monetized, not one particular person order, there’s a lot extra interdependence throughout departments.

“Sales has to work with sales ops, revenue ops has to work with finance, and everyone has to work with customer success,” he says. “Everybody concerned wants to consider all of this from a single perspective – the client journey.

Ask your self: “How do I sense and reply to what my clients worth?

Then ask your self: “How do I drive data-based decision-making throughout the group?

Knowing the solutions to those questions will allow you to ship one of the best worth in unsure occasions.

Registration is free here.

Key takeaways:

  • Seven errors to keep away from when constructing an agile B2B subscription billing mannequin
  • Five steps required to align the group in your subscription monetary processes
  • Three suggestions for selecting the know-how stack that can assist you to develop


  • Mike Etheridge, VP Finance, Arena Solutions
  • David Appel, Head, Software and SaaS Vertical, Sage Intacct
  • Stewart Rogers, Analyst At Large, VentureBeat