CAC, LTV, MRR, CHURN RATE - WE SPEAK YOUR LANGUAGE

SAAS

Over the last 9 years, we’ve identified several key revenue drivers that help SAAS firms scale quickly.

ACCOUNTING, AND CFO SOLUTIONS FOR YOUR SAAS BUSINESS.

Whether you’re in the startup stage, maturity stage, or somewhere in between - our experts know which KPIs to watch and which numbers to drive.

PLAN FOR THE FUTURE

Ready to scale to the next level?

Our virtual CFOs can get you there faster with strategic planning, and financial health assessments. Find and plug your bottlenecks, reduce operating costs, get paid faster, defend against financial risks, and so much more.

MANAGE FUNDING

Received seed funding, Series A, or angel investment recently?

Our Controllers can help you make the most of your funds, reduce costs and streamline operations - all while keeping investors happy with up to date reports and regular projections.

RELIABLE REPORTING

How profitable are you really, and how much money can you actually expect at the end of the year?

SEAMLESS AUTOMATION

Running a business isn’t easy. Don’t let admin and reporting bog you down.

Our toolbox of SaaS services automates all the boring tasks - bills, invoices, payroll, accounting, and more. So you stay compliant, get paid faster, and control spending with less effort.

Need to figure out CAC or LTV?
Need to model out the next 24 months?
Or just need some financial statements to get your taxes done?

Specialisation

Discover how we help SaaS companies improve their cash position every month using our proprietary Matrix System

WHAT DO YOU NEED HELP WITH?
  • SaaS Specialised Accounting
  • SaaS Cashflow System
  • SaaS KPI Dashboard
  • SaaS Client Retention

Our certifications

Frequently Asked Questions

WHY DOES GOOD ACCOUNTING MATTER FOR SAAS COMPANIES?

SaaS has been one of the hottest business models for the past decade, if not more. But accounting for SaaS is anything but simple.

From revenue recognition to understanding R&D vs customer service costs, SaaS business founders rely on tons of metrics to run their business. And VCs look for specialized SaaS ratios and calculations, like LTV to CAC, magic numbers and more.

Here are some of the reasons an high-growth SaaS business needs great accounting:

  • Small changes in churn, ARPU or other user metrics can drive massive swings in cash flow
  • Executives make better decisions when they use credible data
  • Understanding and projecting working capital, especially as it relates to deferred revenue, can help a company reduce its need on outside venture capital - if managed well
  • Revenue recognition is always a pain, but is also critically important - especially when selling the business to a large player or when raising millions of venture capital financing.

WHEN DOES A SAAS COMPANY NEED TO START WORRYING ABOUT DOING BOOKKEEPING?

If you haven’t been keeping track of your books by the time you raise your first outside money, you need to get your books in order.

We generally recommend that businesses move away from spreadsheets and into an accounting software as soon as possible.

  • Day one you start the company and start a bank account.
  • Connect that bank account to Xero.
  • Start getting the bank feed going into Xero and actually characterize the transactions inside of Xero.

B2B SAAS VS B2C SAAS

SaaS companies can serve enterprises, consumers or anything in between. The size and type of contractual relationship with a client makes enterprise focused Software as a Service companies completely different from consumer apps sold on a recurring revenue stream through an app store. While the LTV to CAC relationship and other metrics matter for both, enterprise-focused companies have to deal with other metrics like book to bill. And consumer focused businesses should be monitoring churn cohorts and other user data very closely.

The good news is that our team is familiar with all flavors of Software as Service business models, and we can support your financials and metrics whether you sell to business clients or to consumers.

5 THINGS THAT MAKE SAAS ACCOUNTING DIFFICULT

  • Revenue recognition
  • Understanding gross profit - parsing server and R&D costs between serving customers and R&D, correctly positioning customer service, etc.
  • Customer refunds or upsells
  • Deferred revenue
  • LTV to CAC and other SaaS-specific metrics

WHAT TO LOOK FOR IN A GOOD SAAS ACCOUNTANT

Getting the books right for a SaaS business is surprisingly challenging. Because of the way revenue transactions recur in a subscription business, small errors can become big problems if not caught early - including having to restate the balance sheet and income statement.

At Samios Partners, we combine automated software with experienced controllers and CFOs. We can work with both enterprise and SMB/consumer focused companies with recurring revenue streams. The best SaaS accountants understand the complications of revenue recognition, expense recognition, enterprise vs consumer software as a service billing systems and more. Plus, accountants specialized in the recurring business model have the ability to help founders think through the cash implications of different billing and pricing plans.