Saas & Software Firms

Financial forecasting is key to future growth

Reporting on past performance is not enough. SaaS firms need clarity on what lies ahead in order to ensure that they have enough of a runway to build their business. That’s why we specialize in financial forecasting to help them determine how to spend their capital, pinpoint when they need to raise their next round, and understand how much their current pipeline will generate. We look as far as five years into the future, which is a significant help to mapping out the future performance and strategic goals of our client companies.

We consider our forecasting abilities to be our key value-add to our clients, because efficient capital management is critical to helping preserve founder’s equity in the business. Our proprietary modeling tool has been successfully used in many client firms to reliably project their financial performance and help shape the future of their businesses.

Laurentian has the experience to set up and professionally manage these financial and operating needs. We work according to our clients’ schedules and needs – whether it’s several days a week or even just a few times a month – in order to get the job done.

How’s your firm’s financial management?

SaaS firms must skillfully handle the subscription billing and revenue management process in order to effectively manage cash and optimize the value of the firm. Unlike most industries, where traditional financial statements such as the income statement and balance sheet do a sufficient job of reporting performance, SaaS firms need additional reporting metrics in order to manage the business.

As we stated in our blog post, “Entrepreneurial Accounting: The Five Essential Accounting Metrics for SaaS Companies,” financial statements prepared according to generally accepted accounting principles (GAAP) do not provide sufficient insight into a SaaS company’s financial health, and deeper insights can be gained by more industry specific SaaS metrics such as Monthly Recurring Revenue (MRR), Customer Acquisition Cost (CAC) and Churn Rate.

Two decades of helping software firms succeed

At Laurentian, we have nearly 20 years of experience with software firms – and in recent years, with software as a service (SaaS) firms. Over that time, we have seen the transformation of the software industry into a major part of the nation’s and the world’s economies. And whether it’s dealing with issues related to cash flow, fundraising or complex revenue recognition rules, we’ve seen more than our share of challenges over the years to the executives running these software and SaaS companies.