In part one of this series, we looked at the "before" of SaaS accounting, when SaaS organizations are bound up with manual processes and Excel sheets. Here, we'll move on to look at the "after," or how cloud financial software can solve their most common problems through automation and cost savings.
After: Cloud ERP software automates, streamlines essential SaaS financial processes
Snapsheet in particular was seeking "a robust cloud-based solution" that could be integrated into the company's own proprietary platform, according to Snapsheet controller Doug Polignano. This search for integration is common for many SaaS firms as they grow. As we noted, easy compatibility with Salesforce CRM is particularly important for handling subscriptions. But beyond that, quote to cash and revenue recognition need to be seamless across a range of possible applications.
"SaaS companies need an accounting system that scales to their needs."
Making the move to a new accounting system is not something that businesses want to do on a regular basis since it is, at the bare minimum, a big change, and one that can take some getting used to. But a SaaS growth trajectory makes it almost imperative to find something that can scale to your needs. That is what Snapsheet got when it switched to Intacct.
Automation that works
Where would pizza joints be without today's large ovens? They would not be able to cook as many pizzas at once, which would impair their abilities to scale their delivery operations. Modern accounting platforms like Intacct unlock similar benefits by allowing SaaS firms to take on many tasks (e.g., revenue recognition for multiple entities) simultaneously. Moreover, they get the confidence that these processes will be handled without manual error through automation:
- Revenue recognition can be automated, reducing the risks of delayed closes and restatements, not to mention costly errors when tweaking Excel formulas.
- Invoicing can be simplified as part of accounts receivable. For Snapsheet, this meant automatically checking claims against rules and converting them into invoices.
- No matter how complex a new customer's billing requirements are, flexible billing tables streamline the onboarding process so that subscriber growth can continue.
- These capabilities save time and money, freeing up staff to take on other projects.
"I've been able to shift more of my daily responsibilities to our senior accountant and spend more of my time focused on strategic tasks," stated Polignano. "We have found the software to be very intuitive especially as compared to the steep learning curves I've seen for older systems like Microsoft Dynamics."
Cloud financial software simplifies and automates accounting processes for SaaS companies.
Integrations for better subscription management
For SaaS providers, native connectivity to Salesforce in addition to subscription billing applications (built on the Salesforce1 platform) give cloud ERP software the edge over spreadsheets and QuickBooks. Linking sales to financials provides a holistic view of each customer, which ultimately makes the subscription lifecycle much more straightforward to manage.
"Native connectivity to Salesforce gives cloud ERP the edge."
Billing can be generated automatically, while the accounting system is immediately updated to reflect the changes. Churn, always a risk with any subscription-based service, is easier than ever to address through the instant triggering of renewal orders. So you do not have to waste time drawing up new contracts and potentially losing some of your customers in the process.
Point-and-click simplicity
Getting different applications to interact with each other is often a hassle, requiring complex workarounds or problematic alternatives that require a lot of overhead. The beauty of cloud accounting software, though, is the ability to set up an integration with a program such as Salesforce with a simple mouse click.
Expensive custom consulting, IT support and third-party integrations are not needed. Instead, you get plenty of flexibility in how your cloud software works with the rest of your accounting system. It is similar to the creative freedom you get with pizza, i.e., the right amount of options for ingredients to create the perfect pizza for you.
Accounting software built for the high-growth future of SaaS
Congratulations! Your SaaS company is in a rapidly growing sector. But with this growth comes the need for a stable, scalable accounting system that your employees can access from any device they prefer. Cloud software like Intacct is optimal because it provides the automation, Salesforce integration and intuitive design that accelerate your growth further and faster than the spreadsheet/QuickBooks status quo. In fact, nine out of 10 Intacct customers who previously used other ERP systems wished they had switched sooner – it is too costly not to switch sooner than later.
