This was a FinTech application company that we partnered with as a SaaS consultant.
The problems that we had at the before stage were the CEO was spending 40% of their time getting the numbers. You can imagine how aggravating that is when you’re not spending time and attention on sales and development.
Your finance and stakeholder system is like your company's reef. It’s important to make sure that your ecosystem is healthy and that everything in it fits together and is in harmony. This allows you to concentrate on the tasks that are important to your business. So what does a healthy finance and stakeholder ecosystem consist of?
Hiring a Michigan SaaS Financial Consultant can ensure your finance and stakeholder ecosystem is set up for success at the early stage of your business. Here's what problems can occur when you don't set up your F&S Ecosystem correctly from the start.
One piece of the financial core triad is your SaaS metrics.
Every business is different, and everybody has their favorite metrics that they want to focus on at different times. But some metrics make more sense based on the level of maturity of your business.
SaaS Fractional CFO, Anthony Nitsos and Clayton Whitfield from SaaS Optics discuss the importance of a F&S Ecosystem. If your finance and stakeholder ecosystem is a mess you might get away with it for a few years, but sooner or later it's going to be the thing that's holding the business back.
SaaS accounting, metrics and forecasting are the parts of the Finance and Stakeholder Ecosystem that we call the financial core. This triad of the accounting, budgeting and SaaS metrics needs to be set up as a synergy so that they talk to each other.
If you have an accounting system set up by a tax CPA, you need to show them this and say, "I want my accounting system to produce this kind of a report." This format is not just something that we made up. This statement is straight out of Pacific Crest, Key Bank Research and is what the industry is expecting.
This Finance and Stakeholder Ecosystem includes pretty much everything in your back office plus many key parts that feed into it. Without the help of a CFO, this Finance and Stakeholder Ecosystem usually ends up being quite chaotic and we bring that ecosystem to clarity for SaaS businesses in Michigan and throughout the U.S.