Do you want up-to-date and reliable financial data to support your decision-making? The more reliable the picture of the company’s management, the more valuable the company is. To support this structure and approach, you can hire an outsourced CFO, part-time. Our service includes having our CFO consultant involved in updating business forecasts in collaboration with management (and the board) and making financial management visible throughout the organization.
Financial reporting for a B2B SaaS (Business-to-Business Software as a Service) company is particularly important for stakeholders (such as investors and lenders), the board, and company management, and it also increases the significance of each employee’s work. Key metrics and financial data provide insight into the company’s performance and financial situation.
Here are some of the most important factors and metrics typically examined in financial reporting for B2B SaaS companies:
- MRR (Monthly Recurring Revenue): This is a crucial metric for SaaS companies. Monthly recurring revenue reflects the company’s steady and predictable income on a monthly basis. MRR does not include one-time discounts but accounts for continuous, price-reducing benefits granted to customers.
- ARR (Annual Recurring Revenue): Yearly recurring revenue (12*MRR).
- Churn Rate: Another crucial metric in SaaS company financial reporting. It measures customer loss. A low churn rate indicates that customers remain subscribed to the service, while a high churn rate may indicate issues with the service.
- CAC (Customer Acquisition Cost): The cost of acquiring a customer reflects how much the company needs to invest on average to acquire one new customer. This is still a very relevant metric in SaaS metrics.
- LTV (Lifetime Value): The value of a customer over their entire relationship with the company. This figure represents the revenue the company expects to earn from the customer over the entire customer relationship.
- LTV:CAC Ratio: This ratio indicates how many times the customer’s lifetime value exceeds the customer acquisition cost. Generally, a higher ratio indicates a healthier company.
- Net Promoter Score (NPS): Measures customer satisfaction and likelihood to recommend.
- Cash Flow: Especially free cash flow is important as it indicates how much money the company generates after its operations.
- Cost Structure: A detailed review of the company’s expenses helps understand where the money goes and identifies potential areas for cost-saving.
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Measures the company’s operational profitability before interest, taxes, and non-cash expenses.
We assist in modeling the most suitable way to track the income statement, balance sheet, and cash flow for your company, as well as establishing the most essential metrics and customer and contract data tables with forecasts in SaaS reporting. Additionally, certain metrics and analyses may be relevant for specific B2B SaaS companies depending on their industry, size, or growth strategy.
The outsourced CFO consultant provided by Finaly helps understand which metrics are most essential for your company and its stakeholders. If you’d like to discuss financial reporting and metrics for your B2B SaaS company, feel free to schedule a free consultation with Anne or call directly at +358 (0)45 7834 1580.
