The Best Ways to Track and Grow Your SaaS Enterprise
SaaS companies have a lot of moving parts to keep track of. You must be growing, you must be getting new customers, and you must be making sure the ones you have are happy. A good accounting solution can help tie some of those pieces together.
SaaS companies are on the rise and growing at a rapid pace. The SaaS (Software as a Service) industry is expected to grow from $52B in 2016 to $174B by 2022. While this industry is booming, how much are SaaS companies tracking how well they’re doing? What metrics do they need to grow the business? Are they recognizing revenue with QuickBooks® Online to scale accurately and effectively?
It’s time for SaaS companies to get serious and track their sales and revenue inside QuickBooks Online (QBO)—and even better to have a QBO expert to manage that for you so you can scale faster and more effectively.
Here are 3 key things you should do:
- Understand your Sales Tax Obligations– that’s great if you’re already using QuickBooks Online but there are sales tax ramifications that need to be factored into your accounting.
- Track Revenue to Grow Your Business– if you’re getting paid in advance, how do you want to spread out the revenue? It’s important to understand the Two Big Metrics- ARR (Annual Recurring Revenue) and MRR (Monthly Recurring Revenue) to effectively grow your business.
- Use a Cloud-Based Accounting and Bookkeeping Solution– your SaaS company is already a cloud-based business, so it makes sense to streamline your accounting and bookkeeping services to the cloud too. It’s vital to have Revenue Recognition Tracking in QuickBooks Online to monitor revenue recognition in real time by scanning bank deposits into QuickBooks Online, track monthly revenue recognition metrics to make sure there are no errors in tracking your bank deposits and reconciliation of bank accounts daily to make sure all transactions are posted correctly in QuickBooks Online.
SaaS companies are on the move. We know how SaaS companies operate, and we can make sure yours is moving in the right direction. By working with One 8 Solutions, we will guide you with a “tech stack” to support your business. We start with a revenue management solution for revenue generation and important metrics. Then we implement a direct tie to your QuickBooks Online with a focus on upcoming accounting and cash flow forecasting.
One 8 Solutions has your business covered from start to finish. Click here to schedule a 15-minute Zoom phone consultation at no cost to you.