How Healthy Is Your SaaS Business? These 6 Metrics Will Help You Figure That Out
As a Sage Intacct certified accounting and implementation firm, Lavoie CPA is excited to share the latest findings for SaaS businesses to become successful in 2021.
From startups to organizations ready to scale each one of these indicators is an invaluable piece of information to evaluate your company’s overall health — not to mention prep you for that looming board meeting in the near future.
In this infographic we will dive into why each of these metrics is the difference between getting your next round of funding, scaling year over year, or hitting the wall.
Get the infographic and learn why you should care, how to calculate, and an interesting fact about the following KPIs:
As the election season draws closer and the concerns of small businesses continue to grow in the wake of the pandemic, SMB’s are joining forces to make sure their voices are heard in congress. According to a Goldman Sachs survey released on September 8, 88% of small business owners have exhausted their PPP loan funding; with 43% of Black small business owners depleting their cash reserves by the end of the year.
To help amplify US small business needs, Goldman Sachs is using its 10,000 Small Businesses (10KSB) Initiative to serve as a policy platform and community resource center. However, prior to the COVID-19 crisis, the 10KSB alumni collectively represented $12 billion in revenues and employed 175,000 people. More notably, 44% of these businesses are family-owned and 66% are minority and women-owned businesses.
“The 10,000 Small Businesses Voices initiative is designed to help small business owners in the United States advocate for policy changes that will help their businesses, their employees, and their communities,” according to Goldmansachs.com. “We provide the 10,000 Small Businesses Voices community with the tools, resources, and training needed to make their voices heard and drive tangible impact against real issues.”
Among the many tools to assist small businesses, the program includes surveys, open letters to congress, and ongoing virtual events to help guide owners through ongoing challenges and the most recent policy changes.
One of these events was the Virtual Capitol Hill Day held on June 9th -11th. Over three days, 2,100 small business owners connected with Members of Congress through 434 online meetings across all 50 states, Washington D.C. and Puerto Rico. Lavoie CEO, Sharai Lavoie, was named a NC Hill Week Captain and lead discussions with congressional leaders and small businesses across the state.
Lavoie led three discussions one of which was with Congresswoman Alma Adams, representing North Carolina’s 12th District. Discussion topics included:
Increased Paycheck Protection Program (PPP) flexibility
Allowing small businesses to apply for the second round of PPP funding
Strengthening financial safeguards for small businesses by providing a temporary liability shield for litigation related to COVID-19
“I was thrilled to participate in this initiative,” says Lavoie CEO, Sharai Lavoie. “It’s programs like these that will give SMBs a fighting chance and help promote policies that positively impact the everyday American business owner.”
To learn more about the 10,000 Small Business Voice initiative, check out the website to access resources or participate in the many surveys to inform congress of US business owners’ ongoing needs.
Charlotte Business Leader Sharai Lavoie joins Jerrold Kinney, De’Marcus Miller, and DeAndrae Watson for a discussion on race and the role the sports industry can play in creating positive change within the business community. This captivating conversation explores systemic racism and the vital dialogue that should exist between equality advocates and business leaders.
Watch the full video below, and check out a few of the highlights!
Simply put, we as a society are at the crossroads of cultural advancement and organizational ineptitude. The topic of systemic racism, workplace inequality, and homogenous decision-making can no longer be ignored. However, the definition of the “talk” changes from colleague to colleague as do the continuous actions that need to follow.
Over the years, sports professionals have championed those difficult conversations (“talks”) and been at the nexus of sustainable change and political progress. And now, with unparalleled access to recorded footage of police brutality and the confluence of back-to-back violence on black men and women, professionals and companies have an obligation to drive national momentum and activate the diversity conversation.
Here are some very real tips on how to move the equality needle from our Race Talks in Sports panelists:
Are you an athlete or a professional in the sports industry? Here’s how you can influence or participate in sustainable change:
Continue to be active in your communities… every day
Have your beliefs front and center… literally wear them where the cameras will see
Always participate in the conversation… no matter where you are
Get over your anxiety and fears surrounding communication… no matter what environment you’re in, someone can learn from your experiences
Bring your full, authentic self to the workplace… the court, the field, or the office
A company’s commitment to diversity
How to do more than just check the box
Unfortunately, most organizations check the diversity and inclusion box by creating an internal group, announcing it on social media, and that’s it. Committing to diversity means providing your employees the opportunity to be mentored and propelled into their desired industry or professional stature. Companies need to rethink how they can use these diversity and inclusion groups to present goals to leadership, and, over time, show what has actually been accomplished. This allows for true accountability and a way to track how quickly programs are progressing and identify ways to continuously improve.
Start improving your diversity and inclusion initiative by focusing on these 5 areas:
Evaluate Your Organization & Find The Right Skills That Can Lead Change
Build A Community With Accessible Communication Channels & Resources
Educate Everyone In The Company From Leadership to Interns
Create Transparent Goals That Can Be Shared & Tracked
Drive Accountability That Can Be Analyzed On A Consistent Basis
Emmanuel Acho sits down to have an “uncomfortable conversation” with white America in order to educate and inform on racism, system racism, social injustice, rioting & the hurt African Americans are feeling today.
Are you a startup and are considering hiring accounting and finance personal?
Having the right finance and accounting policy, procedures and technology in place could be critical to your success. Lots of startups outsource many of the tasks not related to your company’s core competency, including accounting & finance. Should you invest the money in hiring FTEs and purchase software or use an outsourced firm? Let’s look at four ways hiring an outsourced firm can help your startup business.
Select the right accounting package.
Too many startup businesses purchase off the shelf accounting packages that do not provide proper visibility into their business. As a result, they either spend a lot of time with Excel spreadsheets to try and gain necessary information or they simply neglect items that inhibit growth and put the business at risk.
With the proper technology you have visibility into your business from anywhere, enabling you to spevd more time on the business instead of in the business.
Help with investment capital.
Whether you’re applying for a business loan or seeking outside funding from angel investors or venture capital firms, accurate and up-to-date financials are essential.
Professional services firms will provide you with the up-to-date financial statements, along with explanations of the data in those financial statements, which can help your company standout amidst all those other businesses.
Be audit, partner and/or investor ready from day one.
CFO guidance including advice, counsel and insight — providing you with financial statements, budgets, forecasts and dashboards to monitor all your financial data. It’s one thing to have all the financial data you need to run your business. But the real benefit is to have someone to explain exactly what the financial statements mean, and help you to make the decisions that will steer your company toward growth.
4 . Scale with your company.
With outsourced services your variable cost become a scalable fixed cost. Why add non-revenue generating cost when you can gain resources, technology, quality and support all tailored to your needs? When your company grows the outsourced services company grows with you.
Lavoie CPA provides accounting & finance, technology and human resources support all as a service.
Small and medium-sized businesses (SMBs) are often driven by a passion or cause – not spending hours on accounting and financial management.
SMBs face many financial challenges that affect cash flow including hiring new employees, increasing profits, employee healthcare, growing revenue and properly managing expenses.
Fortunately, technology has changed the game for SMBs. In the last decade, new technologies have enabled SMBs to compete with large enterprises.
Technology is only part of the equation. Accounting as a Service (AaaS) is a hybrid solution that combines services with software; thus, the client can enjoy the benefits of professional expertise and leading cloud technology. This lays a great foundation, allowing companies to focus on revenue generating activities. They are able to focus on future growth instead of being stuck analyzing the past.
10 Benefits of Accounting as a Service
Real-time visibility to your business performance via dashboards
Reduce financial risk
Be audit ready at all times
Improved process flow and automation
Eliminate staff turnover
Reduced IT headaches (upgrades and maintenance)
Integration with your other applications to eliminate information silos
Entrepreneurs have to cope with many unique factors that come along with running a startup firm, and many are directly related to financial management, accounting and reporting. Failing to get these matters right can lead to significant challenges such as compliance and budget. Thus, having a solid accounting strategy is key.
Fortunately, there are ample remedies available that are specifically targeted at helping entrepreneurs tackle these challenges. Many solutions come in the form of affordable cloud-based software solutions that are administered by an outsourcing firm. In order to discuss the benefits of cloud-based accounting and reporting and outsourcing, it is important to first identify the pain points and challenges that startups face.
Startups rarely have a strong foundation of accounting practices in place. Typically, they start from scratch. Building an accounting strategy from the ground up is challenging for financial professionals, much less for individuals with no financial training. Creating an accounting strategy without understanding what is required can seriously hinder growth of your business. Outsourcing your accounting work to a firm that utilizes a cloud-based accounting and financial management software, gives you real time access to all the information you need to react proactively to your changing business environment. Outsourcing the financial piece of your business to experts will allow you to focus on developing your product and getting it to market.
Related: Accounting Solutions for Early Stage Companies
Tight Cash Flow
New businesses tend to have a minimal safety net of funds to fall back upon if they experience an unexpected cash shortfall. If accounting experts are running your books and analyzing your financial performance with cloud-based solutions, you can be assured that you will have the information you need about your companies financial situation. Thus, you will then be ready to raise capital or obtain a line of credit to cover the shortfall or even avoid experiencing a shortfall at all. For startups, adhering to a budget and managing cash are critical to your success
New to Compliance
The financial and accounting regulatory compliance statutes for startup companies can be extremely complex and difficult to meet. Entrepreneurs are often new to the matters involved, putting them at a disadvantage when trying to maintain compliance. Your outsourced accounting firm has the resources and experience to ensure that your company is in compliance so you can focus on what you do best.
No Accounting Department
Startups often begin with a small team of individuals who are passionate about a product or service, but who may not have experience running the financial side of things. But far too often, the founders end up shouldering these responsibilities anyhow, because they cannot afford to staff a financial team. By outsourcing your accounting and financial management needs to the experts, you mitigate errors and inefficiencies involved with doing it yourself, at a fraction of the cost of an in- house accounting team. Services are scalable, so you utilize only what you need to get the job done.
Starting a new business is exhilarating and terrifying at the same time. Consider utilizing cloud-based accounting and financial solutions managed by experts so you and your team can spend all your time building something wonderful – your own business!