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.
Founders create businesses because they have a passion or expertise in providing particular goods or services to market and often get caught up on focusing on items outside of their expertise. Being a startup means there’s always more work to do, and not enough time to do it. It is easy to get caught in numerous non-value add tasks that take anyway from working on the business. That’s why most success startups outsource certain tasks to companies or individuals who specialize in providing valuable time-saving services for a fee.
With all the advancements in technology, it’s easier and more convenient than ever to outsource. Here are five things you should consider outsourcing to experts.
1. Accounting & Finance
Most entrepreneurs are not Accountants. However, understanding cash flows or analyzing profitability of a business is vital to its success. Too often startups neglect building an accounting process until profits go downhill or cash slowly drains away. Setting up an accounting process for your startup is critical to the long-term success. An accounting process is also important because it allows your business to look forward. Startups or small businesses that that don’t have an accounting process in place find themselves trapped by past actions or constantly worried about having enough money to pay bills.
In addition to accounting process, setting up an accounting system is important for your startup as it will allow you to see how your business is doing and allow you to make decisions to strategically position your business for growth.
Look for a firm that does more than just bookkeeping. Partnering with someone that goes beyond debits and credits and gives advice on such things as cashflow will help set you up for success. Technology is vital to help provide necessary insights.
2. Graphic Design and Web Development.
Coming up with a brand-defining logo, an attractive website, and print materials can be extremely time consuming and difficult to get right. Using a professional graphic designer will help your business look its best. They understand a lot of things that you may overlook. Whatever your goals, there’s a graphic designer with the talent, aesthetic sensibilities, and visual skills to fulfill your vision and enhance your company brand.
Look for a graphic designer that offers web development to help streamline the process and provide a unified message.
3. Web Research.
Prospecting for new business and keeping up with the latest developments in your industry can be time consuming and daunting. A web researcher can research information you, whether it’s gathering information and statistics for an upcoming presentation or looking up the names of companies and contacts for a leads list. They can also organize this material in a form that’s easy to use and read.
4. Administrative Assistance.
If half your day is spent sifting through your overflowing email inbox, returning call and making travel arrangement, a virtual administrative assistant (VA) may be just what you need to streamline that frustrating process and keep you from being inundated by a constant stream of on administrative tasks that keep you from more value-added items.
Before you waste your time on something that is not in your expertise, consider outsourcing. This will make your to-do list shorter and free you up to focus on the things you’re best at and that generate the most income for your business.
Lavoie has had numerous conversations over the years with companies of all sizes regarding outsourcing or what we refer to as AaaS (Accounting as a Service). AaaS is a form of outsourcing that combines people, process and technology to help companies gain a strategic advantage. Some companies think they are too big to outsource any function. Others think they aren’t big enough. So, what is the right answer? They are both wrong!
FAO (finance and accounting outsourcing) started nearly 20 years with BP outsourcing its accounting functions to Accenture. FAO has traditionally been a horizontal offering with a value proposition driven by cost reduction and efficiency gains targeted at large organizations. So clearly the argument of an organization being too big has its flaws.
Smaller companies have been outsourcing payroll for years so they are already participating in a form of FAO outsourcing. The next concern we hear from clients is that they will outgrow services. This is certainly a possibility if you select the wrong partner that does not have the technology or staff to grow with you. For example, if a company is only providing bookkeeping services, it is certainly likely you would outgrow them. However, if a strategic partner is selected they will be able to grow with you and help you scale faster.
Large organizations are most often driven to outsourcing for cost reduction. However, as market requirements intensify, FAO solutions are increasingly becoming more industry-specific to provide strategic advantages and not strictly cost reduction. In smaller companies outsourcing can also reduce costs, but more importantly it enables them access to a full finance and accounting team that leverages economies of scale. Most SMBs can’t afford to hire an entire F&A department. So, what often happens is the company may only have a senior level person and they are stuck doing daily tactical activities or they may only have a junior level person and they are responsible for critical items such as cashflow analysis. Both have obvious weaknesses that prevent a company from reaching its potential.
AaaS solves this dilemma for SMBs. Companies don’t have to worry about daily tactical items that keep them from focusing on the company. In addition, they are provided with senior level advisory. To further maximize efficiencies, Lavoie services also include access to the leading cloud technologies. By combines people, process and technology we know AaaS can benefit companies of all sizes. email@example.com
Most companies that are thriving view accounting as a strategic function. Companies relying on bookkeeping have a hard time keeping up in today’s changing climate. Bookkeeping by itself does not provide opportunities. In a fiercely competitive work environment, companies that properly manage finance can grow and protect themselves from risk.
The opportunities are exciting for the future but it also comes with lots of challenges. Too many companies are stuck looking into the past because of lack of expertise and or technology. It is important to understand the past, but essential to have the knowledge and tools to be able to see in real-time and make educated predictions into the future. As companies grow, hiring and retaining qualified employees can be a difficult task with lots of uncertainty.
A growing number are relying on Accounting as a Service (AaaS) to gain a competitive advantage. AaaS combines tactical and strategic accounting and includes leading software.
Top 3 benefits of Accounting as a Service:
Focus on Core
Concentrate on growing the business
Eliminate staff turnover complexities
Ability to scale as you grow
Qualified controlled/CFO leading accounting and finance department
Improve cash flow
Reduce financial risk
Audit ready at all times
Real-time visibility into your business performance
Reduced IT headaches
Integration with other applications to eliminate information silos
Forward thinking companies put themselves a head of the curve. Interested in learning more about Accounting as a Service? Contact us.