In episode #176, I address the structure of your SaaS P&L. This is my top requested coaching session from founders and finance teams. You must get this right. - Your chart of accounts - Your revenue section - Your COGS section - Your OpEx section - Department coding - Rev rec SaaS P&L template: https://www.thesaascfo.com/saas-pl-explained/
In episode #175, I address the hotly debated topic of customer success expense. Where do we code wages and bonuses? To get this right, we must first define the role of CS in your SaaS company. - What is the role of CS? - Code in COGS, OpEx, or potentially both Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: https://ww...
In episode #174, I address bookings, renewals, and expansion. These data points can get confusing if we don’t define them correctly. - When is a renewal a booking? - When is a renewal NOT a booking? - Does renewal impact expansion MRR? Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: https://www.thesaasacademy.com/ Joi...
In episode #173, I address a student question this week in my SaaS Metrics Foundation course. We must understand our GRR, benchmarks, and how third parties will judge our SaaS business. Check out episode #59 on gross revenue retention for more details. - What is GRR? - Valuation impact - Benchmark data sources Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up...
In episode #172, I address revenue streams and MRR schedules. This is no joking matter. Our metrics and valuation depend on clean data. - Common SaaS revenue streams - MRR schedules - Combining MRR schedules Grab my template to create your MRR schedule in this free course: https://www.thesaasacademy.com/offers/gmbMDsYN/checkout
In episode #171, I address the number one SaaS data mistake. Poor or no tracking of bookings data. Check out episode #25 for a bookings breakdown. - What is the source of truth? - Tips and tricks - ACV, TCV, revenue categories - New vs. expansion Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: https://www.thesaasacade...
In episode #170, I address revenue classifications on our SaaS P&L. We must keep clear and distinct revenue categories. - SaaS revenue categories - One-time versus recurring - Subscription services Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: https://www.thesaasacademy.com/ Join Ben’s SaaS community here: https...
In episode #169, I address the financial close process. AKA, closing your books. This must be done timely and accurately every month. If not, you lose financial transparency and decision-making ability. - The slow close - The impact of taking forever to close your books Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: ...
In episode #168, I address the four common mistakes with your accounting. I see this over and over in my client and coaching base. Learn from their mistakes. - Your chart of accounts - Your SaaS P&L structure - Your department coding - Your revenue recognition SaaS CFO Template Lessons: https://www.thesaasacademy.com/offers/gmbMDsYN/checkout Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi....
In episode #167, I address a common founder issue. Running financially blind. I’ve seen a lot of bad data and financials lately. Even after reviewing 100’s SaaS financial statements, there are financials where I couldn’t even take a guess as to how good or bad the company is performing. - Running financially blind - 4 key data sources - Where to start first to improve visibility Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS mo...
In episode #166, I address a common discussion lately. Time tracking. It’s important to get your headcount roster coded correctly. However, we don’t want over allocate. - HRIS data - Wearing multiple “hats” - Time tracking Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: https://www.thesaasacademy.com/ Join Ben’s SaaS ...
In episode #165, I address the tech stack being used in SaaS companies. I just released my 5th Annual SaaS Tech Stack Report. It covers 21 software categories and debt financing - 21 software categories - debt financing - 535 participants - It’s not a market map Download the report here: https://www.thesaascfo.com/surveys/finance-accounting-tech-stack-survey/
In episode #164, I address an important topic that has come up a lot lately. The clarity and definition of your revenue streams. Don’t comingle them! - SaaS revenue streams - Your chart of accounts - Your revenue metrics Free templates course: https://www.thesaasacademy.com/offers/gmbMDsYN/checkout Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-pag...
In episode #163, I address a common financial setup mistake that prevents you from making informed financial decisions. - Big bucket of expenses - Financial structure - Cash burn Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: https://www.thesaasacademy.com/ Join Ben’s SaaS community here: https://www.thesaasacademy.c...
In episode #162, I address the advisors you need when exiting. Don’t go it alone! Transactions are very complicated. - Investment Banker - Tax CPA - Accounting CPA - Corporate M&A Attorney - Going it alone? Contact me for my rolodex: https://www.thesaascfo.com/contact/
In episode #161, I address the time needed to accurately prepare your SaaS metrics. I talk to many founders who have kicked off an informal exit process. They need forecasts and metrics ASAP for due diligence. Often, it is too late to help. Ideally, we have 6 months to get your data in order. - Time needed to prep your data - Ideally, we have 6 months Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://ma...
In episode #160, I review growth rates that are considered VC fundable. I find growth rates to be very subjective based on the audience. Are we talking to VC or PE? Let’s not get caught up in the hype. I cover the growth rates posted by Jason Lemkin in a SaaStr post and Benchmarkit.AI growth rates. - Lemkin’s view of growth rates - Benchmarkit.ai growth rates - Bootstrappers, let’s not get caught up in the hype SaaStr post: https://www.saastr.com/look-no-vc-wants-to-fund-a-startup-with-so-so-gro...
Episode 159 – How to Handle Unknown Churn in Your Reporting In episode #159, I address a reader's question. This is very common for SaaS companies that target mid-market and above customers. You send the renewal invoice but don’t hear back from the customer. Is this churn? When should I report it as churn? - Churn reporting when you don’t hear back from the customer Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newslet...
In episode #158, I share my SaaS CFO KPI checklist. I'm holding a free training on this checklist on Jan 17. Register at the link below. - My steps to spin up SaaS metrics - SaaS metrics checklist Register here: https://www.thesaasacademy.com/pl/2148142066 Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: https://www.th...
In episode #157, I address bookings and budgets or forecasts. You really cannot create a proper forecast or budget without bookings targets. This is similar to my days in the airlines where we needed the capacity plan first. Otherwise, how do we know what resources we need to support our targets. - Bookings alignment - Revenue - Headcount planning - S&M efficiency metrics Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS month...
In episode #155, I address an article in CFO Dive about tech companies wanting operational CFO’s. - What is an operational CFO? - How does this help? Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: https://www.thesaasacademy.com/ Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout F...
In episode #155, I address SaaS valuation drivers. Of course, a lot of opinions here but ICONIQ named their five value drivers based on the current market. - 5 drivers of valuation ICONIQ’s report: https://www.iconiqcapital.com/growth/insights/2023-growth-and-efficiency-series Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses...
In episode #154, I address the latest data points in revenue per FTE. ICONIQ Growth just published a great metrics report which times nicely with Jason Lemkin’s thoughts on revenue per FTE and scaling your SaaS. - ARR per FTE - Scaling your SaaS ICONIQ’s report: https://www.iconiqcapital.com/growth/insights/2023-growth-and-efficiency-series Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df...
In episode #153, I tackle bookings data. I see problems over and over in how SaaS companies track or don’t track bookings data. - New ARR - Expansion ARR - Contraction ARR - Renewals - Feed S&M metrics Primer on software bookings: https://www.thesaascfo.com/the-saas-bookings-report/
In episode #152, I tackle a recurring theme in SaaS P&L and chart of accounts set ups. It’s your COGS, or cost of goods sold area. - Traditional COGS departments - The first step you should take Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: https://www.thesaasacademy.com/ Join Ben’s SaaS community here: https://...
In episode #151, I tackle a message that came in through my blog. This reader was tasked to develop a SaaS revenue model that would monitor and forecast results on a daily basis. - Should I track revenue on a daily basis? - Monitoring revenue on an actual basis - Forecasting revenue on a daily basis Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-pa...
In episode #150, I tackle another annual planning topic. The dance between your pipeline and your ARR commit number. Depending on your average sales cycle, your first quarter and secondar bookings target could already be set in soft stone. - Average sales cycle - New ARR - Expansion ARR Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metri...
In episode #149, I tackle an annual planning topic. The annual budget or operating plan is a bit of a dance. Like anything in finance, it’s a bit art and science. One thing that’s for certain. You can’t start the year by missing your plan. - ARR target - Profit or EBITDA target - Don’t miss this! Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page ...
In episode #148, I have the privilege of coaching SaaS businesses from large to small. The fundamental concept of SaaS metrics remains the same. We may need to slice and dice more by ICP or product line, but the same mechanics apply. - Gross CAC - CAC unit metric - Segmentation Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics course...
In episode #147, I address the health of your recurring revenue. These metrics are a must-have for any recurring revenue business. - What is retention? - What is a renewal? - When does the renewal rate metric apply? Blog Post on Renewal Rates: https://www.thesaascfo.com/how-to-calculate-your-renewal-rate/ Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-land...
