The success of any business relies on the ability to effectively manage its financial resources. In the case of Software as a Service (SaaS) companies, tracking actual profit and loss versus the budget is the foundation of cash forecasting. Let’s take a deeper look at the differences between actual profit and loss and budget in SaaS companies, exploring the factors that contribute to accurate financial forecasting. Defining Actual Profit and Loss and Budget Actual profit and loss (P&L) refers to the financial statement that tracks the revenue, expenses, and net income or loss of a company over a specific [...]
You receive amazing feedback on your business plan, raised your first round of funding, and launched your product. But wait … why isn’t your business growing at the rate you expected?
This can be discouraging, and it’s a common trap we see. We call it the “field of dreams trap.”
It seems like all we hear about these days is the amazing product ideas, visionary founders, and unicorn startups. It’s like every startup is a guaranteed unicorn. But we all know great product ideas that were never able to get that coveted $1B valuation.
Having been a part of several unicorn exits, I can tell you a good product is only the beginning. Great products require a solid go-to-market and financial strategy to succeed.
You can’t put your accounting and finance infrastructure on the back burner. You need to feel confident about your financial statements and make sure you can show value to current and prospective investors. Here are our ‘Dos and Don’ts’ for SaaS Startup Accounting.