{"id":18997,"date":"2023-07-06T07:30:00","date_gmt":"2023-07-06T11:30:00","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=18997"},"modified":"2026-02-12T04:15:14","modified_gmt":"2026-02-12T09:15:14","slug":"swim-or-sink-4-survival-tips-for-the-saas-finance-team","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/swim-or-sink-4-survival-tips-for-the-saas-finance-team\/","title":{"rendered":"Swim or Sink: 4 Survival Tips for the SaaS Finance Team"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/category\/technology-innovation\/\" class=\"entry-header__link\">Technology &amp; Innovation<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tSwim or Sink: 4 Survival Tips for the SaaS Finance Team\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2023-07-06T07:30:00-04:00\">July 6, 2023<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Swim or Sink: 4 Survival Tips for the SaaS Finance Team\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/blog\/swim-or-sink-4-survival-tips-for-the-saas-finance-team\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-us\/blog\/author\/david-appel\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/07\/David-Appel-headshot-2023-1.jpg\" class=\"entry-author__image\" alt=\"David headshot\" \/>\t\t\t\t<span class=\"entry-author__name\">David Appel<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>When times are lean, strategic financial leadership is more valuable than ever. By taking a few simple steps, you can greatly increase your chances of being one of the SaaS companies that swim rather than sink during a recession.<\/p>\n\n\n\n<p>A few significant themes of this post will include:&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Doing more with less&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Eliminating human error<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Saving money and preventing revenue loss<\/li>\n<\/ul>\n\n\n\n<p>Let\u2019s get started.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-survival-tip-1-implement-ai-in-your-finance-department\">Survival Tip 1: Implement AI in your finance department<\/h2>\n\n\n\n<p>Automated accounting software allows finance teams to offload many repetitive-but-vital manual tasks.&nbsp;<\/p>\n\n\n\n<p>Everything from report and forecast assembly to data gathering for key executives is taken care of automatically.&nbsp;<\/p>\n\n\n\n<p>Rather than replacing human employees, this frees up your team members for more valuable and profitable contributions.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-competitive-advantages-of-finance-automation-nbsp\">Competitive advantages of finance automation&nbsp;<\/h2>\n\n\n\n<p>During a recession, finance automation offers organizations several lifelines that aren\u2019t available with legacy systems:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The ability to plan more effectively by running more robust and reliable forecasts. Automated forecasts are multi-factor, easily alterable, and just a matter of entering your data and clicking a button.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Far greater reporting granularity than is attainable with manual accounting methods.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Mutli-currency, multi-entity compatibility so that if conditions become less attractive here, you can easily pivot and prioritize international markets.<\/li>\n<\/ul>\n\n\n\n<p>What else can SaaS CFOs and finance leaders do to ensure profitability in troubled times?&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-survival-tip-2-plug-up-your-revenue-leaks-nbsp\">Survival Tip 2: Plug up your revenue leaks&nbsp;<\/h2>\n\n\n\n<p>One of the cornerstones of recession management\u2013and sound financial management in general\u2013is not to lose revenue.&nbsp;<\/p>\n\n\n\n<p>Recurring revenue companies recognize revenue differently than other types of corporations (under ASC 606 and similar laws). You might sell a 12-month subscription on January 1st, but you can\u2019t immediately enter that as a lump sum of earned revenue.&nbsp;<\/p>\n\n\n\n<p>Those 12 months of revenue get broken up into service periods, with revenue gradually recognized across the year as you provide services to that user.&nbsp;<\/p>\n\n\n\n<p>This greatly complicates the revenue recognition process, making lost and unaccounted revenue much more likely.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-still-handling-revenue-recognition-manually-nbsp\">Still handling revenue recognition manually?&nbsp;<\/h3>\n\n\n\n<p>Cloud-based financial management software automates the revenue recognition process, removing the risk of human oversight.&nbsp;<\/p>\n\n\n\n<p>Teams that handle revenue recognition in the cloud enjoy several benefits:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Revenue data is centralized and automatically updated.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Automatic, real-time regulatory updates alert teams to any changes in revenue recognition laws.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Revenue recognition is seamless across currencies.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Revenue leakage can add up quickly unless proactive steps are taken to find and address weak points in your financial workflows.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-make-the-most-of-your-metrics-nbsp\">Make the most of your metrics&nbsp;<\/h2>\n\n\n\n<p>Successful financial management for SaaS companies requires a firm grasp of the objective realities around you. The best way to obtain that is by prioritizing metric-based leadership.&nbsp;<\/p>\n\n\n\n<p>Departments that base their financial decisions on metrics\u2013and carefully track their metrics over time\u2013can expect superior performance results.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-selecting-your-saas-metrics-nbsp\">Selecting your SaaS metrics&nbsp;<\/h3>\n\n\n\n<p>When selecting your SaaS metrics, keep the acronym MUD in mind. It stands for Meaningful Underlying Business Dynamics, and serves as a valuable tool for finance teams.&nbsp;<\/p>\n\n\n\n<p>When looking at their companies through this acronym, CFOs ask questions such as:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What growth stage are we in?&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What are our main profit drivers?&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How established is the market we\u2019re operating in?&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>These questions will help you find the most appropriate SaaS metrics to watch for your unique situation.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-metrics-and-automation-nbsp\">Metrics and automation&nbsp;<\/h3>\n\n\n\n<p>Teams that incorporate financial process automation enjoy a much more efficient relationship with their metrics and KPIs.&nbsp;<\/p>\n\n\n\n<p>When you introduce automation, your metrics are updated in real time as changes occur. In rough markets, this makes financial planning easier and more efficient.&nbsp;<\/p>\n\n\n\n<p>When teams rely on spreadsheets to track and update their metrics, mistakes can creep in that will complicate or skew their downstream financial results.&nbsp;<\/p>\n\n\n\n<p>Cloud-based financial management software comes equipped with a brimming library of SaaS metrics and KPIs for all corporate growth stages.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-make-sure-you-have-billing-flexibility-nbsp\">Make sure you have billing flexibility&nbsp;<\/h2>\n\n\n\n<p>Adaptability is one of the hallmarks of SaaS companies that not only survive but thrive long-term. And one of the most essential aspects of corporate flexibility is billing and pricing.&nbsp;<\/p>\n\n\n\n<p>Automation makes it much simpler for finance leaders to forecast the results of different pricing structures, including:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Hybrid billing<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Usage billing&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Feature tiers<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Freemium billing&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Automation gives finance teams the flexibility to create pricing models that appeal to customers while maximizing profits.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-do-more-than-survive-thrive-through-modern-leadership-nbsp-nbsp\">Do more than survive: thrive through modern leadership&nbsp;&nbsp;<\/h2>\n\n\n\n<p>Even if you make it successfully through the present recession, there will be others. That\u2019s a practical certainty. And they could very well be worse. That\u2019s why it\u2019s not enough to focus on quick fixes. Finance pros need to develop the mindsets and skills that will enable their teams to thrive across time in any financial environment.&nbsp;<\/p>\n\n\n\n<p>Get hands-on, practical tips from industry leaders and subject matter experts on ways to survive and scale your business as a finance or accounting leader at the Modern SaaS Finance Academy.&nbsp;<\/p>\n\n\n\n<p>To join the academy today, <a href=\"https:\/\/sageu.com\/modernsaasfinance\/?utm_source=organic&amp;utm_medium=sageu&amp;utm_campaign=organic\">click here<\/a>.&nbsp;<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Modern SaaS Finance Academy<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p class=\"\">The Modern SaaS\u00a0 Finance\u00a0Academy is a free online training hub designed for CFOs, Controllers, FP&amp;A, Revenue managers, Revenue Operations, and other members of the finance community in fast growth SaaS companies.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/sageu.com\/modernsaasfinance\/?utm_source=organic&#038;utm_medium=sageu&#038;utm_campaign=organic\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-18976\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>Learn more<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1271694534-1440x810.jpg\" class=\"single-cta__image\" alt=\"Women discussing in office space\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1271694534-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to our Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get our latest business advice delivered directly to your inbox.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-ab515c6e-7e90-4c2f-a67e-113872516e8b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"Working from home with tea in hand\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Financial leadership is more important than ever during a recession. Follow these tips to swim rather than sink.<\/p>\n","protected":false},"author":1433,"featured_media":9231,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[48],"tags":[420,346],"business_type":[41],"lilypad":[],"context":[],"industry":[450],"persona":[],"imagine_tag":[444],"coauthors":[599],"class_list":["post-18997","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology-innovation","tag-cloud-financial-management","tag-cloud-technology","business_type-growing-business","industry-software-saas"],"sage_meta":{"region":"en-us","author_name":"David Appel","featured_image":"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1261583718.jpg","imagine_tags":{"444":"Intacct Medium Business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice US","distributor_original_site_url":"https:\/\/www.sage.com\/en-us\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/18997","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/users\/1433"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/comments?post=18997"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/18997\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media\/9231"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media?parent=18997"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/categories?post=18997"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/tags?post=18997"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/business_type?post=18997"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/lilypad?post=18997"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/context?post=18997"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/industry?post=18997"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/persona?post=18997"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/imagine_tag?post=18997"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/coauthors?post=18997"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}