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AcctTwo Blog

Playbook: Be Proactive About SaaS Finance Planning

saas finance proactive planningThe Extend Your Runway Webinar series was led and moderated by Marcus Wagner. During the SaaS Finance and Accounting Playbook Overview and Proactive Planning webinar, Marcus stepped through the first element of AcctTwo’s Accounting and Finance Playbook - Proactive Planning. Proactive Planning is the iterative process of budgeting and re-forecasting based on real-time operational data and market dynamics.

Marcus and the team at AcctTwo have firsthand experience implementing the processes, controls, and technology needed to optimize financial resources for companies ranging in size from start-up to large enterprise. To help these organizations drive strong financial results while saving costs and time, AcctTwo has developed a SaaS Finance and Accounting Playbook.

The Finance and Accounting Playbook

When it comes to your business, your playbook contains all the pieces and parts that make up your company's go-to approach for getting things done. According to Accenture, a playbook includes process workflows, standard operating procedures, and cultural values that shape a consistent response—the play.

You may be more familiar with playbooks when it comes to sports like football. Bill Walsh, the legendary coach of the San Francisco 49ers said,

“the more thorough, the more extensive, the more rehearsed, the better you perform under the pressure of any situation that calls for an immediate decision.”

Having a playbook, regardless of its form, makes sense in business too. Reflecting on Bill Walsh’s quote, how great would be to have something like a playbook during these unprecedented times of COVID-19, to help you perform better under the pressure of the situation we are all in. A well thought out playbook is something we can lean on!

What your business playbook should include:

  • Product development
  • Product management
  • Infrastructure & Operations
  • Sales
  • Marketing
  • Channels
  • Delivery
  • Customer Support
  • Customer Success
  • Talent
  • Legal
  • Accounting

New call-to-actionPlaybooks are essential in helping us perform at our best when we are under pressure. Every business should have a playbook that covers the key operating areas of the business, including finance and accounting.

A Finance and Accounting Playbook Will Help You Thrive

The best business playbooks focus on the activities a business needs to do in order to excel. An example of this is AcctTwo’s playbook for finance and accounting.

  1. Proactive planning involves:
    1. Visualizing where you want to go and what it will take to get there
    2. Monitoring, in real-time, your progress
    3. Making adjustments along the way - it takes budgeting and forecasting to another level
  2. Sound transactional management involves setting up the right chart of accounts, optimizing the order-to-cash and procure-to-pay value streams, and capturing all the relevant information in the right place. The goal is to focus on your products, services, and customers, not your back-office.
  3. Responsible cash management involves knowing your cash requirements every day of every week of every month, developing a reserve as soon as practical, especially when you do not have funding, and understanding the underlying requirements to get a loan/line.  It requires knowing the difference between accrual accounting and cash accounting. 
  4. Timely Reporting/Analytics involves identifying what performance metrics and reports are needed to manage the organization, avoiding the use of spreadsheets, and eliminating the idea of the monthly close. For software companies, this means tracking metrics like CMRR, CAC, and Churn. For churches, this mean tracking metrics like weekly attendance, average donation, and number of people served.
  5. Funding/Exit Readiness involves doing all the previous four elements of the finance and accounting playbook well and knowing exactly what potential lenders and investors expect. In essence, if you do the first four things well, you are always ready to sit down with a potential source of funding or acquirer!

Watch The Webinar

Playbook Overview & Active Planning

If you would like to watch the recording, you can access it here > 


About Chris Grady

Chris Grady is AcctTwo's Strategic Relationship Executive. He is passionate about helping SaaS organizations achieve success by transforming Finance & Accounting into a growth enabler & change agent. Be it a cloud-based software solution, or outsourcing performed by AcctTwo's Managed Accounting Services team, Chris is dedicated to your organizational longevity and full realization of your growth and vision. Schedule a meeting with Chris by clicking here.

Topics: SaaS Software and Technology Industry extend your runway General