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5 steps to
recession-proof
your finance tech
stack
Macro-trends for Finance
Before:
Growth
Differentiation with
Billing
Reporting
Now:
Profitability
Tech consolidation
Reporting
Agenda
1.Macro-trends
2.Who we are
3.The Five Insights
© 2022 The Sage Group plc, or its licensors. All rights reserved.
300+ SaaS, subscription,
usage, and project billing
scenarios, with rev rec
200+ investor metrics
created up to 80% faster
Up and running in as little as
60 days
Costing 40% less than
buying the tech stack parts
separately
The core
essentials for
every SaaS from
startup to IPO
and beyond
Page 4
© 2022 The Sage Group plc, or its licensors. All rights reserved.
The Five Insights
Page 5
Process
Maturity
Lifecycle
Tech Stack
Checklist
Billing Use
Cases
Integrations
Report &
Forecast
1
2
3
4
5
© 2022 The Sage Group plc, or its licensors. All rights reserved.
1. Process Maturity Lifecycle
Stage Use of funds What to accomplish Financial Processes Key measure
Sale or IPO Expand product line, go global, acquisitions
Move to adjacent
markets and geographies
Acquisitions, International, Compliance Net Profit
Series C-F Grow to $100M in gross profit Predictable, Profitable, and Repeatable FP&A and Customer Success Gross Profit
Series B Prove Net Expansion Revenue Model Customers buying 2nd and 3rd time Amendments, rev rec, closing, forecasting CMRR per Customer
Series A Prove revenue model Growing 100% Automate cash-flow and billing Unit Economics
Seed Product market fit 10 ecstatic customers Manage cash & payroll Cash
Page 6
© 2022 The Sage Group plc, or its licensors. All rights reserved.
2: The Finance Tech Stack Checklist
1
2
3
4
5
6
Set up your foundation:
Build your GL
Know your billing use case
Know your revenue recognition
scenario
Where is your data coming from
for Reporting
How to anticipate exceptions in
the selling process
Compliance
© 2022 The Sage Group plc, or its licensors. All rights reserved.
3: Billing Use Cases
Page 8
Type / quantity of
customers (enterprise
vs. SMB vs. mixed)
Monthly, annual or
multi-year contracts?
Are contracts pure
subscription or
transactional?
Big land and expand
dynamic (e.g. POC
land)?
Young, high growth or
mature, low growth?
Seasonality /
intermittent usage?
$ churn vs.
logo churn
Renewal rate vs.
retention rate
ARR vs. recognized
revenue
Post-1st year net
retention
ARR vs. recognized
revenue
TTM-based
calculation
Hybrid Billing
© 2022 The Sage Group plc, or its licensors. All rights reserved.
Types of Models
Page 10
Minimum:
minimum price points
based on usage
Flat Rate:
fixed fee regardless
of usage
Rollover:
usage allocated not used
in one service period is
shifted
to the next
Pay-as-you-go:
usage-based pricing,
paying as the
customers consumes
Threshold:
pricing changes
based on usage
Standard, Volume and
Flat Rate Tiered: various
price points
for ranges of usage
Time-based:
pricing set on a fixed
time, typical of
subscription offers
Overage:
fees for using more
than the allotment
© 2022 The Sage Group plc, or its licensors. All rights reserved.
4: The Old Way: Manual Integrations
More integrations
means
time spent being
manual
means
a delayed close
Multiple systems of
record
means
reporting delayed
and inaccurate
Page 11
© 2022 The Sage Group plc, or its licensors. All rights reserved.
Page 12
4: Easy Integrations, Complete Tech Stack
12
CRM
BUDGETING &
PLANNING CREDIT CARD & AR PROJECT
MANAGEMENT
HR & PAYROLL AP PO AUTOMATION
ASSET / CONTRACT
MANAGEMENT
FIELD SERVICE
MANAGEMENT
INVENTORY &
MANUFACTUING
DOCUMENT
MANAGEMENT
TIME, EXPENSE,
TRAVEL, &
ATTENDANCE
TAX MANAGEMENT
FINANCE &
ADMINISTRATION
SPEND / CASH
MANAGEMENT
RESTAURANT
MANAGEMENT
EDI & ECOMMERCE CHECKS & SUPPLIES
MIDDLEWARE
REPORTING
COMMISSIONS
PAYABLES
© 2022 The Sage Group plc, or its licensors. All rights reserved.
5. SaaS Metrics – a SaaS CEO’s must-have
Page 13
© 2022 The Sage Group plc, or its licensors. All rights reserved.
Revenues, over Cohorts, over Time
14
© 2022 The Sage Group plc, or its licensors. All rights reserved.
Budget v Actuals
© 2022 The Sage Group plc, or its licensors. All rights reserved.
Cash Forecasting
16
© 2022 The Sage Group plc, or its licensors. All rights reserved. Page 17
Sage Intacct is named
a Leader in
IDC MarketScape:
Worldwide SME-Focused
Subscription and Usage
Management
Applications 2022
Source: "IDC MarketScape: Worldwide SME-Focused
Subscription and Usage Management Applications 2022 Vendor
Assessment" by Mark Thomason, Oct 2022, IDC # US48786122
IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT suppliers in a given
market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria
that results in a single graphical illustration of each vendor’s position within a given market. The Capabilities score measures
vendor product, go-to-market and business execution in the short-term. The Strategy score measures alignment of vendor
strategies with customer requirements in a 3-5-year timeframe. Vendor market share is represented by the size of the icons.
© 2022 IDC
© 2022 The Sage Group plc, or its licensors. All rights reserved.
Start
• Core financials
• Subscription billing
• Revenue recognition
• Dimensional,
interactive reporting
• SaaS metrics
• Project tracking
• Electronic payments
Start simple, scale big
+
Salesforce
integration
+
Planning
and budgeting
+
Multi-element arrangements
Multi-entity
Banking cloud
+
Fixed assets
Multi-currency
Pre-paids
+
International tax
Global consolidations
+
Advanced audit
SOX compliance
Page 18
© 2022 The Sage Group plc, or its licensors. All rights reserved.
Springbuk grows 400% with
Sage Intacct
Page 19
• Springbuk is the health data analytics solution that equips you with the insights and expertise you
need to sharpen your benefits strategy, advance employee health, and contain costs
• 119 employees in Indianapolis, IN
Issue Before w/ Sage Intacct Impact
Manual accounting Manual order entry Automated two different billing scenarios
- Automated invoicing as
contract volume grown 4x
- Automated renewals and upsells improving
churn 7%
No Tech Stack Quickbooks and spreadsheets
One billing system of record across
Salesforce.com, billing, and GL
- Reduced DSO 50%
- Accelerated $1M of operating cash flow
Compliance Manual rev rec Automated rev rec and tax - Passed audit for fundraising
Manual reporting Manual spreadsheets
Cut close 73%
Dimensions added on all transactions
- Build Financial Reports in seconds, not days
Manual planning
Manual reporting, starting after the
close of 21 days
1+ year visibility on revenue,
billings, and cash
- Invested in engineering ahead of plan to
improve Gross Margin 8%
- Reduced Variance 50%
© 2022 The Sage Group plc or its licensors. All rights reserved. Sage,
Sage logos, and Sage product and service names mentioned herein are
the trademarks of Sage Global Services Limited or its licensors. All
other trademarks are the property of their respective owners.
Thank you!
David.Appel@Sage.com
5 steps to
recession-proof
your finance tech
stack

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Five Steps to Recession Proof your FinOps Tech Stack.pptx

  • 1. 5 steps to recession-proof your finance tech stack
  • 2. Macro-trends for Finance Before: Growth Differentiation with Billing Reporting Now: Profitability Tech consolidation Reporting
  • 4. © 2022 The Sage Group plc, or its licensors. All rights reserved. 300+ SaaS, subscription, usage, and project billing scenarios, with rev rec 200+ investor metrics created up to 80% faster Up and running in as little as 60 days Costing 40% less than buying the tech stack parts separately The core essentials for every SaaS from startup to IPO and beyond Page 4
  • 5. © 2022 The Sage Group plc, or its licensors. All rights reserved. The Five Insights Page 5 Process Maturity Lifecycle Tech Stack Checklist Billing Use Cases Integrations Report & Forecast 1 2 3 4 5
  • 6. © 2022 The Sage Group plc, or its licensors. All rights reserved. 1. Process Maturity Lifecycle Stage Use of funds What to accomplish Financial Processes Key measure Sale or IPO Expand product line, go global, acquisitions Move to adjacent markets and geographies Acquisitions, International, Compliance Net Profit Series C-F Grow to $100M in gross profit Predictable, Profitable, and Repeatable FP&A and Customer Success Gross Profit Series B Prove Net Expansion Revenue Model Customers buying 2nd and 3rd time Amendments, rev rec, closing, forecasting CMRR per Customer Series A Prove revenue model Growing 100% Automate cash-flow and billing Unit Economics Seed Product market fit 10 ecstatic customers Manage cash & payroll Cash Page 6
  • 7. © 2022 The Sage Group plc, or its licensors. All rights reserved. 2: The Finance Tech Stack Checklist 1 2 3 4 5 6 Set up your foundation: Build your GL Know your billing use case Know your revenue recognition scenario Where is your data coming from for Reporting How to anticipate exceptions in the selling process Compliance
  • 8. © 2022 The Sage Group plc, or its licensors. All rights reserved. 3: Billing Use Cases Page 8 Type / quantity of customers (enterprise vs. SMB vs. mixed) Monthly, annual or multi-year contracts? Are contracts pure subscription or transactional? Big land and expand dynamic (e.g. POC land)? Young, high growth or mature, low growth? Seasonality / intermittent usage? $ churn vs. logo churn Renewal rate vs. retention rate ARR vs. recognized revenue Post-1st year net retention ARR vs. recognized revenue TTM-based calculation
  • 10. © 2022 The Sage Group plc, or its licensors. All rights reserved. Types of Models Page 10 Minimum: minimum price points based on usage Flat Rate: fixed fee regardless of usage Rollover: usage allocated not used in one service period is shifted to the next Pay-as-you-go: usage-based pricing, paying as the customers consumes Threshold: pricing changes based on usage Standard, Volume and Flat Rate Tiered: various price points for ranges of usage Time-based: pricing set on a fixed time, typical of subscription offers Overage: fees for using more than the allotment
  • 11. © 2022 The Sage Group plc, or its licensors. All rights reserved. 4: The Old Way: Manual Integrations More integrations means time spent being manual means a delayed close Multiple systems of record means reporting delayed and inaccurate Page 11
  • 12. © 2022 The Sage Group plc, or its licensors. All rights reserved. Page 12 4: Easy Integrations, Complete Tech Stack 12 CRM BUDGETING & PLANNING CREDIT CARD & AR PROJECT MANAGEMENT HR & PAYROLL AP PO AUTOMATION ASSET / CONTRACT MANAGEMENT FIELD SERVICE MANAGEMENT INVENTORY & MANUFACTUING DOCUMENT MANAGEMENT TIME, EXPENSE, TRAVEL, & ATTENDANCE TAX MANAGEMENT FINANCE & ADMINISTRATION SPEND / CASH MANAGEMENT RESTAURANT MANAGEMENT EDI & ECOMMERCE CHECKS & SUPPLIES MIDDLEWARE REPORTING COMMISSIONS PAYABLES
  • 13. © 2022 The Sage Group plc, or its licensors. All rights reserved. 5. SaaS Metrics – a SaaS CEO’s must-have Page 13
  • 14. © 2022 The Sage Group plc, or its licensors. All rights reserved. Revenues, over Cohorts, over Time 14
  • 15. © 2022 The Sage Group plc, or its licensors. All rights reserved. Budget v Actuals
  • 16. © 2022 The Sage Group plc, or its licensors. All rights reserved. Cash Forecasting 16
  • 17. © 2022 The Sage Group plc, or its licensors. All rights reserved. Page 17 Sage Intacct is named a Leader in IDC MarketScape: Worldwide SME-Focused Subscription and Usage Management Applications 2022 Source: "IDC MarketScape: Worldwide SME-Focused Subscription and Usage Management Applications 2022 Vendor Assessment" by Mark Thomason, Oct 2022, IDC # US48786122 IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor’s position within a given market. The Capabilities score measures vendor product, go-to-market and business execution in the short-term. The Strategy score measures alignment of vendor strategies with customer requirements in a 3-5-year timeframe. Vendor market share is represented by the size of the icons. © 2022 IDC
  • 18. © 2022 The Sage Group plc, or its licensors. All rights reserved. Start • Core financials • Subscription billing • Revenue recognition • Dimensional, interactive reporting • SaaS metrics • Project tracking • Electronic payments Start simple, scale big + Salesforce integration + Planning and budgeting + Multi-element arrangements Multi-entity Banking cloud + Fixed assets Multi-currency Pre-paids + International tax Global consolidations + Advanced audit SOX compliance Page 18
  • 19. © 2022 The Sage Group plc, or its licensors. All rights reserved. Springbuk grows 400% with Sage Intacct Page 19 • Springbuk is the health data analytics solution that equips you with the insights and expertise you need to sharpen your benefits strategy, advance employee health, and contain costs • 119 employees in Indianapolis, IN Issue Before w/ Sage Intacct Impact Manual accounting Manual order entry Automated two different billing scenarios - Automated invoicing as contract volume grown 4x - Automated renewals and upsells improving churn 7% No Tech Stack Quickbooks and spreadsheets One billing system of record across Salesforce.com, billing, and GL - Reduced DSO 50% - Accelerated $1M of operating cash flow Compliance Manual rev rec Automated rev rec and tax - Passed audit for fundraising Manual reporting Manual spreadsheets Cut close 73% Dimensions added on all transactions - Build Financial Reports in seconds, not days Manual planning Manual reporting, starting after the close of 21 days 1+ year visibility on revenue, billings, and cash - Invested in engineering ahead of plan to improve Gross Margin 8% - Reduced Variance 50%
  • 20. © 2022 The Sage Group plc or its licensors. All rights reserved. Sage, Sage logos, and Sage product and service names mentioned herein are the trademarks of Sage Global Services Limited or its licensors. All other trademarks are the property of their respective owners. Thank you! David.Appel@Sage.com
  • 21. 5 steps to recession-proof your finance tech stack

Editor's Notes

  1. Ryder, No changes needed
  2. Click We handle over 300 different types of subscription billing scenarios. Click We produce over 200, SaaS, investor metrics against that up to 80 percent faster. Click You could be up and running in as little as 60 days, depending on your scope and amount of historical data, Click and for 40 percent off what it would cost if you bought the FinOps tech stack parts separately...
  3. As I have been a part of Contracts past, I have seen concentrated improvements
  4. Ryder, No changes needed Based on our experience in working with organizations like yours, there’s a continuum in what you need to do as you grow from seed through to the goal of a sale or IPO Seed – product market fit; get 10 happy customers; your CEO shows receipts in a shoe box. Series A – prove the revenue model. What people start to do is poise subscription billing and straightforward cash management with AP and AR tools. Series B – prove your net revenue expansion model; get customers to buy from you a second and third time. With this, comes the need to track upsells, downsells, and renewals (tied back to original discount performance obligations and customer lifetime values that you anticipated) and the need for compliance with ASC 606. Then you need to forecast that and also cut the close. Then you get bigger and need to clean up from all the experiments before and make things predictable and profitable, with much greater FP&A (Financial Planning & Analysis) analysis, then take it global. You have international compliance, possibly some acquisitions, and public reporting. So it’s against this backdrop
  5. The overarching feeling should be: there is a simple 6-step checklist for how to build the tech stack. Easy six things. An easy checklist Last slide shows Principles, this shows Actions
  6. These are the six criteria for deciding your billing model So this should communicate a Decision Tree You have to take yourself through this decision making exercise
  7. that you try to put your put your processes and systems in place in pieces. One at a time, because you don’t have a lot of investment, maybe not a big tech stack, and maybe you don’t have time to deal with it. Click Click But the problem that happens with this is that there are more integrations, which means you have to spend more time being manual, Click which means a delayed close and more systems of record. And in staff meetings, people are pounding the table saying “my data is right”, and it blows up having a shared consciousness and trust by the executive team in order to pivot against your competition. And your reporting is delayed and inaccurate. So how do you make great decisions? Click
  8. Ryder, No changes needed And when you do it, you produce something ____________ (choose your own adjective(s), like “big”, “beautiful”, “essential”, “amazing”, “critical”, “powerful”, etc.) like this: a dashboard real-time, incorporating the changes and contract modifications as they come in, on the metrics you wan. Click
  9. While you might not need all this functionality today, you can start simple and scale big. Buy the pieces you need and layer them in. This may or may not be your flow. It’s an example of what you can do. Click
  10. Ryder, No changes needed