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How the Right CFO Adds Value to a SaaS Business

A CFO role is a must have C suit leader every business must have.

The Chief Financial Officer, or CFO, is one of the most integral roles within your c-suite team. They’re the CEO’s next in command with an ever-evolving list of responsibilities. If you’re a SaaS business building your leadership team, the right CFO is invaluable. The role of CFO has expanded beyond traditional financial management to take a key strategic role in achieving the company’s short- and long-term goals.

FD Capital is a boutique recruitment agency that specializes in connecting businesses and start-ups with talented financial professionals, focusing primarily on the role of CFO. They’re sharing with us the ways that a CFO can add value to a SaaS business. 

Whether you’re a SaaS business in the early stages of development or looking to scale your business to the next level, hiring a CFO could be the secret to your success. They’ll instantly add value to your business. In addition to this, they will become integral part of your leadership team by providing data-driven insights into your business.

If you’re looking for a way to set your SaaS business apart from the competition, the answer might be within your leadership team.

Switch to Automation for Data Entry

The modern CFO is responsible for ensuring the company is leveraging the latest technology wherever possible. This can help keep costs low and boost productivity. Switching your SaaS business from manual data entry to one based on automation is a major way for a CFO to add value to your business. Manual data entry requires more time and means you don’t have access to the most up-to-date data for your KPIs. Any form of manual data entry also carries the risk of human error by entering incorrect data.

Switching to a primarily automated system means you can stay on top of your KPIs. These may include your sales and cash flow, while still maintaining manual checks for quality control.

Automation Puts You Ahead of Your Strategy

Another way your CFO can add value to your SaaS business through automation is by speeding up accounting processes. To be specific, we are talking about the time in which your finance team closes their books every month. The data and insights from each month play a key role in determining the strategic decisions of a SaaS business’ leadership team.

Switching to automation means that leaders can make more informed data-based decisions quicker thanks to business intelligence. The CFO will typically provide a ‘flash close’ to the CEO and c-suite team with the most important metrics. Some of these metrics may include monthly or quarterly revenue and cash balance.

This process adds value to your business by keeping you ahead of your strategy. It allows for more time for budget planning using real-time data. It also offers invaluable insights for your company’s marketing and sales teams.

Oversees Financial Strategy and Forecasting

Most SaaS companies will hire a CFO to create a financial strategy. When a CFO takes control of your finances, they’re able to use their skills and expertise to provide the CEO with invaluable insights on how to improve profit margins and optimize cash flow. 

What enables a CFO to oversee a company’s financial strategy is the forecasting that they do. It’s one of the key responsibilities of any CFO and forms the foundation for both short- and long-term planning by analyzing industry trends and the company’s performance. 

Forecasting can help your company navigate their strategy with more certainty. This will also provide a blueprint for what it can expect to happen in the coming weeks and months. Having a financial forecast in place can reduce unnecessary spending and maximize your success.

Spending Money to Make Money

A common mistake that a SaaS business may make, particularly start-ups, is to think that saving pennies is the best strategy. Instead, you need to invest to be able to make money. You don’t want to cut corners when it comes to choosing your data tools. 

Instead of relying on Excel, invest your capital in a system that will give you the tools and insight to provide more real-time data. Most of these tools will speed up the all processes without the risk of human error. The right CFO will give you the strategic insight into which software and technology are worth investing in for your business. They should also understand how this technology will enable you to scale your business.

The Right CFO Understands Operations and Finance

The role of CFO is constantly evolving, this is especially true in a SaaS business. They no longer oversee just the financial activities of the company. Their insight plays a key role in the operations of the business, from overseeing expenses to managing payroll. The right CFO will be able to streamline your operations and finances to create a seamless experience.

You want your CFO to fit right in with your existing operations team. Your CFO and operations team will most likely collaborate on a daily basis. During the recruitment process, you may decide to actively involve your operations team to ensure that they’re on board for collaboration. 

The fact your CFO understands where your money is going – and coming from – means that they can add context to the operational decisions of your company. Without your CFO, both your CEO and operations are flying in the dark.

Oversee Funding Strategies

As a SaaS business, you may be considering turning to a private equity firm or venture capitalists for fundraising. Both entities are more likely to fund your business when you have a CFO in place. By working with a recruitment agency like FD Capital, you can find a skilled CFO with experience in working with VCs and PE firms and a track record of securing fundraising for their companies.

Along with overseeing the overarching strategy for fundraising, a CFO will ensure that your business has everything prepared to present during your pitch. They’ll ensure you have the right documents in place to give you the best negotiating terms and show proper due diligence within your company.

Your SaaS Business Needs a CFO

Hiring a CFO will have a positive effect on every aspect of your SaaS business. Whatever your business goals are, a CFO will help you turn your strategy into a reality. They should be able to offer data-driven insights which can help with automation plus financial forecasting.

Start the recruitment process for hiring a CFO today by visiting  FD Capital’s tailored recruitment process means that you’re guaranteed to find the right CFO for your SaaS business who will add value and become an integral part of your team. 

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