Managing Cashflow in a Subscription Based Business

The benefit of operating a subscription based business is that monthly cashflow is somewhat predictable. The challenge is having enough cash to fuel growth in new customers and the infrastructure to serve them.

We deploy SaaS metrics such as Cost to Acquire a Customer, Churn Rate and Lifetime Value of a Customer to help you track and measure your company’s performance in real-time. We can help you understand and manage complexities around when to recognize revenue and the impact it has on your cash flow and valuation.

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Subscription based business
Benefits

Benefits

  • Tracking Metrics in Real Time
    We connect all the systems in our software platform, including tools like Google Sheets, to bring in operational data.
  • Forecasting
    We can help determine how much cash you need and when. We can also identify when your company has gotten scalable: each new dollar of revenue delivers higher profit as fixed costs are now covered by internal cash flow.
  • Strategic Advice
    We use the financial data we see every day to guide you in the decisions you need to make to build enterprise value.

Our Deliverables

Short-Term Cash Flow Forecasting

Subscribers to our short-term cash flow forecasting service get a 13-week cash flow forecast that’s updated weekly. We also use cloud-based software to connect to your accounting system and bring in transactions that help us build the forecast, which we’ll then review with you in either a weekly or monthly meeting.

Accounting

As a Virtual Accounting customer, you will get an accountant assigned to you who will manage the regular accounting flow of your business. This person will meet with your team weekly and will work on your account several times per week to ensure all transactions are properly classified and posted. We also perform bank reconciliations and close the books each month.

Reporting

You will receive at least one dashboard and a set of financial statements from us each month.  Dashboards and reports are customized to provide information that’s useful to you and your management team. Virtual Controller and Virtual CFO customers also get a monthly management meeting with a senior financial executive on our team to review your financial reports after the close.

Planning

Subscribers to our Virtual Controller and Virtual CFO services get a customized financial forecast and reports showing actual performance versus the plan, as well as a monthly management meeting with a senior financial executive on our team to review and update the financial plan.

Advisory & Analysis

Virtual CFO customers get an additional four meetings per month with a senior financial executive to advise on how best to grow your company. These meetings can be used to meet with your leadership team, or as one-on-one conversations with you or your investors, bankers, board members, etc. These meetings are meant to be strategic – providing our insights, experience and expertise in working with businesses like yours. We also perform ad hoc financial analysis to support your company, such as pricing studies, cost reviews, customer/product profitability, marketing effectiveness and insurance reviews.

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