What if I told you that before October of 2020, we had one full-time finance team member managing financial operations at a company with 80+ employees and 800+ customers?
Yes, you read that right. One person to manage expense reports, commissions, billing and invoicing, cap tables, revenue recognition, deferred revenue, and more. But how is that even possible?
The answer lies in choosing the right FinOps stack for your business. With thousands of FinOps products on the market today, it’s time-consuming but necessary to choose the right ones for your B2B SaaS business.
Luckily for you, we have years of hands-on experience in automating our financial operations at Maxio and have implemented a few solutions that we believe you must have in 2021 to scale and grow your business. Here are our Top 5 FinOps solutions to have in 2021:
FinOps Solution #1: Cap Table Management (Carta, OPTRACK, Capshare)
If you have raised any amount of capital, or plan on raising a round of funding soon, do yourself a favor and get one of these solutions. They make it incredibly easy to manage all stakeholders’ equity. They automate cap tables through real-time updates with every new transaction added, getting your businesses out of spreadsheets. Some of the solutions also offer tax forms and 409A services. This is a must-have for growing B2B SaaS businesses as you look forward to that Series A or B or even an IPO.
FinOps Solution #2: Sales Commissions (Spiff, Performio, Captivate IQ, QuotaPath)
Offering real-time sales commission reporting whether it’s a flat-rate, tiered, event-based, marginal, or trailer–automating your sales commissions offers clean reporting and sales dashboards. It makes it easy for reps to view what they can expect to see in their check each month meaning they don’t have to hound finance each time a deal closes. Also, finance doesn’t have to keep tedious records in spreadsheets – saving valuable time and providing the bandwidth for on-demand requests.
FinOps Solution #3: Expense Report Management (Expensify)
If you no longer wish to waste time manually going through expense reports and matching receipts to every line item, this is the next solution for you. With over 80 employees, it just isn’t possible to keep up with all the demands of employee reimbursement at Maxio. Employees love it because they no longer have to scan their receipts and make a PDF document and you will love it because you don’t have to sift through spreadsheets trying to make sense of it all.
FinOps Solution #4: Sales Tax Management (Avatax)
With the constantly changing sales tax laws, having a sales tax solution makes it about as simple as sales tax can get for your B2B SaaS business. You don’t have to worry about nexus rulings, rate tables in spreadsheets, or which states are collecting sales tax and which states aren’t.
Could you imagine trying to accurately state sales tax on an invoice to a customer whose office is in Dallas, headquarters are in North Dakota when your business operates in New York? Who has time for that?
FinOps Solution #5: Subscription Management (Maxio)
For everything else, there’s Maxio, which offers complete subscription management for your B2B SaaS business. With Maxio, you can automate your entire order-to-cash process. Maxio automatically syncs orders and renewals between your CRM and GL, provides accurate, GAAP compliant revenue recognition, custom invoices, and collections and dunning cadences, as well as hundreds of SaaS metrics for financial insight.
For B2B SaaS businesses from $100K ARR to $100M+ ARR, this is a great solution to add in 2021 for about 10% of the cost of an ERP.
There are a ton FinOps products on the market and you can’t use them all, but if your business is growing and you need to keep up without adding a ton of headcount, these are definitely solutions you want to invest in for 2021. Your board will thank you, your team will thank you, and you will thank you.
– Charles Dye, Finance Manager
Bottom line, each of these solutions gets you out of slow and manual processes in spreadsheets and automates your financial processes. 2021 is the year to break up with your spreadsheets.