How many SaaS metrics are you tracking to measure business performance?
Instead of over measuring 20, 30, or 40 different metrics, Chris believes finance leaders need to boil it down to a select few key metrics that truly measure their business. These include:
- Opportunities to closed/won
- Closed/won to new projects
- New projects to projects completed
- Projects completed to NDR
- NDR to cash
By boiling down their financial KPIs to these seven, CFOs are able to serve the business by engaging with other functional areas, such as marketing, sales, customer success, and finance. Chris advises leadership teams to review these on a quarterly basis, see how you’re measuring your budget vs. actuals, identify any forecasting errors, and adjust accordingly.
In Chris’s opinion, this method helps CFOs avoid analysis paralysis and provides a clearer picture of business performance across an organization.
2023 is the year of the CFO. Do you have the right tools to make the most of it?
As we look forward to 2023, it’s clear to see that the CFO is the connective tissue between departments and a key player in the success of the modern B2B SaaS business.
The modern CFO should be asking questions like “where are we from a growth perspective?” and “Which customer segments, product capabilities, and geographies are performing well?”
But all of that is near impossible without the right tools in place. LBMC W Squared uses Maxio, a financial operations platform, to automate transactional accounting activities and access real-time SaaS metrics, so that CFOs can focus on activities that add value to their business.