More and more companies are using SaaS applications to manage their businesses. SaaS accounting applications offer many benefits, including the ability to track income and expenses, create invoices and financial statements, and manage payroll.
However, with so many options available, it can be difficult to know which SaaS accounting application is right for your business. To help you make the best decision, we’ve put together a list of six essential metrics that every SaaS accounting application should have.
These SaaS metrics can help you make better business decisions and optimize your operations. But first, let’s make sure you know what SaaS accounting software is and how it can help your bottom line.
SaaS means “software as a service.” It’s a type of subscription software that allows users to access and use the software from a remote location.
SaaS accounting software is a web-based application that allows businesses to manage their finances in the cloud. This type of software typically includes features like invoicing, expense tracking, and financial reporting.
SaaS accounting applications offer many benefits over traditional desktop software. For example, they are typically more affordable, easier to use, and offer greater flexibility. Team members can access the latest version of the software from any location, and updates are real-time and automatic.
This can save you time and money, as you won’t need to worry about manually downloading and installing updates. Here are six SaaS metrics to look for when choosing from your options.
1. Monthly Revenue
This metric measures the total amount of money that your company brings in each month. It includes all revenue sources, such as sales, interest, and investments. As a construction accountant, you need to track your monthly revenue to ensure that your business is on track.
You’ll also want to track your monthly recurring revenue. This metric measures the amount of money that your company brings in each month from recurring sources. In the construction industry, these might be things like service contracts or leasing agreements.
2. Average Contract Value
The average contract value is the average amount of money that your company brings in from each contract. This metric is important to track because it can help you understand your company’s pricing strategy.
For example, if you’re a construction company that specializes in residential projects, you’ll want to make sure that your average contract value is high enough to cover the costs of materials and labor.
3. Customer Churn Rate
The customer churn rate is the percentage of customers who don’t renew their contracts. This metric is important to track because it can help you understand how well your company retains customers.
A high customer churn rate can be a sign that your company isn’t providing enough value. It can also be a sign that your prices are too high.
4. Customer Acquisition Cost
Another key metric for construction accountants is customer acquisition cost (CAC). CAC is the amount of money you spend to acquire new customers. This includes things like marketing and sales expenses.
Tracking your CAC can help you understand how much it costs you to acquire new customers. This information can be valuable in making marketing and sales decisions. If you see that your CAC is too high, for example, you’ll know that you need to take action to reduce it.
5. Lifetime Value
Lifetime value (LTV) is a measure of the profitability of a customer. It tells you how much revenue a customer will generate throughout their relationship with your business.
Tracking your LTV helps you understand which customers are more valuable to your business. Not only will you want to acquire more of these customers, but you’ll want to put things in place that keeps them around.
6. Net Promoter Score (NPS)
The net promoter score is a key metric for construction accountants. It measures customer loyalty and engagement. It helps you understand the loyalty and engagement of your customers.
Once this figure begins to decline, it can be an early warning sign that something is wrong.
Customer surveys are one way to gather data for this metric. You can also track things like customer complaints and social media mentions.
Why these Metrics Are Important
It can seem as if half of your job as an accountant is reporting to senior management. This isn’t too far from the truth. A large part of your role is communicating the financial health of your company to those who make decisions about its future.
The six metrics we’ve discussed are important because they give you a snapshot of how your company is performing. They help you identify areas that need improvement and make decisions about where to allocate resources.
SaaS tools automate these metrics so you can spend less time gathering data and more time analyzing it. This allows you to make better decisions about the future of your company.
If you’re not tracking these metrics, now is the time to start. If you are tracking them, make sure you’re using the data to inform your decisions.
What Is Sage Intacct Construction?
Sage Intacct Construction is the leading cloud-based accounting software for construction businesses. It helps construction businesses manage their finances and stay compliant with government regulations.
This Saas metrics dashboard is a complete accounting solution that includes features such as job costing, project management, and financial reporting. It also offers integration with other construction software solutions, making it easy to manage your construction business from one platform.
If you’re looking for a comprehensive accounting solution for your construction business, then Sage Intacct Construction is the right choice for you. It offers everything you need to manage your construction finances and stay compliant with government regulations.
It will also help you with your sales and marketing metrics, so everything is in one place and at your fingertips wherever you’re working from.
SaaS Marketing Metrics
There are a number of different marketing metrics that you can track with a SaaS tool. These include things like website traffic, leads, and conversion rates.
Marketing metrics help you understand the performance of your marketing campaigns. They also give you insights into where you should allocate your marketing budget.
SaaS Sales Metrics
Sales metrics are important for any business, but they’re especially important for SaaS businesses. This is because the subscription model means that you need to keep your customers happy and engaged.
Some of the sales metrics you can track with a SaaS tool include customer churn, customer lifetime value, and customer satisfaction.
Tracking these metrics will help you understand the health of your business. It will also give you insights into where you need to improve your sales process.
Other Key SaaS Metrics to Tracks
There are several other key metrics that you should track with a SaaS tool. These include things like compound annual growth rate, Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), gross margin, and operating expenses.
Tracking these metrics will give you a complete picture of your business. It will also help you make decisions about where to allocate resources.
Automate Your Construction Accounting
With Sage Intacct Construction, you can automate your construction accounting processes. This includes features such as job costing, project management, and financial reporting. This will save you time and help you stay organized.
Stay Compliant with Government Regulations
With Sage Intacct Construction, you can stay compliant with government regulations. With such comprehensive software, you’ll have complete data going back for as long as you’re using the system stored all in one place.
Get a Complete View of Your Construction Business
With this SaaS tool, you can get a complete view of your construction business. This includes features such as job costing, project management, and financial reporting. This will help you make better decisions about the future of your construction business.
Concerned About Your SaaS Metrics?
As you can see, there are several important SaaS metrics that you should track to ensure your business is on the right path. While some of these may be specific to your industry or company, others are essential for all businesses.
If you’re looking for a more comprehensive guide to tracking SaaS sales metrics, we suggest using Sage Intacct. This cloud-based accounting software makes it easy to monitor your business growth and performance with detailed reports and SAAS metrics dashboards. With Sage Intacct, you can have instant access to all the key SaaS metrics that matter most to your success.
For help implementing Sage Intacct or any other construction software solution, contact us today!