SaaS Cash Flow Projections
Learn More - See How we Project Cash in SaaSOptics
Three Components of SaaS Cash Flow Projections / Forecasts
How do you project cash flow in a SaaS or subscription business? To generate a cash flow forecast, you must incorporate distinct sources of "cash in" projections from three sources:
- Cash from invoices from existing contracts
- Cash from invoices from renewals of existing contracts
- Cash from invoices for new contracts (new sales/contracts)
SaaS Optics can generate invoicing schedules for all three sources.
Cash from Existing Contracts
You probably don't need SaaS Optics for this. It's easy enough to get from your finance system.
Cash Projection from Future Renewed Contracts/Terms
But you do for this. SaaS Optics enables you to project future renewals AND the invoicing schedules for the future renewals. So, in addition to projecting bookings and revenues, you can project cash flow.
Cash Projection from New Contract (new sales/contracts)
Your sales team and CRM/SFA system will help you (to a certain degree) project new sales, but you still need to generate invoicing schedules to project cash in. Financial accounting systems are designed to deal with actual transactions, so again you go back to a spreadsheet.
Managing a spreadsheet with these three streams get's impossibly complicated as your transaction volume goes from a few to a few dozen to a few hundred. SaaS Optics makes forecasting cash flow easy, relieving you from constant spreadsheet data management and programming, ensuring you have the most accurate cash flow forecasts whenever you need them.
