SaaS accounting software is helping businesses drive digital transformation and be more efficient with their financial processes. Accounting tools are essential to the operation of modern organizations, and the SaaS business model is a perfect fit for accounting software.
Whether you are a business owner looking for an accounting solution to help you manage cash flow and expenses or an organization interested in developing and selling SaaS accounting software, this post will cover everything you need to know.
First, we’ll explain what SaaS accounting software is. Next, we will examine the key features that every SaaS product manager should have in their accounting software. Finally, we’ll cover the business benefits associated with SaaS accounting solutions. If you are interested in developing and selling accounting software, it is essential that you can explain the benefits to your customers.
What Is SaaS Accounting Software?
SaaS accounting software is a web-based accounting solution that replaces traditional offline software. SaaS accounting software solutions can be accessed by any device that can connect to the Internet, which gives organizations a great deal of flexibility. In addition, we live in a mobile-first world that is increasingly agile. As a result, SaaS accounting tools can be downloaded as mobile apps or used on the web via a computer.
The infrastructure for SaaS accounting software is built on the cloud. This simplifies things for SaaS companies selling the accounting software and the businesses that purchase it. For example, instead of installing software on every device, businesses simply log in to their account on the Internet or download an application to access their SaaS accounting solution.
Key SaaS Accounting Software Features
The features included in your SaaS accounting software can help your business differentiate itself from the competition. However, several key features must be included in your accounting solution, including:
- Reporting and analysis
- Data migration
- Payment processing
Reporting and Analysis
A business’s financial data often needs to be presented to key stakeholders, leaders, employees, and in some cases, regulators. SaaS accounting software should include reporting and data analysis features that allow users to create reports and analyze critical data points. Users should have the ability to visualize the cash flow of their business, create detailed profit/loss reports, and more. Accounting software should also simplify tax-related tasks and audits.
Most of your customers are likely not brand new businesses. Therefore, data migration is an essential feature of good accounting software. Users should be able to easily import all of their existing financial data, books, reports, etc. In addition, they should be able to export their data just as quickly. It will be hard to gain customers if your SaaS accounting software makes importing data difficult or time-consuming.
Modern accounting software should have the ability to process payments. Payment processing allows customers to make easy online payments when receiving an invoice. It also allows businesses to collect payments faster and simplify bookkeeping. If you don’t include a payment processing system in your SaaS accounting software, your business will struggle to compete with the solutions that offer this vital feature.
Accounting is a business function uniquely tied to all facets of business operations. Therefore, SaaS accounting software should be interoperable with other essential business software, such as ERP, CRM, HR, and payroll. FinTech software needs to integrate with everything to be the most effective for businesses. Make sure that your accounting software works well with other tools.
The data associated with accounting is extremely sensitive. Therefore, all SaaS accounting software must have robust user authorization and security features. Your customers are counting on your organization to provide a secure accounting system. Failure to provide strong security can lead to breaches and customer data loss, which will damage your brand reputation and hurt your SaaS business.
The Business Benefits of SaaS Accounting Software
SaaS has several benefits for businesses, but three main points rise above the rest. SaaS companies should already be familiar with the benefits of SaaS accounting solutions, but it can be helpful to their sales team to fully understand these selling points. If your organization is trying to determine if using SaaS accounting software is suitable for its needs, the main benefits include:
- Maintenance and security
Traditional accounting software can be expensive to license. SaaS accounting software helps businesses realize cost savings because they only pay for the resources they use. Typically, SaaS is sold as a subscription. Companies either pay a monthly or annual fee for access to the software.
This is a prime example of how recurring revenue operates in subscription businesses. The subscription model helps organizations save money because they avoid expensive upfront costs and fees for licensing. Plus, businesses don’t have to pay for upgrades to the software, which are done automatically since SaaS utilizes a cloud-based infrastructure.
The subscription model also benefits SaaS companies. Instead of collecting a one-time fee, SaaS companies get monthly recurring revenue in subscription payments. In addition, since SaaS is more cost-effective for businesses than traditional accounting software, companies selling SaaS can attract more customers and sell more software subscriptions.
Business needs change regularly. SaaS accounting software gives companies the flexibility to meet new demands and challenges without making significant changes to their software. SaaS allows businesses to scale in real-time. For organizations, their subscription price might change, especially if they want to add several new users or add additional features, but these changes can be made simply.
In the past, organizations that wanted to scale would have to update their software on every machine running it or purchase additional licensing keys. With SaaS, businesses can change their subscription plan instantly. As a result, SaaS companies benefit from the opportunity to upsell their service to growing customers with changing needs.
Maintenance and Security
Regular maintenance is essential to the health of software. Plus, all software, especially software that handles sensitive financial data, needs robust security services. SaaS benefits businesses because the SaaS provider handles the bulk of security and software maintenance. This creates peace of mind for businesses knowing maintenance and security are addressed.
SaaS companies need to plan for regular maintenance and security as part of their service offering. Partner with a development company to help your organization build its SaaS accounting software. You can benefit from having a skilled team of dedicated developers to help upgrade, maintain, and secure your SaaS.
If your business is interested in developing SaaS to sell, you need to work with an app development partner that understands how to build world-class software products. There are a lot of technical details that need to be considered and addressed before you can launch SaaS. Work with an experienced partner that will employ the latest technologies and use dedicated development and project management teams to build successful SaaS accounting software.