Automated reporting for SaaS: a quick guide

With the explosion in the volume of business data available to SaaS companies, reporting on Excel or Google Sheets is reaching its limits.

Automated reporting is becoming essential for companies—especially SaaS companies—to make the right decisions, by accessing the right data at the right time.

We explain why and how to automate SaaS reports.

1 - Disadvantages of manual reporting

Running a SaaS startup in an increasingly uncertain landscape also means keeping a close eye on its management. Managers and investors alike need relevant, periodic dashboards to quickly visualize the business’s various KPIs.

1.1 - How do I create a classic report in Excel or Google Sheets?

The traditional method for producing this periodic report is often to find a ready-to-use template. But this solution quickly shows its limitations. The person in charge of KPIs and dashboards has to do everything by hand: adapting the template, formulas, data entry and updating, auditing and verification, graphs, as well as presenting and sharing the report.

This means collecting information every month,reprocessing it, calculating indicators, modifying graphs and so on. This method wastes a lot of time and energy. What’s more, using a spreadsheet correctly for elaborate formulas or graphs is not for everyone. What’s more,automating reporting via VBA or scripting also requires a certain level of knowledge and allows very little flexibility.

1.2 - Reporting without automation: complex data collection

The first task for spreadsheet-based reporting is to collect the source data. Relevant dashboards generally combine various data sources, such as invoicing,accounting, treasury, CRM, HRIS, etc. This recovery is carried out via periodic file exports, which is very time-consuming.

As a company grows, the sources of information multiply and become more complex. Without automated reporting, the people in charge of producing the reports run the risk of getting lost in the flood of data. This may reduce the reliability of the information processed (and waste a lot of time).

1.3 - Calculating KPIs by hand: the disadvantages

In a SaaS environment, the KPIs essential for day-to-day management are numerous and sometimes complex to calculate. It’s hard to imagine calculating certain key indicators by hand each month, such as ARPA (average revenue per customer), cash runway, or LTV/CAC ratio, for example. As for changes in customer behavior, which can be studied through cohort analysis, forget it! Without automation,this task is impossible.

1.4 - Excel or Google Sheets as reporting tools: sources of errors

Spreadsheet reporting is time-consuming. While the person in charge of dashboards performs this type of task by hand, they can’t invest their energy in data analytics.This in turn means that periodic KPIs are not always available on time,compared with an automated solution that provides a real-time view of the business.

Choosing non-automated reporting also carries with it a risk of errors compared with software that automatically collects, processes,and formats data.

To minimize this risk, manual reporting requires multiple checks at various points in the files, as well as thorough re-reading of figures and formula. Without an experienced controller, this process can be time-consuming, and has to be carried out each time the figures are updated. The ultimate risk is that a manager will make important decisions on the basis of a report containing erroneous data.

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2 - Automated reporting and its key benefits

Fortunately, SaaS companies like all SMEs can now find tools that automate reporting and KPI calculation. Here’s how these management tools work, and how they can help you steer your company’s performance.

2.1 - Automated reporting: a new standard for companies

The production of KPIs and dashboards through the automation of reporting is becoming the norm today. The use of such a tool (often available as SaaS) brings real time and quality savings for users. These new automated reporting tools can largely replace Excel or Google Sheets.

The best reporting tools automate the entire reporting process:

• collection;
• storage;
• processing;
• and conversion of the data into KPIs and graphs.

Users can then concentrate on the essentials: data analytics and decision-making.

Some business intelligence tools (Tableau, Power BI,Google Data Studio, etc.) require a huge investment of time and energy before they can be used to their full potential. They require specific settings to meet the needs of the company or business. They also require team training to maintain reporting is of good quality and suited to the company’s needs as they evolve.

Other tools offer more accessible, turnkey solutions for VSEs, SMEs, and startups. Read about Fincome’s automated reporting solution for your SaaS business.

2.2 - Fincome, an automated reporting solution for SaaS applications

Our aim at Fincome is to provide SaaS managers with analytical management tools to help them manage their business. As such, we offer automated reporting integrated with our platform.

a - Our special SaaS solution

Fincome’s advantage lies in its mastery of SaaS-specific KPIs. We are fully aware of the financial management needs of these companies and have built a turnkey management solution for them. Our platform gives access to a full, real-time view of our subscribers’ performance that directly links to their various data sources.

b - Automate your reports to focus on analysis

By opting for an automated, online reporting solution,SaaS managers (and/or their partners: CFOs and chartered accountants) can free themselves from the time-consuming—and even error-prone—task of manually compiling reports. Instead, they can concentrate on analyzing key indicators, which are essential for decision-making.

Automated financial reporting represents a real technological advance for companies, including VSEs, SMEs, and startups. Today,automated reporting is easy thanks to turnkey, tailor-made tools.

To see what Fincome can do for your automated reporting, book a free online demo.

💡 Complete your reading with the following articles:

• How is a SaaS company valued ?‍
• 3 common mistakes that kill SaaS startups
• Top tips for communicating with SaaS investors
• KPI reporting at every stage of your startup
• ‍Why is SaaS financial reporting still crucial for your startup in 2023?