This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Chris Morgan, CEO of LBMC. Randy and Chris highlight the evolving intricacies in financial operations within B2B SaaS companies. They discuss the necessity for moving beyond simple cash accounting to sophisticated systems capable of managing accrual accounting and providing deeper insights into business performance. With a rich background in accounting and finance, Chris talks about the significance of order-to-cash cycles, the dangers of revenue leakage, and the sophisticated demands placed on modern CFOs in today's data-rich business environment.

Quotes

• “I think it’s really consistency. Not all businesses are the same. And you really want to have somebody who’s going to take the time and really kind of dive in and understand the business and the nuances around it so they can kind of better guide you on how all that should be captured and reported.” -Chris Morgan [19:54]

• “I think if a client is keeping their customers and growing and they're not losing business, then that's a great business, especially if they're hitting those two really well. And hopefully on the other side of it they're not losing customers, they're growing and adding customers as well from that standpoint.” -Chris Morgan [37:07]

Expert Takeaways 

• Implement Robust Accounting Systems: Utilize specialized SaaS tools to manage accounting operations, ensuring accurate and timely financial data.
• Maintain Consistency in Reporting: Develop and adhere to standardized methods for financial reporting and analysis.
• Prepare for Growth: Anticipate the inflection points in business growth that require enhanced financial oversight and transition smoothly with prepared systems and personnel.
• Embrace a Strategic Role: CFOs should evolve beyond the numbers, contributing to strategic business decisions and operational efficiencies.

Timestamps

(00:04) The Evolution of the CFO Role and LBMC's Growth

(02:30) Outsourced Accounting Solutions for Growing Businesses

(07:24) Navigating Financial Operations for Early-Stage B2B SaaS Companies

(09:42) The Critical Role of Accurate Accounting in Capital Raises

(16:12 Complexities of Consumption-Based Models in SaaS Revenue Recognition

(28:40) Creating Consistent and Digestible Financial Reports

(30:12) Strategic Financial Insights for SaaS Companies

(33:38) The Importance of Data Visualization for Modern CFOs

(33:44) The Evolution of CFOs from Compliance Officers to Strategic Partners

(37:07) The Importance of Gross Retention and Churn in SaaS

Links

Maxio

Upcoming Events

Maxio Institute Report

Randy Wootton LinkedIn 

Chris Morgan LinkedIn