Cash Flow for SaaS Companies

What is cash flow?

Cash flow is the cash flowing in and out of a business at a specific point in time. If your cash flow is positive, you have more money coming in (customers are paying you) than going out (you are paying your suppliers). If your cash flow is negative, you have the opposite, more money is flowing out than in.

Cash flow may be hindered by such things as long days sales outstanding (DSO) periods, invoicing errors, and delays in accounting for contract amendments. Invoicing errors often equate to delayed customer payments. Slower cash flow may slow down decision making, potentially slowing company growth.

Cash flow is often accelerated with a fully-integrated quote-to-cash solution that automates processes and data flow with real-time data, to include contract amendments, keeping the front office and back office on the same page.

A cash flow statement is the most common way for companies to measure cash flow. A cash flow statement is a snapshot of how much cash is flowing in and out of your business at that point in time.

Many cloud accounting solutions for SaaS companies include a SaaS metrics dashboard and automate the measurement of cash flow with real-time data.

Sage Intacct Customizable Executive Dashboard

Sage Intacct customizable executive dashboard.


Accounting and Financials Glossary >