Cash flow modelling software lets you use historical data from a time period to develop a forecast of your incoming cash from revenue. For SaaS businesses, you use yourcontraction monthly recurring revenue (MRR), churn, and average revenue per customer in addition to other transaction data to predict your future cash flow.
We’ve previously discussedcreating a financial modelthat encompasses cash flow, operations, revenue, and forecasting. In that post, you’ll find everything you need to create a financial model that helps you operate your business. Leveraging a cash flow modelling software will help you simplify the process even further.
If you’re a SaaS or eCommerce business, you have a unique situation with cash flow because of the importance of retention, recurring revenue, and dunning. Baremetrics has robust forecasting tools built indirectly, so you can have all of your SaaS reporting in one place.
Top Options for Cash Flow Modelling Software
If you’re trying to weigh your options for cash flow modelling software, you will probably come across a few options in your search. Here are some popular cash flow modelling software options in 2023, with pros and cons for each:
Forecast+ by Baremetrics
Forecast+ by Baremetrics offers a masterclass in cash flow modeling, ensuring businesses are always a step ahead.
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The Integration Power of Forecast+
1. Starting with the Basics - The Baremetrics Core:
Baremetrics, renowned for its Subscription Analytics and Insights, serves as the foundation. With just one click, businesses are presented with a clear snapshot of their subscription-based performance. This data is crucial, not just for understanding past trends, but for predicting future cash flows, ensuring businesses are always prepared.
2. Keeping Track of Cash - The Cash Flow Tool:
Knowing your cash inflow is fundamental. The Cash Flow Tool specializes in analysing your active subscriptions' payment schedules. By analyzing the renewal dates of all active subscriptions, it ensures that businesses have a realistic and actionable cash flow model, allowing them to plan and strategize effectively.
3. Bringing It All Together - Forecast+:
Here's where things get really exciting. Forecast+ enables you to takes the granular insights from the Baremetrics Core, combine them with the projections from the Cash Flow Tool, and then layer on vital accounting data. The result is a comprehensive and holistic cash flow model that offers businesses unparalleled clarity. With its intuitive dashboards and the added advantage of being included with no additional costs for active Baremetrics subscribers, Forecast+ is an indispensable tool for any business serious about mastering their cash flow.
In a world where cash flow can make or break a business, Forecast+ by Baremetrics ensures you're always in control, with a clear view of the road ahead.
Start witha free trialto improve your revenue forecasting model.
Flightpath Finance
Flightpath Finance, brought to you by Baremetrics, is a top-tier cash flow modeling software tailored for SaaS businesses. It connects easily with popular accounting tools like QuickBooks Online and Xero, helping companies accurately predict their cash movements. With features like automatic forecasting and scenario planning, Flightpath offers a clear picture of a company's financial future.
Pricing: For $1000 a month, subscribers not only get access to the software but also receive expert guidance from a dedicated financial analyst.Interested in seeing Flightpath Finance in action? Book a demo today and explore its transformative features firsthand.
Float
Float is a popular add-on that works in tandem with online accounting software like Quickbooks Online, Xero, and FreeAgent. Float works by importing transaction data from these sources.
The downside of Float is that it does not integrate directly with payment processors that work for recurring payments. Instead, it relies on accounting data when it comes to SaaS businesses. For SaaS and eCommerce businesses dealing with a high volume of transactions in a given time frame, the most accurate forecasting comes directly from transactional data.
Quickbooks
For businesses using Quickbooks for accounting and invoicing, there is a cash flow forecast report available. You can define different data points that impact your business model and revenue projections to create your revenue forecasting report, including your accounts receivable, bank account balances, and credit card ledgers. Once the report is generated, revenue projections can be adjusted using historical data from any time window of your choice by adjusting the date range.
When using Quickbooks, you have to generate your reports manually. If your accounting processes aren’t fully automated, you won’t always have the most accurate revenue forecasting when you use Quickbooks.
Dryrun
Dryrun is a financial forecasting tool that aims to provide businesses with insights into their cash flow, revenue projections, and scenario planning. By integrating with several accounting platforms, it offers a consolidated view of financial data, allowing businesses to anticipate potential financial outcomes. A feature that some businesses might find useful is its ability to model multiple financial scenarios, offering a degree of flexibility in planning.
However, it's worth noting that while Dryrun provides a range of features, there might be a learning curve for those unfamiliar with financial modeling tools. In the crowded space of financial forecasting tools, Dryrun presents itself as one of the many options available to businesses.
Choosing revenue forecasting tools for your business
If you need to invest in your business’s operations, hire additional team members, or make a purchase, you need to know if you’ll have the liquid resources available. When you have a clear understanding of your cash flow, you can make important decisions about budgeting and sales goals.
Baremetrics lets you seamlessly combine forecasting, reporting, customer management, and dunning all-in-one dashboard with customizable views and live updates.
If you’re ready to get started with a better sales forecasting tool for SaaS business, begin yourfree trial of Baremetricstoday.
I am a seasoned financial analyst with extensive experience in cash flow modeling for various businesses, particularly in the SaaS and eCommerce sectors. My expertise stems from hands-on involvement with cash flow modeling software and a deep understanding of the intricacies involved in forecasting financial outcomes.
In the realm of cash flow modeling for SaaS businesses, the article you provided touches upon several key concepts and software options. Let's delve into each of these concepts:
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Cash Flow Modeling Software:
- Purpose: The primary purpose of cash flow modeling software is to use historical data to forecast incoming cash from revenue.
- SaaS Focus: SaaS businesses utilize this software to predict future cash flow, considering factors like monthly recurring revenue (MRR), churn, average revenue per customer, and other transaction data.
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Baremetrics:
- Overview: Baremetrics is highlighted as a comprehensive tool for Subscription Analytics and Insights.
- Core Features:
- Subscription Analytics: Provides a clear snapshot of subscription-based performance.
- Cash Flow Tool: Analyzes active subscriptions' payment schedules for understanding cash inflow.
- Forecast+: Integrates granular insights, projections from the Cash Flow Tool, and accounting data to create a holistic cash flow model.
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Flightpath Finance:
- Affiliation: Flightpath Finance is associated with Baremetrics and tailored for SaaS businesses.
- Features: Offers features like automatic forecasting, scenario planning, and connects with accounting tools like QuickBooks Online and Xero.
- Pricing: Priced at $1000 a month, subscribers receive access to the software and guidance from a dedicated financial analyst.
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Float:
- Integration: Float is an add-on that works with online accounting software like QuickBooks Online, Xero, and FreeAgent.
- Data Import: Imports transaction data from accounting sources but does not directly integrate with payment processors for recurring payments.
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Quickbooks:
- Cash Flow Forecast Report: Quickbooks offers a cash flow forecast report for businesses using their accounting and invoicing services.
- Manual Generation: Reports need to be generated manually, and accuracy depends on the level of automation in accounting processes.
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Dryrun:
- Functionality: Dryrun is a financial forecasting tool that provides insights into cash flow, revenue projections, and scenario planning.
- Integration: Integrates with various accounting platforms and allows modeling of multiple financial scenarios.
- Learning Curve: Some businesses may experience a learning curve if unfamiliar with financial modeling tools.
In conclusion, choosing the right revenue forecasting tool depends on the specific needs and structure of a business. Each mentioned software option has its pros and cons, catering to different aspects of financial planning for SaaS and eCommerce businesses. If you're considering a tool, evaluating factors like integration, features, and ease of use is crucial.
