Revolutionizing financial operations for vertical B2B SaaS acquisition firm using NetSuite
Context
Our customer operates on an 'acquire and scale' model, assisting vertical B2B SaaS companies in reaching their full potential through acquisition and long-term tactical and financial guidance. Initially, the company managed financial data through spreadsheets and small financial tools.
Challenges
As the company began acquiring portfolio companies (PortCos), they encountered several challenges:
Standardization
- Various business models and disparate ERP systems among PortCos led to complexity and challenges.
- Lack of a unified standard process hindered seamless operations.
Billing Solution & Complexity
- Managing multiple pricing models and revenue recognition methods introduced complexity.
- Dealing with different currencies within PortCos' operations added further complication.
Automation
- Manual data entry and validation became time-consuming and error-prone due to the absence of standardized processes.
- Each invoice required manual entry, leading to delays and increased chances of inaccuracies.
Data Integration & Reporting
- Consolidating data from different ERP systems posed challenges in terms of integrity, accuracy, and timeliness.
- Absence of a unified standard process hindered seamless data integration and comprehensive reporting.
Solution
Closeloop provided a tailored ERP solution to address these challenges:
Assessment and Requirements Gathering
- Conducted a comprehensive assessment of existing financial management processes and systems.
- Identified pain points and areas for improvement.
Solution Architecture
- Proposed a scalable architecture for NetSuite implementation.
- Utilized SuiteBilling for contract processing and billing operations.
- Implemented Advance Revenue Management for complex revenue recognition requirements.
Results
The implementation of the proposed solutions yielded significant results.
- Standard financial processes and the SuiteBilling module were implemented within six weeks.
- Improved management of financial data and subscription processes.
- Streamlined revenue recognition and invoicing processes.
- Enhanced financial reporting capabilities for subscription revenue.