Growth, cost-cutting, and asset optimization are just a few of the long-term company strategy goals that strategic finance aims to help businesses accomplish. It makes use of integrated, cutting-edge technology that offers real-time data for analysis and decision-making. The use of real-time business intelligence from integrated systems across the firm to plan, assess, and help course corrections is a key function of strategic finance, which is why it is crucial to businesses. They accomplish long-term strategic objectives, allot needed resources, and boost company performance.

The role of the CFO and the finance team expands beyond the apparent expectations for SaaS businesses as any other Finance function. A thorough financial strategy can be developed by strategic CFOs, who can offer insights that can encourage positive changes within the business. A strategic finance team, led by the CFO, employs sophisticated analytics and intelligent financial tools to recommend and implement strategic decisions to the CEO and Board of Directors.

Strategic finance's fundamental components include :

• Refocusing financial efforts on activities that add value in order to achieve long-term strategic objectives.
• Utilizing enterprise-wide, real-time, automated, and intelligent software systems.
• Maximizing the resources required for effective operations and strategic initiatives.
• Updating financial and strategic reports in a relevant manner.
• Use automation technology to increase productivity in closing the books and carrying out standard transactional accounting tasks so that finance work may be shifted to those value-added activities that will assist the SaaS business to achieve its strategic goals.

• What does the valuation of the SaaS company look like under various ARR scenarios?
• What are the most critical qualitative narratives that would be presented to the potential investors, such as the problem statement, target audience, differentiators, competitive advantage, funding request, etc.?
• What operational and financial trends must be communicated to investors?
• SaaS Metrics scorecard: Is it attractive to investors?
• How is the company likely to fare under pressure or unexpected circumstances?
• What impact do various pricing levels have on your ARR growth?
• Does the company have a clear understanding of its prospective TAM, SAM, and SOM?

Strategic financial advantages include:

• Concentrating on achieving a company's long-term objectives.
• Spotting chances for lucrative expansion or bigger market shares.
• Delivering real-time decision support to the CEO and board of directors.
• Using a strategic plan with a forward-looking perspective, communicating actions, and monitoring outcomes compared to goals.

A strategic Chief Financial Officer (CFO) creates information packages for the CEO and Board of Directors outlining financial outcomes and strategic financial concerns. To report on the status of achieving strategic business goals and give suggested strategies for achieving these goals, a strategic CFO needs forward-looking critical thinking and storytelling abilities.
The Board and top management of the firm, including the CEO and CFO, have a fiduciary duty to the company's shareholders to conduct business responsibly, according to good corporate governance, and to carry out business strategies in order to achieve desired financial results.
It is necessary to establish connections between long-term planning's strategic goals and the steps needed to achieve those goals. Real-time systems will generate timely data to monitor the accomplishment of these objectives, forecast anticipated outcomes under various scenarios, and spot cost-saving opportunities.
To give the board members time to familiarize themselves with the information before discussing and voting on issues and making important financial and business decisions, it is ideal to provide Board information packages ahead of each monthly Board of Directors meeting.

By using a strategic financial approach, the SaaS business and the finance team may significantly contribute to the success of the company. Finance has a seat at the table and participates in the creation and implementation of growth initiatives. Finally, strategic finance teams in SaaS companies are crucial to the success of a SaaS organization. With real-time financial planning and analysis linked to the long-term strategy and plan, the CFOs and other finance professionals who apply a strategic finance approach significantly increase the value of the SaaS firm. Strategic finance needs a perspective that emphasizes ongoing improvement, Collaboration, leadership, data story-telling, and leveraging technology to augment the Finance function and act as a lever for the business. Click Here to read our publication to know more.