What's so special about SaaS finance roles?
This question mostly looking for help, but I admit, it's seasoned with a fair bit of frustration. I'm sure others have experienced similar.
I've been working hard for many months to break into a finance role (Sr. Financial Analyst, Strategy Analyst, Finance Business Partner, all titles I've got experience in) at a SaaS company. I've not worked in a SaaS company before, so I've applied to those companies that claim to value diversity and varied experience. If I can get an interview, which is rare, and often only because I know someone at the company, I interview well. I apply for more junior as well as more experienced roles. But it always comes down to my "not having SaaS experience".
Frustrated (but genuine) questions:
What on earth could be so magical, mystical, or complex about a SaaS company that they cannot conceive of someone without SaaS experience being successful there? Finance skills are very transferrable between companies.(Yes, SaaS has it's own financial metrics, unit economics, and business model. So does every other industry):
Airlines: $/Seat Mile,
Health Insurance: $/Member Month,
Energy: $/MWh, $/Bbl, etc...)
How do you get out of the "need experience-can't get experience" cycle if you're not entry-level?
Any advice? Are any of you an FP&A hiring manager at a SaaS company who would be willing to do an informational interview?
Thank you so much!!
Barb Hansen
Startup Product, Growth & Strategy
9.66k
03/01/22 at 1:02AM UTC
SaaS companies recognize revenue differently than other companies - that's probably the biggest issue and it's a big issue. My startup is SaaS based so I've had plenty of conversations and some experience in when to recognize our revenue in our financial proforma. I'm not a finance person, although I did create our financial proforma.
I would suggest that you do some reading on how SaaS companies recognize revenue and then sprinkle those keywords into your resume, cover letter and interview.
Here is an article that I found that summarizes the when to recognize revenue for a Saas https://warrenaverett.com/insights/revenue-recognition-for-saas/
Anonymous
03/07/22 at 9:30PM UTC
Thank you Barb for your response and resource suggestion. Congratulations on building your own pro-formas!!!! Not an easy thing if you don't have an accounting/finance background.
I've read about the difference in revenue recognition (matching the timing of when the SaaS service is delivered) and how it is different from bookings as well.
Currently, I'm learning about Product Led Growth (PLG) and consumption pricing models, as those seem to be the latest wave in SaaS.
Barb HansenStartup Product, Growth & Strategy
9.66k
03/01/22 at 1:18AM UTC
The last time a hiring manager asked me, "I see that you don't have any experience in the industry XYZ. If we hire you, how will you overcome that"?
--- internal dialogue --- Dude, I read your LinkedIn profile before this interview. Did you not think I would notice you're lack of industry experience" --- end of internal dialogue ---
I responded, "How did you overcome your lack of experience in industry XYZ when you started at this company"?
That may not have been the best response to the question, but it seems the best response at the moment. He laughed and said, "good point," and we moved on.
User deleted comment on 03/01/22 at 1:17AM UTC
