SaaS Financial Model – Your Financial Blueprint

Step-by-Step Guide to your First SaaS Forecast

SaaS Financial Model

Finally, I pushed the button and released my first SaaS Financial Model in Excel. Over the past few months I have released various Excel models covering forecasting, SaaS metrics, and personnel expenses. I combined some of these models into one and developed version one of my SaaS Financial Plan.

The Excel Model can be downloaded below.

Like anyone building a software product, it is hard to stop adding features or checking for bugs. Sometimes you just have to release it and listen to customer feedback. Otherwise, it might never launch. I did not want the model to turn into something that only finance or Excel pros could manipulate.

SaaS Financial Model

What’s Included

The model includes the following tabs to drive the forecast.

  • Revenue Tab
    • Inputs on customer counts, ARR, churn, etc.
  • Headcount Tab
    • Detailed model to forecast wages by position including start and end dates and benefits/taxes.
  • Non-wage Tab
    • Inputs by department to model non-headcount expenses. Includes formulas to help you easily spread expenses over specific time periods. I try to avoid hardcoding at all costs.
  • CapEx Tab
    • Input capital project details which will flow into the unlevered free cash flow section.
  • Controls Tab
    • Global controls tab for inputs such as model start date, tax rate, etc.
  • Instructions Tab
    • I have step-by-step instructions including links to each part of the model where you need to enter your assumptions. I will avoid boring you in this post with all of the how-to’s.

SaaS Financial Model Instructions

Finally, there is a summary tab that takes all of your inputs and presents the results of your assumptions. This SaaS Excel model is targeted to not only finance pros but also founders and SMB’s who need to forecast their SaaS business.

Feedback Please

Future features will include more SaaS metric outputs, charts, service bookings/revenue, and potentially a balance sheet and cash flow statement. I’d like to get your feedback on what is necessary to model your SaaS businesses or startups.

I would love to hear your feedback. What is working? What is not working? What else should I add?

For the latest version of my model, please see the SaaS Financial Plan page.

Please enter your valid email below (no spam) to activate the download.  I will keep you updated on future models.

If you do not receive the email, please contact me.

6 Replies to “SaaS Financial Model – Your Financial Blueprint”

  1. To answer a question that came in via email.

    Question) In the summary you show Gross Profit as Revenue minus Cost of Operations (as normal). But the Cost of Operations (Cost of Sales/Cost of Revenue) does not take into account the “Cost of Revenue” as shown in the Non Wage inputs tab (line 42). I believe this is because the P&L Category 1 is designated as Cost of Revenue but is used as an item under Marketing Department – and therefore these costs show up as Marketing in the Summary tab. I believe that if you want to show the Exps by Category and also enter the expenses by Department then you have to ensure that P&L Category that is designated as Cost of Revenue must not be used in Departments which are not linked to Cost of Revenue ?

    Answer) Great observation and one that I should explain more in the post. The Summary by P&L Category on the Non-wage Tab is informational and not used to pull data to the Summary Tab except when needing certain expenses (i.e depreciation) for the cash flow. It is an alternative way to roll up your expenses that are inputted at the department level below.

    The inputs in cells A10 to A38 on the Non-wage Input Tab are used to categorize major expenses. These could be adjusted as well to your suiting. In this case, I was inputting sample data to get data into the model and didn’t notice the mismatch (i.e. marketing is not a Cost of Revenue).

    I can see that it would be a bit confusing. The Summary tab pulls department data from the Non-wage Input Tab from The Summary by Department (cell B46).

  2. […] over 600 downloads, the SaaS Financial Model was by far the most popular download.  No surprise as this gets you started with forecasting your […]

  3. Hi.

    Thanks for the article! Unfortunately it hard to read on Ipad/chrome because the social share bar on the left side overlaps the first few letters and n each row.

    1. Hi Arpi,

      Thanks for letting me know. I changed it to the right side.

      Ben

  4. ANTHONY BROWN says: Reply

    Hi Ben,
    I am trying to use this xls to model a PMV startup and have some questions and don’t understand the relationship between some of the formulas/cells/sheets. Is there an email I can dm?

    Anthony

    1. Yes, I sent an email directly to you or contact me via the contact form. http://www.thesaascfo.com/contact/

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