When a SaaS Company Needs Audited Financials — and How to Prepare

A reminder that your goal is eventual exit. To achieve an exit at a high multiple, you need to convince a buyer they are purchasing a well-run, ethical business that will continue delivering predictable results after the acquisition. That confidence is earned with evidence of processes, systems, and financials that are above reproach. To that end, Golden Section recommends hiring a third-party auditor to verify your annual financial statements.

The goal: Create a pattern of trusted financial results.

How can Golden Section Assist? Golden Section's venture partner can assist here.

Steps

1. Pick your auditor. Use the template provided to weigh considerations.
   • Typically, you can request a written proposal from the auditor outlining the scope of work and process.
   • Some firms set a range of cost in advance.
2. Engage an auditor and work with that auditor to deliver annual audited financial statements.
3. Codification. Store your audited financials in a central location for easy reference.

Important points

1. Size -- you might not find this relevant until your company is at $2M in sales, but it is worth working toward that before you are at that level. For instance, you can identify the firm you want to use and hire them for a compilation or review instead of an audit to get to know them.
2. Scope -- don't let your auditor run away with the scope. If your financial records, contracts, schedules are all well organized, the audit will be smooth and reasonably priced.