Company:
Pantheon
Description:
The world’s best WebOps Platform for marketers and developers.
HQ:
San Francisco, CA
Founded:
2010
Industry:
Internet
Use Cases:
Automation, Compliance, Reporting & Analytics, Reconciliation
Boxes
Customer Story

Pantheon uses Leapfin to transition to GAAP basis revenue accounting

Company:
Pantheon
Description:
The world’s best WebOps Platform for marketers and developers.
HQ:
San Francisco, CA
Founded:
2010
Industry:
Internet
Use Cases:
Automation, Compliance, Reporting & Analytics, Reconciliation
Goal:

As Pantheon’s Assistant Controller, Nan’s main responsibilities are to ensure GAAP-compliant revenue reporting and help push the business forward with financials-driven data analysis. When Nan first joined Pantheon, the company’s financials were reported on a cash-basis, and her first critical project was to transition financial reporting to GAAP accrual basis. This was a critical company-wide initiative because of two main reasons:

  • Investors required GAAP financials
  • Executive team needed accurate financials to gain better insights to inform business opportunities

Challenge:

When using cash basis accounting, revenue reporting was relatively easy and straightforward. However, the transition to GAAP accrual accounting was very challenging due to Pantheon’s subscription-based business model, and Excel was no longer a viable option.

Similar to many other rapidly scaling SaaS companies, Pantheon’s tremendously successful Online Business brought in over ten thousand transactions every month. With such a large number of transactions coupled with other customer information such as mid-cycle upgrades, downgrades, and cancellations, Pantheon’s accounting team was overwhelmed with data. With a data set this large, not only would Excel not load but this manual process would be error-prone. Booking accrual based revenue journal entries would be virtually impossible.

Because revenue is a high risk and high visibility line item, Nan knew she needed a solution to not only automate manual Excel processes but also handle Pantheon’s growing transactional volume.

When I first saw Leapfin live, there was a ‘wow’ moment. Now, it takes me just 5 minutes to book my journal entries!

Nan WangAssistant Controller

Solution:

When Leapfin first went live, there was a ‘wow’ moment from Nan and her accounting team. For the first time in the company’s history, the finance team could see the number of customers, deferred revenue, and recognized revenue updated in real-time. To book revenue journal entries, now Nan takes no more than 5 minutes to pull the numbers from Leapfin.

During Pantheon’s annual audit, Nan was able to leverage data such as deferred revenue by customer from the Leapfin user interface. For anything that was not available on Leapfin, Nan relied on Leapfin’s Customer Success team. She knew she could get help anytime she needed because Leapfin’s Customer Success team took requests very seriously and was extremely helpful throughout the audit engagement.

Furthermore, Pantheon also gained more visibility into business insights with Leapfin. In the past, financial data was not accessible as they are siloed within various vendors. In order to perform any analysis, Pantheon’s finance team would need engineering team’s help to help pull custom reports from the various systems. With Leapfin’s easy to use UI, Nan was able to easily investigate and analyze the impacts of subscriptions credits on Pantheon’s Online Business. This insight helped the executive team to make the decision to eliminate the use of credits which simplified the user experience and accounting process, and afforded the company a GAAP-compliant revenue increase.

By implementing Leapfin’s unified financial data platform, Nan helped Pantheon transition to GAAP accrual accounting and gained access to real-time, actionable business insights.

© 2020 Pantheon Systems, Inc. Pantheon and its logo are registered marks of Pantheon.