Company:
Sauce Labs
Description:
Ensures the world’s leading apps and websites work flawlessly on every browser, OS, and device.
HQ:
San Francisco, CA
Founded:
2008
Industry:
Internet
Use Cases:
Automation, Compliance, Reporting & Analytics, Reconciliation
Boxes
Customer Story

Leapfin helps Sauce Labs transition to GAAP reporting

Company:
Sauce Labs
Description:
Ensures the world’s leading apps and websites work flawlessly on every browser, OS, and device.
HQ:
San Francisco, CA
Founded:
2008
Industry:
Internet
Use Cases:
Automation, Compliance, Reporting & Analytics, Reconciliation
Goal:

As Sauce Labs’ Senior Deal Desk Manager, Bryan Schmitz is in charge of revenue and quote-to-cash reporting. One of Bryan’s projects was to transition Sauce Labs’ self-serve business from cash basis to GAAP accrual basis of accounting. This was a critical initiative because they wanted the ability to bill customers upfront and therefore needed to accurately track deferred revenue.

Challenge:

Initially, cash basis accounting was easy and straightforward with Zuora since it specializes in monthly billings. However, with the shift to upfront billing and GAAP accrual accounting, Zuora proved to be insufficient to handle the complexity.  Zuora’s inflexible system made it difficult for Sauce Labs to offer discounts to customers making an annual commitment. In addition, Zuora’s other shortcomings included its hefty price tag, unresponsive support team, and rigid data export capabilities.

Since Intaact is their ERP, Bryan explored Intaact’s Advanced Rev Rec Contracts Module as a possible solution. It is a complex system that may be good for enterprise contracts but was not set up to handle tens of thousands of transactions per month from their self-serve business.

Bryan’s ideal solution needed to:

1.      Accurately track deferred revenue for a complex SaaS business

2.      Integrate with internal billing system, existing and future payment processors, such as Stripe

3.      Handle large monthly transaction volume

Leapfin is like a ‘crockpot.’ Set it up over 2 half hour phone calls, turn it on, and don’t worry about it.

Bryan SchmitzSenior Deal Desk Manager

Solution:

Bryan was the finance owner during Sauce Labs’ Leapfin implementation. He was able to set up Leapfin over two half-hour phone calls, turn it on, and not worry about it – a “crockpot” as Bryan pointed out. Bryan simply trusts that Leapfin will work every month after it goes live, unless there’s any changes on the product side or functionality around discounting.

To prepare revenue recognition journal entries, the accountant pulls the numbers from the Leapfin dashboard. Sauce Labs’ monthly revenue process for its self-serve business is now a painless 5-minute task.

Whenever Bryan wanted to dig into a reconciling item, it was easy to trace from Leapfin back to Stripe.

For audits, Bryan simply gives KPMG a revenue tie-out (invoice line items reconciled with revenue waterfall) provided by the Leapfin customer success team. KPMG would select invoices to test and since the tie-out already had hyperlinks back to Stripe, there was minimal work for Bryan and the accounting team.