Am I the right person for the CFO role?

Anon,

You sound like you could use a career coach more than advice.

Rev Rec in SaaS is different, but not inherently worse than other software (and way, way easier than in the virtual goods / gaming space, where rev rec rules are currently [imho] ludicrous). SaaS can in fact be pretty simple if you get ahold of the rules, because you can make things like deferred revenue go away.

SaaS is relatively new, and lots of us have had to make the transition. A couple of days of hard-core research and you'll know 80% of what you need. The other 20% will come from experience and company-specific factors.

I would guess that the company values your experience and competence more than rev-rec. If need be, hire a rev rec analyst (start interviewing now).

Back to the career coach thing...it is a valuable investment. Do research and find a good one, and determine if the role is right for you.

Cheers,

Keith

Really great insight and advice Keith. Thank you for your candor and time!

I agree with Keith that you can learn the SaaS part of the business; remember that anyone who knows it now did not know it when they started so this should not deter you.

Your company is best served by someone who can help with strategy, pricing and planning so that they can understand various options on the road ahead. In fact many companies are seeking CFO's with this strengh over accounting which was dominant during the SARBOX era.

Also if you have garnered the respect of the CEO and the team and have the strengths mentioned then I say go for the CFO job.

The fact that you are even asking this question shows a level of dedication to the firm that is much more valuable to a growing business than an accountant with SaaS Rev Rec knowledge - and I bet your CEO would agree.

SaaS revenue recognition is not all that complicated. You need to have faith in your own abilities. If you have the skills you can learn any industry and be a great CFO. I have been CFO of four different companies - different industries, different ownership structures, etc. It is all about taking your skills and experience and applying it the position and industry you are in.

Totally agree with Brenda: if you are asking yourself questions, then you're the right person for the job. Knowledge can always be acquired, while the right attitude and dedication (and being humble about it) is key to your success. So go for it!!

I think you should go for it. I agree with everyones comments above and just for having anxiety about the challenge infront of you will make you a better CFO.

You can also hire a strong senior accountant with revenue recognition experience to head that side up - and work with your auditors or a CPA firm to help you make sure you have the right processes in place. Once you get the processes in place, you'll be able to handle it.

Guys how do you find a career coach? I would like some inputs

Brenda, Keith and the others have pegged it. Your institutional knowledge and exisitng relationships within senior management of the Company is much more challenging to effectively replace than specific accounting expertise. In some VC backed technology companies the CFO takes the role of business strategist with less of a day to day accounting role, especially in situations where the CEO is the founder driving the technology side. You mentioned that your CEO doesn't really have a financial background, so it sounds like this is the case for you. I have seen very effective teams built around a CFO that drives the business strategy, while the CEO is continually pushing the technology. It can be a nice check and balance if they work well together. Given the tenor of your comments, which indicate that you are invested in the Comapny, I woudl take the opportunity and run with it. A career coach is a great idea too! Use your local network of C level contacts to find one which others have had a favorable experience.

Ginny has the right idea here regarding revenue recognition for a SaaS company. You already have a terrific resource in your auditors for learning the intricacies of revenue recognition in your industry. Ask them for all of the GAAP, related pronouncements and emerging issues literature they have on SaaS revenue recognition and learn it. Your CEO is relying on you to quarterback the financial function and therefore you need to know your plays. One thing CEO's do not like is surprises, especially the one's that are uncovered by auditors. Let the Groupon debacle be an example for you here.

Based on your concerns, your head is in the right place and right now the job is yours - fight for it and be that person who grows into the more strategic role. You are thinking stategically now whether you know it or not!