How to Adapt Finance Functions for Growth

Most startup finance functions weren’t built for scale. They were patched together by founders. Which means when you step in, you’re inheriting: – A founder-led forcast built for fundraising not how your business actually make money – A chart of accounts designed in a panic – “Reporting” that’s basically a spreadsheet stitched with hope – And KPIs no one can agree on Let’s be honest: It’s a mess. And worse? It’s blocking the decisions that matter most. I’ve rebuilt five finance functions - two in-house, three as a fractional partner. Every time, the pattern is the same: You’re not just cleaning up numbers. You’re rewriting the financial story of the company. Here’s how I turn finance from a lagging function into a strategic driver: → Step 1: Rewire the chart of accounts If you’re SaaS and services, your P&L should reflect that. We make it readable and actionable, not just GAAP compliant. → Step 2: Connect the stack Automate billing. Tighten up payroll. Sync tools across the funnel. Your finance ops should reduce friction, not add to it. → Step 3: Rebuild the model Most founder-built models are optimism on steroids. We anchor it to real unit economics and GTM motion, not just investor dreams. → Step 4: Define the right metrics If your CAC and LTV don’t line up between Sales, Marketing, and Finance, you're playing broken telephone. We build alignment across functions and drive confident decision-making. → Step 5: Standardize reporting Cash for survival. Accrual for strategy. One monthly pack. Built to inform execs and impress investors. → Step 6: Build the finance ecosystem RevRec. Scenario planning. Burn runway modeling. We design the function around your real inflection points. Because finance shouldn't just report on performance. It should enable it. Done right, it becomes the backbone of your decision-making, not a spreadsheet you scramble to update the night before a board call. And frankly? This is the work I love the most. Because every time we rebuild it right, the fog lifts and founders lead with clarity again. PS: What’s the one part of your finance function you know is holding you back, but haven’t had time to fix? PPS: If you're scaling with duct-taped dashboards and gut-feel forecasts, let’s talk. You don’t need to build your operating system alone.

Budgeting in the SaaS realm has often been viewed as a rigid process, but my personal experience has taught me that blending it with agile methodologies can unlock remarkable results! Agile empowers teams to adapt to changing market dynamics, while budgeting ensures financial stability and focus on long-term objectives. Striking this balance is the key to unlocking innovation while maintaining sustainable growth 🎯 Aligning your budget with your agile roadmap can be a game-changer. Start by breaking down your annual budget into smaller, more manageable increments, tied to specific sprints or development cycles. This way, you can pivot quickly and reallocate resources based on user feedback and emerging opportunities. 🎯 Communication is the glue that binds budgeting and agile together. Encourage regular cross-functional meetings between finance and development teams to ensure everyone is on the same page. It's vital to create an open culture where ideas flow freely, fostering a sense of shared ownership in both financial and product outcomes.  🎯 Metrics matter! Embrace data-driven decision-making by tracking key performance indicators (KPIs) that align with your business objectives. Whether it's customer acquisition, retention, or revenue growth, having real-time data at your fingertips empowers agile teams to make informed choices that positively impact the bottom line.  🎯 Embrace the power of iteration! Agile thrives on feedback and continuous improvement. By embracing an iterative approach to budgeting, you can fine-tune financial strategies based on real-world insights. Remember, agility doesn't mean a lack of planning; it means staying nimble while staying true to your financial goals.  🎯 Thought Leadership: Many successful SaaS companies have shared stories of how budgeting + agile transformed their growth trajectories. It's no longer an experiment; it's a proven approach. Are you ready to unleash the potential of this dynamic duo in your organization? Check out my blog post in the comments below ⬇️ and let's continue the conversation there! Feel free to share your thoughts, experiences, and any additional insights you might have.

Without a system, finance and accounting leaders struggle. We can be doing a great job for one company, position, or client, then fall flat on our faces at another. Most commonly, we fail when we attempt to replicate systems and processes without really understanding what's important. Or, we focus on one area of finance (maybe the ones we like) when other areas need similar attention. I see accountants that fail to strategize, finance, and forecast. I see FP&A professionals with a lack of understanding or bias against accounting. But, it's all related. Failures in one area are manifest in other areas. Financial leaders need to create holistic strategies that unify all areas of finance and accounting. I teach professionals to focus on all areas of finance: Strategy Financing Forecasting Reporting Controlling Bookkeeping When I step into a new client, I conceptualize the system top-down. In other words, I first spend time creating the strategy. It usually doesn't take significant analysis to figure out where the problems and opportunities are. Usually, the key players are more than happy to share with me what it is they want to do and why. Then, I use simple modeling to figure out how to do what they want (or to suggest other options). Sometimes financing is required, whether debt or equity, which come with requirements that I must build out. Once I see how to do it, I identify the key lead and lag indicators to support the strategy. That guides the reporting requirements and the associated analyses. I then evaluate the accounting, making changes to how we measure, track, and score. Usually, at smaller organizations, I need the accounting team to be more active in controller- and FP&A- type functions. I need to free up their time. By simplifying the accounting, their work can be streamlined to provide time for more valuable efforts that really support strategy. I walk through all processes to gain an understanding of where changes can be made. All of which I just described is done in the conceptualization phase. This usually takes a 1-3 months. Then, we begin building. Although many of these areas can start simultaneously, it's best to focus one and a time from the bottom up. Without good accounting, you can't have good FP&A Without good FP&A, you can't support good strategy (and obtain financing if necessary) The buildout phase commonly lasts 3-6 months. It's important that the initial systems and processes around each section are simplified so the strategy can operating within the limits of the resources and capacity available at the time... ...including and especially yours!

Most beginners in accounting don’t realize this: - They think if the numbers add up, they’re doing great. - They think if invoices are paid, they’re in control. - They think if taxes are filed, they’re safe. But then comes the financial crisis they never saw coming. And it’s not just beginners. Even growing businesses often misalign finance talent with business needs. They assume one-size-fits-all roles can handle evolving complexity. One of my clients learned this the hard way.   A $1.3M operational inefficiency had been silently draining their growth for over a year. Because they built their finance department around generalists, Not specialists who understood their industry’s cost structure, pricing sensitivity, and compliance risks. Their team diligently produced basic financial statements and managed payroll without issues. But while routine tasks were covered, they lacked strategic insights, industry-specific expertise, and forward-looking analysis capabilities. Then we helped them, here's how:  - Created specialized role definitions across 15 finance functions  - Realigned talent to match business complexity requirements  - Implemented targeted upskilling for existing team members The results came quickly:  → Identified $870K in overlooked tax advantages  → Accelerated financial close process by 64%  → Improved forecast accuracy from 65% to 91% Generalists keep the lights on whereas specialists drive business transformation. Failing to strategically structure your finance team doesn't just create inefficiency, it prevents your business from converting financial insights into competitive advantage. #accountingroles  #finance  #businessandaccounting

Did Adam Robinson really bootstrap two companies to a combined $24.7M in ARR? 𝗬𝗲𝘀. How am I so sure? Because I run finance for him. I reached out to Adam a year and a half ago to tell him I was impressed by his growth but noticed his financial infrastructure and presentation needed significant help. Since we’ve joined, he’s been able to continue growing two businesses with complete visibility—without a single full-time finance hire. Having run lean finance teams at bootstrapped SaaS companies past $20M in ARR, I knew I could do it again. So how do we do it? It starts by offering a full finance function as a service for B2B SaaS companies. Not a fractional CFO, accountant, or bookkeeper, but the equivalent of a full finance team—for less than the cost of a single hire. 𝗛𝗲𝗿𝗲’𝘀 𝗼𝘂𝗿 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵: 𝟭. 𝗥𝗶𝗴𝗵𝘁-𝗦𝗶𝘇𝗲𝗱 𝗧𝗲𝗮𝗺 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 • Strategic Guidance: A CFO provides high-level financial strategy, fundraising support, and board-level insights. • Process Management: A Controller builds scalable systems, manages financial processes, and ensures compliance. • Operational Execution: Accountants handle day-to-day tasks like bookkeeping, invoicing, and financial reporting. • Holistic Coverage: Ensures all aspects of the finance function are addressed. Getting this wrong might mean a CFO who won’t help with payroll or a Controller who doesn’t understand SaaS. 𝟮. 𝗘𝗺𝗯𝗲𝗱𝗱𝗲𝗱 𝗧𝗲𝗮𝗺𝘀, 𝗡𝗼𝘁 𝗮𝗻 𝗢𝘂𝘁𝘀𝗼𝘂𝗿𝗰𝗲𝗱 𝗙𝗶𝗿𝗺 I’ve never worked in public accounting. I don’t know how to build a firm. All I know is how to build internal finance teams—and that’s how we built ZenFinancials - Powered by NixSheets. • Small Pods: Our teams focus on 3–5 clients at a time. • Embedded Team: We work directly on your tech stack, in your Slack, and collaborate with you daily. No 72-hour response times like many firms. 𝟯. 𝗘𝘅𝗰𝗹𝘂𝘀𝗶𝘃𝗲 𝗙𝗼𝗰𝘂𝘀 𝗼𝗻 𝗕𝟮𝗕 𝗦𝗮𝗮𝗦 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 • Specialized Expertise: Every process, metric, and decision-making framework is tailored to the unique needs of B2B SaaS companies. • Industry Understanding: Familiarity with subscription models, revenue recognition (ASC 606), SaaS KPIs, and SaaS-specific growth challenges. I'll be sharing my playbook on setting up SaaS finance functions in a subsequent post. In the meantime, 𝗶𝗳 𝘆𝗼𝘂’𝗱 𝗹𝗶𝗸𝗲 𝗮 𝗰𝗼𝗽𝘆 𝗼𝗳 𝘁𝗵𝗲 𝗦𝗮𝗮𝗦 𝗣&𝗟 𝗿𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝘁𝗲𝗺𝗽𝗹𝗮𝘁𝗲 𝗜 𝘂𝘀𝗲 𝗳𝗼𝗿 𝗔𝗱𝗮𝗺, 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 𝘄𝗶𝘁𝗵 “𝗣&𝗟” 𝗼𝗿 𝗗𝗠 𝗺𝗲! #SaaS #Bootstrapping #Founder #Finance #Accounting

I switched 4 outsourced accountants in 2 years. That’s four painful onboardings. 40+ hours a month fixing their mistakes. Closing the books 5 weeks after month end. Explaining numbers I didn’t trust myself. Outsourcing your accounting might seem efficient. But it’s a silent risk—one that compounds as your company scales.  Past $10M, growing 50%+, expanding your team, and shipping product fast. Precision matters more than cost. Worse, you’re outsourcing the engine of decision-making, depriving yourself of building financial fluency inside your company—fueling smarter bets, faster moves, and a stronger team. I’m not the only one. I spoke with 30+ heads of finance this month—most had the same regret: “We waited too long.” —— Here are 7 signs it’s time to bring accounting in-house: 1️⃣ You’re launching new products—with new pricing models Subscriptions. Usage. Services. Pass-through fees Each one adds complexity. Revenue recognition changes. Margins shift.  If you can’t slice your P&L by line of business today, decision-making slows. 2️⃣ Your sales org is growing up AEs. SDRs. RevOps. Content marketing. Partner programs. Paid campaigns. Trade shows. Attribution isn’t simple anymore. You need CAC by campaign, by event, by cohort. That requires a finance function that partners with GTM—not one that just tags spend in QuickBooks. 3️⃣ You’re expanding geos New states. New geographies. New legal entities. Consolidations and intercompany transfers are a nightmare with disconnected vendors. Deadlines slip. Compliance risk creeps in. 4️⃣ One financial process has become business-critical Complex revenue recognition. Strategic procurement. Multifaceted compensation structures. When one financial process defines how you make money, you need someone who owns it fully—and deeply. 5️⃣ Reporting accuracy isn’t optional anymore Boards. Lenders. Regulators. Close timelines matter. Data integrity matters more. If your numbers are late, wrong, or both—you’ll lose trust you can’t afford to lose. 6️⃣ You can’t afford to wait three weeks to know what’s happening Real-time insights = real-time action. If churn, margin dips, or missed sales goals take weeks to surface, your reaction’s already too late. 7️⃣ Your business model doesn’t fit any template Deposits. Refunds. Project pivots. One-off deals. External bookkeepers don’t have the context—or the flexibility. You need someone who lives your business, not just logs into your QuickBooks. —— You can’t build a world-class company on numbers you don’t trust. What was your breaking point? The $500k AR error? Realizing your runway math was off? ARR restated four times?  Drop it in the comments—I’m collecting war stories.

🔍 𝗧𝗵𝗲 𝗛𝗶𝗱𝗱𝗲𝗻 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗞𝗶𝗹𝗹𝗲𝗿 𝗶𝗻 𝗠𝗶𝗱-𝗦𝗶𝘇𝗲𝗱 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀 As a Fractional Controller, I want to expose a critical challenge silently sabotaging business performance: broken accounting operations. Imagine building a house with rusty, incomplete tools and an outdated blueprint. That's how many businesses manage their financial infrastructure. The core problem? 𝗬𝗼𝘂𝗿 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗿𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗶𝘀𝗻'𝘁 𝗷𝘂𝘀𝘁 𝗶𝗻𝗮𝗰𝗰𝘂𝗿𝗮𝘁𝗲 – 𝗶𝘁'𝘀 𝗮 𝗴𝗮𝗺𝗲 𝗼𝗳 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝘁𝗲𝗹𝗲𝗽𝗵𝗼𝗻𝗲 where critical information gets scrambled at every transmission. 𝗧𝗵𝗿𝗲𝗲 𝗰𝗼𝗿𝗲 𝗿𝗲𝗮𝘀𝗼𝗻𝘀 𝘁𝗵𝗶𝘀 𝗵𝗮𝗽𝗽𝗲𝗻𝘀: 1. Zombie Systems and Disconnected Workflows - Mid-sized businesses run on accounting systems from the early 2000s. Spreadsheets talking to spreadsheets, manual data entry everywhere, zero real-time visibility. Your team wrestles with technology instead of analyzing financial data. 2. The Low-Value Task Trap - Finance professionals spend 60-70% of their time on basic data entry instead of strategic analysis. It's like hiring a professional chef to wash dishes – dramatically underutilizing expensive talent. 3. Resource Constraints Creating Bottlenecks - With limited staff and tight budgets, your finance team plays constant defense, too busy keeping lights on to implement meaningful improvements. 𝗧𝗵𝗲 𝗗𝗲𝘃𝗮𝘀𝘁𝗮𝘁𝗶𝗻𝗴 𝗗𝗼𝘄𝗻𝘀𝘁𝗿𝗲𝗮𝗺 𝗜𝗺𝗽𝗮𝗰𝘁: - Slower decision-making - Increased financial risk - Reduced leadership confidence - Higher potential for errors - Increased team stress 𝗠𝗼𝗱𝗲𝗿𝗻 𝗮𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝗶𝘀𝗻'𝘁 𝗮𝗯𝗼𝘂𝘁 𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝗯𝗲𝗮𝗻𝘀 – 𝗶𝘁'𝘀 𝗮𝗯𝗼𝘂𝘁 𝗽𝗿𝗼𝘃𝗶𝗱𝗶𝗻𝗴 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗶𝗻𝘁𝗲𝗹𝗹𝗶𝗴𝗲𝗻𝗰𝗲 𝘁𝗵𝗮𝘁 𝗱𝗿𝗶𝘃𝗲𝘀 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲. 𝗧𝗵𝗲 𝗦𝗼𝗹𝘂𝘁𝗶𝗼𝗻? 𝗔 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵 𝘁𝗼 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀 Focus on: 💡 Implementing integrated systems 💡 Automating repetitive tasks 💡 Upskilling your team 💡 Creating streamlined workflows Your finance team should answer critical questions: ⁉️ Where are we making money? ⁉️ What emerging risks exist? ⁉️ How can we optimize financial performance? Your financial operations are your business's nervous system. When healthy, everything performs better. When sluggish, your entire organization feels the strain. Ready to transform financial operations from a cost center to a strategic asset? Let's talk. ------------- I'm Melissa Armstrong, CPA* and founder of 𝗦𝘁𝗲𝗮𝗱𝘆𝗛𝗮𝗻𝗱 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 & 𝗔𝗱𝘃𝗶𝘀𝗼𝗿𝘆. Accounting powerhouse, 𝗳𝗿𝗮𝗰𝘁𝗶𝗼𝗻𝗮𝗹 𝗰𝗼𝗻𝘁𝗿𝗼𝗹𝗹𝗲𝗿, and proactive problem-solver. Want to follow along my journey as an independent accountant? Follow my business page SteadyHand Accounting & Advisory.   *𝗡𝗼𝗽𝗲𝗅 𝗜 𝗱𝗼𝗻'𝘁 𝗱𝗼 𝘁𝗮𝘅𝗅

Case Study: We recently worked with a SaaS business at a critical inflection point —the executive team knew they needed to transform their business to stay ahead, but they were grappling with a complex technology and data environment making it difficult to optimize their finance function and gain visibility into fundamental performance KPIs. Here's how Celeborn Capital approached the challenge: 1️⃣ Uncovered Critical Insights: We dove into the company's financial and operational data to identify KPIs that were crucial for driving growth. By standardizing and prioritizing these KPIs, we created executive-level dashboards providing clear, actionable insights. 2️⃣ Aligned Leadership: It was essential to get everyone on the same page. We worked closely with leadership and teams across the business to align on the most impactful initiatives. This included developing a robust value creation target focused on improving revenue and expense profile, ensuring that everyone was speaking from the same set of facts and was clear on direction. 3️⃣ Optimized Revenue Operations Leveraging existing technology, we developed a detailed plan to enhance revenue operations. This included improving customer analytics to reduce churn and boost net dollar retention, driving profitability at both the customer and product level. 4️⃣ Implemented a Sustainable Process: Beyond the immediate fixes, we established a long-term process for reviewing insights from the dashboards and acting on them. This systematic approach allowed the company to continuously optimize performance and make informed decisions swiftly. The Result? The company not only enhanced its enterprise value but also gained a sustainable process for improving decision-making and response time. The transformation led to significant revenue enhancement and cost savings, positioning the company for long-term success. It's not just about having the right tools—it's about using them effectively to drive real, measurable results. This case study is a testament to the power of aligning strategy with execution, leveraging data-driven insights, and focusing relentlessly on value creation.

Scaling without financial alignment is growth in reverse. Here's how to optimize strategy, accelerate growth, and hit goals. As businesses scale, aligning financial strategy with short-term objectives and long-term vision is critical for sustainable growth. I've worked with many companies that was growing fast but struggling to keep financial goals in sync with their rapid pace. Here's how I’ve helped them recalibrate and accelerate growth:    1. Re-assessing the Budgeting Process: - We dive into their current budget - Identify inefficiencies, misallocated resources, and cash flow bottlenecks. By focusing on forecasting and creating more flexible budgets, we made sure the company could stay agile, even during rapid change.    2. Aligning Department Projects with ROI: Instead of treating each department's initiatives in isolation, we developed a framework that measured and tracked Return on Investment (ROI) for every key project. - Each department was aligned to strategic financial goals. - Projects that didn’t generate strong returns were optimized or postponed. - ROI prioritization became the backbone of decision-making.   3. Setting Clear KPIs and Milestones: - We defined key financial metrics for both short-term and long-term. - This allowed departments to align their actions with tangible outcomes. Knowing exactly how their work contributed to the broader financial goals, employees were on board, engaged, and proactive. Results: Cash Flow Improved by 25% in just 3 months Project ROI Increased by 30%, with higher returns on departmental investments Long-Term Financial Strategy now aligned with short-term operational goals The Takeaway: Financial alignment isn’t just about controlling costs—it’s about ensuring that every department, every project, and every dollar is pushing your business toward your ultimate goal. When you align your budget with ROI-focused projects, you achieve growth faster and smarter. If you need help developing and executing a financial strategy DM me Please share your thoughts in the comments Follow me, Beverly Davis for more finance insights  #FinanceStrategy #BusinessGrowth #ROI #Budgeting #FinancialGoals #StrategicPlanning #Founder #CEO

How to Scale Your Finance & Accounting Function 🚀 Here’s close to EVERYTHING I’ve learned after scaling this function for 100s of companies Your Finance & Accounting may be the most sensitive function in your company… get it wrong, and you risk running out of cash, unhappy employees & vendors, and churned clients Get it right, and you can make rapid decisions with key insights, and minimal resources. Let’s break down each section, and the key steps to scaling: ➡️ FINANCIAL REPORTING This is where it all starts…without proper financial reporting, you can make proper decisions. • Start by creating a business bank account & credit card (check our Mercury for this) • Then sign up for an accounting software • Once that’s set up, sync your transactions via a live bank feed • Classify transactions • Reconcile the Balance Sheet ➡️ FINANCIAL PLANNING & ANALYSIS When you have proper financial reporting in place, you can move on to predicting the future and analyzing the past with a robust FP&A process. • Start by creating a forecast - ideally a 3-statement model • Actualize your forecast each period and study where you hit/missed your target • Work with Department Owners to add accountability • Present your findings to management, investors, and the board of directors ➡️ ACCOUNTS PAYABLE & PROCUREMENT Keep your Finance & Accounting function running smoothly by implementing efficient operations • Set up an AP platform and SOPs • Onboard your vendors by collecting key info • Collect & Organize Bills via a group email address • Classify Bills & Collect approval via AP platform • Process payments upon due date, once approved ➡️ INVOICING & ACCOUNTS RECEIVABLE Stay on top of your invoices & AR balance to ensure you get paid • Create SOPs • Send out invoices as soon as they are approved • Process payment for those on auto-debit via CC / ACH • Follow up on outstanding balances - don’t assume you’ll get paid by default ➡️ PAYROLL Keep your employees happy with smooth payroll processing • Create SOPs • Set up a payroll platform / PEO • Onboard Employees • Prepare payroll for review • Process payroll, and set up autopay as a safety measure ➡️ COMPLIANCE Stay in compliance and avoid any penalties for mistakes. • Create a Tax Calendar • Monitor Sales Tax Nexus & VAT • File additional taxes as needed • Prepare & Manage Audits as your company grows === There you have it - my step-by-step playbook for scaling any Finance & Accounting function. What did I miss? and what would you add? Let us know in the comments below 👇