PREFERRED CFO

Preferred CFO was brought in to support a new CEO in growing the business by implementing improved accounting processes, helping to raise debt and equity capital, and providing advice and analysis to the CEO and other investors.

Raising Capital | End-to-End Accounting Services
CFO Consulting

Situation

For the prior 2-3 years, Blue Eye employed a part-time, outsourced accountant whose background was in taxes and who did their basic bookkeeping.

Blue Eye Monitoring’s new CEO immediately set to work to improve processes around him to obtain the information he would need to make decisions to grow the company. He wasn’t getting the financial reporting that he wanted and knew that he needed better historical and forecasted information–timely information from a better system.

Approach

1. Immediately implemented best practices by cleaning up their accounting system by updating chart of accounts to make more sense.
2. Implemented processes and procedures to streamline their vendor payment and payroll processing systems.
3. Created monthly financial reporting package and rolling forecast, and walked potential investors and financiers through the forecasts.
4. Supported fundraising efforts by responsively preparing analyses that supported investment banking due diligence efforts, including:
   • Analysis of recurring monthly revenue and customer creation cost
   • Break-even analysis to establish cash sufficiency

Results

• Forecasting and nimble analyses supported multi-stage, multi-million dollar capital raise of both debt and equity financing