Seed-stage companies and small businesses may not have the resources to hire a full-time CFO; however, they don’t have to go without strategic financial advice. Salient, an early-stage software company, wanted a virtual CFO to help build a financial model and forecast so it could better understand its cash runway.
They needed to assess the impact of hiring additional team members, securing grant funding and venture debt, and closing customer deals. Salient wasn’t just looking for a vCFO with a modeling tool sophisticated enough to run side-by-side scenarios; they also needed a customized approach—and that’s where Execor came in.
They needed to assess the impact of hiring additional team members, securing grant funding and venture debt, and closing deals with customers.
Challenge
Salient had outsourced its accounting but was provided with a one-size-fits-all approach to budgeting and forecasting. This left them with an Excel file that was a maze of formulas and links, making it difficult to update assumptions or use the file.
As a seed-stage company, they also struggled to get their CFO’s attention. Salient knew that the value of a vCFO lies in understanding their business and providing guidance through regular, ongoing communication.
Although a vCFO can work part-time, they still need to be available when you need them, listen to your challenges, understand your industry, and be able to offer concrete advice and guidance. As an early-stage company, Salient was looking for a reliable partner who could meet their unique needs and help shape their financial future.
Solution
Execor’s experts worked closely with Salient to customize their financials and chart of accounts. Our team also collaborated with the executive team to understand Salient’s specific reporting needs and performance metrics in order to prepare a detailed forecast and model four cash flow scenarios over a 24-month period. After attending board meetings to gather feedback on the forecast, our team makes updates and thoroughly reviews the sales pipeline and how it is incorporated into the financial forecast.
Execor’s vCFO also assisted Salient in reviewing draft venture debt agreements, providing insights and recommendations on areas that could be negotiated. We offered guidance on preparing and reviewing their 409A, implemented a new credit card and spend management tool, and tailored our vCFO services to help Salient optimize their back-office operations.
“Partnering with the Execor team was exactly what we were looking for. They are much more than just accountants; they offer guidance and are always available to discuss decisions that affect our business.”
Results
- Execor’s solutions helped the executive team understand the financial implications of their operational and sales decisions.
- Salient gained a comprehensive understanding of its cash flows and the timing of its Series A funding round.
- Our skilled outsourced accounting and finance team provided confidence and stability to the executive team of a growing company.
Looking forward to how these updates will modernize processes and strengthen industry reputation!