CFO Advisor

Financial leadership advisory for Chief Financial Officers.

Core Competencies

• Financial planning and analysis (FP&A)
• Fundraising and capital markets
• Investor and board reporting
• Unit economics and metrics
• Cash flow management
• Accounting and compliance
• Tax strategy
• Risk management

Financial Planning Framework

Annual Planning Process

Timeline:

• Month 1: Strategic priorities from CEO/Board
• Month 2: Departmental bottoms-up planning
• Month 3: Consolidation and iteration
• Month 4: Board approval and communication

Plan Components:

1. Revenue model and assumptions
2. Headcount plan by department
3. Operating expense budget
4. Capital expenditure plan
5. Cash flow projections
6. Key metrics and targets

Budget Categories

Revenue:

• New business (by segment)
• Expansion revenue
• Renewals
• Professional services
• Other revenue

Cost of Revenue:

• Hosting/infrastructure
• Customer support
• Professional services delivery
• Payment processing

Operating Expenses:

• Sales and Marketing
• Research and Development
• General and Administrative

Unit Economics

SaaS Metrics Framework

Customer Acquisition:

CAC = (Sales + Marketing Spend) / New Customers
CAC Payback = CAC / (ARPU × Gross Margin)

Customer Value:

LTV = ARPU × Gross Margin × Customer Lifetime
LTV:CAC Ratio = LTV / CAC (Target: > 3:1)

Retention:

Logo Retention = (Customers End - New) / Customers Start
Net Revenue Retention = (MRR End - Churn + Expansion) / MRR Start

Burn Multiple

Burn Multiple = Net Burn / Net New ARR

Benchmarks:
- < 1.0x: Excellent efficiency
- 1.0-1.5x: Good efficiency
- 1.5-2.0x: Average
- > 2.0x: Needs improvement

Rule of 40

Rule of 40 = Revenue Growth % + Profit Margin %

Benchmarks:
- > 40%: Strong performance
- 20-40%: Acceptable
- < 20%: Needs attention

Fundraising Finance

Due Diligence Preparation

Financial Data Room:

• 3 years historical financials
• Monthly P&L by segment
• Balance sheet and cash flow
• ARR/MRR cohort analysis
• Customer unit economics
• Revenue recognition policy
• Accounts receivable aging
• Accounts payable summary

Projections:

• 3-5 year financial model
• Key assumptions documented
• Sensitivity analysis
• Use of funds breakdown
• Path to profitability

Financial Model Structure

Revenue Build:

1. Starting ARR/customers
2. New logo assumptions
3. Expansion rate
4. Churn rate
5. Pricing changes
6. Segment mix

Expense Build:

1. Headcount plan
2. Comp and benefits
3. Contractors
4. Software/tools
5. Facilities
6. Marketing programs
7. Travel and events

Investor Reporting

Monthly Metrics Package

FINANCIAL HIGHLIGHTS
- Revenue: $X.XM (vs Plan: +/-Y%)
- Gross Margin: XX% (vs Plan: +/-Y%)
- Operating Loss: $X.XM (vs Plan: +/-Y%)
- Cash Balance: $X.XM
- Runway: XX months

REVENUE METRICS
- ARR: $X.XM (+Y% QoQ)
- Net New ARR: $XXK
- NRR: XXX%
- Logo Churn: X.X%

EFFICIENCY METRICS
- CAC: $X,XXX
- CAC Payback: XX months
- Burn Multiple: X.Xx

Board Financial Presentation

Slide Structure:

1. Financial summary (1 slide)
2. Revenue performance (1-2 slides)
3. Expense breakdown (1 slide)
4. Cash flow and runway (1 slide)
5. Key metrics trends (1 slide)
6. Forecast outlook (1 slide)

Cash Management

Cash Flow Forecasting

13-Week Cash Flow:

• Week-by-week projections
• All known inflows/outflows
• Timing of large payments
• Minimum cash buffer
• Review weekly

Monthly Rolling Forecast:

• 12-month forward view
• Revenue collection timing
• Payroll and benefits
• Vendor payments
• Debt service
• Capital expenditures

Treasury Principles

1. Liquidity: Maintain minimum 6 months runway
2. Safety: Preserve capital, minimize risk
3. Yield: Optimize returns on idle cash
4. Compliance: Follow investment policy

Cash Preservation Levers

When extending runway:

1. Hiring freeze
2. Vendor renegotiation
3. Discretionary spend cuts
4. Payment term extension
5. Revenue acceleration
6. Bridge financing

Accounting Operations

Close Process

Month-End Timeline:

• Day 1-3: Transaction cutoff
• Day 3-5: Reconciliations
• Day 5-7: Accruals and adjustments
• Day 7-10: Management review
• Day 10-12: Final close

Quality Checklist:

• Bank reconciliation
• Revenue recognition
• Expense accruals
• Prepaid amortization
• Deferred revenue
• Intercompany elimination
• Flux analysis

Revenue Recognition (ASC 606)

Five-Step Model:

1. Identify the contract
2. Identify performance obligations
3. Determine transaction price
4. Allocate price to obligations
5. Recognize revenue when satisfied

Common SaaS Considerations:

• Subscription vs usage
• Implementation services
• Professional services
• Multi-year contracts
• Discounts and credits

Risk Management

Financial Risk Categories

Market Risk:

• Interest rate exposure
• Foreign exchange exposure
• Customer concentration

Credit Risk:

• Customer creditworthiness
• AR aging management
• Bad debt reserves

Operational Risk:

• Internal controls
• Fraud prevention
• Systems reliability

Insurance Coverage

Essential policies:

• Directors & Officers (D&O)
• Errors & Omissions (E&O)
• Cyber liability
• General liability
• Workers compensation
• Key person insurance

Common Scenarios

Scenario: Runway Concerns

When cash runway drops below 12 months:

1. Model scenarios (growth vs conservation)
2. Identify quick wins on spend
3. Accelerate collections efforts
4. Explore bridge financing
5. Communicate to board proactively

Scenario: Audit Preparation

First audit checklist:

1. Select auditor (Big 4 or regional)
2. Prepare accounting policies
3. Document internal controls
4. Gather supporting documentation
5. Schedule interim fieldwork
6. Management representation letter

Scenario: M&A Financial Diligence

Acquirer requests:

• Quality of earnings analysis
• Working capital normalization
• Customer cohort data
• Expense categorization
• Liability identification
• Tax exposure assessment

Reference Materials

• references/financial_modeling.md – Model building guide
• references/saas_metrics.md – SaaS metrics deep dive
• references/accounting_policies.md – Policy documentation
• references/audit_prep.md – Audit readiness guide

Scripts

# Unit economics calculator
python scripts/unit_economics.py --metrics data.csv

# Cash flow projector
python scripts/cash_forecast.py --actuals Q1.csv --assumptions model.yaml

# Financial model builder
python scripts/fin_model.py --template saas --output model.xlsx

# Investor metrics dashboard
python scripts/investor_metrics.py --period monthly