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:

Revenue model and assumptions Headcount plan by department Operating expense budget Capital expenditure plan Cash flow projections 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:

Starting ARR/customers New logo assumptions Expansion rate Churn rate Pricing changes Segment mix

Expense Build:

Headcount plan Comp and benefits Contractors Software/tools Facilities Marketing programs 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:

Financial summary (1 slide) Revenue performance (1-2 slides) Expense breakdown (1 slide) Cash flow and runway (1 slide) Key metrics trends (1 slide) 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 Liquidity: Maintain minimum 6 months runway Safety: Preserve capital, minimize risk Yield: Optimize returns on idle cash Compliance: Follow investment policy Cash Preservation Levers

When extending runway:

Hiring freeze Vendor renegotiation Discretionary spend cuts Payment term extension Revenue acceleration 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:

Identify the contract Identify performance obligations Determine transaction price Allocate price to obligations 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:

Model scenarios (growth vs conservation) Identify quick wins on spend Accelerate collections efforts Explore bridge financing Communicate to board proactively Scenario: Audit Preparation

First audit checklist:

Select auditor (Big 4 or regional) Prepare accounting policies Document internal controls Gather supporting documentation Schedule interim fieldwork 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