CFO Advisor

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

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

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

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

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

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

Unit Economics

SaaS Metrics Framework

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

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

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

• 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

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

Financial Model Structure

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

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

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

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

• 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

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

Accounting Operations

Close Process

• 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

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

Revenue Recognition (ASC 606)

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

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

Risk Management

Financial Risk Categories

• Interest rate exposure
• Foreign exchange exposure
• Customer concentration

• Customer creditworthiness
• AR aging management
• Bad debt reserves

• Internal controls
• Fraud prevention
• Systems reliability

Insurance Coverage

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

Common Scenarios

Scenario: Runway Concerns

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

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

• 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