How OK2Charge Scaled the Finance Function with Finance as a Service

Serial Entrepreneur Hails the Benefits of Finance as a Service (FaaS)

During a recent Client & Cocktails webinar, Consero’s Director of Private Equity & Venture Capital, Tony Esposito, spoke with serial entrepreneur Eric Broughton about his experiences using the Finance as a Service (FaaS) model at some of the companies he had led over the past decade.

Broughton is currently the CEO of OKCharge, an electric vehicle charging platform for real estate operators and owners. With this platform, vacation and short-term rental owners can allow guests to charge their vehicles at the property instead of having to go to a charging station. The platform can also be used at hotels and resorts, multifamily apartments, single-family rentals, and workplaces.

Going Beyond a Fractional CFO

Broughton first met Consero’s Founder, Scott Tynes, a decade ago and decided to give the FaaS approach a try. “I’d been brought in as CEO to a startup business that was losing considerable money,” he said.

“There was a heavy burn. I wasn’t seeing the trajectory of the business and wasn’t seeing the financials as I expected to see them coming from a large public company.” Diving deeper, Broughton still couldn’t get the data he needed. After discussing the problem with a board member, he was introduced to Tynes. “I realized the concept went beyond a fractional CFO,” he said. “There was a technology platform called SIMPL® that brought everything together in one place, with one single point of entry. This made sense to me because I don’t want to be an expert in all these different platforms. I just want it to be done so l can have a Finance & Accounting platform that will scale so I can take care of my clients.”

Esposito pointed out that FaaS helps companies achieve considerable time savings by outsourcing the finance function, which isn’t a core competency. This frees up companies to spend more time focused on the core competencies that grow the business.

“Having greater peace of mind is one of the biggest benefits of the FaaS model,” said Broughton. “My mind isn’t spinning thinking about finance details. I can focus on the goal of achieving a successful exit for the business.”

In using Faas at OKCharge, Broughton said he looks to his outsourced finance team at Consero as a partner even more than before. “I was looking through our financials last night and sent Juan, my Consero VP of Finance, a note asking if we could talk this morning because I had a question about financials. It’s great to be able to just fire off an email to Juan whenever 1 have a question and have a positive conversation with him when I need to.”

To learn more about Consero and the benefits of using the Finance as a Service model, you can request an introduction here: https://conseroglobal.com/request-a-consultation/

Consero Client Dive-In and Dine with Chad Denton: Delivering the best impact to your investor

Watch the Client Dive-In & Dine discussion with Chad Denton, CFO of findhelp, as he shares how to deliver the best impact to investors. As an investor-backed CFO of a healthcare software company, Chad created a cost-effective, scalable, data-driven finance function by partnering with Consero and leveraging the Finance as a Service model.

Learn why findhelp chose Finance as a Service (FaaS) and how Consero provided:

– A standard set of financials via SIMPL® with additional custom reports as needed

– A solution and pricing structure that scales with the business with additional support as needed via Consero’s Advisory and Staff Augmentation Services

– An experienced finance & accounting team to act as a trusted advisor and close books by business day 10

– Freed executives from spending time on F&A so they could focus on strategy and developing internal team

To learn more, visit us our website:  https://conseroglobal.com/request-a-c…

 

How You can Benefit from Fractional CFO Services

How You Could Benefit from Fractional CFO Services

Growing middle-market businesses today face a number of financial challenges, from improving cash flow and profit margins to managing inflation and high interest rates.

Many are turning to fractional CFOs to help them meet these challenges.

A fractional CFO is an experienced finance professional who provides strategic financial guidance on an outsourced basis. This can be beneficial for businesses that aren’t big enough to employ a full-time CFO but need a higher level of financial expertise than a controller can provide.

A Cost-Effective Alternative to Hiring a Full-Time CFO

By obtaining fractional CFO support, middle-market companies can receive high-level CFO expertise at a lower cost than hiring a full-time CFO. This is especially critical for middle-market companies that may be too small to afford a full-time CFO but need a higher level of strategic guidance.

Strategic financial planning is critical for middle-market businesses that want to reach the next level of growth. But these companies often find themselves in a Catch-22: To grow, they need a higher level of financial expertise than they have on staff, but they can’t afford the six-figure salary, generous benefits package and other overhead it takes to hire a full-time CFO

To learn more about Consero and the benefits of using CFO Services, you can request an introduction here: https://conseroglobal.com/request-a-consultation/

Due Diligence Readiness: Navigating State and Local Tax Complexities in M&A Deals

Over the past four years, state and local taxes have become a key component of all due diligence reviews, especially in software and services industries. Sellers have realized that lack of controls and compliance in areas such as sales and income tax have resulted in significant escrow hold backs during the sale process. 

That’s why Consero is partnering with Source Advisors, a premier specialized tax consulting firm, for this on-demand webinar that aims to help sellers prepare for a future sale as well as help minimize historical liabilities. We will also explain how companies currently in the sale process can work with buyers to minimize escrow amounts.

Whether you are preparing for a future sale or are currently engaged in the process, this webinar is essential for unlocking the full potential of your transaction.

To learn more about Consero, visit us at: https://conseroglobal.com/request-a-consultation

How Base10 Partners is Using Finance as a Service (FaaS) to Manage the Back Office of the ManCo

During a recent Client discussion, Consero Senior Vice President of Finance Aaron Odle spoke with Jarred Morales-Mckinzie, the Director of Finance, Operations and Tax for Base10, about his experiences using the Finance as a Service (FaaS) model at the San Francisco- based venture capital firm.

Base10 is the first Black-led VC firm to cross the $1 billion assets under management threshold. It was founded in 2018 by venture capitalists Adeyemi Ajao and TJ Nahigian. The firm uses a data-driven approach to invest in automation technology across a range of business sectors the firm has identified as an emerging megatrend, including retail and food services.

Its first two funds both invested in about 30 companies – the $137 million Fund I launched in 2018 and the $250 million Fund II launched in 2020. Its third early-stage fund, which launched in 2002 with a value of $460 million, invests in fintech in Africa. The firm’s total AUM is currently $1.2 billion.

“Base10 donates 50 percent of carried interest from Fund II into endowments and scholarships at historically black colleges and universities, which are anchor limited partners in the fund,” said Morales-Mckinzie.

Crossing the Finish Line

Morales-Mckinzie runs the back office for Base10. “When a term sheet is signed, it’s my job to make sure we get it across the finish line.”

In 2021, Base10 chose to partner with Consero to provide Finance as a Service, or Faas, largely because of Consero’s expertise in finance and accounting
1 do everything except invest money Morales-Mckinzie for investment management firms. Consero provides Base10 with an integrated and custom accounting platform with tested processes, procedures and solutions, along with an experienced finance and accounting team that acis as a trusted advisor.

“Without Consero’s help, I’d have been dead in the trenches a long time ago,” said Morales-Mckinzie. “Faas from Consero saves me countless hours of time that I can devote Building a Scalable Solution to strategic support of our general partners to help close deals.”

In 2021 and 2022, there was a huge influx of venture capital into early growth-stage companies, said Morales-Mckinzie. Since then, Base10 has faced challenges from a volatile interest rate environment, rapidly changing fiscal policies and several high-profile bank failures.

Building a Scalable Solution

Odle stressed the importance of working with an outsourced service provider that can scale with you when you’re evolving into a more complex structure like Base10 has over the past few years. “This is something Consero is really focused on: building a scalable solution,” he said. “We try to be prepared with outside-the-box solutions when they’re needed.”

Odle asked Morales-Mckinzie how FaaS from Consero helps him juggle all the different back-office moving parts he’s responsible for. Morales-Mckinzie wears many different hats, from chief compliance officer to CFO to COO.

“It’s not easy!” he said. “My eyes and ears have to be open to everything that’s going on in the business because everything has a downstream impact. It’s important to make sure that all the partners are plugged into a situation before we address it, and FaaS helps us accomplish this.”

Morales-Mckinzie believes that the back-office has generally been seen as a backward-looking cost center in the past. “But this mentality is changing among general partners due to some of the issues we’ve seen in the banking industry,” he said. “They realize that the finance and accounting functions do provide value because we manage a lot of limited partner capital, which is our utmost responsibility.

FaaS from Consero helps ensure that we make payroll and are in compliance with local laws, regulations and taxes that can stack up when you have more than 30 active LLPs and LLCs,” said Morales-Mckinzie. “I can sleep well at night knowing that everything is almost on autopilot, and I don’t have to worry about making payroll or new employees being onboarded correctly.”

Morales-Mckinzie said that Base10 has considered bringing some fund accounting in-house. “But we get a lot of strategic value from our partnership with Consero. For example, I called Aaron early on the morning of the Silicon Valley Bank collapse to see what others were doing and he was able to share thoughts based on Consero’s network of other asset management firms.

Developing Formal Expense and Leave Policies

Morales-Mckinzie stressed the value of Consero’s HR function. “When you’re growing like we are, you hire a lot of new people who may be in different jurisdictions and have different leave practices. When we started out, we didn’t have a formal expense or leave policy, but Consero has helped us develop them.”

When he’s reviewing changes to LPAs, Morales-Mckinzie said he’s likely to send emails to Aaron at all hours asking questions. “I need the answers quickly, and Aaron responds within 12 hours. This is critical because, in our industry, decisions need to be made yesterday.”

While having lunch with a group of CFOs recently, Morales-Mckinzie said they talked about how technology has evolved in the investment management field, but it hasn’t evolved as much in the back-office. “Consero has done a great job of adapting to the technology needs of our business,” he said. “We’ve experimented with some new technology adoptions with them and learned a lot through those processes.”

“Our product team is always looking at and testing new technologies and products that come out on the market, and we’ll continue to do so to see how things like Al can improve our processes,” said Odle. “As my former boss used to say, if you’re not changing, you’re falling behind.”

SIMPL®: Consero’s Fully Integrated Software Platform

Odle explained how Consero’s FaaS software platform, SIMPL®, provides a single point of access for complete financial clarity. This fully integrated software platform features role-based, self-service tools that provide insight and control for CFOs, managers, department heads and executives. These tools include cloud accounting software, invoicing and vendor billing, expense approvals and payments, statutory and management financial reporting, task management and workflow software, and graphical metrics and KPIs.

Morales-Mckinzie stresses that it takes time to build a relationship with a new FaaS partner.
“Make sure you set clear expectations from the start, both formally in the engagement letter and while onboarding,” he said. “Try to think of everything you’ll need from them. And make sure you like the people you work with.”

To learn more about Consero and the benefits of using the Finance as a Service model, you can request an introduction here: https://conseroglobal.com/request-a-consultation/

Add-On Acquisition Readiness Part 2

With studies by Deloitte revealing that over 50 percent of acquisitions don’t achieve the expected ROI or value, businesses face a formidable challenge. How can organizations better prepare their acquisition strategy to beat the odds? 

In this on-demand webinar, our panel of experienced leaders (who have been involved in hundreds of acquisitions combined) explore the benefits, challenges, and key considerations for a financially successful acquisition. The panel includes:

– Trey Chambers, CFO of Idera (backed by TA Associates)
– Keith Collins, Managing Director with Seaside Equity Partners
– Chris Hartenstein, VP of Client Solutions with Consero
– Michael Foley, VP of Finance for Consero and Previously Experlogix, Therapy Brands

The panel will cover:

– Market Outlook Predictions
– Keys to a Successful Acquisition/Indicators of Challenges
– Consero’s Role in Supporting Acquisitions
– Target Selection and Due Diligence
– Integration Strategies and Checklists
– Considerations Related to Human Capital

Rapid Growth: Lessons and Learnings with Keel Digital COO, Jay Fischbach

As the economy gains momentum post-downturn, business leaders and investors are refocusing on revenue growth. In this on-demand event, Keel Digital, COO, Jay Fischbach shares his wealth of experience and expertise in navigating the challenges of rapid growth in a health tech SaaS company.

Whether you’re a startup looking to scale or an established company aiming for accelerated growth, this video is designed to provide valuable insights and actionable strategies for C-Suite executives, finance leaders and investors.

The agenda includes:

– Overview of Keel Digitals margins and re-organization
– Evolving with the changing climate
– How outsourcing with partners can support growth
– Rapid growth: lessons & learnings
– Key reasons for success

How Consero Clients are Transforming the Finance Function with Finance as a Service

Consero recently hosted a virtual event in which two of our clients shared their experiences and insights on how they transformed their finance functions into agile, cost-effective powerhouses using Finance as a Service (FaaS).

FaaS is an alternative to building an in-house finance and accounting team, delivering greater financial visibility and improved operational scalability along with a lower and more predictable cost structure. It includes a fully integrated software platform, transactional accounting, controller-level compliance and reporting, financial planning and analysis, and strategic CFO support.

FaaS Helps Synacor Transition from Public to Private

Investors: Centre Lane Partners

Industry: Software Development

Revenue: $65M

Employees: 109

Ellen Purdy is a seven-time Private Equity-backed CFO. When Ellen joined Synacor, a cloud-based software and services company, as CFO in 2021, the company was in the process of transitioning from public to private. During this process, they sold a product line that accounted for one-third of the company’s revenue.

A new CEO joined Synacor at this same time who had experience working with Consero and FaaS. “This required a scalable accounting infrastructure to continue growth as a private company, along with new revenue recognition to improve accuracy and efficiency.”

The decision was made to downsize Synacor’s finance and accounting staff from eight people to two people, plus the CFO, and outsource finance and accounting to Consero. “I had never outsourced finance and accounting or done FaaS but I knew it made sense for us and I wanted to learn how to do it,” says Purdy.

Purdy says Synacor had a plan for which functions and positions to retain and which ones to let go, but things didn’t go according to plan. “Some employees left sooner than expected and some who we wanted to stay left, including the controller,” she says. “Consero essentially trained me on the job and filled in all the pieces. The process has gone incredibly well.”

In year two, they are tracking for even bigger savings. “Now it’s just as much about optimizing, increasing efficiency and continuous improvement as it is about cost savings,” says Purdy.

For example, Synacor originally continued using the expense reporting system and contract module it was using before moving to Consero. But they’re now implementing a project plan to move these to the Consero module. “This will result in fewer human errors and also free up staff to spend more time on value-added tasks,” says Purdy.

To learn more about Consero and the benefits of using the Finance as a Service model, you can request an introduction here: https://conseroglobal.com/request-a-consultation/

Fueling Your Growth: The Power of Fractional CFO Services (Consero Webinar)

While the CFO role is experiencing a wave of high turnover and escalating salaries across various industries, the significance of the role has also surged. A striking 90% of executives believe that the CFO role has significantly increased importance in response to economic uncertainty and growing financial complexity (Source: CFO). With companies searching for financial expertise, many are now turning to Fractional CFOs to offer strategic guidance on an outsourced basis.

During this video, you will discover how Fractional CFO Services, whether project-related assistance, temporary financial guidance, or financial leadership, can catalyze your company’s growth.

Our agenda will cover the following key topics:

– Outlook of the CFO Role
– Benefits of a Fractional CFO
– Evolution and finance function of a growing business
– When hiring a fractional CFO makes sense
– How to choose and benefit from the partnership 

Don’t miss this opportunity to gain insights from industry experts and discover how Fractional CFO Services can be a game-changer for your organization.

Speakers
Jeff Stoss, Client CFO and CFO Services Lead, Consero
Trey Swain, Client CFO, Consero

Consero Client Discussion: Base10 Partners – First Black-Led VC Firm To Cross $1 Billion AUM

In this Consero client discussion with Jarred Morales-Mckinzie, Director of Finance at Base10 Partners, shares his experience in a venture capital firm with $1.8B in assets under management. Base10 is the first black-led VC firm to cross $1 billion AUM with new fund and chose to partner with Consero because we specialize in finance and accounting for investment management businesses in additional to software and professional service orgs.

Learn why Base10 chose Finance as a Service and how Consero provided:

– An integrated and custom accounting platform with tested processes, procedures, and solutions
– An experienced finance & accounting team to act as a trusted advisor
– Automation of data flow with built-in segregation of duties
– Established controls and transparency to mitigate risk and support the fast growing firm
– Freed executives from spending time on F&A so they could focus on strategy and closing deals

Visit Consero:
https://conseroglobal.com/request-a-consultation/