In today’s uncertain economy, finance leaders are constantly seeking innovative ways to drive operational efficiency, streamline processes and minimize costs.
Consero’s VP of Client Success, Lisa Eyer, interviewed a panel of investor-backed CFOs in the SaaS and Health Tech industries, Ellen Purdy (6x PE-backed CFO) and John Araki (VC-backed CFO) to learn of their firsthand success stories and insights on how they transformed their finance functions into agile and cost-effective powerhouses.
Company Profiles
Synacor: A PE-Backed Global Software Company
Synacor is a software company backed by Center Lane Partners, offers global email and identity management solutions.
Background:
- Headquartered in Buffalo, New York
- Entirely remote workforce
- Operates in 14 different countries
- Recently transitioned from a public to a private company, leading to significant shifts in finance operations
Ellen joined in June 2023, bringing extensive experience as a CFO for technology-focused private equity and venture capital-backed firms.
Recovery One: A VC-backed Digital Health Company
Recovery One is a venture-backed digital health company focused on:
- Improving recovery from musculoskeletal injuries
- Providing technology platform and clinical services
- Serving self-insured employers and health insurance companies
Background:
- Specialized in technology-enabled recovery solutions
- Serves clients who bear financial risk for injury recovery
- Rapidly growing startup
John, a strategic CFO without a CPA background, has been instrumental in professionalizing the finance function since joining the company when it had just 13 employees.
Finance Function: Pre-Outsourcing
Finance Transformation Strategy
Both companies partnered with Consero, for our tailored service offerings:
- Finance and accounting outsourcing
- Fractional CFO services
- Preparation for audits and due diligence
- Cost-effective financial management
Objectives
- Professionalize financial functions
- Reduce operational costs
- Improve reporting accuracy and speed
- Scale financial capabilities with business growth
Outcomes
Synacor’s Transformation
With Consero’s support, Synacor reduced the finance team from eight internal staff to three, and quickly adapted to unexpected staff departures during the outsourcing transition.
Consero’s integrated platform also delivered software cost savings by replacing legacy systems.
- Reduced internal finance team size
- Achieved a 51% cost reduction by outsourcing finance functions
- Increased operational efficiency
- More sophisticated reporting capabilities
- Seamless transition to private equity requirements
Recovery One’s Financial Evolution
Having inherited a rudimentary finance setup, John opted for Finance as a Service (FaaS) with Consero, avoiding the need to build an in-house team.
RecoveryOne gained a fully functional finance operation without compromising quality or scalability through one turnkey solution.
- Professionalizing finance function
- Realized roughly 60% cost savings with Consero’s services
- Scalable financial infrastructure
- Improved audit and due diligence readiness
Strategies for Managing Costs and Gaining Efficiency
Ellen and John shared their top recommendations for CFOs to streamline their finance functions with outsourced partnerships:
- Leverage Technology: Adopt tools included in outsourcing packages, such as expense management systems, for cost savings.
- Automate Processes: Implement contract management modules to reduce human error and enhance reporting capabilities.
- Reallocate Resources: Redirect time saved from finance functions to growth-oriented activities.
- Vendor Management: Regularly evaluate vendor relationships for cost-effectiveness and added value.
- Flexible Resources: Use outsourced services for ad hoc needs, ensuring efficiency without additional full-time hires.
Ellen and John’s experiences demonstrate the transformative power of outsourcing finance functions, especially when coupled with strategic technology adoption. The substantial cost savings and enhanced operational efficiencies underscore FaaS’ growing role in meeting modern business needs.
