Why do private equity portcos struggle with their finance & accounting function?

Updated: March 19, 2021

Everything changes.
We’ve changed the way we taxi.
We’ve changed the way we get our groceries.
We’ve even changed the way we watch TV.
So, why are we still trying to fix accounting and finance the same way we were 30 years ago?

You’ve experienced this time and time again. The accounting and finance functions of the portfolio companies you acquire or manage are almost always broken.

Whether it’s the wrong systems, wrong personnel, turnover, or they aren’t staffed up to scale, it’s always a headache trying to right the ship when so many things aren’t being done correctly.

And to make matters worse, it’s nearly impossible to diagnose what’s wrong when you’re receiving inaccurate or untimely data or financials.

So, where does that leave you? This video shows you a new school approach to fixing the finance & accounting function.

Related Resources

ArticleOutsourcing

The Guide To Outsourcing Finance & Accounting For Investor-Backed Businesses

If you want to grow your business as a private equity firm, lowering operational costs and maximizing ROI across all portfolio companies should be your ...
Finance as a ServiceInvestment Managers

5 Powerful Advantages of Finance as a Service (FaaS) for Investment Management Firms

Consero’s Finance as a Service (FaaS) is a fully-managed back office solution that blends leading financial technology and a skilled finance & accounting team designed ...
What Is Outsourcing With Finance as a Service
CEO / CFO

What Is Outsourcing With Finance as a Service?

In today’s highly disrupted and unpredictable business environment, operating a company, be it a startup or a multinational organization, will come with its series of ...
Four men in business suits shaking hands
ArticlePrivate Equity Solutions

5 Reasons Private Equity Firms use Finance as a Service (FaaS)

PE firms are turning to Finance as a Service (FaaS) partners to handle finance and accounting at portfolio companies.
Back Office Holding Back 3

5 reasons why strategic CFOs outsource accounting

Accounting remains a challenge to businesses both large and small. It’s not just because the need for accurate and timely accounting data is constant – ...
Events and Webinars

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 ...

Finance as a Service

Cutting edge technology, processes, and people in a fully-managed solution to deliver precise financial visibility and improved operational scalability, plus a lower and more predictable cost structure. 

Flex Finance

Keep your existing technology and processes. We can manage the back-office F&A function from end-to-end process, including closing the books. When you need skilled talent, we can supplement your F&A team.

Advisory Services

Expert advice and strategies to help you grow.

• CFO Advisory Services
• FP&A and Reporting
• Technical Accounting & Clean-Up

Consero FaaS: Disrupting the Outdated Traditional F&A Model

Transformation
  • Cash to GAAP conversion
  • Clean-up work
  • Interim oversight & support
  • Accounting software Implementation

Build it Yourself Solution

  • CFO / Interim CFO
  • Consultants / VARs

Consero FaaS Solution

  • CFO / Interim CFO
  • or Consero Interim CFO
  • Consero Setup/Transformation
Ongoing F&A
  • Monthly financials
  • Daily accounting support
  • Management reporting
  • Integrate add-on acquisitions

Build it Yourself Solution

  • CFO
  • Controllers & Accounting Team
  • Enterprise Accounting Applications

Consero FaaS Solution

  • CFO
  • or Consero Fractional CFO
  • Consero FaaS Enterprise F&A Software and Services

New PE Platform Investment F&A Challenges

Founder Owned Company Accounting:
  • Existing accounting done on a cash/hybrid basis
  • Run on SMB accounting software and other disparate applications
  • Inability to produce auditable financials
  • Lack of know-how to develop projections & KPIs
  • No consistency/structure to customer contracts
  • Underqualified staff
  • Non-scalable manual processes
Carve-Out Accounting:
  • Required to move off parent company accounting applications in a timely fashion
  • Have to build an entire F&A team
  • No documented operational policies and procedures
To Optimized Finance & Accounting:
  • Monthly financials available in 5-10 business days
  • Audit and diligence ready support details
  • Integrated enterprise grade accounting software
  • Budget and forecast reporting
  • Business KPIs
  • Efficient & scalable processes for rolling in add-ons