SaaS Startup Cash Flow Turnaround
The Problem
A Series A SaaS company was growing revenue but consistently burning cash at an unsustainable rate. Despite raising $8M the prior year, the leadership team lacked visibility into monthly cash flow, burn rate, and runway. Their internal accounting team closed books 45 days late, making proactive decisions impossible.
Investors were growing concerned about the lack of financial discipline and forecast accuracy, and leadership feared a down round if performance didn’t improve quickly.
The Solution
We were engaged as a fractional CFO to stabilize cash management and implement real-time financial visibility. Within the first month, we:
- Migrated the company’s accounting from a spreadsheet-heavy workflow to QuickBooks Online integrated with a custom KPI dashboard in Google Data Studio.
- Built a 13-week rolling cash flow model, updated weekly, to identify upcoming shortfalls.
- Negotiated extended payment terms with two of the company’s largest vendors, freeing up $600K in working capital.
- Aligned forecast reporting to board expectations, delivering timely and investor-ready updates.
The company reduced burn by 35% without cutting growth initiatives.
“Before bringing in a fractional CFO, we were running blind. Within weeks, we knew exactly where our cash was going and had a plan to extend our runway by 9 months.”
Conclusion
Strategic financial oversight and disciplined forecasting not only stabilized the company’s cash position but also restored investor confidence—positioning them for a strong Series B raise.