Results

• The spinoff adventure was properly reclassified and reabsorbed
• A company formation restructuring, planning and execution, was successfully completed
• The finance and admin department became primarily automated (Quickbooks, Bill.com, Expensify, an accounting firm to help the COO were all launched)
• $20M in financing was raised (by the current investors in the end)
• Provided the revenue recognition for 2020 for the SaaS software and services sales

Position Profile

• Position: Fractional CFO
• 7 months heavy, ranging from 2 to 3 days per week to 6 days per week
• 5 months light, ranging from zero days per week to 2 to 3 days per week

Situation

• EC needed to change reverse its path with the spinoff company, and instead reabsorb it. Yet still there was a need for managerial accounting for the Back2Work product line.
• EC needed to transition from an LLC partnership formation to a DE Corp, including converting all shareholders (I was the first to point this out and helped champion the project)
• Accounting was mostly done by spreadsheets, it needed to be professionalized and ready for investor penetration
• Admin and accounting activities needed automation rather than mostly manual tracking
• A financial model was needed for investor financing, and a business plan– including tying up a comprehensive strategy

Implementation

• A plan to reabsorb the spinoff company was proposed, accepted, and executed
• A custom chart of accounts was implemented, including bridging the spending from the spinoff company back to unified accounting tallies
• An outsourced accounting firm was launched, all past spending and all financial transactions were coded into a Quickbook-based accounting system (with a custom front end), and systems (Bills.com and Expensify) were integrated to further automate and self-empower the employee base
• Contributed to the strategy formation and go to market plans, even acting as a product manager for a short period of time and providing impactful strategy and/or research briefs
• Created a detailed pro forma financial model, helped with putting together all the investor materials, developed a group of comparable companies for modeling and comparison
• Analyzed and advised on company valuation report used for financing and equity conversions
• Delivered a well-researched report on the top VCs, firm and partner, for EC’s next $70M financing in late 2022