Startup CFO checklist
The task of a startup CFO can be particularly challenging, given that investing in the finance function is typically not top of mind early on. Compiled here is advice from CFOs of larger, more mature companies that will prove useful for startup CFO and finance leaders.
1. Be the expert
Get to know your product, the market and your customers — deeply.
2. Leverage culture
Culture is crucial in talent acquisition and retention. Champion it, actively and often.
3. Establish processes
Establish strong accounting and finance processes before you think you need accounting and finance processes.
4. Track KPIs early
Be able show customer trends, such as MRR growth, net revenue retention, CAC and LTV. Report expenses by classification ratable to revenue, such as cost of revenue or cost of goods sold vs. SG&A.
5. Track the right KPIs
For instance, Gorman says, don’t just track revenue AR aging. Trend DSO to see the financial health of collection. Take time at the end of every month to scrub up ratios.
6. Get help going global
Don’t reinvent the wheel. It’s there, and it works.
7. Act as a connector of silos
Finance sits in the middle of everything. Embrace your role as the orchestrator.