Case Study: How a Technology Manufacturer Secured Series A Funding with Fractional Accounting

OVERVIEW

A manufacturer in the renewable energy sector was preparing for rapid downstream growth due to rising demand and needed capital to scale production. To attract investors, they first had to establish strong financial management.

The company’s full-time CFO engaged our team to provide fractional accounting services — building a scalable finance function that could support fundraising, handle audits, and transition smoothly to an internal team over time.

THE PROBLEM

Although positioned for growth, the company faced several financial challenges that threatened its ability to raise capital.

Key issues included:

• An initial financial statements audit, required by a key investor, was going to be conducted by Deloitte. The company needed GAAP compliant financial statements, and an internal accounting function to lead the charge internally.
• Accounting systems and workflows needed to be established, but in stages to support specific needs without spending too much precious cash.
• Controls and policies needed to be developed, not only to support the audit, but to manage cash burn during the critical and expanding period until the next tranche of capital was received.

Without addressing these issues, the company risked failing its audit, delaying its funding round, and losing investor confidence.

THE SOLUTION

Fast growth can be as much of a challenge as it is a cause for celebration. When a company is hiring employees, scaling inventory, and spending to open new facilities, it’s not uncommon to experience administrative inconsistencies.

However, banks, investors, and other sources of capital require strong financial management — even during periods of rapid growth.

To bridge the gap, this manufacturer chose to engage outsourced accounting and bookkeeping so that they could focus on operations and raising capital. They needed a provider that could provide flexibility and expertise.

We supported by:

• Implementing a GAAP-Compliant Accounting System – This was particularly tricky as prior to completing the current round of funding, it didn’t make sense to implement the system required to efficiently manage post-raise manufacturing scale. We improved on their existing system configuration to bridge to a more robust ERP implementation, using our unique QuickBooks Online expertise to extend the utility of the platform to the maximum.
• Standardizing Accounting Processes & Workflows – Necessary for the initial audit, subsequent annual audits, and ongoing management. Policies had to be robust enough to accommodate growth without being overly cumbersome to the company’s startup inertia.
• Conducting Day-to-Day Accounting Operations – Our team stepped in to provide a scalable mix of accounting expertise that flexed up to support the initial systems configuration and rush to manage capital investment, and flexed down in the lull between funding rounds.
• Providing Support Through the Initial Statements Audit – Our team provided accounting expertise and project management to successfully complete the audit with a Big Four Accounting Firm.

THE IMPACT

At kept.pro, we offer more than bookkeeping services. We offer flexible accounting experts that can fill out your team regardless of what your needs are. For this client, we provided a controller, project manager, and a team of accounting talent to handle daily financials and audit support.

At the same time, we helped the company develop and implement systems, policies, and processes that would build a strong financial foundation to grow the company on. We worked with the manufacturer to create systems, process and/or policies for:

• Fixed Asset Tracking
• Purchase Order Management
• Lease Accounting
• Cash Management

While there are many providers out there that can staff a bookkeeper, our team offers multi-level expertise that can augment your internal accounting and finance teams now and as your needs change with growth.

With our support, the manufacturer was able to complete their initial financial statements audit on time and with no material deficiencies, in advance of hiring an internal team. According to PwC, 43% of companies going public have reported at least one material deficiency.

With accurate financials in place, our client was able to gain investor confidence and close a series A funding round without incident.

Strengthen Your Manufacturing Business with Expert Fractional Accounting Services

Our team specializes in fractional accounting services for manufacturers — helping you stay audit-ready, attract investor confidence, and scale without the risks of weak financial controls.

Book your free Financial Risk & Readiness Assessment today to see how we can support your growth.