Case Study: Technology Manufacturer - Venture-Backed

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By kept.pro
September 14, 2023

Accurate, Timely Financials Help a Growing Technology Manufacturer Successfully Close a Significant Funding Round

Technology is opening the door to new possibilities. Over the last decade, renewable energy has experienced 42% growth and now makes up more than 20% of utility energy supply in the United States.

A manufacturer connected to a renewable energy technology was anticipating rapid downstream growth due to the rising demand for next-generation hardware to complete energy projects. They needed to raise capital in order to scale production.

The first step was to establish a system of strong financial management that would attract large investors to fund expansion. Focused on fundraising, the client’s full-time internal CFO engaged kept.pro to assist in building and maintaining a scalable finance department that would eventually transition to a newly staffed internal team.

Outsourcing Accounting & Finance to Support Growth

Fast growth can be a challenge as much as a cause for celebration. While the 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 look for strong financial management even during periods of rapid growth.

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

Here’s how our team delivered the support they needed:

  • Implemented a GAAP-Compliant Accounting System
  • Standardized Accounting Processes & Workflows
  • Conducted Day-to-Day Accounting Operations
  • Provided Support Through the Initial Statements Audit with a Big Four Accounting Firm

Two Birds, One Stone

At kept.pro, we offer more than bookkeeping services. We offer flexible financial talent that can fill out your team regardless of what your needs are. For this client, we provided a staff 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.

The Right Bookkeeping and Accounting Team Facilitates 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.

The number of disclosures has continued to increase since 2016, indicating that financial complexity is increasing. These disclosures almost always have a negative impact on a company, hurting stakeholder confidence and eroding value.

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

Your Growth Starts with a Strong Financial Foundation

Learn more about how kept.pro can help your company establish accounting systems that fuel growth. Contact our team today.



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