Overview
When a Startup Needs a Fractional CFO
The need for fractional CFO support is almost always tied to a specific moment - a decision that exposes the limits of the current financial infrastructure.
A fundraising round is approaching. Investors expect a financial model with a 3-year projection, unit economics, and a clear articulation of capital deployment. The absence of a credible financial model is one of the most common reasons early-stage raises stall in diligence.
Runway is unclear. The founder knows the bank balance but not how many months of runway remain under the current burn rate, what happens if two key hires are added in Q2, or at what revenue milestone the company achieves cash flow breakeven.
The company has received institutional interest but has no financial infrastructure. Seed and Series A investors conduct financial diligence - the absence of GAAP-compliant statements, a working cap table model, or unit economics documentation creates friction that delays or derails closes.
Tax structure has not been assessed. A Delaware C corporation that has not evaluated QSBS eligibility, established a reasonable founder compensation structure, or considered cross-border implications of Canadian co-founders is carrying tax risk that becomes expensive at exit, at financing, or at the first significant revenue milestone.
The accounting function is accurate but not strategic. Bookkeeping is current. Financial statements are produced monthly. But no one is using those statements to project forward, model scenarios, or integrate the tax picture into cash planning.
What This Service Addresses
The fractional CFO function for startups addresses the gap between accurate historical accounting - which most startups have - and forward-looking financial management, which most do not.
Runway and Capital Efficiency
A startup’s most critical financial metric is the relationship between burn rate and runway, and the milestone that must be reached before runway runs out. TYM builds and maintains the cash flow model that makes this relationship explicit, tracks it against actuals weekly, and identifies the adjustments required to maintain adequate runway through each stage.
Financial Model as a Decision Tool
Most startup financial models are built once for a pitch deck and never updated. A working financial model - reconciled to actuals each month, updated as assumptions change, and used to evaluate decisions before they are made - is a different instrument. TYM builds and maintains this model as a standard component of the engagement.
Investor-Ready Reporting Infrastructure
Institutional investors expect GAAP-compliant financial statements, a KPI dashboard with cohort data, and a board package that demonstrates financial discipline. TYM builds this infrastructure before the fundraising process begins, not during it.
Tax-Integrated Financial Planning
The entity structure chosen at incorporation, the compensation decisions made in the first year, and the equity plan design all have tax consequences that compound over time. TYM integrates tax planning into the CFO function from the outset - not as a year-end exercise, but as a continuous layer of financial management.
Who it's for
Who This Service Is For
Pre-Seed and Seed-Stage Founders
Preparing for a first institutional raise - need a financial model, GAAP-compliant financial history, and a CFO who can engage with investor financial questions directly.
Post-Seed Companies ($500K–$3M Revenue)
Outgrown the bookkeeping function but not yet ready for a full-time CFO or VP Finance - typically 12–30 months post-seed close.
Startups with Canadian Co-Founders or Investors
Entity structure, equity plan, and compensation decisions must account for both U.S. and Canadian tax consequences from the outset.
Pre-Seed and Seed-Stage Founders
Preparing for a first institutional raise - need a financial model, GAAP-compliant financial history, and a CFO who can engage with investor financial questions directly.
Companies Facing a Runway Problem
Less than 9 months of runway, accelerating burn rate, or uncertainty about the timing of the next capital need - require an immediate cash flow assessment and plan.
Technical Founders
Operationally strong but financially underequipped - recognize that the financial function is the area of greatest risk and want to address it before it becomes a crisis.
Our approach
What TYM Does
Financial Model Construction and Maintenance
TYM builds the startup’s financial model from scratch or reconstructs an existing model that has not been maintained against actuals. The model covers a 3-year projection with monthly granularity for Year 1 and Year 2 - revenue by channel, headcount by role, operating expenses by category, and a capital deployment schedule.
The model is scenario-based: base case, upside, and downside projections are maintained simultaneously with explicit assumption documentation. For SaaS businesses, the model incorporates cohort-based revenue modeling - MRR/ARR by cohort, net revenue retention, CAC by channel, and LTV:CAC ratio. For product businesses, it incorporates inventory and working capital modeling.
Runway Management and Cash Flow Oversight
TYM maintains a 13-week rolling cash flow forecast - updated weekly from accounting records - that gives leadership a precise view of cash position, committed expenditures, and expected inflows. Where runway is insufficient, TYM develops a capital efficiency plan: a specific, quantified analysis of where capital is deployed, what return each deployment generates, and what the reallocation options are.
Investor Reporting and Board Package Preparation
TYM prepares the monthly or quarterly board package - financial statements, management discussion and analysis, KPI dashboard, and variance analysis - on the cadence the investor base requires. TYM also prepares investor update letters, cap table maintenance support, and the financial components of the due diligence data room for companies in an active fundraising process.
Entity Structure and Tax Planning
The entity and tax decisions made in the first 12 months have consequences that reach through to exit. TYM addresses QSBS eligibility assessment and ongoing monitoring under IRC §1202, founder compensation structure modeling for combined payroll and income tax impact, cross-border equity and compensation coordination for startups with Canadian founders or investors (through Canadian Tax Planning at /services/canadian-tax/tax-planning-canada/), and business structuring evaluation in coordination with /services/advisory/business-structuring/.
Month-End Close Oversight
The fractional CFO function includes oversight of the monthly close - reviewing financial statements for accuracy, completeness, and GAAP compliance. Where accounting is handled by TYM’s Bookkeeping for Startups practice at /services/accounting/bookkeeping-for-startups/, the close and CFO functions are fully integrated.
Case study
Case Study: Seed-Stage SaaS Startup, Miami
A two-year-old SaaS startup in Miami had closed a $750K pre-seed round 14 months prior and was approaching end of runway with approximately 5 months of capital remaining. Revenue was growing - $28K MRR, up from $11K at pre-seed close - but burn had expanded as the team scaled from 3 to 9. No financial model, no board reporting, no Series A process initiated.
TYM engaged as fractional CFO. The first two weeks produced a cash position assessment: actual runway was 4.7 months, not 5-plus, because two vendor invoices due in Week 6 had not been incorporated. A bridge financing conversation with the lead investor was initiated immediately based on TYM’s analysis.
The financial model - built over weeks 3 through 6 - incorporated actual MRR by cohort, net revenue retention of 94%, CAC by channel, and a headcount plan aligned to the Series A revenue milestone. Three scenarios were modeled: base case (close at Month 7), extended runway (burn reduction via one deferred hire, close at Month 10), and bridge ($300K note, close at Month 9). The lead investor extended the bridge within three weeks of receiving the model.
The Series A closed at $4.2M at Month 8. TYM prepared the data room, supported two investor diligence sessions, and managed the cap table model through close.
Engagement Model
TYM’s fractional CFO engagement for startups is structured in two formats:
Retainer engagement - a defined monthly scope covering core startup CFO functions: financial model maintenance, cash flow management, investor reporting, close oversight, and tax-integrated planning. Fixed monthly fee reviewed quarterly. Standard format for startups with active investor relationships, a fundraising process in progress, or an ongoing runway management need.
Project engagement - a defined deliverable with a fixed timeline and fee: financial model build, data room preparation, or runway assessment. Appropriate for startups with a specific near-term need that are not yet at the stage where ongoing CFO support is warranted.
Most startup engagements begin as a project and evolve into a retainer. TYM does not require long-term commitments - scope and fee are reviewed quarterly.
Scope
Scope Boundaries
Included
- Financial model build, maintenance, and scenario analysis
- 13-week rolling cash flow forecast and runway management
- Investor reporting - board packages, investor updates, data room financial preparation
- Month-end close oversight and GAAP financial statement review
- KPI framework design - cohort metrics, unit economics, management dashboard
- QSBS eligibility assessment and ongoing monitoring
- Founder compensation structure analysis
- Tax-integrated planning - estimated tax projections, entity structure assessment
- Cross-border equity and tax coordination for startups with Canadian founders or investors
- Fundraising support - financial Q&A with investors, model defense, diligence coordination
Not Included
- Day-to-day bookkeeping and transaction processing - addressed through Bookkeeping for Startups at /services/accounting/bookkeeping-for-startups/
- Annual tax return preparation - addressed through US Tax Services at /services/us-tax/ or Canadian Tax Planning at /services/canadian-tax/tax-planning-canada/
- Legal counsel - TYM provides financial analysis to support legal decisions but does not provide legal advice
- Audit services - TYM prepares audit-ready financial statements and supports external auditors but does not conduct the audit
- Cap table administration - TYM supports cap table modeling for financial planning but does not administer the legal cap table
Process
How It Works
Step 1 - Advisory assessment (Week 1). TYM reviews current cash position and runway, accounting system and close process, existing financial model, investor reporting obligations, upcoming capital events, and tax structure. A scope proposal covers engagement format, activities, and fee.
Step 2 - Infrastructure build (Weeks 2–6). TYM builds the core instruments: financial model, cash flow forecast, and reporting template. The accounting system is reviewed and close process documented. QSBS eligibility and entity structure are assessed.
Step 3 - Ongoing CFO function (monthly cadence). Week 1: close review and financial statement confirmation. Week 2: cash flow update and runway assessment. Week 3: investor reporting. Week 4: model update, scenario refresh, and planning. Key decisions are evaluated against the model before execution.
Step 4 - Fundraising support (as triggered). Data room preparation, model documentation, investor Q&A support, and diligence coordination. Building this infrastructure before the raise - not during it - is the correct sequence.
Important dates
Fees
Fractional CFO fees for startups reflect the stage of the company, financial infrastructure complexity, and engagement format.
Factors that affect fee structure:
- Stage and burn rate - pre-revenue startups require less CFO scope than post-seed companies with active investor reporting
- Fundraising proximity - active capital raises expand the CFO workload significantly
- Accounting function quality - where bookkeeping is current, CFO scope is more focused; where accounting requires reconstruction, scope is broader
- Cross-border complexity - startups with Canadian founders or dual-jurisdiction obligations add scope
- Investor reporting cadence - monthly board packages with institutional investors require more CFO time than quarterly angel updates
Retainer engagements typically begin at $2,500–$5,000 per month depending on stage and scope. Project engagements - financial model build, data room preparation, or runway assessment - are priced on a fixed-fee basis, typically $3,500–$8,000 depending on deliverable complexity.
TYM does not bill by the hour for retainer engagements. The monthly fee covers the defined scope, reviewed and adjusted quarterly.
Locations
Fractional CFO for Startups in Miami
TYM’s fractional CFO practice for startups is based in Miami, serving early-stage companies across South Florida and nationally. Miami’s startup ecosystem - spanning technology, fintech, healthtech, and consumer products - concentrates companies with strong product traction but limited financial infrastructure. TYM serves founders at this stage: past the idea, building toward institutional capital, navigating the financial management function for the first time.
Miami-based startups with Latin American or international investors frequently encounter cross-border financial and tax considerations from the earliest stages. TYM’s Miami office, as an IRS Certified Acceptance Agent, supports ITIN and international taxpayer needs that arise in internationally composed founding teams.
19790 W Dixie Hwy #1007, Miami, FL 33180 | +1 (833) 222-6272 | info@tymconsulting.cpa
Talk to a CPA About Your Startup’s Financial Needs
The financial decisions made in the first 18 months - entity structure, equity plan design, founder compensation, and the financial model that defines the fundraising conversation - have consequences that compound through every subsequent financing event and through exit. Building the infrastructure correctly at the outset is materially less expensive than reconstructing it under diligence pressure.
TYM conducts an initial advisory assessment to understand the startup’s current financial position, the near-term event driving the need for CFO support, and the engagement format that addresses both.
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FAQ
Frequently Asked Questions
When does a startup need a fractional CFO?
When does a startup need a fractional CFO?
How is the startup fractional CFO engagement structured?
Can TYM help during an active fundraising process?
Does TYM handle both CFO and tax for startups?
What is the typical timeline from engagement start to a completed financial model?
The content on this page is for informational purposes only and does not constitute professional financial or tax advice. Fractional CFO services are tailored to individual business facts and circumstances. Consult a qualified CPA or financial advisor for guidance specific to your situation.
