CPA-led financial leadership for early-stage companies — runway clarity, investor-ready reporting, and tax-integrated planning from the first dollar of revenue.
Most startups do not fail because the product is wrong. They fail because the financial picture is unclear at the moment it needs to be sharpest — when a fundraising decision must be made, when cash is tighter than the bank balance suggests, or when investors ask for a financial model that does not exist. A fractional CFO addresses this gap without the cost or commitment of a full-time hire.
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.
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.
The founder knows the bank balance but not how many months of runway remain at 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.
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 closings.
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.
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.
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.
Outgrown the bookkeeping function but not yet ready for a full-time CFO or VP Finance — typically 12–30 months post-seed close.
Entity structure, equity plan, and compensation decisions must account for both U.S. and Canadian tax consequences from the outset.
Need financial diligence preparation — audited or reviewed financials, a data room financial package, and support during investor due diligence.
Less than 9 months of runway, accelerating burn rate, or uncertainty about the timing of the next capital need requires an immediate cash flow assessment and plan.
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.
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.
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.
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 the runway is insufficient, TYM develops a capital efficiency plan: a specific, quantified analysis of how capital is deployed, the return each deployment generates, and reallocation options.
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, provides cap table maintenance support, and handles the financial components of the due diligence data room for companies in active fundraising.
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, and cross-border equity and compensation coordination for startups with Canadian founders or investors.
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, the close and CFO functions are fully integrated.
Miami, FL · B2B SaaS · $28K MRR at engagement start
A two-year-old SaaS startup in Miami had closed a $750K pre-seed round 14 months prior and was approaching the end of its 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 a 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.
TYM reviews the current cash position and runway, the accounting system and close process, the existing financial model, investor reporting obligations, upcoming capital events, and the tax structure. A scope proposal covers engagement format, activities, and fee.
TYM builds the core instruments: financial model, cash flow forecast, and reporting template. The accounting system is reviewed, and the close process is documented. QSBS eligibility and entity structure are assessed.
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.
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.
TYM's fractional CFO engagement for startups is structured in two formats. TYM does not bill by the hour for retainer engagements — the monthly fee covers the defined scope, reviewed and adjusted quarterly.
Standard format for startups with active investor relationships, a fundraising process in progress, or an ongoing runway management need. Fixed monthly fee reviewed quarterly.
Financial model build, data room preparation, or runway assessment. Fixed-fee basis depending on deliverable complexity. Most startup engagements begin as a project and evolve into a retainer.
TYM's fractional CFO practice for startups is based in Miami and serves 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 stage, building toward institutional capital, and navigating financial management 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.
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 pressure to be diligent.
Schedule an Advisory ConsultationWithout proper CFO support, startups face compounding financial risks that become increasingly expensive to resolve.
Founders believe they have 12 months of runway, but have 8. Cash crisis forces unplanned fundraising.
Capital allocation decisions are made without data. Hiring, marketing, and product decisions lack quantified impact.
Missing GAAP financials, unit economics, and financial model slow or kill fundraising rounds.
Entity, compensation, and equity decisions made without tax planning create exit surprises or Series A complications.
Equity documentation is incomplete. Investor preferences don't match actual ownership. Disputes delay fundraising.
The full-scope fractional CFO practice covers the complete range of financial leadership engagements beyond the startup stage.
Learn moreThe foundational accounting function on which the CFO engagement is built.
Learn moreEntity design, holding company structure, and equity plan architecture coordinated with the CFO function.
Learn moreFor startups with Canadian founders, investors, or operations requiring Canadian tax integration.
Learn moreU.S. federal and state tax compliance integrated with the CFO's tax planning function.
Learn moreThe clearest trigger is a specific near-term event — a fundraising round, a runway crisis, or an investor asking for financial documentation that the startup cannot produce. Outside of event-driven triggers, a startup needs a fractional CFO when capital allocation decisions are made without a financial model, or when cash flow visibility extends to fewer than 8 weeks.
A bookkeeper records transactions. An accountant prepares tax returns and financial statements. A fractional CFO uses that record as the foundation for forward-looking analysis: financial modeling, runway management, investor reporting, and strategic advisory. The distinction is between documenting what happened and shaping what happens next.
TYM offers two formats: retainer (a defined monthly scope covering core CFO functions, reviewed quarterly) and project (a specific deliverable with a defined timeline and fixed fee). Most startup engagements begin as a project and evolve into a retainer. TYM does not require long-term commitments.
Yes. TYM supports data room preparation, financial model documentation, investor diligence Q&A, and cap table modeling. The most effective fundraising support begins 90–120 days before a target close date, when the financial infrastructure can be built and stress-tested rather than assembled under diligence pressure.
Yes — QSBS eligibility, founder compensation structure, equity plan tax consequences, and cross-border considerations are all addressed within the CFO engagement. Annual tax return preparation is a coordinated but separate filing engagement. The tax planning and the financial model are maintained by the same team.
A working financial model — 3-year projection, scenario analysis, and unit economics — is typically completed within 3 to 4 weeks, assuming clean accounting records and founder-provided assumptions. From there, ongoing maintenance is a weekly and monthly activity integrated with the close process.
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.