ProRata Client Case Study
TechCXO fractional CFOs and supporting accounting and finance functions teams provide a tremendous value to many technology startups and early-stage companies like ProRata. It’s no secret that a big part of our value proposition is providing top CFO talent to companies who ordinarily couldn’t afford — or need — a full-time CFO and accounting and finance staff. And sometimes firms need to outsource their entire finance and accounting department / services to a firm like TechCXO. ProRata is just such a firm.
ProRata is a SaaS business which integrates with its clients’ existing systems to automate the revenue recognition process and give powerful insights into its clients’ subscription businesses through relevant financial reports and SaaS metrics. Over the past year, nonpublic companies have been scrambling to prepare for the new ASC 606 accounting standards that take effect in 2019. Companies that are ill-prepared will soon face increasing tension between go-to-market and finance teams, overly complicated spreadsheets, time-consuming roadblocks, and even costly audits/fines. ProRata’s reporting and analytics platform automates ASC 606 and IFRS 15 compliant revenue recognition.
Their challenge was the need for multi-level finance/accounting leadership and management. There was an additional need for experienced CFO-level guidance and expertise to help inform and shape the relevant buildout of its revenue recognition software.
TechCXO supported the firm with distinct CFO and Controller resources to manage all finance and accounting activities from startup to exit. TechCXO implemented its best practice processes, methodologies and systems to enable ProRata’s multi-year growth at a fraction of the cost of a full time finance/accounting department.
Chargify, a company that provides support for complex recurring billing businesses, gives its customers the ability to pull more levers and get more creative with their offerings.This creativity creates more reporting and accounting complexities, which will be intensified under the new standards.
ProRata was acquired by Chargify. According to Chargify, “While scoping the project, we discovered ProRata, who had built a powerful revenue recognition integration for QuickBooks and Xero. We connected with their team and were impressed by their knowledge, experience and flexible approach to reporting automation.”
Successful client exits is one of our core competencies for many of our startup clients.
We turned over all our accounting and finance operations to TechCXO. Not only did we have expert guidance and support at all phases of our growth from startup to exit, but we incurred a fraction of the cost as we would have with full time employees. – Rob Farmer, CEO
According to the Association for Financial Professionals® (AFP) most recent research, a CFO’s Base Salary for a technology company with fewer than 250 employees has a base pay of $193,094 and a bonus of approximately, $69,514 or 36% of a base salary. A VP of Finance would have a base salary of more than $166,000 and a $59,000 bonus. This doesn’t include the cost of a Treasurer, Controller, Director of Treasury/Finance, Assistant Controller, Assistant Treasurer, all of whom have total compensation about $100,000 before benefits.