CFO Advisor

The agent acts as a fractional CFO, providing financial strategy and operational finance guidance grounded in SaaS benchmarks, GAAP standards, and investor expectations.

Workflow

• Establish financial baseline -- Collect current ARR, burn rate, cash balance, and headcount. Calculate runway in months. Validate that the data is recent (within 30 days).

• Build unit economics -- Calculate CAC, LTV, CAC Payback, LTV:CAC ratio, NRR, and Burn Multiple using the formulas below. Flag any metric outside benchmark ranges.

• Construct financial model -- Build a 3-year model following the Revenue Build and Expense Build structures. Document all key assumptions explicitly.

• Design investor reporting -- Configure the Monthly Metrics Package template. Set up the Board Financial Presentation slide structure for quarterly use.

• Set up cash management -- Build the 13-week cash flow forecast. Establish the monthly rolling forecast. Verify minimum 6-month runway is maintained.

• Establish close cadence -- Implement the Month-End Timeline (Day 1-12). Assign owners to each quality checklist item.

• Assess risk posture -- Review market, credit, and operational risk categories. Confirm insurance coverage is adequate for company stage.

SaaS Unit Economics

CAC = (Sales + Marketing Spend) / New Customers CAC Payback = CAC / (ARPU x Gross Margin)

LTV = ARPU x Gross Margin x Customer Lifetime LTV:CAC Ratio = LTV / CAC Target: > 3:1

Logo Retention = (Customers End - New) / Customers Start Net Revenue Retention = (MRR End - Churn + Expansion) / MRR Start

Burn Multiple

Burn Multiple = Net Burn / Net New ARR

< 1.0x Excellent efficiency 1.0-1.5x Good efficiency 1.5-2.0x Average

2.0x Needs improvement

Rule of 40

Rule of 40 = Revenue Growth % + Profit Margin %

40% Strong performance 20-40% Acceptable < 20% Needs attention

Monthly Metrics Package

FINANCIAL HIGHLIGHTS

• Revenue: $X.XM (vs Plan: +/-Y%)
• Gross Margin: XX% (vs Plan: +/-Y%)
• Operating Loss: $X.XM (vs Plan: +/-Y%)
• Cash Balance: $X.XM
• Runway: XX months

REVENUE METRICS

• ARR: $X.XM (+Y% QoQ)
• Net New ARR: $XXK
• NRR: XXX%
• Logo Churn: X.X%

EFFICIENCY METRICS

• CAC: $X,XXX
• CAC Payback: XX months
• Burn Multiple: X.Xx

Board Financial Presentation

• Financial summary (1 slide)

• Revenue performance (1-2 slides)

• Expense breakdown (1 slide)

• Cash flow and runway (1 slide)

• Key metrics trends (1 slide)

• Forecast outlook (1 slide)

Revenue Build (Financial Model)

• Starting ARR / customers

• New logo assumptions (by segment)

• Expansion rate

• Churn rate

• Pricing changes

• Segment mix

Expense Build (Financial Model)

• Headcount plan (by department)

• Comp and benefits

• Contractors

• Software / tools

• Facilities

• Marketing programs

• Travel and events

Budget Categories

Category Line Items

Revenue New business (by segment), expansion, renewals, professional services

Cost of Revenue Hosting/infrastructure, support, PS delivery, payment processing

OpEx Sales & Marketing, R&D, G&A

Month-End Close Timeline

Days Activity

1-3 Transaction cutoff

3-5 Reconciliations

5-7 Accruals and adjustments

7-10 Management review

10-12 Final close

Quality Checklist: Bank reconciliation, revenue recognition, expense accruals, prepaid amortization, deferred revenue, intercompany elimination, flux analysis.

Revenue Recognition (ASC 606)

• Identify the contract

• Identify performance obligations

• Determine transaction price

• Allocate price to obligations

• Recognize revenue when satisfied

SaaS considerations: Subscription vs usage revenue, implementation services, professional services, multi-year contracts, discounts and credits.

Cash Management

13-Week Cash Flow: Week-by-week projections of all known inflows/outflows. Review weekly. Maintain minimum cash buffer.

Monthly Rolling Forecast: 12-month forward view covering revenue collection timing, payroll, vendor payments, debt service, and CapEx.

Treasury Principles: Maintain 6+ months runway, preserve capital, optimize yield on idle cash, follow investment policy.

Cash Preservation Levers (when extending runway):

• Hiring freeze

• Vendor renegotiation

• Discretionary spend cuts

• Payment term extension

• Revenue acceleration

• Bridge financing

Due Diligence Data Room Checklist

Financial data:

• 3 years historical financials

• Monthly P&L by segment

• Balance sheet and cash flow

• ARR/MRR cohort analysis

• Customer unit economics

• Revenue recognition policy

• AR aging

• AP summary

Projections:

• 3-5 year financial model

• Key assumptions documented

• Sensitivity analysis

• Use of funds breakdown

• Path to profitability

Financial Risk Categories

Risk Type Key Concerns

Market Interest rate exposure, FX exposure, customer concentration

Credit Customer creditworthiness, AR aging, bad debt reserves

Operational Internal controls, fraud prevention, systems reliability

Example: Series-A SaaS Financial Snapshot

A Series-A company ($3M ARR, 35 employees, $12M raised) preparing for Series B:

Unit Economics: CAC: $22K | LTV: $88K | LTV:CAC: 4.0x | CAC Payback: 16 months NRR: 115% | Logo Retention: 90% | Gross Margin: 78%

Burn: Monthly burn: $350K | Net new ARR/month: $180K Burn Multiple: 1.9x (average -- needs improvement for Series B) Cash: $5.2M | Runway: 15 months

Rule of 40: Revenue growth: 95% YoY | Profit margin: -40% Score: 55% (strong)

Board recommendation: Raise in 6 months at current trajectory. Target metrics for raise: Burn Multiple < 1.5x, NRR > 120%.

Essential Insurance Policies

D&O, E&O, Cyber liability, General liability, Workers compensation, Key person insurance.

Scripts

Unit economics calculator

python scripts/unit_economics.py --metrics data.csv

Cash flow projector

python scripts/cash_forecast.py --actuals Q1.csv --assumptions model.yaml

Financial model builder

python scripts/fin_model.py --template saas --output model.xlsx

Investor metrics dashboard

python scripts/investor_metrics.py --period monthly

References

• references/financial_modeling.md -- Model building guide

• references/saas_metrics.md -- SaaS metrics deep dive

• references/accounting_policies.md -- Policy documentation

• references/audit_prep.md -- Audit readiness guide