What is Finance as a Service, and how does it benefit startups?

Finance as a Service (FaaS) is a term that refers to companies that offer outsourced, fully integrated business financial strategy, financial planning, and accounting service lines. FaaS companies benefit startups by providing a full range of financial services that are consolidated through a single provider – it’s like having multiple integrated teams that cost significantly less than hiring and managing your own financial departments. FaaS services include accounting, controllership, financial planning, business strategy, and tax filing and compliance.

FaaS isn’t the same as traditional accounting

Finance as a Service firms operate differently from traditional accounting, bookkeeping or advisory companies. FaaS companies leverage new technologies and scalable systems to increase their agility and responsiveness, providing customized financial reporting and advisory services in real time. The services offered by FaaS firms include:

  • Accounting and general ledger.
  • Forecasting and planning. 
  • Payroll.
  • Billing and invoicing.
  • Spend management.

FaaS is a better fit for startups

Finance as a Service has grown as technology has influenced the role of finance and accounting within businesses. Prior to FaaS, the business accounting function was a limited role, typically focused on bookkeeping and tax preparation. Companies like Intuit used software like Intuit’s QuickBooks to refine and streamline the general ledger – the basic accounting record that contains all of a company’s financial information. 

With the advent of cloud computing, accounting software companies have been able to extend their reach deeper into the startup and small business market. QuickBooks Online allowed startups to take advantage of Intuit’s accounting system without a largel investment, and is still the dominant system used by small- to medium-sized businesses.

This in turn led to a surge in software systems for peripheral accounting functions like forecasting, invoicing and billing, payroll, and expense management, providing startup companies and their accounting teams with a broad array of tools to manage day-to-day activities and provide real-time dashboards and information for decision makers. These strong products integrate with each other and with banking solutions, and can be combined into fintech stacks that give startups the same kind of information, insights, and efficiencies that larger companies have, including:

  • Real-time financial data that allows startups to improve cash flow, forecasting, financial planning, and management.
  • Cloud-based technologies that provide easy access to financial systems from anywhere.
  • Less expense, since FaaS firms provide full services while keeping operating costs low.
  • Scalable operating models that rely on subscription-based pricing that can be quickly ramped up or down.

FaaS is based on your startup’s needs

Even small and mid-sized businesses need key financial insights and information, and it’s even more important that those services are accurate, reliable, and timely. But smaller organizations can’t always afford to establish those capabilities internally, and often don’t have the resources to recruit and build financial teams. FaaS providers offer startups the full-scale service of an entire in-house financial team at a much lower cost, and with much less effort. The FaaS model effectively serves:

  • Startups and small businesses with less complicated accounting requirements and smaller transaction volumes, that need to scale as their businesses grow.
  • Larger companies that have more complex accounting needs and larger transaction volumes that need more financial expertise. FaaS firms provide a wide range of controller- and CFO-level services along with tax planning and compliance.
  • Funded startups that require comprehensive financial management to work with private equity and venture capital investors, boards of directors, and management teams. These executive-level and CFO services provide the critical financial reporting and advisory services that funded companies need for deeper analysis and strategy.

Kruze Consulting can help you strategically outsource your financial and accounting needs, providing you with experienced financial experts who can support your startup as it grows. We already have the infrastructure and financial proficiency to quickly onboard your company and help provide your startup with financial reporting, strategy, and critical metrics that you need to focus on your core business. For more information, contact us today.

Advantages of outsourced bookkeeping from a FaaS firm

Bookkeeping has evolved to more effectively serve clients, and one of the biggest changes has been the growth of remote bookkeeping, part of Finance as a Service (FaaS). Taking advantage of remote bookkeeping services allows your startup to access top-notch financial professionals at a much lower cost. In addition, these seasoned professionals are experienced with current technology including accounting and banking applications.Your startup will also benefit from the structure and project management that an outsourced FaaS firm can provide to your company.

Does your startup need CFO services from a FaaS company?

Startups that are fundraising definitely need a CFO, and one way to cost effectively get CFO services is through a Finance as a Service (FaaS) firm. Hiring a fractional CFO through a FaaS company gives your firm the expertise it needs fo prepare financial projections, document KPIs, draft financial statements and reports, and many of the other tasks that venture capital relationships require. 

What software does your startup need?

Finance as a Service (FaaS) firms rely on the efficiency, cost-effectiveness, and scalability of cloud-financial technology to serve their clients. Early-stage companies have very different fintech needs than other small businesses, since startups can grow quickly, so your accounting software should accommodate that growth. Your system should also be an industry standard that allows any experienced accountant or CPA to use it to provide you with the financial data you need to effectively run your business. In general, the best accounting system for startups is QuickBooks Online, which scales easily, integrates with most other financial systems, and provides excellent financial reporting. 

About Us

A CPA Firm Specialized in Startup Accounting & Finance

A CPA Firm Specialized in Startup Accounting & Finance

Startups are our niche, and our passion. Our clients have raised over $10 billion in venture capital financing. We are one of only a few outsourced accounting firms that specialize in funded early-stage companies - we only offer financial and tax services to fast growing startups in the Seed, Series A, Series B and Series C stages.

The Right Accounting Partner for Your Startup’s Next Round

The Right Accounting Partner for Your Startup’s Next Round

We know how to de-risk your startup’s next venture capital round. Our team makes sure you are ready to fly through your next VC’s accounting, HR and tax due diligence. And when you use us as your bookkeeper, we set up and keep up-to-date a due diligence folder so you can get that next round of fundraising.

A Leader in Cloud Accounting Software

A Leader in Cloud Accounting Software

Our practice is built on best of breed cloud accounting software like QuickBooks, Xero, Netsuite, Gusto, Zenefits, Expensify, Avalara, Brex iand Bill.com. Technology makes us more efficient, saving our clients money and letting us offer higher value services like FP&A modeling, 409A valuation and venture debt consulting. Startups deserve to work with CPAs using modern software.

Trusted by Top Venture Investors

Trusted by Top Venture Investors

Top angel investors and VCs refer Kruze because they trust us to give the right advice. Our clients are portfolio companies of top technology and Silicon Valley investors, including Y-Combinator, Kleiner, Sequoia, Khsola, Launch, Techstars and more. With us, your books and taxes are in order when it’s time to raise another round of venture financing.

What types of startups does Kruze Consulting usually work with?

What types of startups does Kruze Consulting usually work with?

Kruze Consulting works with a variety of funded Delaware C-Corps, but the majority of our companies have secured Seed, Series A, Series B and Series C. We look to partner with our clients, going beyond the typical outsourced accounting relationship and seeking to provide a higher level advisory role. We feel honored to be a part of making the world a better place, even if it’s one debit and credit at a time.

Accounting, Finance, Taxes, & Payroll all in one solution

Accounting, Finance, Taxes, & Payroll all in one solution

Startup CFO services, startup accounting and bookkeeping services, startup annual taxes, expense reports, payroll, benefits: we've got you covered. Our software provides custom tailored dashboards that can be provided weekly or monthly, depending on your preference and plan. Founders are often so busy building their company that they don’t have time to take care of their finances. Traditionally, these companies have had to work with a basket of people to get their work done, including bookkeepers, accountants, AP clerks, CFOs, consultants, and tax accountants. At Kruze Consulting, our founders have one point person, saving time and money.

Client testimonials

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We're huge fans of Vanessa and the folks at Kruze Consulting. They set up our books, finances, and other operations, and are constantly organized and on top of things. As a startup, you have to focus on your product and customers, and Kruze takes care of everything else (which is a massive sigh of relief). I highly highly highly recommend working with Vanessa and her team.

Vivek Sodera

Vivek Sodera

Co-Founder @ Superhuman

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As a startup, moving quickly is a top priority for us and we just needed to get our tax return done. After we uploaded our docs, we got our tax return in 3 days! E-filing was confirmed by Day 4. Super responsive and helpful!

Casey McKerchie

Casey McKerchie

VP, Operations of Calm.com

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Avochato has been growing rapidly in the past year – in fact, too quickly for us to keep up with books, taxes, and budgeting for growth. Partnering with Kruze Consulting has been fantastic to manage, track, and analyze our finances while we continue focusing on building our customer base. Kruze’s team knows what startups need.

Alex De Simone

Alex De Simone

CEO @ Avochato

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Everybody, go to Kruze Consulting. They do a great job. I personally can tell you, they've done a great job for our companies, including Calm.com. I'm sure they’ll do a great job for you.

Jason Calacanis

Jason Calacanis

Angel investor

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$250M+ VC Funding Raised
I had a great experience working with Kruze Consulting when we raised Series A. They know what VCs need to see, and how to present a startup’s books and finances. If you are going to raise venture capital, you need experts like Kruze.
Chris Mansi Viz AI

Chris Mansi

CEO @ Viz.ai

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