With Scott Orn

A Startup Podcast by Kruze Consulting

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Scott Orn

Scott Orn, CFA

Zero to 100s of clients and $93 million in VC funding with Mike Whitmire of Floqast

Posted on: 06/29/2020

Mike Whitmire

Mike Whitmire

Co-founder and CEO - Floqast

Mike Whitmire of Floqast - Podcast Summary

Mike Whitmire traces his journey from accountant at a high growth startup to the founder of Floqast, which has raised over $90 million in VC funding, has 150 employees, and hundreds of paying clients.

Mike Whitmire of Floqast - Podcast Transcript

Singer: So, when your troubles are mounting tax or accounting, you go to Kruze Consulting, Founders and Friends. It’s Kruze Consulting, Founders and Friends with your host, Scotty Orn.
Scott: Welcome to Founders and Friends podcast with Scott Orn at Kruze Consulting. And before we get to an awesome podcast with Mike Whitmire of Floqast, quick shout out to Rippling. Rippling is our favorite payroll system, favorite benefit system, and they make a really awesome IT integration that allows you to spin up new users when you hire them, provision all their web service accounts and get them up and running really quickly. We did the math and it saves us three hours or saves clients three hours per employee hired. So, it’s a really big helper, saves a ton of time. I think that’s 400 bucks in IT services time. So, love Rippling. It’s amazing. Check them out, And now I’d like to introduce Mike Whitmire of Floqast. Welcome Mike.
Mike: Thanks Scott. I appreciate you having me on today.
Scott: Yeah. Floqast is a really cool software company for the accounting space, so we can really nerd out here. Before we talk product, Mike, can you tell everyone how you had the idea to start Floqast? Pretty interesting story.
Mike: Yeah. So cool is definitely very relative in this environment. I would say for us, it will be cool. For 98% of the population, it’s super boring. But yeah, the way I got into accounting software is I am actually an accountant by trade, so majored in this stuff. I went to work at Ernst and Young in Los Angeles, so got my CPA there. Was there for about three and a half years, and that was my exposure to the month end close was from the audit side of the table. And I was constantly getting revised trial balances and new reconciliations and was just like, man, what’s going on? Why is it so hard? And then I left public audit and went over to industry and I joined a software company in LA by the name of Cornerstone On Demand software as a service company. I was the fifth person in accounting, so got a little startup experience there and joined about a year before the IPO. We ended up scaling really, really aggressively over the three and a half years that I was there. By the time I left, we had about 50 people in accounting.
Scott: Wow. Are you kidding me?
Mike: No. So, in my time, saw it grow from five to 50 and close, as you’re scaling like that, you’re going public. You have more intense deadlines all of a sudden. Those start to get shorter as you scale up. You’re just doing a lot more that you didn’t used to do. And we had a lot of problems with it and it was collaboration. You got 50 people working in silos. You need to be on the same page, but it’s really difficult because there isn’t good project management software for accountants. And then the tie out and reconciliation process was absolutely brutal for us. So, with that, I just one day had that like classic entrepreneur moment of, God, there’s got to be a better way to do this. I looked around and wasn’t able to find anything that helped with these pain points. And so, I decided to leave Cornerstone and found Floqast. And that was at the end of 2012. So fast forward to 2020 here, for those listening to this in the future, we are currently at home with a pandemic going on around us with coronavirus. Floqast has about 850 clients today. We focus on what we define as the mid market. I think we’re going to chat about market segmentation a little bit, but we define it as the mid market. And 850 customers, we have about 150 employees. We’ve raised 93 million in venture capital. So, it’s been a really fun and challenging and stressful eight years here.
Scott: Yeah. Eight years. Wow. Isn’t it amazing? It’s like the classic overnight success that took eight years.
Mike: Yeah, and what’s nuts, I realize I now have been working on Floqast longer than my prior two jobs combined. That was just kind of a weird moment. It’s like, okay, over half of my career has now been spent doing Floqast.
Scott: The company has got serious traction. We see it all over the place, and I’ve looked at it a bunch of times and it’s a really cool product. So maybe talk about some of the, you talked about trial balances, reconciling. You also talked about the project management aspect of the tool. Maybe you could just kind of give a highlight all the accountants out there who are thinking about this.
Mike: Yeah. So, the challenge around the close, when I got to Cornerstone and we had five people, it was easy enough. We were all in the same room. We could look at each other and say, where are you at with this? Or have you reviewed this reconciliation? Have you done the revenue for this contract, whatever. But then as you start to scale and you get more people, you start to assign out the balance sheet and all the different processes. And what that means is people start working in silos. But how accounting is a bit unique from other functions is that something that someone’s doing over here is going to impact me potentially. So, for example, I was the deferred revenue guy, and billing adjustments would impact me. And so, I was very dependent on understanding what my billing team was doing and were contracts being renegotiated, all that stuff. So, I was really dependent on things that were occurring in other balance sheet accounts to do my work properly. And as we scaled and all of a sudden there were five people in defer revenue, there were six people doing AR collections, all that kind of stuff, it was just like, wow, this became really challenging, both from a just collaborating and doing processes and workflow perspective, but also, I would tie out my trial balance. I’d have my deferred revenue accounts done, ready to go, hand them to the auditors. And then the auditors were like, this doesn’t agree to the trial balance. I’m like, what the hell? So, I go in and in accounting, we all like to think we lock our ERP and we’re all good about it, but that’s just not how it really works in the real world. And numbers can change and they might book something that’s a billing adjustment that impacts deferred revenue. It’s a top side entry. I didn’t know about it. All of a sudden, the auditors are pissed. We’re burning audit fees. And it was all because our reconciliations were not connected to our ERP. At the end of the day, that’s what causes that problem. So, when I was thinking about this, I’m like, all right, for the most part, accountants operate, they work in a very similar fashion. We all kind of get organized the same way. We like to break things out by entity. Then you think about it by month. And then you think about it by process. And you really kind of like to get organized that way. And then you have all the workflow that goes along with that. Then you have specific little nuances for accounting, like, hey, maybe I need a preparer, a reviewer. Maybe I need a preparer with three reviewers because this is a high-risk item. Do I need strict sign off on this? Do I need loose sign off mode if I’m a startup? There are just all these little nuances that I think really aren’t appreciated with an accounting checklist. So that was what we did is we were like, okay, everyone gets organized this way anyway. We need a checklist that handles all the nuances, which are things that would be needed from a two person shop all the way up to a 200-person public company. And then we need to connect reconciliations to the ERP directly to make sure we don’t run into these pain points that I had experienced when doing this stuff. So, I got exposure to maybe 12 different companies while I was doing audit, and it was all pretty consistent. And then when I got to Cornerstone and it was still consistent, I was like, all right, this is how the world operates. So, we just built it really to work how accountants are already working today, just in their imagination, just putting it in a piece of software and allowing them to actually use it.
Scott: Yeah. But that’s the beauty of it is that that piece of software actually cements the processes. And so, I was kind of saying, with other tools too, like [inaudible] or whatever, it gives you the premium best processes. If you’re doing something that Floqast doesn’t support, then you’re probably doing it wrong and you should reevaluate that. Not that you guys are the end all be all, but it’s set up for a certain reason. And in those points, you’re talking about for people who are not accountants listening to this, there’s nothing more frustrating than, for example, you’re trying out all your deferred revenue. That was probably a week’s worth of work. And then all of a sudden, the person doing billing refunded a bunch of stuff, and all the deferred revenue needs to be redone. That’s horrible. That means you’re doing your job twice, and that’s super inefficient. So that’s why I like you guys is you guys create these really excellent processes that all accountants can follow. And then you just reduce the noise, you reduce the double work.
Mike: Yeah. Absolutely. And not only is it double work internally, but when you hand it to the auditors, it becomes double work and they are not cheap resources, and no one wants to pay a hefty audit bill. So yeah, that side of it is super impactful as well.
Scott: Yeah. One of the things I loved is how you could, in Floqast, you could upload an Excel sheet or things like that, and it would actually tie out to certain cells in Excel. Can you maybe talk about that a little bit and how that [crosstalk 00:08:44]?
Mike: So that is I think exhibit A of working the way accountants already work. In both audit and accounting, what we would do is, in audit they’re called work papers, in accounting they’re called reconciliations. At the end of the day, it’s basically the same thing. We would go through this exercise where in the work paper or in the reconciliation, you find the ending balance, you type in TB or GL next to it. And that is signifying that I, Mike Whitmire, have looked at this number here. I’ve also looked inside of NetSuite or whatever my ERP is. And they are the same. The problem is once you do that, it can change. And things are now static. And so, we’re sitting there and we’re like, all right, the pain point around tie outs and reconciliations is that it’s not linked to the ERP. What is the easiest way we can link it to the ERP? And that’s where the whole hashtag comes from. So, we were kind of fiddling around and I’m sitting there like, maybe instead of GL or TB, we can just ask them to type in hashtag FQ and then the account number that this relates to. And so then, yeah, through our integration with the document storage providers, we go in through there, we search through that whole workbook and we find a hashtag and then it’s super simple. Whatever number is to the left of that, we pull that out of the workbook and we tie that out against your ERP. And then now if you think back to that example I’d given around deferred revenue, I would have done that process. I would have punched in hashtag FQ. I would have gone home for the night. When I came home in the morning, the fact that the refund was booked into NetSuite would have now been reflected inside of Floqast. It would have thrown off my trial balance number. I would have gotten an alert for that. It would have removed my sign off. I’d go in. I’d be like, oh, okay, you booked this entry, add it to my reconciliation, hit save. It’s going to update Floqast, tie out again, and you’re good to go. So, the tying out of that ending balance is the real problem. It’s not connected.
Scott: Yeah. That’s amazing. There’s another thing you talked about earlier when you were at Cornerstone, which was you were all sitting in the same room. And I think one of the fundamental changes probably since you were at Cornerstone, and I don’t know if Floqast is like this, but we’re completely remote. (You can learn about Kruze’s remote positions for accountants and controllers - check out our remote accounting roles, remote accountant jobs and remote controller positions. And so being able to actually use software tools and do sign offs and make this stuff so it’s communicated in a piece of software instead of relying on word of mouth and the office is incredibly valuable to the modern accountant.
Mike: Yeah. It really is. And one of the annoyances was just the status update meetings. Do we really need to all sit in a room together? They’re just unnecessary, but they are not unnecessary for a controller who doesn’t have something like this. You guys are controller. You have to know where you stand. And if you’re not empowered with technology, the only thing you can do is bug your team. That’s your only option. And it is what it is. And as a controller, you have the pressure from the CFO, when are we going to be closed? When are we going to be closed? How smooth is the audit going to go? When’s my reporting done, when’s my FPNA done? You have all this pressure and you need to know, you just don’t have good insight. And that’s one of the things that we help with.
Scott: Yeah. Have you seen a big, is that one of the reasons people sign up for Floqast now, because they’re running either remote teams at a big enterprise or remote accounting teams?
Mike: A very common use case for us is not so much a remote team in the United States, but we’ll sign a company with say 30 accounts in the US. They’re headquartered here. And then they have international locations. So maybe they have two accountants in London or something and different people throughout the world. So, all of a sudden, you’re running into time differences and them being remote. And when we opened up our UK sub at Cornerstone, all of a sudden, our hours got even worse than they were previously. It was just like, holy crap, this suck. And everything’s delayed a day. And now you just don’t have that issue when you’re collaborating with something like Floqast. We have review notes that are of course tailored towards accountants as well. So, by being able to use review notes throughout the application, that’s how you can keep working together even if your time zones are different and you’re not in the same spot.
Scott: That’s huge. Yeah. Review notes, if people don’t know, you kind of make decisions during it. People think accounting is really cut and dry, but actually there’s a lot of interpretation that happens or a lot of citing why you did something. And so, we do the same thing. We have workbooks that we have review notes, but that’s incredibly valuable because again, you don’t have to have a status meeting or you don’t have to have that one-off conversation. You can just read what the person was thinking. It makes logical sense. It’s kind of like what a software programmer annotates, it’s the same kind of log book.
Mike: Exactly. And I think back to a story I had at Cornerstone where we had this customer who renewed early, and so it cut off their subscription term. And when that happened in the old revenue world, where I’m sitting there allocating consideration, there are different recognition periods, and they come through with this and it was just like, holy crap, this is a nightmare of an adjustment. Literally, this one adjustment took me a week to figure out on my own. And the auditors came out nine months later and they’re like, so what happened? How did this work? And I literally just could not remember. I was like, I don’t know, the review notes got buried somewhere. They’re not here. And I was just like, man, I wish I had review note functionality. The guy I was talking with about it, we could have just been chatting through Floqast and it would all be documented in there. But it was so complicated that I literally couldn’t remember. It was just like, all right, this seems pretty accurate to me. I’d like to see you guys do it better. It was kind of my response to the auditors. What’s the better logic? And they ultimately agreed on it. But yeah, just more documentation is never a bad thing when you’re referring back in time to your own work.
Scott: Well, you also touched on something that is pretty important, the timestamp. To have that documented at a certain time and be able to, especially I’ve kind of found with auditors, IRS auditors especially, the client getting audited, showing that you did all the work back in the day when you’re doing the work, instead of being the person who rushed you got the IRS notice and then a week before the meeting you try to put everything together. They know that. They notice all the timestamps, they notice the thoroughness, they notice the processes. And so, if you’ve done all the work ahead of time, you actually really get the benefit of the doubt. It’s kind of human nature. They want to reward people who did a good job ahead of time and knew that they might come under the scrutiny of the IRS.
Mike: So, it softens up the audit a little bit.
Scott: Yeah. It just makes it like they’re human beings like everybody else. If you look like you did all your homework the night before-
Mike: Yeah. That’s a super interesting point. Oh man. Now that you say that, I’m thinking back to my clean audits versus my just terrible audits, and you’re so right. I would head in with nah, they’ve got this under control, sign, sign, sign, sign, sign, all right onto the next audit. And then I’m just beating up my production clients who don’t know what they’re doing. Yeah. Very interesting. Okay.
Scott: I love it. Well hey, let’s break down, because you guys have, it’s kind of interesting, you have a product that can serve two markets, which is, and correct me if I’m wrong, but the large enterprises. Cornerstone had 50 accountants, you built it for that probably. But then you have accounting firms like us that have a lot of different clients, like smaller clients. How do you think about the segmentation for Floqast?
Mike: We definitely focus on what we call the mid-market, which are those direct clients. And the way we did that was we didn’t build the initial product for Cornerstone. We couldn’t support a business of that size at the time, just because it’s so much programming to get everything they need immediately. So, we started with the classic iterative model. We put out a super simple version of our product and we focused on earlier stage companies. So earlier stage software startup companies, that’s the easiest one to sell into. But we can’t go too early because the pain doesn’t exist at about two accountants. You got to wait until six until it exists. So, we’re kind of in this weird middle ground where companies like Twilio are like, yeah, we can take a risk on you. You’re missing a ton of stuff, and we’re going public in a year. You’ve got to get this sorted out really quickly. And so those were the types that we were convincing. So, there’s startups, but have CFOs, have plans, have serious investors behind them. It’s not your average two dudes in a garage writing code kind of thing. And I had never really envisioned that being a market for us because I just didn’t think the pain point was there. But then as time progressed, we started getting inbound leads from firms like Kruze and a couple others. And we were just like, huh, this is fascinating. The pain point isn’t in any individual client being all that complicated, it’s that you have 200 clients and you have to manage all of them at the same time. And you have processes, you have teams collaborating around notes. So, I actually started thinking about it more like, all right, it’s basically like a company with a ton of entities.
Scott: We have 225 subsidiaries.
Mike: Yeah. So, you’re doing 200 small closes for all your subsidiaries. And as we were thinking about it, I’m like, all right, from a product perspective, that’s the direction we’re going anyway is to sell to bigger companies, and they’re going to have multiple entities. And it sounds like we’re just going to sort of organically be filling the product gaps that we have for this market anyway. So, whatever, okay. Let’s see if we can sell into it. So, we put some resources on it. It’s definitely not our focus, but we have about 8% of our revenue comes from this panel. So definitely something we’ve been signing up clients with. And it’s been an interesting thing that I hadn’t expected in the beginning. And then it’s just fascinating to me that the functionality gaps with outsource firms overlaps so heavily with bigger international companies. It was really fascinating to me. So, whatever, it’s no resources that we’re really carving out to invest in here. So, let’s give it a shot.
Scott: Yeah. Well also if you think about it, especially for us, as companies progress, we’re working with companies who have 100 or 200 employees. And they started bringing their accounting function. They hired a VP of finance, and then they might hire a controller and maybe it’s top down. And so, we’re working in supporting them the whole time. But if we’re already using Floqast, that’s a great sales seed for you. That VP of finance and the controller are going to see how it works. And next thing you know, as soon as they bring it all in house, they might be looking at Floqast. So, to me, it’s almost like you use Twilio as one of your customers, but the Twilio model, getting people using the software used to it, and then when it’s time for them to bring it in house, they can sign up and pay a subscription as well.
Mike: Totally. And then from the firm’s perspective, for someone like a Kruze, I have to imagine it’s a phase in. It’s a transition or they’re phasing you in, you’re kind of transitioning out. You probably provide services, support for a while after that. I don’t think you just drop from the team magically one day.
Scott: No, it’s usually six to nine months. That’s when they tell us they want to bring it in house, but usually we work with the average company three or four years. So, it’s a pretty long, we become embedded in their company. This is how it works. That’s when it’s working the best. If there’s a lot of friction or something weird happening, then we won’t and we’ll transition quicker because they want to do it quicker.
Mike: Yeah. And I have to, in a scenario like that, I have to imagine there’s collaboration with them. And so, using Floqast as part of that onboarding and collaboration to me seems helpful. Then you just have the continuity of everything’s documented. The history of everything Kruze Consulting did is still with that company. So, if you rapidly need to move into an audit, if all of a sudden, they’re like, hey, we are going gangbusters. We want to go public. It’s time to do a three-year retrospective audit. All of a sudden, they’re auditing Kruze’s work and having that same instance as the new kind of teamwork is a really helpful thing. And then by the way, you guys just kind of get to show off how buttoned up you are. It makes you look better as a firm as well to everything. So yeah, it’s pretty much a win, win, win, I would say.
Scott: It’s a good win, win. Well, this has been amazing. Real fast before I let you go, just talk about the accounting sector has kind of gotten hot for startup dollars, for VC funding. Maybe just talk about your expense. Because when you started the company eight years ago, it wasn’t the hottest sector. What’s your opinion or how have you seen the sector change in terms of startup and VC funding?
Mike: Yeah. Well, part of what sucks is a lot of the work that I put in is part of what made the space a little hotter. [crosstalk 00:21:21]. But the reality is I need to give credit to a lot of other companies that came before us, in particular, our competitor, a company by the name of BlackLine. I was actually not aware of them when I started the company, which to me was like, whoa, all right. I Googled a lot to try to find something that did this and I couldn’t find them, but they were I think about 20 million of recurring revenue at the time. And they ended up taking on private equity money, growing really quickly. They sold to the enterprise. And them going public and proving that there’s a huge pain point here, and that the market truly is every company that has an accounting department, which is every company in the world, they’re like, oh, okay, this is a… The market started to kind of pick their head up and address it. And that was when more money started flowing into it. So, the seed round would have been 2013 and then the A round would have been 2014 through 2015. And it was brutal for me. So many nos. It took me so many hours. And I think a lot of entrepreneurs like to make bombastic claims around this, but I legitimately heard no from 100 people for the seed round. And then A round was probably about 40 or 50, which it sounds like half as much, but it’s not because it’s so much more work to pitch for a [crosstalk 00:22:35]. And I’m on planes all the time. I’m going up to the Bay area. And it sucks. I’ll tell you one story. I was on the verge of getting a term sheet. It was for three million bucks. So, it was for our series A round. And we were kind of marching towards zero cash date. And I’m sitting in the Burbank airport, getting ready to head up to the Bay area, and the stock market is just crashing. So, it was that flash crash that occurred at the end of 2015. And the term sheet got pulled from me. And I was just back at square one and we’re running out of money so fast. And we got someone who was really interested. They got the round done quickly. We had to not pay ourselves for a few weeks to be able to float the cash to keep our employees happy. To pay our employees, the founders ended up not taking on salary, but that was really difficult. Then, BlackLine goes public. All of a sudden, I’m getting calls from everyone because investors are doing research on the market. They’re realizing it’s a huge opportunity. A lot of them missed out on the BlackLine investment deal. And they were bummed that they left so much money on the table. So, they were looking for the next best thing in the space. And we are the next best thing in this space. And so, we started getting more inbound interest and ever since then, the following rounds of funding have been significantly easier. It’s a combination of the market is proven, our product is proven. And I think that I’ve shown that we can execute well enough to where people are comfortable investing in the founders and the entrepreneurs. So yeah, it’s like night and day from what it used to be. Our series C, which we closed a couple of months ago, was going to be hyper competitive, but got taken off the street because someone ran out ahead of it and just made us a really good offer and we closed it down.
Scott: That’s a great story. And that’s an inspirational story for founders who are in the seed or in series A right now with COVID. They’re probably living the same life you lived with that flash crash and losing term sheets and things like that. So, thanks for sharing that. Thanks for being real about it too. Because there’s a lot of people who kind of paint, they go backwards and they talk about how I was such a genius. Of course, the venture capitalists recognized what a genius I was. For real, I’ve seen hundreds of companies get funded. I funded a bunch of guys myself, and it’s never that easy and it’s never apparent when the money’s coming in.
Mike: Yeah. And I mean, the other thing that I had to deal with is the stereotype of accountants. If you’re a VC, your standard investment is either some big, tall, loud sales person that you’re giving money to, or an engineer who’s just a genius engineer. And I walk in with neither of those skillsets, and I’m the accountant. And the entrepreneurial spirit isn’t perceived inside of an accountant. We’re not risk takers. And I’m sitting there like, I quit my job. I’m doing all the things that you’re looking for. And it was funny because as time went on, I would still continue to hear this concept of accountants can’t sell, can’t do this stuff. And I got so sick of fighting that argument, I just kind of sit there quietly and be like, sorry, let me take a step back. One of the things, I love hiring accountants as sales reps, and I constantly get pushed back on it. To this day, I’ll sit in my room of investors and they’ll be like, accountants can’t sell. And I just sit there quietly and I look around the room, and I’m like, I have sold all of you to the tune of $93 million of venture capital. And you’re telling me accountants can’t sell? What world are we living in right now? And by the way, I look over and some of my top reps are accountants. They just get it and stop applying the stereotype to people. Let’s take a step back and think about the positives. When you’re in accounting, you learn how an entire business runs and operates and what things should look like from an early stage up through a grown-up public company. I’ve seen all of that from behind the scenes, which is actually a lot more impactful than anyone ever gives it credit for. So, for me, I ran this entire company for the first three years on a spreadsheet, on an out of forecast schedule where every day, every hour I was punching in like, okay, we’re going to do this marketing event, this $2,000 is going out the door in October, 2015. No one else is tracking stuff to that level. So, we were just able to aggressively, being be aggressive accountant, burn cash down to the very lowest balance possible before raising my next amount of money.
Scott: You knew where you were.
Mike: Yeah. And it was like a joke. I remember one of our early investors, he’s still a great mentor of mine, still on the board, love the guy, but we were about a year into selling. He was like, you guys really should be tracking metrics and all that kind of stuff. And it was one of the most egregious forms of portfolio bias I’ve ever seen because it was just like, no one at this stage is tracking metrics. I’m going to tell these guys they need to track metrics. And I was just like, Rob, you got to be kidding me. As an accountant, literally one of the things I’ve thought about is I’m so excited for the day, I have enough data to run metrics that make sense. And I’ve been tracking all of this for three quarters. I’m more than happy to show it to you. We can’t rely on it very much, but yeah, I got it all, costs to acquire a customer, what’s our sales and marketing expense leverage. We even make up metrics internally that I think are better than what’s used on the market. We have one, I’ll tell you it’s called the [crosstalk 00:28:00].
Scott: For Floqast to be the metrics markets too.
Mike: Yeah. I’ve actually had a thought. I would love it if someone steals this from me and gets it. And one of my big gripes about SAS is that there’s no guidance around metrics. So, a lot of people interpret metrics and report them differently. And you have to weed through public financials to understand how they calculate these things. For example, if you go and you ask five CFOs how they calculate churn, you’re going to get five different answers which boggles my mind. So, we need a gap version of SAS standards. We need some-
Scott: You’re totally right. Actually, we have a saying that venture capitalists, they all have their certain flavor of bookings, of churn, of contract value. It’s all over the place. So, you’re right. We end up doing a lot of custom dashboards for the board at the company we’re working with.
Mike: Yeah. The worst one for me is, and I get asked these. So, when it becomes apparent to me is when we’re doing fundraising and a VC will ask me a question like, oh, do you calculate it this way? And I remember the last round of funding that the question was, do you calculate retention based on the cohort that’s being retained in the quarter or based on your full ARR balance? And I’m like, people report on full ARR balance? That is the most misleading thing I’ve ever heard. No, we don’t do that. And who are you working with that they actually do that? And you get questions like that, and you’re just like, wow. That’s not interpreting the retention rate properly. Who cares about revenue that’s not coming up for renewal in the quarter? We’re talking about [crosstalk 00:29:40]. That is so misleading to present it as a full ARR base. Like, hell yeah, I’d love to do that. My numbers would be way lower than they are.
Scott: Those deals were never at risk.
Mike: Yeah, exactly. Yes. So anyway, yeah, I would love if anyone’s listening to this, if you’re a super accountant and you’re into SAS, please codify these metrics and let’s get everyone on the same page with this stuff.
Scott: I love it. Mike, thanks so much for coming by. Maybe you could tell everyone where they can find Floqast and how to reach out.
Mike: Yeah. So, if you want to learn more about Floqast, we do have a weird spelling to our name. It’s just That’s F-L-O-Q-A-S-T, the Q being the key there. You can just learn more there or if you want it to shoot me an email, if you’re listening, I’m just Also, feel free to do that. Follow us on social media and all that good stuff.
Scott: Big thanks, Mike. Thanks for coming back.
Mike: Really appreciate your time.
Singer: So, when your troubles are mounting tax or accounting, you go to Kruze Consulting, Founders and Friends. It’s Kruze Consulting, Founders and Friends with your host, Scotty Orn.

Learn more about why we are one of the best accounting, tax and bookkeeping firms serving VC-backed companies by visiting the Kruze Consulting reviews page. Or, visit the Kruze website to find information about the Best Startup Credit Cards or learn what the average startup CEO salary is. Trust Kruze Consulting for great podcasts like this one, and other great content designed to help startup founders like you, grow their businesses, raise capital and more.

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