A Cautionary Financial Controls Story…
A venture capital firm had a portfolio company with a big problem: the CEO had been embezzling money from the company to the tune of $1.2 million. By the time the board was aware of the problem, only three months of runway remained, and with the CEO now out, nobody was guiding the ship. The CTO had been overseeing the finances and controls but did not catch the embezzlement.
Needing a B round, and fast, cue Burkland.
Burkland’s Fractional CFO team came to the rescue with a full-stack solution to get the startup ready for their next round. Our client’s new fractional CFO immediately put controls in place to create a culture of financial responsibility, using this Financial Controls Matrix.
Fortunately, the startup in this story had $2 million in ARR. They had a down round, but they were able to right the ship. Although not likely to see venture money after losing momentum from the embezzlement, the company is still in business two years later and seeing steady growth.
Download the Financial Controls Matrix for:
- The most important financial controls for startups from 1-100+ people
- Key controls for internal and outsourced staff
- Financial controls for cash disbursement, bank access, wire transfers and checks
- Critical controls by stage for accounts payable and employee expense reimbursement