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1. Bookings are not revenue
Founders often confuse bookings with recognized revenue, leading to mismatched expectations and lower valuations.
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We establish clear reporting that distinguishes bookings, billings, ARR, and GAAP revenue — giving founders investor-grade clarity early. We also clarify usage-based revenue alongside subscriptions for a consistent, GAAP-aligned story investors trust.
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2. Cash accounting = accrual accounting
Running on a cash basis hides true performance and creates gaps during due diligence or funding rounds.
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Flowocity implements GAAP compliant accrual-based systems from the start, ensuring your financials scale with you and withstand due diligence.
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3. Improper revenue recognition
Inaccurate timing or categorization of revenue can derail investor trust and force painful restatements.
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We build automated, audit-ready revenue recognition processes tailored to SaaS models — in keeping with ASC 606 and GAAP requirements — for both recurring and usage-based contracts, reducing errors, rework, and valuation risk.
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4. DIY accounting
Founders who delay hiring proper finance support end up paying more for cleanup later.
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Instead of bookkeeping that works for now but not for scale, we embed a dedicated finance stack and fractional team that feels in-house but scales as you grow.
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5. Controller = CFO
Many early-stage companies expect controllers to handle strategic planning, but those roles require different skill sets.
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Our team structure mirrors a full finance org — tactical accounting through strategic CFO guidance — ensuring you get both accuracy and insight.
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6. Overreliance on "Rent-a-CFOs"
Part-time advisors often lack the visibility or continuity needed to set scalable systems and manage growth.
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Flowocity delivers continuity — a single integrated team that manages daily operations and long-term strategy, not just board decks.
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7. No detailed budget
Without a real budget, founders struggle to plan, allocate resources, or justify new funding needs.
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We build dynamic budgets and rolling forecasts that link spend, hiring, and growth targets — helping founders steer with data, not guesses.
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8. Not reading financials regularly
Even when reports exist, founders often overlook the full story behind their numbers.
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We provide monthly financial reviews and visual dashboards that give founders clear visibility into margins, growth efficiency, and burn — keeping insights simple and actionable.
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9. Ignoring compliance
Neglecting state filings, taxes, or corporate governance creates major liabilities down the road.
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From Delaware franchise taxes to GAAP and HR compliance, we establish scalable processes that avoid costly surprises.
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10. Inconsistent data across teams
Different definitions of metrics across sales, marketing, and finance cause confusion and wasted time.
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We unify metrics across finance, sales, and product to align ARR, usage, and compute-related costs — creating one version of truth for your KPIs.
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11. No one managing collections
Poor A/R follow-up means less cash on hand and distorted financial projections.
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We implement AR tracking and proactive collections workflows to improve cash flow while supporting strong customer relationships.
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