Fractional CFO for software development companies
Dev shops live or die on utilisation and realised bill rate. WIP balloons when project accounting is sloppy, percentage-of-completion masks underwater projects, and the gap between rate card and what clients actually pay quietly compresses gross margin.
The work is cleaning up time-and-billing data, rebuilding project margin from the bottom, and pulling utilisation apart by seniority and geography. Revenue gets recognised properly on every active engagement, and the rolling forecast is built around realistic bench levels rather than wishful pipeline.
Flow provides financial modelling, FP&A and fractional CFO advisory to software development firms across custom application development, nearshore and offshore delivery, vertical-specialist boutiques, product engineering shops and platform modernisation practices. Our startup CFO team builds the project margin, utilisation and forecast views these businesses need.
KPIs to track for "software development" startups
We're very 'KPI-driven' fractional CFOs, and we make sure to monitor the right metrics for your startup.
Utilisation
Realised bill rate
Billable hours
Project gross margin
EBITDA margin
Revenue per FTE
Recurring revenue share
Customer concentration
Client retention
Headcount
Bench rate
Pipeline coverage
Financial modelling for "software development" startups
As fractional CFOs, we build KPI-driven financial models that are insightful and easy to maintain.
Financial modelling is both art and science - models must be robust, but also understandable, and useful for both internal planning and VC fundraising purposes. Hire a fractional CFO who knows how to handle both sides of the equation.
Utilisation by seniority and geography
Billable hours, internal time and bench split by role band, region and delivery centre against target utilisation. Shows where senior engineers are absorbing junior work and where offshore capacity is sitting unfunded.
Realised bill rate vs rate card
Client-by-client effective bill rate compared against the published rate card, with discounts, fixed-price overruns and unbilled time loaded as leakage. Reveals the actual margin the engagement earns once invoice reality is applied.
Project margin and WIP roll-forward
Active engagements modelled with percentage-of-completion revenue, cost-to-complete and a margin reforecast at each milestone. Flags underwater fixed-price projects before the WIP balance hides the loss for another quarter.
T&M vs fixed-price mix
Revenue, gross margin and working capital modelled separately for time-and-materials and fixed-price engagements. Quantifies the risk premium needed on fixed-price work and the cash drag from milestone billing.
Bench cost and hiring plan
Bench rate, ramp time and hire cost modelled against signed backlog and weighted pipeline. Stops hiring decisions being made off optimistic pipeline conversion rates rather than committed revenue.
Pipeline coverage and revenue forecast
Bottoms-up forecast built from current backlog, retainer continuation and weighted pipeline conversion by stage and salesperson. Replaces the founder-eye-test forecast with a number the board can actually defend.
Founders and investors we've worked with
We've supported winning builders across software development and beyond.
Moburst
As a fractional CFO we performed a confidential valuation of Moburst, a Tel Aviv-based global mobile marketing services company, supporting Elevator Fund's portfolio management.
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BetterQA
We acted as fractional CFO and transaction advisor to BetterQA, an independent software testing house based in Cluj-Napoca, Romania, setting up FP&A and preparing the business for an upcoming M&A process.
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TBô
We acted as fractional CFO to TBô, a Zurich-based tech-enabled DTC male underwear brand, building a bottom-up financial / operating model with cohort-level KPIs and positioning the company for its next venture round.
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Onlogist
We acted as fractional CFO to Onlogist, a Hamburg-based online marketplace for last-mile vehicle transfer, providing confidential valuation guidance and operating model support.
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Marcura
We acted as fractional CFO to Dubai-based Marcura, owner of maritime payroll and B2B payments platform MarTrust, advising on the strategic e-Wallet vendor selection and supporting product/finance integration.
See moreRecent fractional CFO track record
See our fractional CFO and financial modelling experience across software development and beyond.
Simple pricing
No hidden costs, no complicated long-term contracts. We understand how important flexibility is for software development startups.
Per month
- Accounting / FP&A tech stack implementation
- Monthly financial statements and reporting pack
- Quarterly board pack with detailed financial analysis (with variance analysis vs. budget, relevant KPI observations etc.)
- Investor-friendly output
Per month
- Everything in Core, plus
- Operating model (via an online platform like Runway or Excel-based)
- Ongoing model maintenance, refining projections, burn/runway management
- Customer cohorts modelling, churn and retention analysis
- LTV / CAC, unit economics analysis
- Cap table management
Per month
- Everything in Grow, plus
- M&A / fundraising support; review of business plan
- Pitch deck preparation
- Investor approach strategy / list building
- Due diligence support and deal negotiation
- Valuation as required and free access to Multiples Pro
Packages shown are illustrative, final pricing is tailored to client requirements.
Explore our fractional CFO offering for similar verticals
We're a specialized fractional CFO to IT services companies.
Our fractional CFO experience spans across all IT services verticals.
Explore other sectors
We know tech inside & out.
We provide fractional CFO services to companies operating across the entire tech.
More services
We help you scale by providing fractional CFO advice, through fundraising and a successful M&A exit.
VC fundraising for software development companies
We help you prepare materials, reach out to investors in our extensive network, negotiate fair term sheets and structure the VC round.
Learn moreM&A for software development companies
We advise winning tech companies on M&A exits, and over the years successfully executed numerous transactions with both financial and strategic buyers.
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Schedule a call to get a health check on your business and see how we could help.
Fractional CFO
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