From David Stack: "A critical aspect of a CFO’s role at a startup is facilitating the creation and implementation of a strong, comprehensive reporting structure. This reporting algorithm should evaluate the current health of the business by identifying key sensitivities in the business model, tracking progress in scaling the company, providing a useful dashboard for each separate department, and serving as a tool both the CEO and management team can use to grow the business. Additionally, a great reporting package will allow you to analyze your current data to identify upcoming trends."

1. THE CASE FOR A STRONG
David Stack
Reporting for Duty:
REPORTING STRUCTURE

2. A critical aspect of a CFO’s role at a startup
is facilitating the creation and implementation
of a strong, comprehensive reporting
structure. This reporting algorithm should
evaluate the current health of the business by
identifying key sensitivities in the business
model, tracking progress in scaling the
company, providing a useful dashboard for
each separate department, and serving as a
tool both the CEO and management team
can use to grow the business. Additionally, a
great reporting package will allow you to
analyze your current data to identify
upcoming trends.
INTRODUCTION

3. It is essential that everyone understands
fundamental metrics, like what it costs you to
acquire a customer and what the lifetime
value of your customer is. For this reason,
implementing an SaaS dashboard has
become table stakes today. In the
comprehensive reporting package you should
show key financial statements, headcount vs
budgeted hiring, bookings data, and other
important metrics. This will help everyone
understand where you are today and how
actual results compare to your short and long
term goals.
CURRENT STATE OF
THE BUSINESS

6. For departments, it is important to have high level metrics in the standard company reporting
package. Here, reports that cover the effectiveness of components like the Marketing and Sales
funnel, customer retention metrics, engineering metrics, and hiring by department are essential,
mostly because they allow the senior team to understand the metrics across each area within the
company. Furthermore, beyond company-level reporting, you should have more detailed internal
reporting for your department that concisely compares the actual performance of your team each
month and quarter to the specific goals that you’ve set. This dashboard will not only make it easier
to evaluate the performance of your investments and team, but also fosters a collaborative
environment as you work on allocating resources in the future.
DEPARTMENTAL
DASHBOARDS

7. Is your reporting analysis a key part of evaluating your strategy and its effectiveness? Does it play a
key role in discussions with your BOD? Have you set up a recurring meeting in which your
management team can discuss actual results and metrics along with reviewing long term strategy?
These are all key elements of the structure you should implement as you are scaling your business. A
thoughtful and thorough approach to reporting should allow you to use your reports and data to
manage your business and leverage that information when it comes time to report to the entire
company and your Board of Directors.
Managing the Business

8. EVOLVING
INDICATOR