When a high-growth technology company loses its CFO, the instinctive response is often to recruit another one quickly.

But that isn’t always the smartest decision.

This Australian software start-up, backed by $30 million in capital and servicing major banks and retailers, faced exactly this situation. Its CFO was departing, the salary cost was significant, and bookkeeping and payroll were already outsourced separately.

The Board paused and asked a better question:

Do we need another expensive individual – or do we need a stronger finance function?

They chose the latter.

Following a competitive tender process, Stewart & Smith was appointed to deliver a fully integrated Fractional CFO, Finance and Tax team solution.

The Reality: This Was Not “Standard” Accounting

This business had:

• Institutional shareholders requiring structured quarterly reporting
• Formal board governance obligations
• Capital raise activity and cash runway management
• An active Employee Share Option Plan (ESOP)
• Complex enterprise customer invoicing
• R&D Tax Incentive claims
• FBT and Payroll Tax considerations (including ESOP implications)
• Mandatory audit

This required strategic oversight, technical depth and disciplined reporting, not just transactional processing.

The Transformation

1. Stabilisation & Governance

We transitioned seamlessly from the outgoing CFO and existing accounting firm with minimal disruption to the executive team.

We documented systems, formalised procedures and introduced structure where gaps existed.

Month-end processes were rebuilt to ensure full balance sheet integrity and structured P&L review.

Management reporting was reduced to Working Day 5, delivering faster, reliable financial insight to the Board.

Governance shifted from reactive to controlled.

2. Strategic CFO Leadership

A Stewart & Smith CFO assumed the Fractional CFO role, taking responsibility for:

• Board presentations and investor reporting
• Cash burn and funding strategy
• ESOP oversight
• Managing investor audit requirements
• Introducing growth-enabling commercial connections

The company retained executive-level capability, without the executive salary burden.

3. Integrated Finance Execution

The Stewart & Smith Finance Team rebuilt the finance operations framework:

• Streamlined accounts payable and approval workflows
• Introduced structured supplier payment cycles
• Strengthened internal controls
• Improved efficiency and reduced executive interruptions
• Produced month-end Management Report within 5 Working Days.

The finance function became disciplined, predictable and scalable.

4. Tax Strategy & Value Creation

The Stewart & Smith Tax Team delivered:

• A successfully managed R&D Tax Incentive claim resulting in an ATO refund exceeding $1 million
• ESOP compliance oversight
• Correct Payroll Tax treatment
• Coordinated tax compliance aligned with funding strategy

Tax shifted from compliance exercise to strategic lever.

The Outcome

The business achieved:

• A materially reduced fixed finance cost base
• Stronger governance and reporting discipline
• Improved investor confidence
• Successful audit completion
• Accelerated management reporting
• $1m+ in recovered R&D funding
• Clear oversight of runway and funding strategy

Most importantly, the executive team regained focus, shifting energy back to product, customers and growth.

Why This Matters

For many growth-stage and investor-backed companies, the decision is no longer in-house CFO vs outsourced bookkeeping.

The smarter question is: how do we build a scalable, investor-ready finance function without overcommitting to fixed overhead?

A structured Fractional Finance Model provides:

• Executive-level leadership
• Operational execution
• Tax expertise
• Governance strength
• Scalability

All aligned to growth.

Did you find these insights valuable? Follow Stewart & Smith Advisory for more expert guidance on navigating the complexities of business finance.