A prevalent challenge faced by most FinTech companies in the currently volatile business ecosystem is establishing a product-pricing model that strikes a balance between what a customer is willing to pay and what will drive sustainable profits. Other issues FinTechs face include maintaining adequate cash flow to support working capital and designing an accurate cap table that accurately reflects the complexity of early-round, non-traditional capital raises. Emerging companies struggle to provide accurate information to enable stakeholders to make well-informed decisions with respect to raising additional capital and making investments. The constantly evolving nature of financial markets is also driving increasing regulatory scrutiny. As a result, FinTechs need clear advice from their accountants and business advisors to navigate new regulatory requirements and address their tax compliance obligations. Market volatility drives challenges in hiring highly competent developers and engineers, so compensation packages must be extremely competitive to attract the right team.
With over four decades of industry experience, New York City-based Citrin Cooperman is leading the way in supporting FinTechs by solving challenges in the financial arena through its comprehensive business advisory services. As part of their offerings, the firm provides assurance, taxation, and accounting services alongside other complementary services to help businesses position themselves for long-term success.
"We can help our clients develop pricing models, build out financial projections based on historical information and emerging customer shifts, and design workforce compensation structures that attract and retain key staff," says Michael Rhodes, CPA, partner and technology practice leader at Citrin Cooperman.
Further discussing the core competencies of Citrin Cooperman's portfolio, Alexander Reyes, partner and financial services practice leader, elaborates, "We evolve with the needs of a business and offer our services to support and help clients take control of their financial processes, from basic accounting to more complex activities such as compliance and taxation." For emerging businesses, Citrin Cooperman can identify the appropriate enterprise resource planning (ERP) system based on the client’s current needs and stage of maturity and can also assist in developing internal controls to optimize operational performance and safeguard key assets.
Citrin Cooperman has ignited several success stories since its inception in 1979. In one instance, the firm worked with a client as they grew from a small basement business to one with a half a billion-dollar enterprise value. Initially, Citrin Cooperman helped them manage funds raised in their seed round and offered essential advisory services to enhance the efficiency of the client’s accounting and tax processes. Over time, the client raised additional funds through three more capital rounds, developed a strong marketable product, and recruited a sophisticated senior leadership team, including a CFO, that was able to align with the company’s operational and organizational goals. More recently, Citrin Cooperman helped the client mitigate tax-related issues across multiple states, enhanced the financial reporting process to support the company’s objective of providing clear information to its investors, and advised the client on the appropriate accounting treatment of complex transactions, including revenue recognition. "Over the course of this ever-evolving relationship, everything they needed - we've delivered on. And the best part is that we can do so much more to service them as their business continues to grow and evolve," states Rhodes.
At the core of Citrin Cooperman’s success is its collaborative culture that promotes a commitment to delivering high-quality client service. "We look at our clients from a wide range of perspectives and work together across service lines and, sometimes, geographical offices to solve our client's problems," explains Reyes. Citrin Cooperman continually expands the capabilities of its suite of services, offering strategic business transformation and transaction advisory services. The company aims to expand its footprint to service additional clients with new offerings and expertise. "We will continue to grow beyond a general accounting firm and become an advisory firm that provides tailored and customized solutions based on the prevailing needs of our clients," concludes Rhodes.
We evolve with the needs of a business and offer services to help them take control of their financial processes, from basic accounting to more complex activities such as compliance and taxation