Finance as a Service
What is Finance as a Service?
Finance as a Service (FaaS) noun
One team running a company's entire finance function under a single ongoing engagement: bookkeeping, GAAP accounting and the monthly close, tax compliance and planning, and CFO-level advisory, all from the same people working from the same books. Instead of hiring a bookkeeper, then a controller, then a tax preparer, then a CFO, you bring in one team that owns all four, on a monthly fee that scales with the company.
Four layers. One team. One version of the numbers.
What it includes
Four layers, delivered by one team.
Each layer feeds the next. The forecast is built on books the same team closed, and the tax return is filed from the same ledger. That integration is the whole point: there is no gap between the people who produce the numbers and the people who read them.
- 1Bookkeeping
Transactions categorized, bank and card accounts reconciled, payables and receivables kept current, payroll recorded. This layer sets the ceiling for everything above it: a forecast built on messy books is a guess with a chart.
- 2GAAP accounting and the monthly close
Accrual-basis financial statements under U.S. GAAP, produced every month, not reconstructed at year end. For subscription businesses that means ASC 606 revenue recognition, deferred revenue schedules and the accruals cash-basis books miss. These are the statements auditors, acquirers and investors expect in a data room.
- 3Tax compliance and planning
Federal, state and local filings, plus planning across the year: multi-state nexus, R&D tax credits, entity structure and the Section 174 rules for software development costs. Because the tax team works from the closed books, the return reflects what happened, not a rushed reconciliation in March.
- 4CFO advisory and FP&A
Budgeting, forecasting, cash and runway modeling, unit economics and board-ready reporting, with advice on the raise, pricing and capital allocation scoped to the company's stage. Founders feel this layer most during a raise, when investors want a model the books can support.
FaaS vs. the alternatives
How it compares to outsourced accounting, a bookkeeper or an in-house team.
Most companies searching for "outsourced accounting" are choosing between four models. The difference is scope and who owns the outcome.
| Criteria | Finance as a Service | Traditional outsourced accounting firm | A la carte bookkeeping | In-house team |
|---|---|---|---|---|
| What you get | The full function: bookkeeping, GAAP close, tax, CFO advice | One or two services, often books or the return, handed between departments | One task, typically bookkeeping | Employees you hire and retain |
| Who owns the numbers | One accountable team | Each department owns its piece; you reconcile between them | You, by default | You build and run the team |
| GAAP close and accrual reporting | Included, monthly | Sometimes; often quarterly or at year end | Seldom; usually cash basis | Yes, if you hire senior enough |
| CFO-level advisory | Included, scoped to stage | Rarely; usually a separate engagement | No | Yes, if you can afford a CFO |
| Management burden | Low: one team, one point of contact | Medium: you coordinate departments | Medium: you fill the gaps | Highest: you recruit and cover turnover |
| Cost model | Monthly fee, scales with the company | Hourly or per engagement | Per task or hourly | Salaries, benefits, overhead |
| Time to stand up | Weeks | Weeks per service | Fast for one task, slow for the function | Months to hire and ramp |
A traditional outsourced accounting firm keeps the books or files the return. Finance as a Service keeps the books and owns everything built on top of them. That is the distinction buyers are drawing when their question shifts from "who does my bookkeeping" to "who owns my finance function."
Who it's for
It fits from the first raise to $30M and beyond. What changes is the work.
The model is funding-agnostic: venture-backed, bootstrapped and PE-backed companies all use it. Very early, a founder and a bookkeeper may be enough. The bundle starts to pay for itself the moment the layers depend on each other: the first board package, the first audit request, the first priced round.
Accrual books investors can read, burn and runway, franchise tax, the first R&D credit, a 409A before option grants.
See the solution →$3M to $30MMid-sized and growingA controller-led close, departmental reporting, revenue recognition, multi-state tax and the move from QuickBooks to NetSuite.
See the solution →$30M+ · audit, transaction, exitEnterpriseConsolidated close across entities, audit management, technical accounting and an advisor who has prepared companies for financing and M&A.
See the solution →Several entities, states or countriesMulti-entity groupsOne chart of accounts, one accounting basis and one monthly close across every entity, with a group view and consolidated statements where needed.
See the solution →When companies switch
The moments that push a company to buy the function instead of building it.
Trigger moments
- A first audit, or a due-diligence request for GAAP financials
- A first priced round that needs a real model and a clean cap table
- A board that expects a monthly or quarterly package
- A founder who has become the finance function by default and is losing days to it
- A second entity, state or country, and books that no longer line up
What the first three layers cost in-house
Estimates from U.S. Bureau of Labor Statistics median wages with a fully loaded multiplier. CB Insights found running out of cash in 38% of the startup post-mortems it analyzed, which is why one team owning both the books and the forecast matters.
What it is not
Three things that get sold under the same name.
Software feeds the engagement, but it cannot close books to GAAP, judge an ASC 606 question or advise a board. Automation speeds the work; people, including a CPA accountable for the judgment calls, make the decisions.
A standalone fractional CFO covers one layer, usually as a project, and advises on numbers someone else produced. In FaaS the advisor reads books their own team closed, every month.
Bookkeeping is layer one. If the close doesn't follow GAAP, the same team doesn't own tax and FP&A, or you can't reach the person who reviewed your numbers, it is a point solution, whatever the name.
Before you sign
How to choose a Finance as a Service provider.
Eight things to confirm on the first call. A "no" on any of the first four means you are buying a point solution.
- All four layers under one contractDelivered by the provider's own team, not referred out.
- CPA-led workAsk who reviews the output and what they are credentialed to sign.
- A real monthly GAAP closeAccrual statements lenders, auditors and investors will accept.
- Tax filed from the same ledgerYear-round planning, not a handoff in February.
- CFO depthForecasting, fundraising support and board reporting, not a monthly email.
- Where your controller sitsAsk who reviews the close, where they are based and how fast they answer.
- SOC 2 and data securityAsk to see the independent attestation.
- Terms that flexMonth-to-month options and scope that grows with the company.
How indinero delivers it
Expert-led. AI-accelerated. One team from the first close to the exit.
- CPA-led and GAAP-first. The monthly close follows U.S. GAAP, reviewed by a U.S.-based controller before you see it, so the financials hold up in an audit, a diligence process or a priced round.
- One owner of the numbers. The same team keeps the books, files the taxes and builds the forecast. Year-end decisions on credits, elections and estimated payments are made by the people who already know the ledger.
- The Exchange. Burn, runway, budget vs. actual and what changed, updated every close and explained in plain English, with AI doing the preparation and people doing the judgment.
- A 24-hour response commitment. Every client email or message is answered within 24 hours by the people who do the work.
- Scope that scales. Bookkeeping first, a controller-led close as reporting gets heavier, full CFO advisory when the board needs it, with the same team from QuickBooks to NetSuite and from one entity to many.
FAQ
Questions people ask about Finance as a Service.
What does a Finance as a Service engagement include?
Four layers owned by one team: bookkeeping, GAAP accounting and the monthly close, tax compliance and planning, and CFO-level advisory with FP&A. A single team runs all four from the same books, so the close, the return and the forecast tie to the same numbers. Payroll, R&D tax credits and 409A valuations are added when the company needs them.
Is Finance as a Service the same as outsourced accounting?
No. A traditional outsourced accounting firm keeps the books or files the return, usually in separate departments that hand work between them. Finance as a Service covers the whole function, from bookkeeping through CFO advice, under one accountable team, so there is no gap between the people closing the books and the people reading them.
How is FaaS different from a fractional CFO?
FaaS includes one. A standalone fractional CFO provides strategy and reporting without the bookkeeping and close beneath it, advising on numbers someone else produced. In Finance as a Service the CFO layer sits on top of books the same team closed every month.
What size company is a good fit?
The model fits from a first raise through $30M in revenue and beyond, for venture-backed, bootstrapped and PE-backed companies. Very early, a founder and a bookkeeper may be enough. The bundle starts paying for itself when the layers depend on each other: a first board package, an audit request, a priced round, or a second entity or state.
Can Finance as a Service replace an in-house finance team?
For most companies up to about $30M, yes. It covers what a bookkeeper, accountant, controller and fractional CFO would, without the fixed headcount. Building the first three of those roles in-house runs past $350,000 a year on BLS median wages before any CFO capacity. Past $30M, some roles often move in-house, with the engagement shifting to consolidation, audit and technical accounting.
How is Finance as a Service priced?
On a monthly fee that depends on transaction volume, stage, entity count and the services you choose, usually on month-to-month terms. indinero quotes per engagement after a scoping call; starting points are on the Pricing page.
How quickly can a provider take over the books?
It depends on the condition of the records. Current, reconciled books transfer in weeks; a backlog is cleaned up first. indinero reconciles prior periods, runs one close in parallel with your current setup, then takes over. Average onboarding is 18 days.
Does "Finance as a Service" mean embedded banking or payments?
In fintech, the same phrase is sometimes used for banking, payments and lending delivered through APIs. In accounting, and on this page, it means the full finance function delivered as an ongoing service by one team.
Want one team running
your whole finance function?
Tell us your stage and how you keep the books today. We'll show you what the finance function would look like.