Ashley Nickelsen, the founder and CEO of B.T.R. NATION, was faced with the challenge of needing more capital to expand her business after retailers started showing interest in carrying her sugar-free protein bars. Recognizing the need for alternative funding and capital options in the costly world of retail, Nickelsen turned to a bookkeeping tool called myPocketCFO, developed by fractional CFO Alice Zhang. This automated bookkeeping solution, sitting on top of QuickBooks, allowed Nickelsen to review analytics for her Superfood Protein Bars and other products, helping her secure $1 million in early-stage angel and venture funding.
Consumer packaged goods (CPG) entrepreneurs often find traditional accounting tools frustrating as they are not specifically designed for their industry. Zhang explains that CPG businesses typically require accrual accounting to properly record inventory, while most conventional bookkeeping platforms are designed with cash accounting in mind. This mismatch can hinder founders in effectively managing their financial data, making it challenging for both them and their financial advisors to analyze the company’s performance. With the global consumer packaged goods market expected to reach $244.92 billion by 2030, the need for tailored accounting solutions is likely to increase.
Zhang and co-founder Eric Sonsino created myPocketCFO to address this gap, offering features that automatically pull in sales and expense data from a business’s accounts and handle accrual accounting to ensure clean and accurate books. The system is designed to help track cash flow, a vital aspect for CPG companies as owners often need to invest capital in inventory well before the goods are sold. This proactive cash management is crucial for the survival and growth of new businesses, especially during the early stages when capital may be limited. The platform has garnered positive feedback from CPG entrepreneurs, with about 100 companies currently using the service.
Marilyn Yang, the co-founder and CEO of Fun-Gal Snacks, which produces Popadelics Crunchy Mushroom Chips, is among the satisfied users of myPocketCFO. Yang found the platform to be a cost-effective solution for bookkeeping and finance needs as her business was ramping up post-launch. The platform provided an “in-between” option that was more robust than a standard bookkeeping solution while not requiring a full-time CFO. It allowed Yang and her team to efficiently categorize expenses, track sales details, distributor deductions, and financing sources, enhancing the company’s financial management capabilities.
As the demand for myPocketCFO grows, Zhang plans to further develop the platform’s functionality to continue supporting CPG entrepreneurs in navigating their financial responsibilities. The platform, priced at $199 per month for basic membership, has already attracted about 100 companies, with plans for future expansion and improvements. With a focus on making financial management easier for millions of brands, Zhang aims to impact the industry positively by providing a solution that streamlines bookkeeping tasks and enhances the financial health of businesses in the consumer packaged goods sector.
