In the world of startups and small businesses, there comes a pivotal moment when the financial demands of a growing company begin to outstrip the capabilities of a single, overworked bookkeeper. It's a familiar story: the founder, once able to keep track of every penny spent and earned, suddenly find themselves drowning in a sea of spreadsheets and invoices, all while trying to steer their business towards profitability.

This is the precise challenge that James Wheeler, a seasoned fractional CFO, encountered time and time again as he worked with businesses generating between $2 million and $30 million in annual revenue. "I saw firsthand how these companies were struggling to keep up with their accounting needs," Wheeler recalled in a recent interview. "They had outgrown their bookkeepers but couldn't yet absorb the expense of a full-time accounting team."

It was a dilemma that Wheeler knew all too well. In his role as a fractional CFO, he had seen countless businesses grapple with the same issue, often with disastrous consequences. Without complete, accurate, and timely financial data, these companies were flying blind, unable to make informed decisions about their future growth and direction.

Sensing an opportunity, Wheeler founded kept.pro in July 2020, with the aim of providing a more efficient and cost-effective solution for businesses facing more risks than resources. His vision was simple yet groundbreaking: to offer a fractional accounting team, allowing companies to access the expertise of a full accounting department without the associated cost of a full-time team.

The concept of fractional accounting teams was not entirely new, but what set kept.pro apart was its focus on delivering high-quality, consistent results. 

Rather than simply providing temporary staff, Wheeler and his team took a more holistic approach, assembling teams of certified experts at various levels to provide comprehensive accounting support.

The response from the market was swift and enthusiastic. In just two years, kept.pro surpassed $1 million in annual recurring revenue, a testament to the pent-up demand for its services. But as with any rapidly growing startup, success brought its own set of challenges.

One of the biggest hurdles, according to Wheeler, was navigating the crowded and largely unregulated landscape of the accounting industry. "There are a lot of providers out there, with varying degrees of expertise and capability," he explained. "We knew that to stand out, we had to go above and beyond in terms of the quality and integrity of our services."

Recognizing the issue, Kept.pro has prioritized educating prospective customers on the importance of effective internal controls. "Over half of occupational fraud, such as employee theft and embezzlement, occurs due to a lack of internal controls or the overriding of existing ones," Wheeler noted. "The efficacy of internal controls is a major benefit of our model and a key point of education for prospective customers."

To differentiate itself from the competition and build trust with its clients, kept.pro has also placed a strong emphasis on internal controls and employee screening. The company conducts rigorous background checks on all employees, covering criminal history, education, and employment verification. While not mandated by external regulations, these measures demonstrate kept.pro's commitment to maintaining the highest standards of integrity and security in its operations.

As kept.pro continues to grow, Wheeler and his team are focused on maintaining the standards that have fueled their success thus far. But they also recognize that the demand for fractional accounting teams is only likely to increase in the coming years, as more and more businesses find themselves in need of expert financial support.

For Wheeler, the transition from fractional CFO to founder has been an intuitive one, but it's a role he has embraced with enthusiasm and determination. "I never set out to be an entrepreneur," he admitted. "But when I saw the opportunity to help businesses overcome this critical challenge, I felt compelled to act."

The rise of fractional accounting teams, as demonstrated by companies like kept.pro, has notably benefited a broad spectrum of small and medium-sized businesses. These firms, often constrained by limited resources, have found an invaluable ally in the scalable and cost-effective solutions provided by fractional accounting teams. This model not only alleviates the burden of hiring full-time staff and managers with the expertise to oversee them but also equips businesses with the sophisticated financial tools necessary to thrive in an increasingly complex economic landscape.

As the market continues to evolve, the impact of fractional accounting teams becomes increasingly apparent. It positions itself not just as a temporary solution but as a potential mainstay in the future of digital-era accounting. This approach allows businesses to scale their accounting resources as needed, integrating advanced technologies and expertise without the overhead associated with traditional accounting departments. In this rapidly changing environment, the adaptability and scalability of fractional accounting suggest it may well become a cornerstone of modern business strategy, especially for those looking to maximize efficiency and growth.