Case Study: Learn and Grow Financial’s Partnership with Honey

Learn and Grow Financial, an outsourced accounting firm, successfully guided Honey, a small tech startup, through rapid growth and expansion, providing critical financial support and infrastructure to help them scale from 11 to nearly 100 employees.

Challenge: As Honey began to grow, they quickly realized they had outgrown their internal bookkeeper and needed more high-level financial support to navigate the challenges of rapid expansion.

Solution: Learn and Grow Financial worked closely with Honey to provide the necessary support and infrastructure for successful scaling:

1. Gross margin and profitability management: Learn and Grow Financial helped Honey understand and manage their gross margin and profitability by channel, amortizing expenses and transitioning to accrual-based accounting for a clearer financial picture.
2. Risk management and compliance: In collaboration with EY, Learn and Grow Financial ensured Honey’s unique rewards program, ‘Honey Gold,’ was compliant with regulations and that associated liabilities were properly extinguished over time.
3. Scalable infrastructure: Learn and Grow Financial automated Honey’s payroll and accounts payable processes to handle the increased volume of transactions that came with having 100 employees, preventing common scaling points that often hinder growth.

Results: Through the implementation of these strategies, Honey achieved significant milestones:

1. Successful expansion: Honey grew from a small group of 11 to nearly 100 employees, with the necessary financial support and infrastructure in place to scale successfully.
2. Improved financial understanding: Honey gained a clearer picture of their gross margin, profitability, and overall financial situation, enabling better decision-making.
3. Regulatory compliance: Honey’s ‘Honey Gold’ rewards program was made compliant with regulations, mitigating potential risks.
4. Scalable processes: The automation of payroll and accounts payable processes allowed Honey to handle the increased volume of transactions that came with rapid growth.