When we first encountered Honey, they were a small tech startup with just 11 employees working out of an office in downtown Los Angeles. Despite their size, they were a scrappy team, determined to figure out their business model and make their mark in the industry. However, as they began to grow, they quickly realized that they had outgrown their internal bookkeeper and needed more high-level financial support. That’s where we came in.
Our team worked closely with Honey as they expanded from a small group of 11 to nearly 100 employees. During this time, we provided crucial assistance in managing their finances, helping them navigate the challenges of rapid growth, and ensuring they had the necessary infrastructure in place to scale successfully.
One of the key areas we focused on was helping Honey understand and manage their gross margin and profitability by channel. This is a critical aspect of any startup’s financial health, yet many founders struggle to grasp the intricacies of Cost of Goods Sold (COGS). We worked diligently to amortize their expenses and transition them to accrual-based accounting, providing a clearer picture of their financial situation.
Risk management was another area where we provided significant support. We collaborated with EY to ensure that Honey’s unique rewards program, ‘Honey Gold,’ was compliant with regulations and that the associated liabilities were properly extinguished over time. This involved carefully editing their Terms and Conditions, as founders often implement policies, revenue models, and reward programs without fully understanding the implications.
As Honey continued to grow, we recognized the need for scalable infrastructure to support their expanding team. We helped automate their payroll and accounts payable processes, enabling them to handle the increased volume of transactions that came with having 100 employees. By implementing these systems, we aimed to prevent Honey from encountering the common scaling points that often hinder a company’s growth.
Throughout our engagement with Honey, we remained dedicated to providing the high-level financial support they needed to succeed. From managing their gross margin and profitability to ensuring compliance and implementing scalable infrastructure, we worked tirelessly to help them navigate the challenges of rapid growth. Ultimately, our efforts paid off, as Honey transformed from a small startup to a thriving company, ready to take on the world.
