Case Study: End-to-End Accounting Support for a Growing EdTech Company in NYC

Client name: Company in NYC
Industry: EdTech

Executive Summary

A New York-based EdTech startup providing virtual learning platforms for K–12 and higher education engaged Remote Financial Services (RFS) to take over its accounting and bookkeeping function. Following rapid growth driven by institutional contracts and consumer subscriptions, the company faced difficulties maintaining accurate financial records, tracking cash flow, and staying compliant with tax obligations, especially with limited in-house finance resources.

The Challenge

The company faced several finance and accounting roadblocks:

  • Deferred Revenue Confusion: Improper handling of subscription revenue recognition caused mismatches in monthly income reports.
  • Limited Burn Rate Visibility: No integrated system for tracking operational expenses against cash inflows.
  • Scattered Financial Data: Stripe, HubSpot, and spreadsheets operated in silos, slowing reporting.
  • Delayed Financial Reports: Management lacked timely, reliable P&L for strategic and investor decisions.
  • Overlooked Tax Compliance: The company had no structured system for filing federal and state taxes accurately or on time.

The Solution

RFS developed a customized strategy to address these challenges:

  • Bookkeeping for Deferred Revenue: RFS took over the full-cycle accounting and introduced structured deferred revenue tracking in QuickBooks Online. We ensured subscription income was allocated across its respective periods, improving compliance with revenue recognition standards and aligning monthly P&Ls with business activity.
  • Cash Flow & Burn Rate Monitoring: We developed a rolling cash burn model within the company’s accounting system, factoring in payroll, vendor payments, and marketing spend. This gave management a real-time view of their cash runway and helped with capital planning and fundraising communications.
  • Integrated Bookkeeping Systems: Our team centralized finance operations by linking Stripe and HubSpot data into QuickBooks. This reduced reliance on spreadsheets, improved bookkeeping accuracy, and provided a single source of truth for financial reporting.
  • Tax Compliance & Filing: RFS implemented a structured calendar for federal and state tax filings, prepared monthly sales tax returns where applicable, and ensured books were fully audit-ready. We also supported the founders with quarterly and year-end filings, avoiding penalties and establishing reliable tax positioning.
  • Automated Financial Reporting: We automated monthly management reporting and variance analysis. Custom dashboards enabled real-time tracking of KPIs like MRR, CAC, and burn rate, critical for board meetings and investor updates.

 

The Results

The implementation of accounting, bookkeeping, and tax support led to substantial improvements:

  • Compliant Revenue Reporting: Subscription income was accurately reflected under GAAP, reducing restatement risk.
  • Improved Capital Oversight: Real-time dashboards gave clarity on burn rate and funding runway.
  • Streamlined Operations: Eliminated 40% of manual reconciliation time through system integration.
  • Tax Accuracy: Achieved timely and compliant filings across all federal and applicable state jurisdictions.

Conclusion

By handling the complete accounting and bookkeeping function, along with tax compliance, RFS enabled this EdTech company to operate with financial clarity and discipline. These upgrades positioned the company to scale efficiently while satisfying investor due diligence and statutory obligations.