This episode features Rose Hamilton, Founder of Compass Rose Ventures, and Lio Pinchevski, CEO of Finaloop.

About Finaloop

Finaloop offers real-time financial reconciliation for e-commerce and DTC brands. It provides accurate books, optimized tax returns, and actionable insights around the clock. The platform replaces accounting software, integrations, bookkeepers, and tax CPAs, saving time and money while improving decision-making.

Key Discussion Points

• Financial challenges: E-commerce founders struggle to manage numbers effectively without the right tools.
• Marketing clarity: Running ads without financial data is like flying blind. Founders need actionable numbers.
• Agency accountability: Ask the right questions to hold marketing agencies accountable for performance.
• Beyond ROAS: Metrics like contribution margin and net profit matter more than just revenue.
• When to hire: Learn when to add a fractional or in-house CFO to your team.
• Operational impact: Finaloop eliminates manual bookkeeping, delivering 100% accuracy and real-time updates.
• Speed matters: Finaloop reconciles years of financial data in hours, not months, during acquisitions.
• Advice for founders: Develop your financial IQ and own your brand’s financial journey.

Practical Insights

Rose and Lio emphasize the importance of accurate financial data for strategic decisions. Founders who understand their numbers can improve profitability, manage campaigns effectively, and grow with confidence.

Learn More

Visit Finaloop to access tools that transform how e-commerce brands handle accounting and finances.

Podcast Transcription: Rose Hamilton Interviews Lio Pinchevski

Introduction

Rose Hamilton: I think that e-commerce founders, as a group within a space, should learn more, engage more, and be open to learnings around operations and finance. Again, it’s bigger than Finaloop. It’s beyond the books. It’s about understanding that as a business owner, this is something you have to own. You cannot outsource and forget it, just like you can’t outsource and forget HR. You have to work with your people, recruit the right team, coach them, market your business, and build your products. You need to own the financial path of your brand.

Ramon Vella: Hey everyone, this is Ramon Vella. Quick note before we begin: this episode is a little bit different. We’re trying something new. This is part of our partner series feature, and we have a guest host, Rose Hamilton, founder and CEO of Compass Rose Ventures. In this episode, she interviews Lio Pinchevski, founder and CEO of Finaloop.

Finaloop reconciles all financials in real-time, providing e-commerce and DTC brands with flawless books, authorized tax returns, and actionable insights 24/7 with 100% accuracy. Wow! They replace your accounting software, integrations, bookkeeper, and tax CPA so you stop wasting time and money, make smarter decisions, and handle taxes on time.

I hope you enjoy this new format. Let’s dive into the interview.

Financial Ownership for Founders

Rose Hamilton: Today, we’re talking about the foundational pillar for achieving profitability in DTC and e-commerce companies: managing the numbers with efficient and effective accounting coordinated across all stakeholders.

Two days ago, I was sitting with clients and the core leadership team working on Q4 planning. Just like many of you, I was asked by the marketing team if we could give away some products to increase revenue. I thought to myself, great idea. Then I asked, “What does it cost?” I saw glazed eyes and confusion, as expected. The answer was, “We don’t know.”
This is one of the many basic financial questions I find management teams struggling to answer. If you’re an executive, you need to understand and live by the numbers. The journey begins and ends with them.

Introducing Lio Pinchevski and Finaloop

Rose Hamilton: It is my delight to welcome Lio Pinchevski, founder and CEO of Finaloop. Over the past three years, Lio has built a successful business combining deep technology and accounting expertise specific to health and wellness brands. Lio, welcome!

Lio Pinchevski: Thank you, Rose. Same here. I’m excited to be here.

Lio’s Journey and Finaloop’s Vision

Rose Hamilton: You have such a great background. Let’s start with your personal journey. What uniquely prepared you for solving this challenging problem of accounting and making it easy for founders?

Lio Pinchevski: I started in finance and practiced international tax and M&A. My career began at a law firm, then PwC, where I moved up from junior associate to partner in the M&A department. However, I’ve always had a desire to build things, so I engaged in side hustles—some successful, others less so.

One of my ventures was in the fertility space, a service where men could test and freeze sperm from home, leveraging an e-commerce-based platform. It was here that my finance background intersected with e-commerce. I quickly realized the lack of visibility to numbers for e-commerce founders. As an accountant, I’m obsessed with numbers, and I’m uncomfortable making decisions based on gut feeling without data.

Finaloop’s Core Solution

Lio Pinchevski: Finaloop replaces three key components:
– Accounting Software (e.g., QuickBooks, Xero, NetSuite).
– Connectors (integrations between apps and ledgers).
– Manual Bookkeeping.

Traditional bookkeeping requires manual effort to align data from platforms like payroll, banks, and credit cards. Finaloop eliminates this, creating real-time reconciled books with 100% accuracy.

Addressing Operational Challenges

Rose Hamilton: How do you see companies using Finaloop to bridge gaps between departments like marketing, finance, and operations?

Lio Pinchevski: Finance is broader than accounting. Accounting provides accurate P&L, cash flow statements, and KPIs. Finance uses this data for decisions like inventory financing, ad spend adjustments, hiring, and warehouse expansion. Marketing teams, for example, need these insights to run profitable campaigns.

Best Practices for Growth

Rose Hamilton: Many founders rely on performance marketing agencies. How can they better leverage Finaloop to improve decision-making and efficiency?

Lio Pinchevski: If an agency asks for ROAS without delving into finances, I’d say goodbye. Brands should measure increased contribution margin or net profit, not just revenue. Finaloop helps agencies and founders by providing accurate real-time financials to guide ad spend and assess performance daily.

Scaling and Financial Strategy

Rose Hamilton: As founders grow, they often debate hiring a CFO or using a fractional CFO. What’s your take?

Lio Pinchevski: CFOs and bookkeepers are distinct. CFOs analyze books and make strategic recommendations, while bookkeepers handle data categorization and reconciliation. For early-stage companies, a fractional CFO offers cost-effective strategic advice. As brands grow (mid-eight figures), hiring an in-house CFO might make sense.

Finaloop’s Impact

Rose Hamilton: What’s a standout case study?

Lio Pinchevski: Two come to mind. First, a brand saved $40,000 in unclaimed deductions. Second, a brand needed two years of reconciled books for an acquisition. Traditional methods quoted four months; we delivered in 48 hours. This speed and accuracy are game-changers.

Advice for Founders

Rose Hamilton: What final message do you have for founders?

Lio Pinchevski: E-commerce founders should own their financial journey. Outsourcing technical work is fine, but financial IQ must remain internal. Just as founders guide marketing strategy, they must guide the financial path of their brands.

Closing

Rose Hamilton: Thank you, Lio, for sharing your insights. How can listeners connect with you?

Lio Pinchevski: Visit finaloop.com for a free trial. You can also email me directly at lioan@finaloop.com.

Rose Hamilton: Thank you, Lio. This has been a fantastic discussion. Looking forward to more in the future!