Wed. Nov 30th, 2022

Formations Raises $8 Million Series A to Expand its CFO-as-a-Service Platform for Self-Employed Professionals

The Financial Management Solution company grows 500% YoY, announces partnership with Gusto and extends relationship with Xero to maximize the financial potential of the self-employed

Platform set to fill gap created by shortage of CPAs; initially targeting real estate agents and brokers

BELLEVUE, WA, April 13, 2022 /PRNewswire/ — Formations, a financial management solution that maximizes the financial wellbeing of the self-employed, today announced the completion of an $8 million Series A funding round led byArthur Ventures. The investment comes on the heels of YoY growth of 500%. It will help Formations further develop its solution and advance its aim of democratizing access to financial tools and strategies for the self employed, the largest and most under-served workforce, and offer services previously available only to those with access to heavy financial backing.

Formations is experiencing hyper growth at a time when a growing shortage of Certified Public Accountants (CPAs) on the one hand, is matched on the other hand by The Great Resignation, which has attracted millions of once-salaried employees into self-employment. These new self-employed need a trusted partner to guide them, optimize benefits and maximize savings – a “personal CFO” to set-up their company who can provide recommendations based on real insights. 

Automating the creation and ongoing management of S-Corps, the most popular entity structure for corporations in America, Formations has developed a financial solution that leverages technology and human expertise to automate entity creation, bookkeeping, payroll, taxes and benefit allocations throughout the year. Their solution helps customers save around eight thousand dollars of taxes every year by simplifying complex financial strategies and offering an easy-to-understand format that eliminates overwhelming financial surprises during tax time. 

Formations is also announcing a strategic partnership with Gusto, provider of pay and benefits software to small businesses, and is extending its relationship with Xero, as its preferred accounting solution.”We’re thrilled to partner with Formations on its journey to create a seamless horizontal platform for the self-employed, with our best-in-class embedded payroll, so customers can manage all their needs in one place,” said Brian Busch, Head of Marketing at Gusto Embedded Payroll

Formations has initially targeted realtors, a sector that more than 156,000 people joined in 2021 and 2020 due to the boom in the US housing market, a jump of nearly 60 percent over the two years prior.

“Taxes are the largest unmanaged business expense and one of the biggest surprises for taxpayers, especially for the self-employed,” said Ryan Kruizenga, General Partner at Arthur Ventures. “Formations is an impressive startup with an innovative approach to taxes and accounting. We look forward to accompanying them on this journey, helping solopreneurs save thousands of dollars with their comprehensive solution.”

Formations was established by tax and accounting expert Shahar Plinner and growth marketer Uri Bar-Joseph, who recognized the need for a comprehensive and more supportive financial solution for the self-employed. Plinner spent 17 years perfecting the S-Corp management process – the most efficient tax structure for the self-employed – for thousands of business owners.

“Solopreneurs have been left to figure things out on their own for too long despite their growing into the largest workforce in America, while the corporations have attracted all the technology and financial attention,” said Shahar Plinner, CEO and Co-Founder of Formations.  “We are very excited to be moving onto the next milestone with our new funding and offer the burgeoning number of self-employed the right financial tools they require to build their own business from the start.”  

About Formations

Formations is a Bellevue-based startup with a comprehensive financial management platform designed to enhance the financial well-being of the self-employed. Formulated over 17 years by tax accountants, their vertical-specific playbook automates bookkeeping,  payroll, taxes, and benefit allocations, democratizing tax and accounting strategies to help solo entrepreneurs sustain their businesses for the long term. Please visit Formations for further info.

For more information, please contact:

Gina Shaffer
gina.shaffer@si14global.com 
US: +1(707) 533-1504
IL: +(972) 54-649-3485

SOURCE Formations

SOURCE https://www.prnewswire.com/il/news-releases/formations-raises-8-million-series-a-to-expand-its-cfo-as-a-service-platform-for-self-employed-professionals-301524769.html

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