STNKY Bags: US Expansion with Cypher’s Financial Partnership

Background:

STNKY Bags launched in the US in 2020 with the goal of expanding its global footprint. The brand quickly earned a name for itself with high-quality, eco-friendly bags that customers love for their odor-blocking abilities and practical design. But as the company took off and co-founders juggled operations across different countries, they realized they needed help setting up in the US and managing their increasingly complex international finances.

Challenge

As STNKY Bags expanded into the US market, the co-founders, Dirk and Weigert, found themselves overwhelmed by the challenges of managing international operations. Juggling financial tasks across multiple regions was consuming much of their time and energy, creating obstacles in staying on top of global compliance. They needed a trusted partner who could streamline their financial processes and handle the heavy lifting, allowing them to focus on pushing the business forward and opening new opportunities for growth.

Our Approach

Cypher worked closely with STNKY Bags to tackle their most pressing challenges right away. We helped the company set up a solid foundation in the US by ensuring their legal and financial structures were in place, automating their revenue and cost management processes, and freeing the co-founders from manual financial tasks. This allowed them to refocus on expanding their business without being weighed down by day-to-day accounting headaches.

Before	After
Founders were manually managing finances, splitting their focus across international operations.	Cypher implemented automated financial processes and ensured compliance across all regions.
Complex and time-consuming accounting processes.	Seamless, accurate financial management, allowing founders to focus on growth.
Lack of clarity on margins and cash flow.	Clear insights and optimized financial reporting with Cypher’s systems in place.

For the long-term success of STNKY Bags, Cypher went beyond the basics. We worked closely with tax advisors to ensure smart tax optimization across multiple regions, refined inventory management to improve cost tracking and cash flow, and provided ongoing support through regular financial analysis. By setting up these systems, we positioned the company for sustained growth, giving the founders the clarity and confidence to keep pushing their brand to new heights.

Before	After
Tax planning and compliance challenges.	Strategic tax optimization across the US and international operations.
Inefficient inventory and cost management.	Improved COGS tracking and inventory management systems for better cash flow.
Disconnected financial oversight.	Ongoing support and quarterly performance reviews to drive continuous improvement.

The Result

With Cypher managing the finances, the STNKY Bags co-founders are no longer tied down by day-to-day financial operations. They receive regular, accurate reports that give them clear insights into their business’s financial health, allowing them to focus entirely on global expansion and strategic growth initiatives. The co-founders have shifted their roles, dedicating 100% of their time to business development and innovation.

If you’re ready to scale your startup like STNKY did, let’s connect.

Build your empire—we’ll crunch the numbers. — Courtesy of Cypher

Who we are

01 The Challenge

As a Dutch-based company with co-founders living in the Netherlands and Mexico, STNKY Bags faced the complexities of launching in the US market. They needed a partner to handle company formation, tax compliance, and financial processes while ensuring accurate financial tracking across global operations.

02 Our Approach

We started by onboarding STNKY Bags with a detailed walkthrough of their goals and setting up the right tools and processes. Cypher collaborated with a legal partner to form the US company, integrate accounting tools like Xero and Dext, and establish efficient workflows for international payments and inventory management.

03 Implementing the Solution

Our comprehensive solution included:

Company formation: Setting up a US-based company and virtual office.
Financial integrations: Automating invoicing, accounts receivable/payable processes, and sales tax tracking through tools like Xero, Dext, TaxJar, and Shopify integrations.
Sales tax compliance: Identifying nexus and ensuring accurate reporting across all applicable US states.
COGS tracking: Refining inventory management and ensuring precise cost tracking for profitability analysis.
Ongoing support: Conducting monthly reconciliations and quarterly reviews with the co-founders to monitor margins and financial performance.

04 The Outcome

Cypher’s partnership allowed STNKY Bags to:

Achieve a soft landing in the US with a compliant company structure.
Automate financial processes, ensuring accuracy and efficiency.
Gain actionable insights through detailed financial reports and key metrics.
Eliminate the co-founders’ involvement in day-to-day financial tasks, freeing them to focus 100% on global expansion and strategic growth.
Sustain growth and improve profitability with better decision-making tools and optimized financial operations.

“Cypher has been an ideal partner. They have helped us avoid many mistakes and saved us a lot of money. They put new and effective processes in place and have lifted a huge burden off our shoulders. We now are using our time to focus on our global expansion.”

— STNKY Bags Co-Founder