Case Study

STNKY Bags

US Expansion with Cypher's Financial Partnership

How Cypher gave an eco-friendly bag brand a compliant US launch, automated international finances, and freed its co-founders to focus entirely on global growth.

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In this client story

100%

of the founders' time now focused on global expansion and growth

The engagement at a glance

What STNKY Bags needed

STNKY Bags was expanding into the US while its co-founders managed the business across countries.

The work Cypher took on

The story names Xero, Dext, TaxJar and Shopify in the invoicing, payment, sales-tax-tracking and inventory workflows. It also describes company formation with a legal partner, monthly reconciliations and quarterly reviews.

Systems and process improvement →

The founders' account of time freed for expansion is specific to their business. Company formation and specialist tax work involve the appropriate outside professionals; they are not interchangeable with bookkeeping.

Meet Dirk & Weigert

Dirk & WeigertCo-Founders, STNKY Bags

STNKY Bags launched in the US in 2020 with the goal of expanding its global footprint. The brand quickly earned a name for high-quality, eco-friendly bags that customers love for their odor-blocking abilities and practical design.

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

Background

STNKY Bags launched in the US in 2020 with the goal of expanding its global footprint, quickly earning a name for itself with high-quality, eco-friendly bags loved for their odor-blocking abilities and practical design.

But as the company took off and the co-founders juggled operations across different countries, they realized they needed help setting up in the US and managing their increasingly complex international finances.

The Challenge

As STNKY Bags expanded into the US market, 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.

Before & After Cypher

Cypher worked closely with STNKY Bags to tackle their most pressing challenges right away, setting up a solid US foundation, automating revenue and cost management, and going beyond the basics for long-term success.

Before

After

BeforeFounders were manually managing finances, splitting their focus across international operations.

AfterCypher implemented automated financial processes and ensured compliance across all regions.

BeforeComplex and time-consuming accounting processes.

AfterSeamless, accurate financial management, allowing founders to focus on growth.

BeforeLack of clarity on margins and cash flow.

AfterClear insights and optimized financial reporting with Cypher's systems in place.

BeforeTax planning and compliance challenges.

AfterStrategic tax optimization across the US and international operations.

BeforeInefficient inventory and cost management.

AfterImproved COGS tracking and inventory management systems for better cash flow.

BeforeDisconnected financial oversight.

AfterOngoing support and quarterly performance reviews to drive continuous improvement.

What Cypher Put in Place

We started by onboarding STNKY Bags with a detailed walkthrough of their goals and the right tools and processes. Cypher collaborated with a legal partner to form the US company, integrate accounting tools, and establish efficient workflows for international payments and inventory management. Our comprehensive solution included:

✓Company formation: setting up a US-based company and virtual office.
✓Financial integrations: automating invoicing, accounts receivable/payable, and sales tax tracking through tools like Xero, Dext, TaxJar, and Shopify.
✓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.

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 insight into their business's financial health. 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

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