Controllers Classified

In this episode of Controllers Classified, we explore the role of accounting in scaling businesses as well as public company accounting processes with Eric Van Cleve, Controller at 8x8. The episode begins with a recap of Eric’s career in accounting, detailing his discovery of accounting in college and how he worked his way up the ladder once he landed client side out of college. He notes that he found the most success when he focused on being interested, proactive, curious and capable. 

The episode then turns to a discussion on how to think about directing accounting operations at scaling companies. Eric shares how he thinks about team structure to ensure efficiency in the close process as well as his decision making framework for where to automate and where to offshore.  In every decision, he tries to factor in not just current but also future business needs. 

From there, the discussion deep dives into private vs. public company accounting, with Eric providing advice to finance and accounting leaders at pre-IPO companies regarding what to prioritize as they think about SOX readiness. He notes that these companies must be able to confirm that the answers they get to in their data are in fact the right answers. In other words, teams have to be able to prove out their control processes and ensure that reporting obligations can be met. And of course, teams should familiarize themselves with 10Ks and 10Qs. 

The episode closes with Eric’s favorite accounting joke. Why did the accountant break up with the calculator? Tune in now to find out! 

Key Quotes

• “I found myself being very proactive in going after the areas I wanted to be a part of. Leaders are looking for who is interested and who is capable” 
• “If you want to get to a one day close, you need to structure your team in such a way that you are closing your sub-ledgers first in APAC, then analyzing the data in EMEA, and doing a check/consolidate view of the information in the US.” 
• “We look at industry benchmarks to assess what makes sense for every control in our process”
• “You need your team to know what the right answer is so that way when you’re delivering it to the auditors, they can do their basic checks”
• “I would first look at what your reporting obligations are going to be - get yourself familiar with what 10Ks and 10Qs look like” 

Time Stamps

• (07:19) Streamlining accounting processes for a faster close
• (10:09) Automating and accelerating accounting processes
• (27:51) Accounting processes at public companies
• (33:48) Preparing accounting teams for audits

Links

• Connect with Eric
• Learn more about 8x8
• Connect with Erik
• Visit Brex

We’re thrilled to be joined by Jack McCullough, President of the CFO Leadership Council, for this episode of Controllers Classified. The discussion begins with a recap of Jack’s inspiring journey from being a rookie CFO in need of peer support to creating a thriving network & community of 2000+ CFOs across 33 chapters in North America.

The episode takes a deep dive into how accounting and finance professionals can think about growth and development. It starts first with a look at the evolving role of CFOs, and the rise of the CAO role to help with the more technical parts of accounting as the CFO takes on more operational responsibilities. Jack and Erik then discuss the challenges that accounting and finance leaders face today and what that means for the skill sets required to be successful in the role. Jack in particular highlights how more than ever accounting and finance professionals need to develop skills related to leadership, innovation, finance, and technology as they tackle challenges around keeping pace with technological evolution and retaining a high performing workforce. 

The episode then pivots to a discussion on the importance of mentorship, sponsorship, and allyship, and how all play a role in creating a diverse and inclusive pipeline of accountants and finance professionals. Jack notes that one of the most impactful relationships he has in the workplace is a reverse mentorship where he learns from a finance professional of a younger generation. 

To cap the episode off, Jack shares one of his favorite stories from his audit days & some of the more amusing expense reports that he has seen in his time. Whether you're a seasoned finance professional or just starting out, this episode is packed with valuable insights and engaging stories that can inspire how you choose to chart your path to growth. 

Key Quotes

• “CFOs no longer record history, they make history. The days of reporting what happened after it happened are gone.”
• “Accounting is so much more complex even than it was 10 or 15 years ago, and by the way, the consequences for screwing up accounting are relatively severe, especially if you’re a public company or aspiring to be a public company” 
• “The best CFOs are embracing digital strategically, not just to reduce costs” 
• “Every CFO I talk to struggles with recruiting, retaining, and upskilling people”
• “CFOs need to storytell like Warren Buffett. He inspires confidence and trust across audiences, which is a rare skill” 
• “I have a Gen Z reverse mentorship. I learn more from her than she from me”

Time Stamps

• (00:00) CFO Leadership Council growth and expansion
• (12:34) Evolving roles of CFOs
• (21:40) Necessary CFO skills
• (28:59) The importance of diversity
• (38:48) Finance and accounting anecdotes

Links

• Connect with Jack
• Learn more about the CFO Leadership Council
• Listen to Secrets of Rockstar CFOs Podcast 
• Connect with Erik
• Visit Brex

In the season two premiere of Controllers Classified, host Erik Zhou welcomes Matt Didden, Controller at NexHealth. The conversation begins with a recount of how Matt landed in accounting after graduating in the 2007-2008 financial crisis and realizing that the world would always need accountants. It then highlights his transition from consulting/audit to client side, and the broadening of his scope from pure financial reporting to handling a myriad of complex business challenges. 

The episode then turns to its primary focus: accounting considerations in highly regulated industries. Matt points to specific examples - like the anonymization of patient information in line with HIPAA before bringing it into an ERP system - where he’s had to marry accounting best practices and standards with broader industry regulation and requirements. 

The episode concludes with discussion around communicating and working effectively with executives and cross-functional partners. Matt shares specific cross-functional project examples related to equity award grants for employees and product launches, and the role that accounting played in each. And as always, the episode closes out with Matt sharing a funny accounting anecdote from his earlier days in audit. 

Key Quotes

• On the role of a controller: “It's not all debits and credits every day. You're really able to step in and be an advisor for the business. And it's a really great path that I feel like I've taken my career down.”
• On operating in a regulated environment: “We've had this before where we invoice our customers and they say ‘wait, is any of this information going to be on our invoice or in statements?’ And we can confidently and quickly tell them to not worry. We've separated our systems. None of the HIPAA protected data is going to be in our system here. It really helps your customers know that this is a big focus of yours. Because it's certainly a focus of theirs.”
• On communicating with execs: “I think about two things, what is the question they're trying to answer? And when they get that answer, what are they going to do with it?  I think those two things in parallel are really important.”

Time Stamps

• (00:51) Intro
• (07:21) Being a strategic partner to the business
• (10:30) Accounting in highly regulated industries
• (23:08) Engaging cross-functional partners on projects
• (43:01) Controllers are fun too

Links

• Connect with Matt
• Learn more about NexHealth
• Connect with Erik
• Visit Brex

In the season 1 finale of Controllers Classified, host Erik Zhou is joined by Sarah Hinkfuss from Bain Capital Ventures for an overview of the VC investment landscape and a deep dive into her investment due diligence approach for growth stage companies. 

The episode begins with Sarah highlighting milestones from her career, including her time conducting water pricing research in the Middle East, her transition into tech, and her pivot from tech into investing. Underlying everything is her passion for empirical based decision making and a belief that complex problems require a multidisciplinary approach. 

The conversation then pivots to the investment landscape. Sarah explains the relationship between companies, VCs, and LPs, and how the macroeconomic environment is driving a “flight to quality”. The result is companies are being asked to balance growth and profitability, and increasingly making hard decisions around what to keep and what to cut. 

Sarah then gives listeners an insider's look at her investment due diligence approach for growth stage companies, underscoring the importance of a company’s financials in this process. She spends some time explaining why unit economics and a business model are so important  and notes that it’s not just about seeing the numbers. A founder must have a clear narrative about what drives their business and where they see things going in the future. Sarah also touches on the transition from Series A to Series B, and the nuances in the fundraising process for early vs. growth stage companies. 

This episode is a must-listen for founders & finance leaders aiming to navigate the complexities of fundraising in today’s macroeconomic environment. 

Key Quotes

• I have deep empathy for founders at the growth stage. I know how hard it is to create culture and to bring people along when you’re going from knowing everyone at the company to creating a system and process that keeps everyone on the same page. There are a lot of growing pains that are a privilege to go through but I know how hard they are.
• Where I would say we are now is a flight to quality. Companies have had to realize that the way they create value is by creating cash flow.
• For anyone who is thinking about raising a round, I would strongly encourage you to do market checks ahead of time.
• A founder needs to have a unique insight on the market. We look at how effective a founder is at telling their story and articulating that unique insight.
• Three things that are important to share with investors: your unit economics (how you think about your business drivers), business model (how you think about your future), and your memo (what’s your narrative)
• Even if you don’t have a finance background, a model at its core is logic. What are your inputs and what are your outputs?
• The investors that you want on your cap table are ones that really understand your business and the drivers of your business.

Time Stamps

• (2:03) Sarah's journey to Bain Capital Ventures
• (7:15) The investment landscape
• (12:22) An investor’s due diligence
• (21:55) What investors want to see from your financials
• (40:45) Sarah's son goes looking for EBITDA

Links

• Connect with Sarah
• Visit Bain Capital Ventures
• Connect with Erik
• Visit Brex

In this episode of Controllers Classified, host Erik Zhou is joined by Eugene Spevakov, Treasurer and Head of Corporate FP&A at 6sense. The conversation begins by tracing Eugene’s path, highlighting his start in civil engineering and his transition into treasury and corporate finance.  

The episode then dives deep into the primary responsibilities of a treasury function: cash and risk management (aka, you need to be able to move money from point A to point B safely). Eugene spends time explaining what both mean and best practices associated (tip: prioritize cash preservation, liquidity, then yield).  As a part of that, he reflects on the SVB collapse a year ago, and how that galvanized a lot of companies to take a hard look at their cash and risk management processes. 

The conversation pivots to Eugene’s focus areas and accomplishments at 6sense. He shares how he built the company’s first official treasury function, executed a senior secured credit facility, and designed an investment portfolio to optimize yield and reduce banking fees. As a part of this, he spends a few minutes on the macro environment, including the end of the ZIRP era and the influence of geopolitics. His primary point? Manage the risk you can control, and scenario plan for what you can’t. 

This is a “don’t miss” episode for finance leaders looking to build effective cash and risk management strategies.  

Key Quotes

• “Money needs to move around. A treasurer’s job is to make sure the cash is managed - that it comes in, out, on time, goes to the right place, has a place to stay, etc.”
• “Ultimately treasury and finance in general is a service organization. We serve our stakeholders internal and external. As these stakeholders move faster, we need to make sure we can respond to their needs”
• “Cash forecasting is crucial. There are a lot of levers that a company can use for capital preservation. You have to have a good plan, and yes there are some things you can’t control, but you can control your expenses.”
• “If the business says ‘hey, we’re going to launch a new product’, what does it mean for your working capital? Do we have the funding?”

Time Stamps

• (1:07) Eugene’s transition to treasury
• (15:09) Unique challenges in treasury functions
• (24:59) Cash management in a changing environment
• (31:38) Best practices for designing an investment portfolio

Links

• Connect with Eugene
• Visit the 6sense
• Connect with Erik
• Visit Brex

On this episode of Controllers Classified, host Erik Zhou welcomes Patrick Lynch, Senior Vice President and Controller of the Boston Celtics, who shares his journey from ball boy to financial leader for the team. Patrick highlights the milestones of his career, including his transition from an internship to working closely with the CFO, and the significant growth of the Celtics organization. He also imparts wisdom on how to seize career advancement opportunities and offers advice for those aiming to enter the sports industry.

The discussion then does a deep dive into the world of accounting and finance for sports teams. Patrick shares his goals for the upcoming year - accurate reporting, cash management, and cost efficiencies - and then details why those things specifically matter in the sports industry. For example, while a private company, the Celtics are subject to several reporting requirements as a part of the NBA, and Patrick’s team is responsible for the integrity & synthesis of that data. Similarly, the Celtics cash flow reflects the cycle of seasons, and Patrick’s team is focused on managing the ebbs and flows. 

Finally, Patrick shares how he harnesses the power of technology to handle copious amounts of data, reduce manual work, and establish real time visibility. His goal in all of this is two fold - to give his team more time to do strategic work and to empower employees across the Celtics organization to be able to spend on things that will move the business forward. 

The episode concludes with Patrick sharing an industry story related to an auditor’s stadium walkaround. Listen now to get an exciting in-depth look at how the accounting & finance team plays a huge role in the success of the Celtics franchise. 

Key Quotes

• “I started full time at the Celtics in 2001. Prior to that, I was a ball boy in the 90s. And that is where it all began - I was rebounding for some of the greats.”
• “We all watch and enjoy the sports world but to think about it from a business perspective is pretty interesting.”
• “Our goals for this year: accurate reporting, cash management, and improving cost efficiency.”
• “We’re always looking at ways to be more efficient - ways to look at our costs, understand what’s our most expensive expenses and how can we make improvements in those areas?”
• “We’re doing less of the accounting these days and more of the FP&A because we’re relying on tech to do the day-to-day accounting for us.”
• “I want that group to feel empowered - to do their traveling, meet with customers, meet with clients, entertain customers. In prior years, it has been review and analysis on the back end, once the transactions have happened. But now we’re trying to get out in front of it.”

Time Stamps

• (00:18) From ball boy to controller for the Celtics
• (06:27) Breaking into the sports world
• (8:20) Setting priorities in 2024
• (10:18) Using tech to stay accurate
• (17:53) Empowering Celtics’ employees to spend strategically
• (22:15) Reporting requirements in the sports world
• (26:08) Owning vs. renting a sports arena
• (27:35) Accounting for player compensation
• (31:00) Controllers are fun too

Links

• Visit the Boston Celtics
• Connect with Erik
• Visit Brex

In this episode of Controllers Classified, host Eric Zhou is joined by Katie Slattery, VP of Accounting and Corporate Controller at Fivetran. The conversation begins with Katie’s start in Ireland at KPMG Dublin as an auditor, and traces her path from auditor to accountant. Fun fact: Katie has been the first controller/accounting hire at several high growth companies! 

The conversation then pivots to Katie’s current priorities at Fivetran and how she translates company-wide KPIs into team specific goals around reliable data and control efficiencies. Katie also spends some time talking about how to build a high-performing team, how to make sure an accounting team is structured to deliver on the needs of the business, and how to foster effective communication with teams and leaders outside of accounting. 

Given Katie’s extensive background in high growth companies, the conversation pivots to the IPO landscape, and how teams should be thinking about IPO readiness amidst the uncertainty. Katie notes that you have to be able to balance day-to-day activities with activities that prepare for the future, because you don’t want accounting to be the blocker when a company is ready to go public. 

Finally, the conversation ends with a discussion on the challenges and opportunities that come with being a global company. Katie spends time on Fivetran’s global operations and some of the decisions they have had to make as an accounting team as they navigate a complex tax landscape. 

Key Quotes

• “My career path started back in Ireland. I joined KPMG Dublin and that marked my entry into the wonderful world of accounting. I got exposed to a lot. Ireland has a lot of tech.” 
• “My job as a leader is to translate overarching company KPIs into ‘what it means for us’ as a team. We focus on reliable data, control efficiencies, and high-performance. And we give the business accurate revenue numbers that support growth goal setting.” 
• “You are only as strong as the team that supports you. I have been lucky enough to have been the first controller / accounting hire at companies multiple times now, and what I would advise for other people building teams is to set a plan and to hire skill sets that are needed based on where the company is at today” 
• “You know, that if a company is getting ready to IPO, accounting cannot be the blocker.”
• “It is a true global company. And that presents challenges for our accounting org. Where do we set up shop? And how do we support teams across countries? Do we have enough people to qualify for permanent establishment?” 

Time Stamps

• (00:55) Katie’s journey to Fivetran 
• (17:20) Setting a high-performance standard at Fivetran
• (20:30) Forecasting the IPO landscape
• (32:22) Managing global accounting operations
• (42:23) Shopping mall audits

Links

• Connect with Katie
• Visit FiveTran
• Connect with Erik
• Visit Brex

On this episode host Erik Zhou welcomes Barrett Daniels, the co-leader of US IPO services at Deloitte. Drawing from his two decades of expertise in guiding companies through the IPO journey, Barrett takes us on a deep exploration of the process – from the pivotal board decision to the exhilarating moment of ringing the bell at the stock exchange. And, he notes that in many ways, the real work actually begins once the IPO is over. 

Barrett also reviews the current IPO landscape and the evolving motivations behind companies opting to go public. He outlines some of the areas that he’d like to see improved in the IPO process and top considerations for companies as they look to get IPO ready (hint: it’s extremely important to have the right team in place!). He notes that organizational preparedness is of course crucial to a successful IPO - companies have to have accurate forecasting, good audit completion times, and controls in place.

 If you're curious about the dynamic world of IPOs or thinking about what the process should look like for your company, this episode is a must-listen.

Key Quotes

• “You used to go public for that big check because you couldn’t really get it in the private markets. Nowadays, it is more of a discussion around prestige, providing additional comfort to customers, or liquidity to reward those people that have been with you all this time” 
• “My focus is on things that are applicable in every IPO - getting your filings done, making sure you have the right KPIs, etc.” 
• “You need to be able to show you can get an audit done by the time the public company would get the audit done” 
• “I would like the IPO process to be faster. A lot of the IPO process is done with old school paper. I wouldn’t take audits away; that work needs to be done. But there may be other things we can do to speed up the process” 
• “Once that decision has been made, you start putting the team together. The primary pieces of the puzzle early in the process are your accountants and lawyers. For lawyers, hire the partner, not the brand”  
• “Once the IPO is over, that’s when the real work begins in many ways, right?” 

Time Stamps

• (4:20) The chaos of IPOs
• (8:05) Supporting IPOs in Barrett’s way
• (11:15) Shifts in rationale for IPOs
• (18:02) Improving the IPO process
• (22:15) An overview of the IPO process
• (33:50) The intricacies of preparing for an IPO 
• (42:25) The world is run on Excel

Links

• Connect with Barrett
• Visit Deloitte 
• Connect with Erik
• How Brex helps companies get IPO ready

In this episode, host Eric Zhou welcomes Sean Soper, the Head of Financial Operations and Accounting at Alchemy, to shed light on the disruptive technologies shaping the trajectory of accounting and finance. Alchemy provides the leading blockchain development platform and as such, much of the conversation narrows in on the possible applications of blockchain in accounting. 

Sean begins the discussion highlighting his experience working across companies that have revolutionized whole industries with new technology. He notes that a large part of his success at these companies has been from remaining curious and developing deep industry knowledge that guides how he approaches his accounting processes and procedures. Sean then outlines his priorities in his current role at Alchemy, which include optimizing the financial close process, fine tuning reporting and analytics, and managing cash. 

The conversation quickly turns to the future of blockchain technology and its potential for revolutionizing accounting and finance. Sean and Erik discuss the state of the union for blockchain and web3, the possible accounting use cases for the technology, and regulatory considerations. 

The episode wraps with Sean’s point of view on the future of hybrid work models and the importance of community and collaboration in that, plus the funniest expense report he’s had hit his desk (hint: it was related to a very creative sales spiff). 

Key Quotes

• “My areas of focus are threefold. First, it's the financial close process and making sure that we're removing any manual processes so that we close sooner. Second is around reporting and analytics, so we can understand areas to save costs for the company. And then the last one is going to be around cash management.”
• “I think one of the crucial aspects about being a controller in the startup space is to be as much of a strategic partner as possible to your organization, to help them operationalize their goals.” 
• “Blockchain is an exciting technology that provides a distributed and immutable ledger. Accountants absolutely love controls, they like to get supporting documentation that proves transactions actually occurred with dates and times. That's all feasible and possible on the blockchain in a way that can be tested publicly and verified publicly.” 
• “It’s amazing that our process for debits and credits hasn't evolved since the 1400s, since Luca Paciolii, the grandfather of accounting. Yes, we've now got different systems and different ERPs. We've digitized a lot. We're no longer on actual ledgers. But ultimately the foundation still hasn't changed”

Time Stamps

• (1:40) Sean’s career in emerging technologies
• (9:18) Managing the price risk in crypto 
• (10:08) Blockchain and Web3 state of the union
• (11:567) Developing blockchain for the future
• (18:10) Blockchain’s future in accounting 
• (22:57) Blockchain regulatory considerations
• (38:40) Sean’s first encounter with “DONKS”

Links

• Connect with Sean
• Visit Alchemy
• Connect with Erik
• Check out Brex

In this engaging episode, we're joined by Tom Kelly, the Director of Product Marketing at NetSuite. The conversation starts with an overview of Tom’s career and his blending of experiences across finance, technology, and marketing at companies big and small. The theme throughout his experiences has been leading teams through technological leaps in search of greater process efficiency.

The conversation then shifts to Tom’s priorities at NetSuite. His role encompasses product marketing, product management, and analyst relations - and all of it pulls from his past experiences as a finance leader and his deep understanding of the problems that NetSuite’s products need to solve. He shares how he has influenced the NetSuite roadmap to date, and his high level goals for the years to come given where he sees the ERP and broader finance ecosystem headed. AI and automation of course feature heavily as finance leaders look to reduce manual work and free up time for strategic thinking. 

This episode is jam packed with invaluable wisdom from Tom amassed over the years. Above all else, Tom passionately advocates for the embrace of technology by finance leaders, noting that they need to become “astute technologists”, especially if they are at companies with ambitious growth projections where scalability will be key. 

The episode closes with Tom’s favorite joke that highlights a truth around making sure finance teams and senior leadership have a shared language of success.  

Key Quotes

• On making choices related to your financial tech stack: “Be very careful about how you choose them and make sure that the interactions work well. You don’t want to have to worry about the connectivity”
• On setting up scalable processes: “You have to be honest with yourself. Yes you could just put something in a Google sheet and get it done in two seconds. But if you have growth projections, you should probably think upfront about how to build a process that is maybe run on a Google sheet right now, but could be baked into an ERP or procurement application in the future.” 
• On the role of finance leaders: “The CFO needs to be a strategic business partner. Businesses want CFOs who can win the hearts and minds of others. They want CFOs who have got data analytics skills. They want CFOs who understand technology.”

Time Stamps

• (1:46) Tom’s journey in finance 
• (5:40) Helping companies embrace new tech
• (13:20) Tom’s role & priorities at NetSuite
• (27:55) NetSuite’s roadmap & how AI fits in
• (36:05) Finance leaders are fun too!

Links

• Connect with Tom
• Check out NetSuite
• Connect with Erik
• Check out Brex