FP&A Unlocked

Welcome to FP&A Tomorrow, where we discuss financial planning and analysis, examining its current state and future prospects, with your host Paul Barnhurst.

In today’s episode, Paul Barnhurst is joined by Ken Lane, to discuss what makes great FP&A, the challenges and opportunities in mid-market companies, and the impact of technology and AI on finance.

Ken, a seasoned financial controller and FP&A professioal from Ontario, provides valuable guidance about the importance of collaboration, the role of AI and technology, and why he feels mid-market companies allow you to make a bigger difference in the work you are doing.

Here is a summary of the key points from the discussion:

• Great FP&A is about collaboration across all entities within a business. Understanding and addressing the bottlenecks in each area is crucial for driving meaningful business change.

• Discussion on the necessity for mid-market companies to upgrade their legacy systems to leverage the full value of future FP&A. He highlights the challenges and the importance of investing in technology to streamline data and improve decision-making.

• The episode delves into the ongoing supply chain issues post-COVID. Ken explains how these challenges necessitate holding more inventory, which impacts cash flow and requires careful management of cash conversion cycles.

• The discussion highlights how Gen Z's expectations for efficient and advanced systems are pushing companies to invest in better technology. This shift is essential for retaining top talent and staying competitive in the market.
• 
  
• Ken stresses the importance of understanding the broader picture of the business and continuously learning. Whether it's through different industries or new technologies, staying adaptable and informed is key to succeeding in FP&A.

Quotes:

Here are a few relevant quotes from the episode 

• "A lot of mid-market companies still have a lot of legacy systems or multiple legacy systems within a business, and they're going to need to upgrade and change those to get the full value of the future of FP&A.”
• 
  
• “When I'm in mid-market companies, I feel like that when you're helping out or you're driving decision-making, you see that impact on the bottom line. When I was with large companies I would see a strategy that would come down from the corporate office, but didn't understand how what I did fed into that strategy.”

Follow Ken:

LinkedIn - https://www.linkedin.com/in/kennethlane/

Website - https://smoothaccounting.ca/

Follow Paul:

Website - https://www.thefpandaguy.com 

LinkedIn - https://www.linkedin.com/in/thefpandaguy

World-class Digital FP&A Course Bundle: 

Signup for over ten hours of video content with 4 different courses and 8 modules on FP&A topics including: Business Partnering, Data Analysis, Financial Modeling Design Principles, and Modern Excel.  Use code Podcast to save 25% .  What are you waiting for signup below:

The FP&A Guy (thefpandaguy.com)

In today's episode:

[00:00] - Introduction

[00:47] - Guest Introduction

[02:01] - Anticipating Changes in FP&A

[02:40] - The Challenge of Legacy Systems

[03:35] - Guest’s Career Journey

[06:51] - Impactful Mid-Market Examples

[08:52] - Attraction to Manufacturing

[09:57] - Key Metrics in Manufacturing

[12:12] - Transition to FP&A

[15:50] - Managing Technology on a Limited Budget

[17:47] - Choosing the Right ERP Partner

[20:19] - Real-Time Decision Making with AI

[23:02] - Investing in Tech to Retain Talent

[24:55] - Rapid Fire Session

[25:57] - Role-Level Headcount Planning

[27:10] - Importance of Clean Data

[29:20] - Get to Know the guest

[32:20] - Advice for Better Business Partnering

[32:55] - Conclusion and Contact Information

Full Show Transcript:  

Host: Paul Barnhurst:: Hello, everyone. Welcome to FP&A Tomorrow, where we delve into the world of financial planning and analysis, examining its current state and future prospects. I'm your host, Paul Barnhurst, guiding you through the evolving landscape of FP&A. Each week, we're joined by thought leaders, industry experts, and practitioners who share their insights and experiences helping us navigate today's complexities and tomorrow's uncertainties. Whether you're a seasoned professional or just starting your FP&A journey, this show has something for everyone. This week, I am thrilled to welcome to the show Ken Lane. Ken, welcome to the show.

Guest: Ken Lane:: Oh, thank you for having me, Paul.

Host: Paul Barnhurst:: Yes, excited to have you. So just a little bit of background about Ken and I'll allow him to introduce himself further in a few minutes. But he comes to us from Ontario, Canada. He is a financial controller. He spent most of his career either working as a controller or manager, finance, or accounting, and he spent most of it in the mid-market, in several different industries. So, Ken, we like to start the show with this question for all our guests? From your viewpoint, what does grade FP&A look like?

Guest: Ken Lane:: For me, the great FP&A is a collaboration with all the entities within your business. Because the goal of FP&A is to drive business change. So you need to understand the bottlenecks in each area. If those people feel heard, they'll buy into what you're delivering.

Host: Paul Barnhurst:: I would agree with that. So it's around collaboration and making sure the business feels heard.

Guest: Ken Lane:: Correct.

Host: Paul Barnhurst:: What are your thoughts? What do you expect it to look like in the next 3 to 5 years? Do you think what grade FP&A is going to change with everything that's going on with technology and other things?

Guest: Ken Lane:: I do, I think it will. I think in large companies it's going to change faster than in smaller mid-market companies. The reason is I think a lot of mid-market companies still have a lot of legacy systems or multiple legacy systems within a business, and they're going to need to upgrade and change those to get the full value of the future of FP&A.

Host: Paul Barnhurst:: We're not speaking from experience, having worked with a lot of mid-markets by chance, are we?

Guest: Ken Lane:: Not at all.

Host: Paul Barnhurst:: I'm sure you could tell me some data horror stories. That's probably what I should start off with. Tell me your worst data horror story. I keep that in mind for future episodes. Tell me a little bit about yourself and your background.

Guest: Ken Lane:: Yes. So I'm here in southern Ontario. Been in accounting now for 20-plus years. To be honest, went through school, came out with a computer science degree, and then fell into accounting and then worked my way up, worked with some great mentors, then went back and took some university courses for management, accounting, financial accounting, all those key things. But it never worked my way through to get licensed as a CPA. Then I've transitioned from working across a whole variety of industries, some of those interesting enough to progress and take a step up. Then even in some of those took a step back because a job or role had skills that maybe I didn't have yet. So went back in pay, went back maybe in leadership to eventually elevate myself later.

Host: Paul Barnhurst:: Got it. What led to accounting if you started with computer science? Maybe dig into that a little. I'm curious how the switch happened.

Guest: Ken Lane:: Sure. I got my first job with a finance organization, a financial banking organization, and they were looking for someone who both understood the business and understood IT. I fit that role. Growing up, my parents had multiple small businesses, and my mom always did the accounting, so I was always around it. So it wasn't brand new to me. I'd been around it. It comes naturally to me to a certain extent. So I'd seen it growing up using original ledger books writing it in pencil and putting everything in the ledger books and sawing all that, seeing all that. Then when I went to this finance institution, I did both for a while and then they opted, they felt that I gave them more value on the accounting side and then kept pushing me to progress and progress and progress. I just realized that I did enjoy it. Then started taking additional courses and doing everything to get certifications to move on.

Host: Paul Barnhurst:: So you grew up around it. They want someone on the business side, found you, liked it, and figured you'd get some more education in the area.

Guest: Ken Lane:: Correct.

Host: Paul Barnhurst:: Got it. So I know you spent pretty much your entire career working in the mid-market. Why? Why mid-market companies? What is it you like so much about them?

Guest: Ken Lane:: I like the fact that you get to. I feel like you make an impact. So when I'm in mid-market companies, I tend to find that most of those are still family-owned companies, maybe multi-generational companies as opposed to large ones. I did spend some time at some very large companies, but most of it was in the mid-market. I feel like that when you're helping out or you're driving decision-making, you see that impact on the bottom line. You see that impact on the family that helps them. When I was with large companies, sometimes I was I'd see a strategy that would come down from the corporate office, but didn't understand how what I did fed into that strategy.

Host: Paul Barnhurst:: So you mentioned one can make a bigger difference. You feel more involved than sometimes the big, huge companies. If anyone's worked in one, sometimes you feel a little bit like a cog or can't see how everything relates. So I'm curious, can you share an example where you felt like your work made a big difference in the mid-market, where you've seen that direct impact of what you were doing?

Guest: Ken Lane:: Sure. One of the companies I've worked for, they've acquired other companies over time. They had this nice small portfolio of companies that were doing very well. Somebody in their field became available. So what I was able to do then was forecast out all their portfolio of companies, do the FP&A, and do the forecast for the next so many years. Then with that work, were able to get them preferential financing from the banks to acquire that company that they later acquired and has been growing since.

Host: Paul Barnhurst:: Thanks. I appreciate you sharing that. It sounds like that's one opportunity that you're proud of and made a big difference. So that's always fun to have. Speaking of making a big difference, do you feel like it's hurt you in any way that you've worked for so many different industries, or do you think it helps you when you go to a different industry, having worked in several I think you've worked manufacturing, automotive, cannabis, commercial property, and I know different areas within manufacturing. So maybe talk a little bit about that.

Guest: Ken Lane:: It's a two-edged sword. It can help you. It can hurt you. For me, it helped me. One of the reasons is accounting is different based on what company or industry that you're in. So I've worked with people that is like, oh I spent four years getting an accounting degree. I got my CPA and I realized I hate accounting. you go, do you hate accounting or do you hate the field that you're in because you're not relating to what you're doing, what you're working on, the business that you're in, it doesn't speak to you. So I've tried a variety of different industries to see where I enjoy my fit. I always tend to come back to manufacturing, and that's where I am now. I enjoy it. I enjoy a company that manufactures something to go out. They tend to be complex. you have a lot of inventory, a lot of a lot of things to work on, a lot of different. You're working with sales across a variety of spectrum. Spectrums. So I ended up finding that manufacturing is the niche I like working in, but going across those industries allowed me to figure that out.

Host: Paul Barnhurst:: And what is it about manufacturing that you enjoy? What is it that makes that fun compared to other industries?

Guest: Ken Lane:: For me, it's the complexity of it, especially since post-COVID, the complexity of the supply chain just in time, other than maybe the Ford, GM, and Chrysler's the world. It doesn't exist anymore. You still have supply chain problems. You're still having problems bringing stuff in from China. You have to look at the macro environment as well. There are a lot of things that come into China in all of North America. What happens with the relationships between the government and all these things? You have to take into your forecast and that and go, what if scenarios and things like that. So for me manufacturing, there's just so many moving parts versus let's say, a service business that I just enjoy seeing all those different things come together and able to deliver a product to the market that the market wants.

Host: Paul Barnhurst:: Got it. That makes a lot of sense. What are the maybe the key metrics you like to look at in a manufacturing industry? What are those maybe those key operational metrics that you feel help you have a good understanding of is the business doing well or is it struggling or hey, there's a sign something may be going wrong?

Guest: Ken Lane:: Yes. The big thing for manufacturing is your cash conversion, making sure that you're turning that inventory over on a regular basis to bring the cash in for your operating cash flow. It's easy right now. I'm finding this with businesses right now, what they're doing is in order to make sure that they have a safety stock to get things out because the just-in-time isn't there anymore. They're holding more and more inventory, which is tying up dollars. But then you're watching that bank account drop, drop, drop because you got more going out than coming in. So it's watching that turnover ratio, as well as working closely with the supply chain to make sure that you have what you need, that you can get what you need, but you're not harming the business cash wise.

Host: Paul Barnhurst:: So it sounds like you're still dealing with a lot of supply chain issues. So companies are holding on to longer supply and inventory. So you got to manage that because that's cash, which isn't surprising. I mean at the end of the day, doesn't matter how profitable you are, if you have no cash in the bank, you have a problem. Makes a lot of sense there. How did you transition from accounting to more of an FP&A role, and how did that come about?

Guest: Ken Lane:: So for me, right from the beginning of my career, I guess I have a different, slightly different, different definition of accounting. To me, FP&A is a subset of accounting. Accounting is the overarching umbrella all the way from the bookkeeping, which is all the recordings and now most certified bookkeepers will take you right to the financials and then your FP&A. So every corporation I've been part of, we've had to whether I've had the title of cost analyst, you have to understand your business. You have to understand the cost and the drivers. You have to understand your sales, and what the variances are. Is it a mix, a pricing, and what is going on? So it's always been part of my role from day one. It's never been just recording. It's always been part of it.

Host: Paul Barnhurst:: And I think that makes a lot of sense being in smaller mid-market companies to have that because I've seen some of the bigger companies I work in where some people's roles are just recording and I've been in an FP&A role. I've done some accounting, not a lot, but I booked some journal entries here and there and helped with all those things. So I get it. There's some overlap between the two. Interesting perspective. I don't think I've ever thought of FP&A, including accounting. I've generally thought of them differently, so I appreciate you sharing a different perspective there. It's always good to see how people think about it. Any advice you'd offer for someone who they've been in just heavy accounting roles, and wants to make that change to FP&A. How do you think they go about that?

Guest: Ken Lane:: A couple of ways. The first way is understanding your business. So again, what are the drivers in your business to do FP&A? I think to do very well at FP&A, you have to understand everything on the accounting side, especially the cost drivers and things that are driving those bottom numbers. you have to understand your purchasing department, what is cost avoidance versus cost savings, and things like this. So get to know all the different individual areas of the company, and how they impact the company, so that you can start thinking, how does this work as a whole? And I think that's what you need to do because when you're in sometimes just in an accounting role, you're looking at one small section versus looking at the broader picture. So you need to understand that broader picture. I think when you're looking to move over when you get interviewed, you can start expressing, hey, this is how the broader picture is impacting you. I see that I can help you there.

Host: Paul Barnhurst:: Got it. I would agree with that. Starting to understand the broader picture of the business is one of the most important things you have to do. I want to switch gears here a little bit. I know when you and I chatted,As we talked quite a bit about technology, and you mentioned how SMBs and mid-markets, from your perspective, will need to invest more in tech going forward. Why is that?

Guest: Ken Lane:: As I alluded to before, a lot of these companies have multiple legacy systems. A lot of SMBs will...

Welcome to FP&A Tomorrow, where we discuss financial planning and analysis, examining its current state and future prospects, with your host Paul Barnhurst.

In today’s episode, Paul engages with Andrew Jepson, to discuss the world of Financial Planning and Analysis.

Andrew, founder of the FBPteam, has over 20 years of experience in financial planning and analysis, starting his career as an auditor and evolving into a sought-after business partner and trainer. As a passionate advocate for professional development, Andrew has authored a book on business partnering, facilitated numerous training programs worldwide, and is dedicated to elevating the capabilities of finance professionals.

Here is a concise summary of the key points from the discussion:

• The great FP&A professionals go beyond just reporting numbers—they anticipate future trends and needs. This proactive approach is crucial for providing real value to the organization.
• Transitioning from a focus on being right to being effective is vital. Andrew shares his personal journey of learning to communicate better and build stronger relationships within the business.

• Business partnering involves working cohesively with other departments to solve real business problems and achieve strategic goals. Andrew outlines a framework for becoming an effective business partner, emphasizing understanding the business, effective communication, and building strong relationships.

• Time management, perception of finance, and systems and processes are common barriers to effective business partnering. Andrew provides practical advice on how to navigate and overcome these challenges.

• Mental Health and Work-Life Balance and the importance of seeking professional help. This episode highlights the need for self-awareness and taking care of one's mental health to maintain a successful career in finance.

Quotes:

Here are a few relevant quotes from the episode 

• "You do have time. What you've got to decide is what you choose to do at that time.”-Andrew Jepson
• "It's not what you say, it's how you say it. Your energy, all that sort of stuff."-Andrew Jepson
• "I think FP&A has a spectrum from average to really good. I think the average FP&A person is generally just pumping out numbers to their organization."-Andrew Jepson

In this episode, Andrew shares his journey from auditor to business partner and offers valuable insights into the evolving landscape of FP&A. Remember to prioritize your mental health and continuously seek ways to improve your processes and time management.

Link to courses:

FP&A Business Partnering (thinkific.com)

Modern Microsoft Excel (thinkific.com)

Follow Andrew:

LinkedIn - https://www.linkedin.com/in/financebusinesspartnering/

Website - https://www.thefbpteam.com/

Follow Paul:

Website - https://www.thefpandaguy.com 

LinkedIn - https://www.linkedin.com/in/thefpandaguy

In today's episode:

[01:01] - Introduction

[01:43] - Guest Introduction

[02:35] - Defining Great FP&A

[03:34] - Anticipation in FP&A

[05:21] - Andrew’s Career Journey

[08:10] - Importance of Business Partnering

[11:45] - Key Skills for FP&A Professionals

[15:45] - Transitioning from Being Right to Being Effective

[28:10] - Common Themes in FP&A Struggles

[43:17] - Rapid Fire Session

[50:01] - Get to know the Guest

[53:15] - Conclusion

Welcome to FP&A Tomorrow, where we discuss financial planning and analysis, examining its current state and future prospects, with your host Paul Barnhurst.

In today’s episode, Paul engages with Bonnie Tomei, in the discussion on what makes great FP&A, the future of AI in finance, and key strategies for aspiring CFOs.

Bonnie, the CFO of Salience Labs and Chief Strategy Officer for K2X, has a wealth of experience in finance, strategic planning, and M&A activities, including being the former CFO of Spectra7, where she was voted Woman CFO of the Year for smaller public companies by FBI Silicon Valley.

Here is a concise summary of the key points from the discussion:

FP&A professionals should act as strategic partners to executives, helping them achieve financial roadmaps and objectives. Understanding both internal and external factors is crucial for effective financial planning and analysis.

AI and software are transforming FP&A roles, pushing analysts to mature faster and providing deeper insights. Despite the rise of AI, the need for human intelligence to interpret data and make strategic decisions remains critical.

FP&A is a strong pathway to becoming a CFO, but professionals need to understand the technical accounting side and have business acumen. Building strong relationships with the executive team and demonstrating strategic thinking are essential for aspiring CFOs.

FP&A teams play a vital role in M&A activities, particularly in modeling and due diligence. Professionals should volunteer for tasks and demonstrate business intelligence to stay relevant during acquisitions.

Technical skills like Excel are fundamental, but equally important are soft skills such as emotional intelligence (EQ) and effective communication.

Understanding and defining key performance indicators (KPIs) is crucial for measuring success and aligning with strategic goals.

Quotes:

Here are a few relevant quotes from the episode

"Every time they come up with something new I've always fallen back to the good old days of that quick shortcut the ctrl+C, ctrl+V anyway.”-Bonnie Tomei

“Getting involved and understanding how you can help in looking at all of that and being a trusted advisor from a financial standpoint would help tremendously.”-Bonnie Tomei

In this episode, Bonnie Tomei provides a comprehensive look at the evolving landscape of FP&A, emphasizing the importance of strategic partnership, the impact of AI, and the essential skills needed to excel in the field. Bonnie's insights offer valuable guidance on navigating the complexities of financial planning and analysis. Stay curious, be proactive, and focus on building strong professional relationships to thrive in your FP&A career.

Link to courses:

FP&A Business Partnering (thinkific.com)

Modern Microsoft Excel (thinkific.com)

Follow Bonnie:

LinkedIn - https://www.linkedin.com/in/bonnie-tomei-a288b91/

Website - https://saliencelabs.ai/

Follow Paul:

Website - https://www.thefpandaguy.com

LinkedIn - https://www.linkedin.com/in/thefpandaguy

For CPE credit please go to earmarkcpe.com, listen to the episode, download the app, and answer a few questions. For AFP FPAC certification answer the questions and contact Paul Barnhurst for further details.

In today's episode:

[01:01] - Introduction

[01:43] - Guest Introduction

[03:35] - Defining Great FP&A

[05:21] - Future Changes in FP&A

[07:00] - Career Progression to CFO

[11:07] - Advice for FP&A During M&A Activities

[13:19] - Transition to CFO

[16:27] - FP&A as a Pathway to CFO

[27:35] - Skills for Aspiring CFOs

[30:55] - Being More Strategic in FP&A

[34:02] - Rapid Fire Session

[37:34] - Contact Information of the Guest

[39:10] - Final Advice and Conclusion

Welcome to FP&A Tomorrow, where we discuss financial planning and analysis, examining its current state and future prospects, with your host Paul Barnhurst.

In today’s episode, Paul engages in an insightful roundtable discussion with Michael Dion on how FP&A goes beyond numbers and reports, focusing on collaboration and leveraging cutting-edge technology like generative AI to drive business success.

Michael, a seasoned finance professional and senior manager at a Fortune 100 company, is passionate about storytelling and presentations, transforming traditional financial reviews into engaging, story-based approaches. As a finance leader with extensive experience in media and entertainment, his innovative use of generative AI and dedication to continuous learning set him apart as a visionary in the FP&A field.

Key takeaways from this week's episode include:

Here is a concise summary of the key points from the discussion:

• Great FP&A emphasizes collaboration across departments, enabling informed decision-making rather than merely generating reports and numbers. This approach fosters a more integrated and strategic business environment.

• Future FP&A professionals need to be technically proficient with tools like Python and generative AI. These technologies are crucial for handling and processing large data sets efficiently, enhancing overall effectiveness.

• Implementing automation and AI can streamline FP&A processes, increasing efficiency and productivity. This allows FP&A professionals to focus on more strategic tasks, driving greater impact within their organizations.

• Moving from traditional, number-heavy presentations to story-based approaches that incorporate insights from various departments can make financial reviews more engaging and actionable, leading to better business outcomes.

• Strong relationships with business partners are essential for FP&A professionals. These relationships enable them to provide valuable support and drive strategic decisions, ultimately benefiting the entire organization.

• Continuous learning and adapting to new technologies are critical for FP&A professionals to stay relevant. Embracing technological advancements ensures they can meet the evolving demands of the industry.

• Proactively providing useful insights and well-prepared reports can make life easier for business partners and managers. This approach fosters better collaboration, enhances strategic decision-making, and supports career growth for FP&A professionals.

Quotes:

Here are a few relevant quotes from the episode 

• "We need to almost be pseudo IT professionals just like how you had to learn and transition into Excel 20 years ago”-Michael Dion

• “AI is going to make us in some ways more technical, not less.”-Michael Dion

• “I'm all about efficiency, and I've been using the generative AI to teach myself Python by learning its functionality by reviewing libraries of code.”-Michael Dion

• “My goal going in was to just engage people and make them, dare I say, excited about finance.” -Michael Dion

This discussion with Michael Dion focuses on the evolving role of financial planning and analysis (FP&A) in modern organizations. Key topics include the importance of collaboration, the integration of advanced technologies, and practical strategies for FP&A professionals to enhance their effectiveness and impact.

Exciting Announcement

I am excited to share my two new digital FP&A Courses with you FP&A Business Partnering, and Modern Excel. They just launched and I am excited to offer a 20% discount to my listeners using code PODCAST.

Link to courses: 

FP&A Business Partnering (thinkific.com)

Modern Microsoft Excel (thinkific.com)

Follow Michael:

LinkedIn - https://www.linkedin.com/in/dionmichaelc/

Website - https://www.f9finance.com/

Follow Paul:

Website - https://www.thefpandaguy.com 

LinkedIn - https://www.linkedin.com/in/thefpandaguy

For CPE credit please go to earmarkcpe.com, listen to the episode, download the app, and answer a few questions. For AFP FPAC certification answer the questions and contact Paul Barnhurst for further details.

In today's episode:

[01:20] - Introduction

[02:00] - Guest Introduction

[03:05] - Integrating Consumer Insights

[04:44] - Preparing for Technological Changes

[05:30] - How technology enhances the abilities of FP&A professionals

[11:30] - Media Industry Passion

[15:30] - Amortization of Film Costs

[18:00] - Response to F9 Finance

[24:00] - Transforming Business Reviews

[28:34] - Advice for Story-Based Reporting

[38:00] - Career Advice

[39:00] - Rapid Fire Session

[41:07] - Use of Generative AI

[45:00] - Business Partnership

[46:14] - Contact Information of the Guest

[47:00] - Conclusion

Welcome to FP&A Tomorrow, where we discuss financial planning and analysis, examining its current state and future prospects, with your host Paul Barnhurst.

In today’s episode, Paul engages in an insightful roundtable discussion with Julio Martinez on how mid-market companies can harness the power of technology, data, and business partnering to drive performance and accountability.

Julio, a visionary in the finance world, currently serving as the CEO of Abacum. His passion for innovation and technology makes him a leading voice in transforming the finance sector. With over two decades of experience in finance, investment banking, and fintech, Julio brings unparalleled insights into the evolving landscape of FP&A.

Key takeaways from this week's episode include:

Here is a concise summary of the key points from the discussion:

• Effective FP&A requires breaking down traditional silos in finance, fostering collaboration, empathy, and rapport to influence and persuade stakeholders across the organization.

• Mid-market companies face unique challenges with data volume and complexity. They require tailored solutions that provide sophisticated capabilities without the long implementation times of enterprise-level software.

• Clean, well-organized data is essential. Many FP&A teams still spend excessive time on data cleaning and assembly, limiting their ability to focus on strategic business partnering.

• The CFO's role is evolving towards a Chief Performance Officer, integrating strategy, operations, and performance management to drive accountability and execution throughout the organization.

• There is a growing trend for FP&A to take on revenue operations and data analytics roles, ensuring objective performance analysis and avoiding biases from other departments.

• Despite advancements in technology, mastery of spreadsheets remains a critical technical skill for FP&A professionals, along with knowledge of SQL and potentially Python for data modeling.

• Taking a sabbatical can be a powerful, life-changing experience, providing valuable personal and professional growth that can significantly impact one's career trajectory.

Quotes:

Here are a few relevant quotes from the episode 

• "FP&A will become the command center of the company's operational rhythm.”- Julio Martinez

• “The mid-market is a very unique, complex, sophisticated, and underserved category.”- Julio Martinez
• 
  
• “I think professionals still need to master Excel and Google Sheets and that spreadsheet realm.”- Julio Martinez

This conversation with Julio Martinez offers an in-depth look into the current and future state of FP&A, emphasizing the importance of business partnering and the transformative power of technology. As the FP&A field continues to evolve, professionals can take inspiration from Julio's journey and the innovative approaches discussed in this episode to excel in their roles.

Exciting Announcement

I am excited to share my two new digital FP&A Courses with you FP&A Business Partnering, and Modern Excel. They just launched and I am excited to offer a 20% discount to my listeners using code PODCAST.

Link to courses: 

FP&A Business Partnering (thinkific.com)

Modern Microsoft Excel (thinkific.com)

Follow Julio:

LinkedIn - https://www.linkedin.com/in/thejuliomartinez/

Website - https://www.abacum.io/

Follow Paul:

Website - https://www.thefpandaguy.com 

LinkedIn - https://www.linkedin.com/in/thefpandaguy

For CPE credit please go to earmarkcpe.com, listen to the episode, download the app, and answer a few questions. For AFP FPAC certification answer the questions and contact Paul Barnhurst for further details.

In today's episode:

[00:50] - Introduction

[01:48] - Guest Introduction

[03:54] - Blending of Operations in FP&A

[04:47] - Guest’s Background and Career Journey

[07:00] - The Value of a Sabbatical

[09:12] - The Impact of Community in Microfinance

[14:57] - Launching Fintech Startups and the Transition to Abacum

[18:16] - Why FP&A for a Startup- Motivation from Guest

[20:30] - Identifying Key Pain Points in FP&A

[23:34] - Mid-Market FP&A Challenges and Opportunities

[33:59] - Opportunities in Business Partnering for FP&A

[36:00] - Rapid-Fire Session

[39:50] - Get to Know Guest

[42:22] - Conclusion

Welcome to FP&A Tomorrow, where we discuss financial planning and analysis, examining its current state and future prospects, with your host Paul Barnhurst.

In today’s episode, Paul engages in an insightful roundtable discussion with Nathan Kaemingk & Karan Sood on LinkedIn. In the episode, we discuss the nuances of strategic pricing and its immense impact on business profitability.

Karan, a seasoned pricing professional, shares his extensive experience across various industries, emphasizing the importance of cross-functional alignment and value-based pricing.

Nathan, with a unique background in mechanical engineering and forecasting, highlights the critical role of understanding costs and leveraging pricing strategies to combat inflation and optimize profits.

Key takeaways from this week's episode include:

Here is a concise summary of the key points from the discussion:

• Effective pricing requires collaboration between finance, FP&A, and pricing teams. Transparent communication and alignment on goals are essential to ensure cohesive strategies that drive profitability.

• Value-based pricing is the gold standard, especially in service industries. By quantifying and communicating the value provided to customers, businesses can justify higher prices and enhance profitability.

• Inflation significantly affects pricing strategies. Companies must adjust prices to keep up with rising costs and maintain profit margins, making strategic pricing more critical than ever.

• Relying solely on cost-plus pricing can lead to missed opportunities. Understanding customer value and competitive positioning allows for more strategic price setting, rather than simply adding a margin to costs.

• Constructively using promotions and discounts can drive volume without eroding profit margins. Measuring and optimizing these strategies ensures they contribute positively to overall profitability.

• Rebates can be effective for maintaining uniform pricing across different channels and incentivizing performance. However, companies must measure and adjust rebate programs regularly to ensure they are beneficial.

• Accurate forecasting and aligning sales with operational capacity are crucial. Effective sales inventory and operations planning [SIOP] can significantly increase net profit margins by optimizing resource utilization and pricing strategies.

Quotes:

Here are a few relevant quotes from the episode 

• "The art of pricing goes beyond just number crunching, it goes into cross-functional alignment on what the goals are."

• “The 1% increase in price leads to an 11% increase in profit margins coming out of McKinsey years ago. It still holds true.”

• “It's amazing how easy it is to increase profits by being good at pricing.”

• “Pricing is going to become one of the most important things that we get good at over the next half-decade.”

Exciting Announcement

I am excited to share my two new digital FP&A Courses with you FP&A Business Partnering, and Modern Excel. They launched yesterday and I am excited to offer a 20% discount to my listeners. Use code PODCAST.

Link to courses: 

FP&A Business Partnering (thinkific.com)

Modern Microsoft Excel (thinkific.com)

Follow Karan:

LinkedIn - https://www.linkedin.com/in/soodkaran/

Website - https://www.kobo.com/

Follow Nathan:

LinkedIn - https://www.linkedin.com/in/nathankaemingk/

Website - https://www.betterforecasting.com/

Follow Paul:

Website - https://www.thefpandaguy.com 

LinkedIn - https://www.linkedin.com/in/thefpandaguy

For CPE credit please go to earmarkcpe.com, listen to the episode, download the app, and answer a few questions. For AFP FPAC certification answer the questions and contact Paul Barnhurst for further details.

In today's episode:

[01:10] - Introduction

[02:00] - Guest Introduction

[03:00] - Misconceptions About Pricing

[04:20] - The importance of Value-Based Pricing

[07:00] - The Role of FP&A in Pricing

[11:40] - Leveraging Digital Courses for FP&A Professionals

[12:00] - Guest Backgrounds

[18:40] - Impact of Inflation on Pricing

[22:00] - Strategies for Competitive Markets

[26:30] - Effective Rebate Strategies

[31:00] - Collaboration Between Finance and Pricing Teams

[36:10] - Rapid-Fire Session

[58:30] - Conclusion

Welcome to FP&A Tomorrow, where we discuss financial planning and analysis, examining its current state and future prospects, with your host Paul Barnhurst.

In today’s episode, Paul engages in an insightful interaction with Philip Watson, for a discussion on what it takes to excel in financial planning and analysis (FP&A).

Philip, the CFO of Paddle, brings a wealth of knowledge, having led FP&A at ZoomInfo through its rapid growth and IPO. He is known for his commitment to developing talent, Philip's leadership has shaped the careers of many finance professionals. Currently leading Paddle’s financial strategy, Philip is transforming how fintech companies handle complex financial operations.

Key takeaways from this week's episode include:

Here is a concise summary of the key points from the discussion:

• Great FP&A extends beyond finance skills, encompassing the ability to communicate with stakeholders, understand the business, and manage relationships. It's about being operationally involved, translating complex financial stories, and driving business insights.

• While finance skills are fundamental, the future of FP&A will require advanced technical abilities. Soft skills, like communication and stakeholder management, remain crucial, but familiarity with data science and coding will become increasingly important.

• Emphasizing the importance of small, incremental improvements, aiming for 1% better every day. This approach, combined with rigorous measurement and process optimization, helps drive long-term business success and operational excellence.

• Sales compensation is a significant driver of behavior and revenue. Aligning incentives with business goals is essential to ensure that sales efforts contribute positively to the company’s financial health and strategic objectives.

• Implementing a detailed, three-statement forecast on a rolling 18-month basis provides valuable insights into future business performance. This process requires the right tools, experienced personnel, and a robust infrastructure to ensure accuracy and reliability.

• FP&A serves as an excellent training ground for becoming a CFO. Exposure to various business aspects, forecasting, and financial strategy prepares professionals for leadership roles, making FP&A a vital stepping stone in a finance career.

The title sponsor for this week’s episode of FP&A Tomorrow is Plan Buddies. Plan Buddies, where professionals meet excellence. Ready to elevate your career? Visit plan-buddies.com and become a member today. Here's a special treat. Use the promo code TheFPandAGuy, that is TheFPandAGuy for an exclusive 25% discount on your first-year membership.

Quotes:

Here are a few relevant quotes from the episode 

• "Some of the nice stuff, some of the machine learning stuff will probably take care of some of the grunt kind of modeling grunt, grinding through Excel that we have now, and it will automate some of that. It won't replace. I don't think it will replace people. It will change their job."

• “I think FP&A is probably the best launchpad for being a CFO. You get exposure to all the business leaders. You get exposure to all other aspects. It forces you to think ahead and not behind.”

• “Your job is to go translate numbers, to go communicate to the business, and be out with the business, in the meetings, in the room. It's important to be in the room.”

• “Sales comp is a massive driver. I mean, compensation is a massive driver of behavior.”

Follow Philip:

LinkedIn - https://www.linkedin.com/in/philipawatson

Website - https://www.paddle.com

Follow Paul:

Website - https://www.thefpandaguy.com 

LinkedIn - https://www.linkedin.com/in/thefpandaguy

For CPE credit please go to earmarkcpe.com, listen to the episode, download the app, and answer a few questions. For AFP FPAC certification answer the questions and contact Paul Barnhurst for further details.

In today's episode:

(01:10) - Introduction

(01:45) - Guest Introduction

(02:00) -  Defining Great FP&A

(03:25) - Future of FP&A

(04:20) - Guest Background

(06:04) - Scaling at ZoomInfo

(18:17) - FP&A as A Launchpad for CFO

(27:40) - Sales Commission Strategies

(32:47) - Effective Forecasting Practices

(41:49) - Rapid-Fire Session

(43:20) - Guest’s Personal Insights

(45:30) - Advice for FP&A Business Partners

Welcome to FP&A Tomorrow, where we discuss financial planning and analysis, examining its current state and future prospects, with your host Paul Barnhurst.

In today’s episode, Paul engages in an insightful interaction with Tyler Cypher, for a discussion on how generative AI is reshaping FP&A, the importance of business partnering, and optimizing cloud spend.

Tyler, the founder and CEO of OpsCipher, shares his journey from Disney finance intern to leading FP&A at top cybersecurity firms. He is an expert in leveraging generative AI for strategic decision-making. Also a passionate advocate for effective business partnering and optimizing cloud spending.

Key takeaways from this week's episode include:

Here is a concise summary of the key points from the discussion:

• Generative AI simplifies data processing, enabling FP&A teams to focus more on strategic analysis and decision-making, ultimately enhancing their value to the organization.
• Success in FP&A hinges on understanding business challenges, effective communication, and building trust with stakeholders. Being curious and proactive is key to growth.
• Effective cloud spend management requires visibility, collaboration across teams, and financial stewardship from the early stages of product development to avoid unnecessary costs.
• Financial operations play a critical role in managing cloud costs. Establishing a dedicated FinOps team or center of excellence can provide significant benefits.
• How skills from varied roles like investment banking and consulting can enhance FP&A effectiveness. Exposure to various business aspects through FP&A provides a strong foundation for leadership roles.

• The discussion highlights the necessity of mastering copywriting to communicate effectively and set clear expectations with stakeholders. For FP&A professionals this skill helps in selling ideas and managing business relationships successfully.

The title sponsor for this week’s episode of FP&A Tomorrow is Plan Buddies. Plan Buddies, where professionals meet excellence. Ready to elevate your career? Visit plan-buddies.com and become a member today. Here's a special treat. Use the promo code the FP&A Guy, that is TheFPandAGuy for an exclusive 25% discount on your first-year membership.

Quotes:

Here are a few relevant quotes from the episode

"The people who are the most successful have a genuine curiosity about the business. It's very hard to go into those teams and try to be that analytical value-add extension if you can't understand their challenges."

“If you think about software business, generally, the two biggest expenses are people and then the cost of running the software.”

“FinOps as an organizational structure. So from the first part, I think, it's inherent in the word financial operations. It's a financial stewardship-driven culture in the first place.”

Follow Tyler:

LinkedIn - https://www.linkedin.com/in/tylercyphers

Website - http://opscipher.com

Follow Paul:

Website - https://www.thefpandaguy.com

LinkedIn - https://www.linkedin.com/in/thefpandaguy

For CPE credit please go to earmarkcpe.com, listen to the episode, download the app, and answer a few questions. For AFP FPAC certification answer the questions and contact Paul Barnhurst for further details.

In today's episode:

(1:20) - Introduction

(01:50) - Guest Introduction

(02:26) - Defining Great FP&A

(05:01) - Impact of Generative AI on FP&A

(06:59) - Future of FP&A with AI

(13:25) - Becoming A Strategic Business Partner

(17:40) - Cash Flow for Coders Newsletter

(21:30) - Optimizing Cloud Spend

(30:12) - Advice for Managing Cloud Spend

(44:12) - Rapid-Fire Session

(46:40) - Essential Skills for FP&A Professionals

(47:40) - Guest’s Personal Insights.

(50:42) - Advice for FP&A Business Partners

Welcome to FP&A Tomorrow, where we discuss financial planning and analysis, examining its current state and future prospects, with your host Paul Barnhurst. 

The title sponsor for this week’s episode of FP&A Tomorrow is the Third Generation FP&A Tools Showcase. Join the Showcase and see the latest technology in FP&A planning software. Register for free today: https://www.accelevents.com/e/fpatoolsshowcase

In today’s episode, Paul engages in a thought-provoking conversation with the awesome Jim Cook and Winnie Aoieong, for a fascinating discussion on the importance of decision-making systems, the value of trust in business partnerships, and the role of generative AI in modern FP&A.

Jim Cook, former CFO of Mozilla with a rich history at Netflix and Intuit, shares his valuable insights on effective decision-making systems and the power of community building.

Winnie Aoieong, VP of Business Finance at PowerSchool, discusses her experience in scaling financial operations and the critical balance of technical skills and business communication.

Key takeaways from this week's episode include: :

Here is a concise summary of the key points from the discussion:

• Great FP&A goes beyond data analysis to create effective decision-making systems, allowing businesses to make strategic decisions based on comprehensive insights.

• Building strong, trust-based relationships with business partners is essential for effective collaboration and achieving organizational goals.

• Discussion on harnessing the power of community and crowdsourcing can significantly enhance problem-solving and innovation within an organization.

• How to balance technical skills with effective communication is crucial for translating complex financial data into actionable business strategies.

• Adaptability to embrace a mindset of continuous improvement and learning from failures. Progress over perfection drives long-term success.

• Utilization of generative AI for tasks like meeting summaries and action item tracking can enhance efficiency and focus on high-value activities.

• Leadership development within the team and creating a safe environment for challenging assumptions encourages innovation and growth.

Quotes:

Here are a few relevant quotes from the episode about the importance of decision-making systems, building trust in business partnerships, and the role of generative AI in enhancing FP&A efficiency:

• "Great FP&A is the balance of technical skills and translating that into actionable plans to communicate with the business."

• "Ultimately what they're trying to do is partner with their department business unit and create excellent decision-making systems because that's what our data is eventually doing."

• "A relationship builds on trust. So trust comes from your capacity, your capabilities, but also your way of wanting to build that alliance with whoever you work with."

• "Mozilla taught me about how powerful communities are. Communities always win."

• "Perfection is a prison. It's about always progressing and improving because there is always room to get better."

Follow Jim:

• LinkedIn - https://www.linkedin.com/in/cookflix

• Website- https://www.benchboard.com

Follow Winnie:

• LinkedIn - https://www.linkedin.com/in/winnie-aoieong-6852212

• Website- https://www.powerschool.com

 Follow Paul: 

• Website - https://www.thefpandaguy.com 

• LinkedIn -https://www.linkedin.com/in/thefpandaguy

For CPE credit please go to earmarkcpe.com, listen to the episode, download the app, and answer a few questions. For AFP FPAC certification answer the questions and contact Paul Barnhurst for further details.

In today's episode:

[00:05] Introduction

[01:20] Guest’s background

[01:28] What Does Great FP&A Look Like?

[02:13] Evolution of FP&A

[02:45] Future of FP&A

[10:30] Scaling a Company

[12:00] Leadership Changes

[16:00] Role of Finance in Business

[21:32] Systems and Chart of Accounts

[29:40] Safe Space for Innovation

[40:52] FP&A Tools and Generative AI

[42:00] Rapid Fire Questions

[49:20] Get to Know Our Guests Personally

In today’s episode, Paul engages in an insightful interaction with Julian Castelli, for a discussion about the transformative role of FP&A and evolution from basic finance to a strategic role influencing business decisions and investor relations, highlighting his leadership experiences and the importance of core values.

Julian is currently serving as a board director and board chair. With experience as a board director and operating partner many times over, Julian assists SaaS and Marketplace technology companies in areas like strategy, team development, growth execution, fundraising, executive coaching, and board governance. He began his career in investment banking at Goldman Sachs and later worked as a consultant at McKinsey & Company. 

Key takeaways from this week's episode include: :

Here is a concise summary of the key points from the discussion:

• The competitive dynamics and funding needs of marketplace and SaaS (Software as a Service) businesses. SaaS businesses can be more capital efficient and have multiple successful players compared to winner-take-most marketplaces.

• The transformative power of adhering to and actively promoting company values, even in crisis, which can galvanize a team and reinforce commitment to the organization's mission and customer service.

• Growth-stage companies need sophisticated FP&A to meet investor expectations and aid decision-making. FP&A should influence a company's financial and strategic decisions, not just report on them.

• Promoting company values strengthens internal culture and aligns team actions with the organization's mission. Companies must evolve from managing daily finances to integrating broad strategic financial planning.

• How skills from varied roles like investment banking and consulting can enhance FP&A effectiveness. Exposure to various business aspects through FP&A provides a strong foundation for leadership roles.

• The discussion highlights the necessity of presenting financials in a way that aligns with investor expectations, which is often different from traditional accounting reports. 

The title sponsor for this week’s episode of FP&A Tomorrow is the Plan Buddies. Join Plan Buddies. Plan Buddies, where professionals meet excellence. This isn't just any community. It is a community run by and for planning professionals. At Plan Buddies we’re all about fostering connections, sharing knowledge, and providing mentorship among FP&A experts. Ready to elevate your career? Visit plan-buddies.com and become a member today. Here's a special treat. Use the promo code the FP&A Guy, that is TheFPandAGuy for an exclusive 25% discount on your first-year membership.

Quotes:

Here are a few relevant quotes from the episode about FP&A's transition from basic finance to a strategic role, the critical importance of financial planning and analysis, and the influence of leadership and core values in navigating business challenges.

• "So without FP&A, you can't see what's ahead of you."

• "But if you present a P&L like that [Natural Account Line] to an investor, you might end the meeting right there."

• "Unfortunately, I'm kind of shocked that the ERPs out there make it so difficult to actually produce financial reporting the way the investors want."

• "FP&A is not just a luxury; it's essential as you scale and begin dealing with institutional investors."

Follow Julian:

LinkedIn - https://www.linkedin.com/in/juliancastelli1

Follow Paul:

Website - https://www.thefpandaguy.com 

LinkedIn - https://www.linkedin.com/in/thefpandaguy

For CPE credit please go to earmarkcpe.com, listen to the episode, download the app, and answer a few questions. For AFP FPAC certification answer the questions and contact Paul Barnhurst for further details.

In today's episode:

[01:16] Introduction

[03:20] Guest’s background

[05:50] How did previous experiences prepare Julian for FP&A expertise

[08:35] Turning critical information into actionable reporting

[11:05] How the value of FP&A goes beyond controller or bookkeeping

[28:20] Guest’s view about the evolution of FP&A 

[30:22] Interesting facts and differences between SaaS and Marketplace

[41:49] Guest’s career journey and previous experiences

[48:27] Upcoming event promotion

[49:56] Rapid-fire session

[52:24] Guest’s personal insights.

[55:27] Advice for being a better business partner 

[57:27] Conclusion