Future Finance

Welcome to a special episode of our podcast! Today, we're thrilled to bring you an exciting Podswap. We are sharing an episode from Financial Modeler’s Corner.  Stay tuned for an engaging conversation you won't want to miss. 

Here are the show notes from our previous episodes.

Welcome to the Financial Modeler's Corner (FMC), where we discuss the Art and Science of Financial Modeling with your host Paul Barnhurst.

Financial Modeler's Corner is sponsored by the Financial Modeling Institute (FMI), the most respected accreditation in Financial Modeling globally.

In today’s episode, Paul engages in a conversation with Cameron and Nicholas Hay to discuss dynamic arrays in financial modeling. Cameron and Nicholas share their experiences and insights on using dynamic arrays to build fully dynamic models, avoiding common pitfalls, and the benefits of this approach.

Cameron and Nicholas are seasoned financial modeling experts and co-founders of Finomatic Consulting. Their practical advice and innovative tips have helped countless professionals enhance their modeling skills.

Key takeaways from this week's episode include:

• Use dynamic arrays to reduce the number of formulas and potential error points. Clearly separate inputs, calculations, and outputs into distinct sheets. This enhances clarity and ease of use.

• Ensure uniform column and row structures across sheets. This consistency minimizes errors and simplifies formula management, making models easier to audit and understand.

• Mixing traditional Excel formulas with dynamic arrays reduces the benefits. A complete commitment ensures better performance and error reduction.

• Using graphs and charts helps quickly identify trends and anomalies, making it easier to ensure realistic assumptions and accurate models.

• Establishes a solid foundation, ensuring you learn best practices early on, which prevents the development of bad habits and enhances overall modeling skills.

• Implementing dynamic arrays can drastically reduce the file size and complexity of models, making them more efficient and manageable.

• Issues like mixed calculations and unrealistic assumptions emphasize the importance of thorough checks and realistic inputs in financial modeling.

Download a sample fully dynamic 3-statement model Excel Files — The FP&A Guy (thefpandaguy.com), courtesy of Cameron and Nicolas Hay. 

Quotes:

Here are a few relevant quotes from the episode on financial analysis and modeling:

"A blank Excel workbook doesn't have any errors in it until you add data and formulas. Minimizing the number of formulas should reduce the error potential of the file.”

“With business, if you can understand how cash flows around a business, that's you can get in and really understand a business.”

“If you're going to dip your toe into dynamic arrays, you've got to make sure you commit fully with 100% commitment.”

Follow Cameron and Nicholas:

Cameron Hay LinkedIn - https://www.linkedin.com/in/cameron-hay-ca-a31b4752/

Nicholas Hay LinkedIn- https://www.linkedin.com/in/nicholas-hay-1992/

Website - https://finomatic.co.uk/

Follow Paul: 

Website - https://www.thefpandaguy.com   

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

Follow Financial Modeler's Corner  

LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  

Newsletter - Subscribe on LinkedIn- https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984

In today’s episode:

[00:03] - Introduction

[00:40] - Guest Introduction and Theme for the Week: Dynamic Arrays

[01:50] - The Worst Financial Model the Guest Experienced

[02:00] - Horror Stories: Mixed Calculations and Unrealistic Assumptions

[04:10] - Key Takeaways from Horror Stories

[05:00] - Guests’ Backgrounds and Career Journeys

[10:00] - The Importance of Structure and Design in Financial Modeling

[14:10] - Introduction to Dynamic Arrays and Their Benefits

[21:30] - Challenges with Corkscrews and Lambdas

[31:20] - Rapid-Fire Session and Guests’ Contact Information

TLDR: These show notes were optimized using Google Gemini after we tried Meta Llama 3 8B and ran into issues. The show notes are designed to make you listen to the full episode thanks to AI. 

Below is a poem for the show from Gemini

• The numbers whiz by,
• a blur in the night, 
• Financial wizards locked in a fight. 
• AI swoops in, a tool sharp and bright, 
• Saving precious hours, 
• making data take flight.

Future Finance: AI Revolutionizes Financial Planning

Welcome to the exciting world of Future Finance! Today's episode dives into the transformative power of Artificial Intelligence (AI), specifically generative AI, in the financial industry. Our guest, Adam Tzagournis, a CPA, full-stack developer, and the founder of FlowCog Canvas, joins Paul Barnhurst and Glenn Hopper for a thought-provoking discussion.

Here are the key takeaways to whet your appetite for the full episode:

• Generative AI for the Win: Researchers are making significant strides in AI, with studies demonstrating its ability to outperform human analysts in tasks like financial statement analysis. This translates to more accurate and timely insights for better decision-making.

• AI as a Powerhouse for Productivity: Generative AI automates repetitive tasks such as data analysis and reporting, freeing up valuable time for finance professionals to focus on strategic analysis and decision-making.

• Human-AI Collaboration is Key: The future lies in a collaborative approach where AI empowers human expertise. Financial professionals can leverage AI tools to gain deeper financial insights and proactive risk management strategies.

• The Rise of the Evolving Workforce: The financial industry is on the cusp of a transformation. While some jobs may be displaced by AI, new roles will emerge, emphasizing the need for data science and AI literacy.

Follow Adam:

LinkedIn: https://www.linkedin.com/in/adam-tzagournis-cpa/

Website: https://canvas.flowcog.com/

Follow Glenn:

LinkedIn: https://www.linkedin.com/in/gbhopperiii

Follow Paul:

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

Follow QFlow.AI:

Website: https://qflow.ai/future-finance

Stay tuned for the full episode where you'll learn more about the exciting applications of generative AI in financial projections, the future of financial roles, and much more

Future Finance is sponsored by QFlow.ai, the strategic finance platform solving the toughest part of planning and analysis: B2B revenue. Align sales, marketing, and finance, speed up decision-making, and lock in accountability with QFlow.ai.

Learn more at Qflow.ai/future-finance.

In today's episode:

[06:54] Introduction

[07:30] AI and Nose-Picking

[08:55] Guest Introduction

[10:10] Early Adoption of AI

[13:28] Generative AI in Financial Projections

[17:00] Pace of AI Advancements

[18:12] AI as a Productivity Tool

[25:39] AI for Small and Medium Businesses

[30:35] Fun rapid-fire Session

[33:40] Future of Finance Predictions

[36:50] Contact information for more learning opportunities

TLDR: These show notes were optimized using Claude ChatGPT 4.0 and are designed to make you listen to the full episode. We also asked H4.0 to write a brief limerick summarizing the show notes.

There once was a podcast on AI,

Transforming accounting, oh my!

With Mitchell's insight,

Efficiency in sight,

A must-listen for those on the fly.

Show Notes:

Welcome to Future Finance, with your hosts Paul Barnhurst and Glenn Hopper, where we focus on the technological advancements and emerging trends fueling the FP&A professionals. We bring you vital updates and insights into the technologies that are going to shape not just finance and accounting, but every sector of the world in the years ahead.

In today’s episode, Paul and Glenn engage in a conversation with Mitchell Troyanovsky, Co-Founder of Basis, to discuss the transformative impact of AI on the accounting profession. The discussion highlights the differences between rule-based systems and generative AI.

Highlights of the Episode:

• Generative AI vs. Rule-Based Systems: Generative AI offers contextual understanding and reasoning, unlike rule-based systems that rely on rigid if-then statements, making it more adaptable to complex accounting tasks.

• AI as a Digital Assistant: AI can create first drafts of accounting tasks, enabling accountants to review and refine the work, thus saving time and increasing productivity. "You'll start having accountants much more of their job, rather than being this kind of monotonous manual work, start to be like, okay, this work has been done for me as a first draft, let me now review it."

• Enhancing Strategic Value: AI acts as a digital assistant, supplementing the workforce rather than replacing it, and allowing accountants to provide more strategic value to their clients. "It is a tool for accountants. Explicitly, at the end of the day, the job that they can do the best is to advise their clients, help their clients, help them make better decisions, and be that partner, with them, rather than needing to be stuck in all the manual work needed to get to that actual real value add at the end of the day."

• Shifting Roles and Skills: The introduction of AI in accounting will shift the focus from data entry and basic tasks to more analytical and advisory roles, making the profession more appealing to new graduates.

• Addressing Trust Issues: While AI will make mistakes, just like human employees, it is essential to implement systems to catch errors and continuously improve AI performance through feedback and iteration.

Future Finance is sponsored by QFlow.ai, the strategic finance platform solving the toughest part of planning and analysis: B2B revenue. Align sales, marketing, and finance, speed up decision-making, and lock in accountability with QFlow.ai.

Learn more at qflow.ai/future-finance

Follow Mitchell:

LinkedIn: https://www.linkedin.com/in/mitchelltroyanovsky/

Website: https://www.getbasis.ai/

Follow Glenn:

LinkedIn: https://www.linkedin.com/in/gbhopperiii

Follow Paul:

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

Follow QFlow.AI:

Website: https://qflow.ai/future-finance

In today's episode:

[01:32] Introduction

[06:35] Real-world applications of ChatGPT 4.0 in financial analysis

[08:50] Evolution of AI models and their impact on specialized financial tools

[11:23] Guest’s background

[13:43] Overview of Basis and the need for AI in accounting

[17:10] Differences between rule-based systems and generative AI

[20:22] How AI handles accounting workflows

[26:42] Addressing fears and trust issues with AI in accounting

[33:11] Fun rapid-fire Session

[37:40] Contact information for more learning opportunities

TLDR: These show notes were optimized using Claude AI Haiku and are designed to make you listen to the full episode. We even asked Haiku to provide a Haiku summarizing the show notes for your reading pleasure.

Haiku:

Finance takes new shape,

AI-driven transformation,

Shaping the future. 

Prepare to be captivated as hosts Paul Barnhurst and Glenn Hopper welcome Sasha Orloff, CEO of Puzzle, to uncover the technological advancements reshaping the world of finance and accounting. In this eye-opening episode, you'll discover:

• How generative AI is seamlessly integrating into everyday software, automating tasks and delivering data-driven insights.
• The rise of "AI agents" in 2024 - advanced systems designed to autonomously process complex problems and provide tailored solutions.
• Sasha's visionary project, Puzzle, modernizing accounting software with real-time, flexible financial data processing.
• The transformative potential of blockchain technology to enhance transparency and traceability of financial transactions.
• The future of finance reimagined through AI and predictive analytics, empowering more precise forecasting and strategic decision-making.

Sasha shares his insightful perspective:

"I'm building Puzzle, which is modern accounting software for growing companies."

"We may not yet be at a point where AI is going to take our jobs, but the future will be divided into two camps: people who use AI and those who don't. One of these groups is going to be left behind."

Don't miss this captivating conversation that explores the intersection of finance, technology, and AI. Gain invaluable insights to stay ahead of the curve and thrive in the rapidly evolving world of corporate finance.

Follow the Conversation:

• Glenn Hopper (LinkedIn: https://www.linkedin.com/in/gbhopperiii)
• Paul Barnhurst (LinkedIn: https://www.linkedin.com/in/thefpandaguy)
• Sasha Orloff (LinkedIn: https://www.linkedin.com/in/saor/)
• Puzzle (LinkedIn: https://www.linkedin.com/company/puzzlefin, Website: https://puzzle.io)

Future Finance is sponsored by QFlow.ai, the strategic finance platform solving the toughest part of planning and analysis: B2B revenue. Align sales, marketing, and finance, speed up decision-making, and lock in accountability with QFlow.ai. 

Learn more at Qflow.ai/future-finance

In today's episode:

[01:53] Introduction

[03:34] The latest phase of AI revolution

[04:51] Pros and cons of chatbots and the rise and evolution of AI agents

[09:17] Recent updates about AI

[13:52] Guest’s background

[15:30] Insights from guest’s career

[17:51] Introduction of Puzzle and future of general ledger in accounting

[25:12] How blockchain can be an effective tool for accounting

[30:24] How AI and predictive analytics can change finance in upcoming years

[34:34] Democratization of data science and various uses of machine learning

[39:05] Lighting Round Questions!

New show coming soon...