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. 

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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