This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Paul Barnhurst, an expert in Financial Planning & Analysis (FP&A). Known as the "FP&A Guy," Paul explores the evolution of FP&A over the past two decades, highlighting shifts from back-office reporting functions to becoming strategic partners within organizations. Randy and Paul discuss essential modeling principles and tools that today's FP&A professionals should master, including modern Excel capabilities and the strategic use of AI in forecasting and planning processes.
Quotes
- “FP&A is a lot more than just the reporting and the analysis. That is what I see as FP&A today. I think it's been a gradual shift and it's really accelerated the last few years.” -Paul Barnhurst [09:07]
- “I think the most mature thing and where we're pricing the most benefit and planning is with machine learning, predictive modeling. Now, when we talk generative AI, I think there are a few areas that are going to be really helpful, where we're seeing the most use right now. I think the number one area is helping with emails, content, brainstorming, writing.” -Paul Barnhurst [31:34]
Expert Takeaways
- Career Shifts and Entrepreneurship: Paul Barnhurst’s journey from government procurement to a leading FP&A influencer showcases the importance of being open to opportunities and continuous learning.
- Evolution of FP&A: The transition from back-office reporting to strategic business partnering has made FP&A a critical function in navigating today’s rapidly changing business environment.
- Technological Advancements: Advances in cloud-based SaaS technologies and the expanded capacity of modern tools like Excel have revolutionized data management and analysis in FP&A.
- Financial Modeling Best Practices: Effective model design is paramount. Principles such as color coding, structured inputs and outputs, and avoiding hard-coded values ensure reliability and scalability.
- AI Integration: The role of AI in finance, particularly generative AI and machine learning, is set to make FP&A both more strategic and technically involved, allowing for more sophisticated decision-making processes.
Timestamps
(00:04) Navigating Career Shifts and Embracing Opportunities in FP&A
(06:54) The Evolution of FP and A from Reporting to Strategic Partner
(10:30) The Evolution of Data Analysis and AI in Finance
(17:08) Top Financial Modeling Practices and Common Pitfalls
(19:04) Challenges and Trust in Building Financial Models for Tech Startups
(27:13) The Role of AI and Machine Learning in Finance
(36:15) Key Metrics and Influences in SaaS Business Growth
(38:23) Influential Figures in Finance, AI, and Financial Modeling
Links
Maxio
Upcoming Events
Maxio Institute Report
Paul Barnhurst LinkedIn
