SaaS Builder Podcast

The Evolution of FP&A: Building Financial Models for Success with Paul Barnhurst

Sep 4, 2024

In this discussion, Paul Barnhurst, known as the 'FP&A Guy,' dives into the evolution of Financial Planning & Analysis, highlighting its transformation from mere reporting to a vital strategic partner in organizations. He emphasizes the crucial skills for today's FP&A professionals, including modern Excel techniques and the strategic role of AI in forecasting. Paul's journey from government procurement to a finance influencer illustrates the importance of adaptability and lifelong learning, while discussing the impact of SaaS technologies on financial practices.

40:35

Episode guests

Paul Barnhurst

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

The evolution of FP&A has shifted from back-office reporting to becoming strategic partners, necessitating deeper engagement with business operations.

AI integration is vital for improving financial modeling and forecasting, requiring FP&A professionals to adapt their skill sets to leverage new technologies effectively.

Deep dives

Career Trajectories and Key Decisions

The speaker shares insights into their career journey, highlighting the significant transitions that have shaped their professional path. They emphasize the initial shift from government contracting at China Lake to an FP&A expert role at American Express, which came about after pursuing further education in finance. There is a focus on how opportunities, such as a promotion to an FP&A position, can arise unexpectedly and the importance of taking calculated risks in career decisions. This narrative illustrates how embracing new challenges and leveraging prior experiences in procurement and report writing paved the way for future successes in finance.

Intro

5min

Transforming Financial Planning and Analysis

8min

Harnessing the Power of Data: Modern Tools and Strategies

2min

Transforming Finance with SaaS Technology

11min

Navigating AI in Finance

9min

Evolving CFO Dynamics: Risk, Metrics, and Growth

5min

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

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