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

SaaS Expert Voices presented by Maxio

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

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Randy Wootton LinkedIn

Paul Barnhurst LinkedIn