Financial Modeler's Corner Paul Barnhurst AKA The FP&A Guy

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. https://www.abacum.io
In today’s episode, Paul engages in a conversation with Geoff Robinson, to discuss the financial modeling world, blending technical skills with behavioral economics to enhance decision-making in finance.
Geoff Robinson, founder of TheInvestmentAnalyst.com and seasoned financial modeler with a rich background in investment banking and education, notably as a former managing director at UBS.
Key takeaways from this week's episode include:
An unconventional entry into investment banking at 43, highlighting how the background in education enriches the approach to financial analysis and modeling, emphasizing the crossover skills between teaching and financial analysis. This highlights how teaching skills are transferable and beneficial in the financial analysis and modeling sectors.An anecdote about a significant error in a financial model, which failed to detect a $29 billion discrepancy, underscoring the critical importance of rigorous validation and diagnostic checks in financial modeling.In the role of behavioral factors in financial modeling, adopting a stance of professional skepticism and the need for understanding and questioning the assumptions underlying a model before trusting its output.For simplicity and planning in financial modeling, the most effective models are those that are straightforward, well-planned, and can communicate complex financial insights in an accessible manner.Strategies for mitigating bias, such as incorporating different perspectives and rigorous testing of hypotheses, as the influence of cognitive biases on financial modeling to enhance the reliability of financial models.
Quotes:
Here are a few relevant quotes from the episode on financial analysis and modeling:
"The diagnostic on this model was said if total assets equal total liabilities and equity, okay. So no matter what happened, your balance sheet, even if it was mashed up, the diagnostics said it was fine and when you went into the detail, there was a $29 billion hole in that balance sheet."
"Financial models are a real kind of insight and window into the personality of the modeler. You can see how they think, you can see how they overcomplicate things. You can see if they're sloppy."
“Models are question-asking tools. One of your questions was is it a primary decision maker, a financial model? I don't think models are decision-makers. I think models are the way you test a hypothesis.”
"I suppose the blunt thing to say is don't trust anything until you understand it."
Follow Geoff:
LinkedIn - https://www.linkedin.com/in/geofftheinvestmentanalyst
Website - https://theinvestmentanalyst.com
Follow Paul:
Website - https://www.thefpandaguy.com
LinkedIn - https://www.linkedin.com/in/thefpandaguy
For an experienced-based approach to financial modeling, emphasizing skepticism, the effective communication of complex financial data, and the intersection of analytical rigor, educational techniques, and behavioral economics, visit FMI at www.fminstitute.com/podcast and use code ‘Podcast’ to save 15% when you register. Contact Paul Barnhurst for further details.
In today’s episode:
(01:58) Introduction
(02:44) Guest Introduction
(03:00) Horrifying Financial Models
(04:01) Joking on Big Numbers
(04:24) Approach to Financial Modeling
(05:14) Behavioral Insights in Modeling
(05:56) Best Practices and Lessons Learned
(42:40) Rapid-Fire Question...

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 Scott Rostan, Founder of Training The Street.
Scott found his passion for finance with his dedication to teaching and has been driving innovation in financial training ever since. As CEO of Training The Street and as an adjunct professor at UNC Kenan-Flagler Business School, he inspires the next generation of finance professionals
Through his leadership as CEO of Training The Street, Scott has reshaped the landscape of financial education, equipping individuals with the skills and knowledge needed to thrive.
In this episode, expect to learn:
The significance of technical skills, such as financial modeling, accounting, and Excel proficiency, in the finance industryHow specialized training programs can help individuals enhance their financial knowledge and technical abilitiesThe evolving role of AI in finance and how it complements human expertise rather than replacing itThe balance between technical proficiency and interpersonal skills to excel in their careersHow individuals can build trust with clients, colleagues, and stakeholders, ultimately contributing to the integrity and credibility of the finance profession.
Quotes:  
“It's really easy to start throwing stuff together and writing a nasty old nested if formula or whatever it might be, but that doesn't always mean it's clean or effective or meets those requirements we talk about.”
“And when you get good with the prompt engineering typing, questions, and answers, you can get a lot more productive and faster.”
“It's not ideal because circular references can make your model more complex and harder to understand, but in certain situations, they're necessary for accuracy.”
“If you just blindly took the financial information from this database, it could be off by a big factor. So again understanding what's going on, understanding the nuance, understanding the limitations is going to be much more valuable.”
“They're going to trust you and value you to distill what's important and then present it in an easy-to-digest way so that they can understand in simple terms what is happening. The analysis comes from the model, but the story is going to come from you.”
Sign up for the Advanced Financial Modeler Accreditation or FMI Fundamentals Today and receive 15% off by using the special show code ‘Podcast’. 
Visit www.fminstitute.com/podcast and use code Podcast to save 15% when you register.  
Go to https://earmarkcpe.com, download the app, take the quiz and you can receive CPE credit.  

Follow Scott:    
LinkedIn - https://www.linkedin.com/in/scott-rostan-86b44417aWebsite - https://trainingthestreet.com/

 Follow Paul: 
Website - https://www.thefpandaguy.com/   LinkedIn - https://www.linkedin.com/in/thefpandaguy/  TikTok - https://www.tiktok.com/@thefpandaguy  YouTube - https://www.youtube.com/@thefpaguy8376  

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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:  
[00:45] Introduction;
[01:00] Scott’s horror story of the worst Financial Model;
[01:58] The KISS principle;
[03:53] Scott’s...

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 Roderick McKinley, blockchain & Tokenomics advisor of Rmckinley.net
Roderick, a crypto expert, discusses financial modeling in the crypto space, highlighting challenges like token volatility and treasury management. He emphasizes aligning incentives for healthy exchanges and discusses his online course on Tokenomics Modeling and fundraising.
Roderick also offers strategic guidance, product development, and Tokenomic design services for various blockchain applications, including DeFi, blockchain games, and Layer 1 protocols. He assists in developing tokenized business models, designing token utilities, and structuring token allocations for successful capital raises.
In this episode, these are your learnings:
Understand the integration of finance and blockchain and Tokenomics and strategic guidance for blockchain projects.Gain insights into challenges and opportunities in transitioning from traditional finance to the crypto space.Learn how to navigate complexities like token volatility and incentive alignment in blockchain projects.Obtain practical tips on developing tokenized business models, designing token utilities, and structuring token allocations for successful fundraising.Acquire valuable knowledge for navigating the evolving landscape of blockchain and cryptocurrency.
Quotes: 
“Financial modeling often has a lot to do with client and industry expectations. What passes as good work or what passes as enough can change very dramatically from country to country and sector to sector.”

“Some of the stuff they teach you is that, well, the world's this way because it can't be any other way. And you pass exams sort of like explaining why it's impossible to fix things but suddenly blockchain technology actually gives you a completely different kind of tool chest that opens that up again.”

“Try and look for the shortest and most efficient way to express your calculations. Try and maximize the speed of your model.”

Sign up for the Advanced Financial Modeler Accreditation or FMI Fundamentals Today and receive 15% off by using the special show code ‘Podcast’.

Visit www.fminstitute.com/podcast and use code Podcast to save 15% when you register.

Go to https://earmarkcpe.com, download the app, take the quiz and you can receive CPE credit.

Follow Roderick McKinley: 
Linkedin: https://www.linkedin.com/in/roderickmckinley
Website: https://rmckinley.net/

Follow Paul:
Website - https://www.thefpandaguy.com/
LinkedIn - https://www.linkedin.com/in/thefpandaguy/
TikTok - a href="https://www.tiktok.com/@thefpandaguy" rel="noopener noreferrer"...

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 this episode, Paul is joined by Ian Bennett, Partner, Deals Modelling team at PwC, Australia.
With over 20 years of experience as a professional financial modeler, Ian has constructed and assessed models critical for major transactions, infrastructure projects, and routine forecasting and reporting. Today Ian leads the deal modeling practice for Pwc Australia.

In addition to being a world-class Modeller Ian is incredibly dedicated to diversity, inclusion, and wellbeing (DI&W). This has propelled him through various positions within PwC and beyond. As a proud LGBTIQ+ ally, he serves on the Steering Committee of Shine@PwC, the firm's LGBTIQ+ employee network, and currently holds the role of wellbeing lead for the Financial Advisory business.

In this episode, expect to learn:
Why understanding the stakeholders involved in a project is vitalWhy it's essential to listen actively to clients, understand their needs, and ask the right questionsHow to analyze the success and effectiveness of the financial modeling processWhat are the tools and technologies available in the marketWhat are the new technologies and methodologies for financial modelers to stay effective and successful in their roles

Quotes: 
“You need a desire to understand the power of the things you have in front of you and not be scared.”

“Every model tells a story, and that story is known at the start of the project, and the questions that the model will be able to answer.”

“Models are built for a single primary purpose at the time that they are conceived’

Sign up for the Advanced Financial Modeler Accreditation or FMI Fundamentals Today and receive 15% off by using the special show code ‘Podcast’.

Visit www.fminstitute.com/podcast and use code Podcast to save 15% when you register.

Go to https://earmarkcpe.com, download the app, take the quiz and you can receive CPE credit.

Follow Ian Bennett: 
Linkedin: https://www.linkedin.com/in/ianrbennett
Website: https://www.pwc.com.au/deals/modelling.html

Follow Paul:
Website - https://www.thefpandaguy.com/
LinkedIn - https://www.linkedin.com/in/thefpandaguy/
TikTok - https://www.tiktok.com/@thefpandaguy
YouTube - https://www.youtube.com/@thefpaguy8376

Follow Financial Modeler's Corner
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In this episode, Paul Barnhurst is joined by Derek Baker, who is drawn to really hard problems. Derek discovered early in his career that he loves startups and building companies.

He began his career working for SaaS startups, building out their core FP&A processes. For many of the companies he worked with, he was building their very first financial model to help them operate the business and make capital allocation decisions. He found that every business - regardless of stage - can improve performance with excellent FP&A.


Today, he works at Neighbor.com, a Series B startup, building the “Airbnb” of personal storage. Building the FP&A function for a marketplace has been the biggest challenge of his career, and he is loving every minute of it.



Listen to this episode as Derek shares:



How he got into financial modeling for SaaS companies

His advice for building robust SaaS Models.

The importance of understanding a business to build better Models.

Everything about SaaS and SaaS Companies.

His position on controversial modeling issues, including circular references, dynamic arrays, modeling standards, AI in modeling, and more.

Quotes:


“ The only way you're really going to learn how to build a model is by building it. You can do all the study you want, but at the end of the day, it's like anything, without practice, it's just theory. ”


“ The better you know an industry, the better you know the operations of the business, the easier it is to build a model.”


“ [ What separates good FP &A from great FP & A] I think it's 1- business acumen and 2- business partnering. Anyone can build a model in Excel and can learn those technical skills. But using those technical skills to help the business and partner with the business to help them understand the business better and grow the business is exactly what FP&A should be doing....”


Sign up for the Advanced Financial Modeler Accreditation or FMI Fundamentals Today and receive 15% off by using the special show code ‘Podcast’.


Visit https://fminstitute.com/podcast/and use code Podcast to save 15% when you register.


Go to https://earmarkcpe.com , download the app, take the quiz and you can receive CPE credit.



Follow Derek:

LinkedIn - https://www.linkedin.com/in/derek-d-baker/
Website - https://community.plan-buddies.com/home

Follow Paul:

Website - https://www.thefpandaguy.com/
LinkedIn - https://www.linkedin.com/in/thefpandaguy/
TikTok - https://www.tiktok.com/@thefpandaguy
YouTube - https://www.youtube.com/@thefpaguy8376

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:


(00:22) Intro;
(00:45) Welcoming Derek;
(01:00) The worst Financial Model Derek has ever seen ;
(02:00) Key takeaways from the worst Financial Model;
(02:41) Derek’ s background;
(04:41) Experience and Challenges while building the first Financial Model;
(07:20) What Derek thinks was missing from Finance Education in school?;
(10:13) What is it that Derek likes about SaaS and SaaS companies?;
(12:31) Key inputs in SaaS Revenue Models;
(15:08) What is the first tool that SaaS Startups must invest in?;
(16:40 - 17:25) Validate your Financial Modeling Skills with FMI’s Accreditation Program (ad ) ;
(17:26) Building a Three Statement Model - SaaS vs other Industries;
(19:00) Building Deferred Revenue;
(21:56) How to get started with building SaaS Models?;
(24:05) How often does Derek use Dynamic Arrays?;
(27:20) One thing that helped Derek in building Financial Models;
(29:20) Technical advice that can help people become better Modelers;
(32:26) Derek’s favorite Excel Shortcut;...

In this episode, Paul Barnhurst is joined by Lance Rubin, who has a wealth of financial modeling experience including working for PwC & KPMG, Investec Bank Corporate Finance & Advisory, National Australia Bank, and starting his own practice.

Lance spent two decades working for corporations (PwC & KPMG, Investec Bank Corporate Finance & Advisory, National Australia Bank). It was during this time he gained a love of modeling.

Lance was previously the CFO of fin-tech start-up Banjo (SME lender) and Sequel CFO whilst founding Model Citizn, a financial modeling, analytics, and automation consultancy firm following his 20 years in corporate. He has delivered a number of online training workshops in financial modeling and Power BI whilst also being a certified trainer for the FMI and he wrote a large portion of the CA (ANZ) study guide on financial modeling. He was also a judge at the world’s first Financial Modeling Innovation Awards and he presented at the Power BI Global Summit in 2022.

Listen to this episode as Lance shares: 

His learning from the worst models he has come across.
His journey into Financial Modeling and how he fell in love with modeling.
The key to Financial Transformations.
The HACK Framework.
The importance of Power BI and similar tech.
His advice on the use of tools and shortcuts.
His position on controversial modeling issues, including circular references, dynamic arrays, modeling standards, AI in modeling, and more.
Quotes: 

“Financial Transformation is the combination of process, tech, and people. With people being the most important.”

“The HACK Framework (Hygiene, Automation, Capability, Knowledge) allows you to bring technical skills and soft skills. together...You need to develop capability and knowledge and you need to bring that together with hygiene and automation.”

“Data Modeling and Financial Modeling sound the same but are fundamentally quite different.”
 
Sign up for the Advanced Financial Modeler Accreditation or FMI Fundamentals Today and receive 15% off by using the special show code ‘Podcast’.

Visit www.fminstitute.com/podcast and use code Podcast to save 15% when you register. 

Go to https://earmarkcpe.com, download the app, take the quiz and you can receive CPE credit. 

Follow Lance:   

Website - https://www.modelcitizn.com/
LinkedIn - https://www.linkedin.com/in/financial-modelling/
Follow Paul:

Website - https://www.thefpandaguy.com/  
LinkedIn - https://www.linkedin.com/in/thefpandaguy/ 
TikTok - https://www.tiktok.com/@thefpandaguy 
YouTube - https://www.youtube.com/@thefpaguy8376 
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: 


(00:22) Intro;

(00:47) Welcoming Lance;

(01:00) The worst financial model Lance has ever seen;
(05:14) Takeaway from the worst financial model;
(08:02) Lance’s background;
(11:27) Key to Finance Transformation;
(17:37) The Hack Framework;
(18:43 - 19:29) Validate your Financial Modeling Skills with FMI’s Accreditation Program (ad);
(19:30) What led to Lance’s love for Modeling?;
(22:38) The most interesting model;
(26:30) Importance of Power BI and similar Tech;
(31:51) AI and Financial Modeling;
(36:10) The learning that saved Lance a lot time while Modeling;
(41:16) Rapid Fire;
(46:58) Connect with Lance;
(48:15) Outro;