Financial Modeler's Corner

Mastering SaaS Models: Derek Baker's insights on building robust SaaS models

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/ [https://fminstitute.com/podcast/]and use code Podcast to save 15% when you register. Go to https://earmarkcpe.com [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/https://www.linkedin.com/in/derek-d-baker/ [https://www.linkedin.com/in/derek-d-baker/] * Website - https://community.plan-buddies.com/home [https://community.plan-buddies.com/home] Follow Paul: * Website - https://www.thefpandaguy.com/https://www.thefpandaguy.com/ [https://www.thefpandaguy.com/] * LinkedIn - https://www.linkedin.com/in/thefpandaguy/https://www.linkedin.com/in/thefpandaguy/ [https://www.linkedin.com/in/thefpandaguy/] * TikTok - https://www.tiktok.com/@thefpandaguyhttps://www.tiktok.com/@thefpandaguy [https://www.tiktok.com/@thefpandaguy] * YouTube - https://www.youtube.com/@thefpaguy8376 [https://www.youtube.com/@thefpaguy8376] Follow Financial Modeler's Corner * LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=truehttps://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true [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 [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; (32:58) Rapid Fire; (36:09) Nugget; (36:55) Connect with Derek; (37:21) Outro;

Beyond the Numbers: Lance Rubin's Insights on AI, Power BI, and the Future of Financial Modeling

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/ [https://www.modelcitizn.com/] * LinkedIn - https://www.linkedin.com/in/financial-modelling/ [https://www.linkedin.com/in/financial-modelling/] Follow Paul: * Website - https://www.thefpandaguy.com/   [https://www.thefpandaguy.com/  ] * LinkedIn - https://www.linkedin.com/in/thefpandaguy/  [https://www.linkedin.com/in/thefpandaguy/ ] * TikTok - https://www.tiktok.com/@thefpandaguy  [https://www.tiktok.com/@thefpandaguy ] * YouTube - https://www.youtube.com/@thefpaguy8376  [https://www.youtube.com/@thefpaguy8376] Follow Financial Modeler's Corner  * LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  [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  [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;

Beyond the Classroom: Why Learning Excel is an Investment for your Career

In this episode, we have another special treat for you which is part two of the Financial Modeling World Cup (FMWC) and the Microsoft Excel Collegiate Challenge (MECC). Paul attended modeling competitions in Arizona and Las Vegas watching competitors compete and talking to the commentators, spectators, and faculty, and we have brought you a few of those interviews. Listen to this episode as : * Andrew Ngai shares how amazing it was to look out at the facility, the HyperX arena in Vegas, and realize that this was his hobby. * The founder of FMWC, Andrew Grigolyunovich talks about how it fulfilled a dream of his to talk about that. * Competitors share why learning Excel is so important for your career. * The students share some of their experiences, favorite Excel formulas, and why they're such big fans of Excel and financial modeling. Quotes: “Our slogan is “Learn, Train, Compete” for the Financial Modeling World Cup.” Andrew Grigolyunovich "It was the dream come true...that was exactly the moment that the thing that I was dreaming of, probably since back in 2016." Andrew Grigolyunovich "You're able to just help each other out. So, yeah, for me, my favorite part was the collaboration, just interacting." Zach 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 [http://www.fminstitute.com/podcast] and use code Podcast to save 15% when you register. Go to https://earmarkcpe.com [https://earmarkcpe.com/], download the app, take the quiz and you can receive CPE credit. Follow Andrew Ngai : * LinkedIn - https://www.linkedin.com/in/andrewngai [https://www.linkedin.com/in/andrewngai] Follow Andrew Grigolyunovich : * LinkedIn - https://www.linkedin.com/in/andrewgrig/ [https://www.linkedin.com/in/andrewgrig/] Follow Paul Wagner: * LinkedIn - https://www.linkedin.com/in/phwagner/ [https://www.linkedin.com/in/phwagner/] Follow Paul: * Website - https://www.thefpandaguy.com/https://www.thefpandaguy.com/ [https://www.thefpandaguy.com/] * LinkedIn - https://www.linkedin.com/in/thefpandaguy/https://www.linkedin.com/in/thefpandaguy/ [https://www.linkedin.com/in/thefpandaguy/]https://www.linkedin.com/in/thefpandaguy/ * TikTok - https://www.tiktok.com/@thefpandaguyhttps://www.tiktok.com/@thefpandaguy [https://www.tiktok.com/@thefpandaguy]https://www.tiktok.com/@thefpandaguy * YouTube - https://www.youtube.com/@thefpaguy8376https://www.youtube.com/@thefpaguy8376 [https://www.youtube.com/@thefpaguy8376] https://www.youtube.com/@thefpaguy8376 Follow Financial Modeler's Corner * LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true [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 [https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984] In today’s episode: (00:45) Intro; (01:34) A clip with Andrew Ngai ; (02:00) Interview with Andrew Grigolyunovich ; (11:46) Interview with Paul Wagner ; (17:12) Interview with Sarah ; (22:12 - 22:58) Validate your Financial Modeling Skills with FMI’s Accreditation Program (ad ) ; (22:59) Introduction to Students Clips Section ; (24:30) Interview with Tess Patton and Spencer Angell ; (39:57) Interview with Kameron ; (43:56) Interview with Daniel; (46:37) Interview with Mikayla & Carson ; (52:20) Clip from the Team of Utah; (58:43) Outro;

From Campus to Spreadsheet: The Microsoft Excel Collegiate Challenge Journey

Welcome to 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 Financial Modeling Institute (FMI) the most respected accreditation in Financial Modeling globally. In this episode, we have a special treat for you with multiple guests who attended the Microsoft Excel Collegiate Challenge (MECC). At the beginning of November, Paul had the opportunity to spend a day at the University of Arizona campus and watch these students compete and talk to commentators, spectators, competitors, and faculty, and we have brought you a few of those interviews. Listen to this episode as:  * Excel MVPs, Oz Du Soleil and Jon Acampora share why they attended the show, what they love about the competition, and the magic of Power Query * The host of this competition, Prof David Brown talks about MECC. * The winner, Patrick Chatain and 3rd-place finisher Benjamin Weber share their experiences. * Missy and Teresa from Salve Regina University, talk about why they started with Excel as they were building out a data analytics business program. * Craig Hatmaker shares everything about LAMBDA's and 5G modeling components. Quotes:    “[How does MECC benefit students in the real world] Sometimes we get sponsors to actually write cases that are based on what they do . S o it gives them real-world experience of what they would be doing, which is invaluable w hen you're interviewing for a job . ....... ” - Professor David Brown   “ [Do you feel like you're better in Excel today for having competed] When I started competing, I didn't even know what Lambda, let alone dynamic arrays and all of that was. Now I know most of them and I think those are pretty good functions with pretty good use cases. So I think that made me a much better user in Excel. ” - 3rd Place Finisher Benjamin Weber    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 [http://www.fminstitute.com/podcast] and use code Podcast to save 15% when you register.   Go to https://earmarkcpe.com [https://earmarkcpe.com] , download the app, take the quiz and you can receive CPE credit.    Follow Oz du Soleil :     YouTube - https://www.linkedin.com/in/ozdata/ [https://www.linkedin.com/in/ozdata/] LinkedIn - https://www.youtube.com/channel/UCZgOVykPoRbSZQfY9YysiRQ [https://www.youtube.com/channel/UCZgOVykPoRbSZQfY9YysiRQ] Follow Jon Acampora :     Website - https://www.excelcampus.com/ [https://www.excelcampus.com/] LinkedIn - https://www.linkedin.com/in/jonacampora [https://www.linkedin.com/in/jonacampora] Follow David Brown:     LinkedIn - https://www.linkedin.com/in/dr-david-c-brown/?trk=public_post_feed-actor-name [https://www.linkedin.com/in/dr-david-c-brown/?trk=public_post_feed-actor-name] Follow Craig Hatmaker :     LinkedIn: https://www.linkedin.com/in/craig-hatmaker-4449879/ [https://www.linkedin.com/in/craig-hatmaker-4449879/] Website: https://sites.google.com/site/beyondexcel/home [https://sites.google.com/site/beyondexcel/home] YouTube: https://www.youtube.com/@CraigHatmakerBXL [https://www.youtube.com/@CraigHatmakerBXL] Building with Fast + 5G- https://www.youtube.com/watch?v=8Zl3yURsvdE&t=1s [https://www.youtube.com/watch?v=8Zl3yURsvdE&t=1s] Demo using 5G Components- Intro 5G - Watch an Excel Model do something incredible using 5G methods - YouTube [https://www.youtube.com/watch?v=uEXd8h1i3LM] Gist site to download Craig Hatmakers LAMBDAs for 5G modeling- https://gist.github.com/CHatmaker [https://gist.github.com/CHatmaker]   Follow Paul: Website - https://www.thefpandaguy.com/  [https://www.thefpandaguy.com/]   LinkedIn - https://www.linkedin.com/in/thefpandaguy/  [https://www.linkedin.com/in/thefpandaguy/] TikTok - https://www.tiktok.com/@thefpandaguy  [https://www.tiktok.com/@thefpandaguy] YouTube - https://www.youtube.com/@thefpaguy8376 [https://www.youtube.com/@thefpaguy8376]     Follow Financial Modeler's Corner  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true [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 [https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984]     In today’s episode:   (00:43) Intro; (01:44) Interview with Oz Du Soleil and Jo n A campora ; (19:51) Everything about MECC with David Brown; (25:43 - 26:30) Validate your Financial Modeling Skills with FMI’s Accreditation Program (ad); (27:30) Interview with Benjamin Weber ; (36:34) Interview with Patrick Chat ain ; (41:28) Interview with Missy and Teresa ; (48:38) Interview with Craig Hatmaker; (54:00) Outro.

Precision in Modeling: Sam Sivarajan’s Wisdom on Balancing Art, Science, and Decision-Making

Welcome to 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 Financial Modeling Institute (FMI) the most respected accreditation in Financial Modeling globally. In this episode, Paul Barnhurst is joined by Sam Sivarajan , who is a Speaker, Wealth Management Consultant, Behavioral Scientist, Stoicism Padawan, Fintech Advisor, Podcast Host, Bestselling Author and an Adventurer. He has a law degree, an MBA, a PhD in behavioral science, and has also earned a CFP.   Sam’s work is focused on how we can make  better decisions  so that we can get to  better results  – in investing, in leadership, and in our personal lives.   Listen to this episode as Sam shares: * His journey working in Telecom during the tech boom. * Advice on balancing the art and science of Modeling. * His advice on making smart assumptions. * The importance of Decision Making. * How to think critically when building a model and making assumptions. * Everything about his books ‘Making your money work’, ‘Uphill’ and ‘Am I Ok?’ * His position on controversial modeling issues, including circular references, dynamic arrays, modeling standards, AI in modeling, and more . Quotes:   “ Never forget and lose sight of why you're creating the model, and who will use it....... ” “ In my view, the model is simply a numerical representation of some prior deep-rooted strategic thinking , a nd you're bringing that to bear in that model as a representation . ”   “ A model is a simplification of reality. It isn't reality. And to remember that the model is but one tool in making key decisions. It shouldn't be the be all and end all...... ”   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 [http://www.fminstitute.com/podcast] and use code Podcast to save 15% when you register.   Go to https://earmarkcpe.com [https://earmarkcpe.com] , download the app, take the quiz and you can receive CPE credit.  Am I Ok? - https://www.amazon.co.uk/Am-Essential-Questions-Investors-Financial-ebook/dp/B0CKY6XB4K?ref_=ast_author_mpb [https://www.amazon.co.uk/Am-Essential-Questions-Investors-Financial-ebook/dp/B0CKY6XB4K?ref_=ast_author_mpb]   Uphill - https://www.amazon.co.uk/Uphill-Ancient-Science-Choices-Challenges-ebook/dp/B0BGMJX9VN?ref_=ast_author_dp&dib=eyJ2IjoiMSJ9.fVxD2IJYvz1m0ZgBXJmkb595Ei0TtF8Wjx2TMOwZWzVdTmpjGxlD9-zbKVPzvrFn.gUxmNYfh-t6jXwKbr2EqugQZ4LBWXPOLoX6DrlNEsU0&dib_tag=AUTHOR [https://www.amazon.co.uk/Uphill-Ancient-Science-Choices-Challenges-ebook/dp/B0BGMJX9VN?ref_=ast_author_dp&dib=eyJ2IjoiMSJ9.fVxD2IJYvz1m0ZgBXJmkb595Ei0TtF8Wjx2TMOwZWzVdTmpjGxlD9-zbKVPzvrFn.gUxmNYfh-t6jXwKbr2EqugQZ4LBWXPOLoX6DrlNEsU0&dib_tag=AUTHOR] Follow Sam:     Website - https://www.samsivarajan.com/ [https://www.samsivarajan.com/] LinkedIn - https://ca.linkedin.com/in/samsivarajan [https://ca.linkedin.com/in/samsivarajan] Podcast - https://www.samsivarajan.com/podcast [https://www.samsivarajan.com/podcast] Twitter - https://twitter.com/SamSivarajan [https://twitter.com/SamSivarajan]   Sam’s books:   Making your Money Work - https://www.amazon.co.uk/Making-Your-Money-Work-Financial-ebook/dp/B0B36PDQLX?ref_=ast_author_dp&dib=eyJ2IjoiMSJ9.fVxD2IJYvz1m0ZgBXJmkb595Ei0TtF8Wjx2TMOwZWzVdTmpjGxlD9-zbKVPzvrFn.gUxmNYfh-t6jXwKbr2EqugQZ4LBWXPOLoX6DrlNEsU0&dib_tag=AUTHOR [https://www.amazon.co.uk/Making-Your-Money-Work-Financial-ebook/dp/B0B36PDQLX?ref_=ast_author_dp&dib=eyJ2IjoiMSJ9.fVxD2IJYvz1m0ZgBXJmkb595Ei0TtF8Wjx2TMOwZWzVdTmpjGxlD9-zbKVPzvrFn.gUxmNYfh-t6jXwKbr2EqugQZ4LBWXPOLoX6DrlNEsU0&dib_tag=AUTHOR]   Follow Financial Modeler's Corner  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true [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 [https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984]     In today’s episode:   (00:22) Intro; (00:45) Welcoming Sam; (01:01) The worst financial model Sam has ever seen ; (02:57) Sam’ s background; (04:22) Sam’s experience at Telecom; (10:27) How to balance the art of Art and Science of Modeling ; (12:27) Why is the process often more important than the actual Model? ; (17:07) Advice on Assumptions; (21:51) Sam’s technique to get better at Modeling; (22:30 - 23:15) Validate your Financial Modeling Skills with FMI’s Accreditation Program (ad); (23:21) How people think about making decisions; (24:35) How to make better decisions; (27:40) Frameworks that help with Decision Making; (31:57) Sam’s experience while writing his books - Making your Money Work, Uphill and Am I Ok?; (34:20) Rapid Fire; (37:38) Connect with Sam; (38:17) Sam’s advice on being a successful Modeler; (39:34) Paul’s Top Picks - The importance of the Thinking Process - Validating Assumptions (41:00) Outro