Firmbase

What happens when finance leaders and emerging AI solutions come together? Last week, we wrapped up our first-ever AI Demo Day at The F Suite, And I couldn't be more excited about how it turned out. Over 180 members joined us to dive into how four pioneering companies are transforming the financial technology stack with AI. The energy and the feedback we received was beyond incredible. One member even shared, “Best event I have attended thus far. The vendors were relevant, and the insights were invaluable.” But what really stood out to me were the leaders/visionaries driving these companies forward and driving meaningful change: Firmbase: Led by Tomer Federman (formerly at Meta), they are redefining how FP&A teams leverage AI to navigate financial planning challenges. FinQore (Formerly SaaSWorks): Founded by Vipul Shah & Jim O'Neill, their experience at companies like HubSpot and Goldman Sachs is helping bring a fresh perspective to AI-driven financial analysis. Runway: Siqi Chen brings his incredible & diverse background—NASA, Zynga, and Postmates—to innovate in financial forecasting in an exciting way. Tabs: Led by Ali Hussain (formerly at Latch and BCG), Tabs is based right here in NYC (they recently closed their Series A) and is streamlining financial processes in ways that are both forward thinking and impactful. This event wouldn’t have been possible without the hard work of our team, our engaged community of CFOs and finance leaders and of course our sponsors who made this event so special. How do you see AI transforming the finance industry in the coming years? Drop your thoughts below! #CFOs #AI #thefsuite

As CEO of Firmbase, I meet with FP&A leaders every single day. Here’s what the top 1% do differently - it comes down to 5 crucial things: 1. Their financial models offer clarity, not just numbers Most FP&A teams build financial models that overwhelm stakeholders with data. They focus on what happened and add a bunch of different metrics. The best FP&A leaders focus on the "why" and "what’s next." They build models that offer context and strategic insights. They guide business leaders through complex questions, turning data into actionable intelligence. Their models don’t just report - they inform. 2. They run continuous planning, not one-off planning cycles Effective FP&A leaders understand that static, annual plans are irrelevant. Business conditions shift rapidly, driven by market dynamics, customer needs, and internal changes. The best strategic finance leaders adopt rolling forecasts and continuously adjust their plans based on real-time data. They use rolling forecasts to proactively identify trends early, keep finance agile, and change direction quickly. 3. They build partnerships with business partners, not just send reports Less effective FP&A leaders focus on sending spreadsheet templates and reacting to requests. Their communication is one-way and often limited to senior leadership. The best FP&A leaders build meaningful relationships across the organization. They understand the business challenges they face and position finance as a trusted partner. Their collaborative approach enhances alignment across business units. 4. They drive strategic decisions, not just share data Most FP&A leaders distribute reports and dashboards with little explanation, assuming the numbers speak for themselves. This approach leaves budget owners to interpret the data on their own. The best FP&A leaders communicate at a different level. They highlight key takeaways and frame insights: - Collaborate using real-time budget variances - Recap reports that spotlight strategic changes - Run scenario analyses to align w/ decision points Every piece of their communication is designed to actively add value, provide clarity, and prompt action. 5. They use modern software, not stick with manual processes Spreadsheets are certainly useful for specific tasks, but can become a roadblock for complex, company-wide planning. The best strategic finance leaders use modern FP&A software to improve planning collaboration, automate data workflows, and enhance scenario modeling. This also frees up their time for strategic work, allowing them to focus on deeper analysis instead of data entry or version control. TAKEAWAY FP&A is no longer just about modeling skills. The best leaders go well beyond number-crunching. They take deliberate actions to drive more informed decisions.

It’s Nov, and 90% of FP&A teams are fully immersed in annual budgeting. But, they're missing a seismic shift. Here are 10 reasons why the best prioritize continuous planning (and how it can 10x your decision making): 1. Life’s unpredictable, and so is business. Being in continuous planning mode lets you adjust your models quickly, so that your numbers always stay accurate and reliable. No more basing decisions on outdated data. 2. With up-to-date rolling forecasts, making good decisions suddenly becomes so much easier. Your finance team finally proactively reacts to what’s happening. 3. No more year-end spending sprees just to match budget decisions made last year. Continuous planning ensures you’re spending your budget in a way that matches where your business is at right now. 4. Your planning also stays in sync with what the company is trying to achieve, even if goals change mid-year. You’re not stuck trying to hit a revenue target that was set last Dec and doesn’t make sense anymore. 5. Regularly updated forecasts show important stakeholders that your finance team is on top of things. It reassures investors that the company’s being run with real-time insights and proactive strategies. 6. Finally, you can spot problems early. If something’s not going as planned, you’ll catch it sooner and can fix it before it becomes a big issue. 7. Continuous planning not only means that your targets adjust with reality, it also makes them fairer and more motivating for everyone across the org. 8. Your FP&A team gets used to change and becomes more agile. Change is now treated as business as usual (welcome to B2B). 9. Cross-department alignment improves. The regular planning collaboration between departments, ensures you're aligned with business partners and working toward the same business objectives. 10. This one may be my favorite: your finance team becomes "what-if ready." Need to test out different scenarios? Great, you can now quickly run the numbers and see how different strategies play out. TAKEAWAY If your FP&A team is wasting a lot of time on budgeting - stop. It’s time for a rethink. Don’t let your business get stuck in yesteryear's playbook. The best FP&A teams are no longer tethered to annual budgets. They know the future belongs to those who adapt. And in 2024, continuous planning is the way forward.

The CFO of $50M+ ARR business recently told me how she slashed their forecast vs. actuals variance by 68%. The key? Moving from reactive to proactive planning. Here are the 5 key steps she took (and why it made such a big difference): 1. The CFO realized her team was spending way too much time manually gathering data from systems like ERP and HR. By automatically syncing actuals data with their forecasting, they drastically cut down the time spent on both repetitive data collection and mapping. 2. They rolled out a no-code scenario planning engine into their forecasting processes. This enabled the team to quickly model out new scenarios, and anticipate the impact on things like cash flow and profitability. They could finally adjust scenarios in real-time as market conditions kept fluctuating. 3. They also implemented extensive automation to their reporting. This applied to areas like budget vs. actuals reporting, financial reconciliations, and data permissions management. They also invested significant efforts in streamlining internal reporting workflows to leadership. 4. The CFO strengthened the FP&A team's collaboration with departments like sales, marketing, and R&D. By eliminating silos, the team gained a deeper understanding of each department’s financial goals and challenges. This helped finance deliver more relevant insights for each budget owner. 5. They moved from static reporting to continuous planning. Real-time tracking of KPIs gave the FP&A team improved visibility and enabled better forecasting of liquidity and profitability. It also equipped the CFO with the data needed to make better decisions based on an up-to-date rolling forecasts. —— The shift to proactive forecasting is one of the most significant changes happening in FP&A right now. Strategic finance is all about transforming data into actionable business insights. And modern finance leaders recognize the importance of identifying and acting on financial variances early.

I’ve been a budget owner and now support FP&A teams. From both angels, I’ve seen major planning gaps (including at $1B+ companies). To improve collaboration, focus on these 10 crucial things when assessing FP&A software: ? 1. Don’t get caught up in a laundry list of features. Optimize for a solution that can support your key business objectives across the org, like forecasting accuracy, granular variance analysis, and better decision-making. ? 2. Budget owners don’t need more data; they need actionable insights. The software should distill key metrics and trends, not overwhelm them with raw data. Too much complexity slows down decision-making. ? 3. Financial planning is rarely straightforward. With constant revisions and changes, the models created via the software must be flexible and clear enough to adapt without hampering the planning process. 4. FP&A need to model out various scenarios quickly. Software that doesn’t offer easy, no-code scenario planning will fall short, leaving your FP&A team and business partners unable to adapt fast enough to changing conditions. ? 5. Seamless integration with the relevant systems is table stakes (ERP, HRIS, data warehouse etc.). Make sure you pick a solution that can dramatically minimize manual data entry. It often derails the entire rolling forecast process. ? 6. Don't underestimate change management. Implementing new FP&A software involves much more than just a technical rollout. Inquire about the level of training and onboarding support to ensure strong adoption internally. ? 7. Forecasting involves input from many budget owners across different departments. FP&A software that lacks real-time collaboration tools will cause bottlenecks and delays. 8. Don't overlook real-time reporting needs. Your business partners need and expect access to up-to-date information. This is crucial to keep track of how they're tracking against both their allocated budget and forecast. ? 9. As your company grows, your planning needs will change. FP&A software that isn’t scalable will quickly become outdated, forcing you to switch or work around the limitations. Choose software that can grow with your business. ? 10. Complex interface will slow adoption and frustrate your budget owners and business partners. The software must be intuitive, with user-friendly design that encourages widespread usage. ? TAKEAWAY Collaborative planning is key to foster P&L accountability across the org. It also improves forecasting accuracy and leads to better decisions. In 2024, it's time to step up your planning collaboration game.

The cost of hiring the wrong FP&A person can easily reach $40K. Yet, I'm seeing many businesses with misguided priorities when hiring FP&A talent. Here’s the #1 mistake over 50% of companies make (and what to look for instead). ? In recent conversations with finance leaders, I've noticed a recurring theme when it comes to new FP&A hires: ? - "Excel wizard needed for fast-paced work" - "Seeking a data cruncher for Excel models" - "Must be expert in VLOOKUPs, INDEX, Excel" - "Looking for FP&A with advanced Excel skills" ? It feels as if they're trapped in a time loop. ? Don't get me wrong, I know that FP&A involves a lot of number-crunching. ? Absolutely, technical modeling skills matter. ? And yes, Excel remains an important component in FP&A's toolbox. ? But, c'mon -- it’s 2024. ? Mastery of Excel is definitely NOT the most important quality to seek in your next FP&A hire. ? Being an Excel power-user doesn’t automatically translate into strategic insights or better forecasts. ? Plus, you should build your financial models using modern technology and continuous planning methodologies. ? This will allow you to turbocharge your team's speed, productivity and decision making process. ? Hiring FP&A primarily based on Excel skills is missing the mark. ? Big time. ? To succeed in FP&A today, your team needs to go beyond outdated forecasting processes. ? Prioritize hiring business-savvy individuals who are skilled in aligning data with business objectives. ? TAKEAWAY It's time to move past yesteryear's job requirements. If you’re still hiring based on Excel skills above everything else -- don't. Your FP&A team should consist of strategic thinkers, not Excel technicians. ? Focus on FP&A hires who can leverage business insights and AI-powered technology to drive better, faster decisions.

Last week I had a surprising discussion with one of our Firmbase clients, a B2B SaaS company valued at $500M+. I met with the VP FP&A and something he said really stuck with me: “The notion that financial modeling today is about number crunching is totally false.” Wait, what? When I asked him what led him to that conclusion, he went on and on about one FP&A analyst on his team. How forward-thinking and valuable she is. "OK, but how good is she in actually building models," I asked? "Pretty good," he said. "I have more skilled modelers, but she is by far is the most influential." Here's the thing: To maximize value, you need to deeply understand the business dynamics at play behind those numbers. It's not about mere modeling skills. It’s equally as much about being business savvy and asking the right questions. The VP FP&A wasn’t praising the analyst because of her modeling mastery, but rather her ability to drive better business decisions. She's the best on his team in connecting the dots -- seeing patterns and anticipating market shifts. —— Remember, FP&A is no longer a support function. ? And solid number crunching alone doesn't cut it anymore. Nowadays, FP&A is expected to leverage data to move the business forward. To stand out, you need to think like a strategist and help guide more informed decision making processes.

The best CFOs we work with don't focus on data. Here's what they do instead (and why it's paying off across the entire org). They know the real power lies in cultivating trust in financial data. They understand the importance of data reliability and invest heavily in creating a resilient, trustworthy finance function. I've seen the impact?that trust in financial data can have on an organization. It’s absolutely worth the investment. Here's what this means in practice. The role of a CFO should be less about: - Doubting the accuracy of financial reports - Ignoring need for automation & regular audits - Allowing inconsistencies in financial processes - Delaying decision making due to unreliable data The role of the CFO should be more about: - Investing in FP&A tech & upskilling the team - Creating a culture of trust in financial data - Putting in place regular data audits - Automating financial processes P.S. How is your organization building trust in your financial data?

People say finance is all about numbers. I disagree. Working closely with finance leaders, I've seen firsthand how the best ones go well beyond just analysis — and drive better business decisions. What does that look like in action? Well, you need to transform numbers into stories that anyone can grasp. Why is that so important? Because finance is about much more than just reporting figures. Modern strategic finance is about building narratives, backed by data, and making those numbers speak: - Crafting narratives that resonate - Simplifying data without losing its meaning - Translating numbers into actionable decisions Sure, presenting solid reports is as important as ever, but if half the room feels lost, you're not really doing your job. From my experience, the finance leaders who stand out the most are the ones who bridge the gap between data and narrative. That's because numbers represent only half the equation. The other half is how you interpret and communicate the data to drive more informed decisions. I've seen this time and time again - the best finance leaders know how to do both. Turns out that when everyone’s on the same page, decision-making gets a whole lot easier, and faster. In 2024, strategic finance is about guiding the business in the right direction. That's where the real magic happens.

Budgeting season is around the corner. Yet, I'm seeing some finance teams heading into it with the WRONG planning mindset - leading to the same costly mistakes. It's time for a reset. Here’s the problem: - Businesses change - Strategic priorities shift - New opportunities emerge - Market conditions fluctuate A static, once-a-year budget just can’t keep up with all of that. That's why modern FP&A teams no longer see planning as a one-off exercise. Instead, they focus is on continuous planning. And they’re constantly forecasting and adapting. To support that, they're implementing the necessary tools and processes. Now, why is that so important? Because the continuous planning methodology is built from the ground up to evolve. And a rolling forecast allows the FP&A team to adjust quickly when reality deviates from assumptions. Spoiler alert? It always does. Whether it’s variances in actuals, a strategic shift, or a new macro trend, continuous planning ensures FP&A isn't locked into an outdated strategy. TAKEAWAY To be clear, I'm not claiming you can forecast the future perfectly. Nobody can do that. Rather, it’s about being agile enough to respond to changes in real-time. It's reactive vs. continuous planning. And in 2024, continuous planning wins.