This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Bill Hollowsky, VP of Accounting Services at Kruze Consulting. Bill shares his journey through various organizations like KPMG, Oracle, and SunGard. He offers insights into the changing landscape of accounting in the startup world, and the importance of implementing effective technology stacks from QBO to NetSuite, and shares his perspective on the industry's labor shortages. Randy and Bill discuss critical industry trends, such as the cryptocurrency boom and bust, as well as the recent AI surge, and explore what to expect in the near future.

Quotes

• “When we transition new clients to us, we do a KYC and due diligence. We've seen some crazy stuff on the books and balance sheets. So what we'll absolutely do is go back and recast and redo and bring it up to standards. And in some cases, we actually offered to go ahead and amend taxes, so that everything is in sync and matches. ” -Bill Hollowsky [17:32]

• “As crypto took off and then the Web 3.0 trends happened, of course, it became a really big VC funding frenzy. But boy, folks were really writing checks into the start-ups that were impacting the whole market, which was really cool. So in a way, we had to become crypto and Web 3.0 experts very quickly. And if you looked at the GAAP standards and methodology and the FASB codification, it was very archaic.” -Bill Hollowsky [22:51]

Expert Takeaways

• The necessity for SaaS accounting firms to leverage advanced technology stacks for efficient handling of financial tasks.
• How Bill's team uses a blend of off-the-shelf tools and custom-built software to meet diverse client needs.
• Evaluating transition phases where startups move their accounting systems, especially during significant funding rounds.
• An emphasis on the current talent shortage in the accounting profession and Kruze Consulting's strategic adaptation.
• The emergent importance of AI and how it is poised to revolutionize workflows in SaaS accounting services.

Timestamps

(00:04) Agile Methodologies in Accounting and SaaS

(03:21) Leveraging Technology for Efficient Accounting in Fast-Growing Firms

(06:50) Scaling Startups with Efficient Back Office Technology

(11:34) Navigating Accounting Transitions in Growing B2B SaaS Companies

(16:03) The Importance of Accurate Accounting in B2B SaaS Acquisitions

(18:48) Navigating Startup Challenges Amidst Black Swan Events and Market Shifts

(24:29) AI's Impact on Business Efficiency and Workforce Augmentation

(29:42) Innovative Hiring Strategies Amidst an Accounting Labor Shortage

(38:46) Mentorship and Inclusivity in Remote Work Environments

(44:26) Insights on Client Service, Influencers, and Startup Podcasts

Links

Maxio

Upcoming Events

Maxio Institute Report

Randy Wootton LinkedIn

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Michelle Valentine, CEO of Anrok. Michelle’s multifaceted career journey—from civil engineering at Stanford to coding at Airtable, and her foray into finance and venture capital—sets the stage for a deep dive into the evolving role of the CFO in today's dynamic market. Michelle underscores the role of technology in transforming how CFOs and companies operate, urging leaders to prepare for a paradigm shift where creating software becomes incredibly efficient.

Listen as Michelle and Randy explore investor skills, how CFOs can leverage AI, and strategic planning that helps companies thrive amidst the current economic disruptions.

Quotes

• “I think as an investor it's obvious why that's important, how to make good bets, but also for CEOs and CFOs where you're really capital allocators. And figuring out where your company is, where the market is at present, and where you should be allocating your resources in the future is critical.” -Michelle Valentine [05:33]

• “ One thing that I've learned through looking at a lot of software companies as a VC is that you really have to earn your right to go multi-product. If you truly believe your market is massive, you should go deep and really make sure that you've put a big stake in the ground. You are the standard in that market before you branch out to too many products and spread yourself too thin.” Michelle Valentine [15:19]

Expert Takeaways

• Evolving Product-Market Fit: Product-market fit is a continuous journey, especially crucial for companies aiming to expand into new segments.
• Strategic Capital Allocation: Effective capital allocation requires clear visibility of the present and flexible mental models to adapt to rapid changes.
• Role of AI in Finance: CFOs need to understand and integrate AI tools to enhance operations, from automating workflows to strategic market positioning.
• Importance of Segmentation: Tracking metrics like CAC and net dollar retention by segments can provide deeper insights and efficiency in scaling businesses.
• Building Effective Teams: Encouraging teams to master AI tools and prompt engineering can significantly enhance productivity and decision-making.

Timestamps

(00:14) Michelle Valentine's Journey from Civil Engineering to CEO

(05:22) Aligning Investor and Executive Strategies Through Probabilistic Thinking

(10:23) Optimizing CAC Ratios and Segmentation for B2B SaaS Growth

(14:11) Challenges and Strategies in Scaling and Diversifying Product Lines

(20:50) The Evolving Role of CFOs in the AI Landscape

(29:54) Favorite Metrics, Books, and Influencers in Business

Links

Maxio

Randy Wootton LinkedIn

Michelle Valentine LinkedIn

Excession by Iain M. Banks

Money Stuff with Matt Levine

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Dan Balcauski, Founder and Chief Pricing Officer of Product Tranquility. Randy and Dan explore the nuances of pricing from multiple angles and unravel the intricacies of how to structure effective pricing strategies that align with company objectives to drive both revenue and profitability. Dan emphasizes that successful pricing involves far more than just setting the right price—it's about understanding who you charge and how you charge. They also discuss the emerging impact of AI on pricing models and the importance of sophisticated tools and structures for effective pricing governance.

Quotes

• “Who and how you charge determines your success more than what you charge.” -Dan Balcauski [06:50]

• “One of the major tools in the private equity playbook is pricing. It's one of the first things that they do. And why is that? It's because it's an untapped lever for growth and everyone's afraid to touch it.” -Dan Balcauski [29:28]

Expert Takeaways

• Importance of Objectives: Align pricing strategies with clear, agreed-upon business goals, whether it's maximizing revenue, profit, or growth.
• Value Conversations Over Pricing Conversations: Engage customers in discussions about the value your product delivers rather than merely focusing on price points.
• Pricing Governance: Establish a pricing council to ensure cross-functional buy-in and ongoing adjustment to pricing strategies.
• AI in Pricing: Use AI to enhance existing capabilities and consider outcome-based pricing models rather than just passing token costs to customers.
• Iterative Learning: Don’t fear experimenting with pricing models; learn and adapt rather than aiming for perfection out of the gate.

Timestamps

(05:44) Dispelling B2B Pricing Myths and Effective Customer Conversations

(14:31) Balancing Revenue and Profit in Pricing Strategies

(21:44) The Importance of Strategic Pricing and Cross-Functional Alignment

(29:43) Overcoming Fear to Unlock SaaS Growth Potential

(32:19) Navigating AI Pricing Strategies and Best Practices

(41:13) Insights on Metrics, Books, and Influencers

Links

Maxio

Upcoming Events

Maxio Institute Report

Dan Balcauski LinkedIn