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

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Nicolas Boucher, an AI Applications in Finance expert. Nicolas shares his rich career trajectory from PwC auditor to corporate finance leader and his eventual transition into AI and finance training. He sheds light on the immense potential of AI in streamlining financial processes and enhancing decision-making. Nicolas and Randy discuss automated invoice processing, real-time financial reporting, and leveraging AI for strategic finance operations. They also explore the transformative impact of AI on business efficiency, explaining its practical applications and the importance of continuous learning for finance professionals.

Quotes

• “We get a lot of data. The problem is we pass through the data to management and then we don't help. There is a science that says that the brain registers and captures an image 60,000 times faster than a word or a figure. So if you really want to… advice for everybody working in finance and wanting to be noticed by management, thinking about the Napoleon map, send the graph that the management will remember and they will. This is what will stick. Not a long email. Not a nice report. The graph will stick.” -Nicolas Boucher [13:53]

• “We are the champions of Excel, we are the champions of ERP. I believe that we can be that good and be the champions of business in AI. We have a culture of using technology for our job. With AI, there is a lot of data that we can make sense of, and I think finance is ready to use AI.” -Nicolas Boucher [18:26]

Expert Takeaways

• Career Transition Insights: Nicolas’ shift from auditing to corporate finance and eventually to AI and finance training, emphasizes the importance of continuous learning and adaptability.
• AI in Invoice Processing: How AI can drastically reduce manual processing time in invoice handling and expense management.
• Real-time Financial Reporting: Integrating various sub-ledgers using AI tools like Puzzle IO to produce real-time financial reports and insights, improving business decisions.
• Practical AI Applications: Asking the right questions to AI models to get the most useful and specific answers, especially in financial analysis.
• Learning and Networking: Encouraging finance professionals to leverage communities and resources to advance AI adoption.

Timestamps

(00:12) The Impact of AI on Finance

(07:28) From Corporate Finance to Empowering Millions Through Digital Coaching

(12:50) The Power of Visual Data Representation in Finance

(20:05) Trusting AI Tools for Financial Analysis and Reporting

(27:13) AI Enhancing Invoice Processing and Accounts Payable Efficiency

(37:02) Key Metrics, Influencers in AI and Finance

(43:44) Learning and Entertainment in Effective Keynotes

Links

Maxio

Upcoming Events

Maxio Institute Report

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with two SaaS industry veterans, Amber Wendover, Principal at Thinking People Consulting, and Tom Perry, Chief Career Officer and Founder of Engaged Pursuit. Randy, Tom, and Amber discuss the intricacies of employee engagement and the indispensable role that personal growth plays in organizational success. They take a look at the poignant necessity for CEOs to focus on unlocking their team's potential, referencing Randy’s seven secrets of CEO success that are pivotal in steering organizational strategies. Amber and Tom also talk about the "8th" secret - the need to invest in the "people's tribe," empowering the individual contributors and front-line managers who often form the backbone of company operations.

Quotes

• “As a leader, when you ask your team if they need something different, that creates a place where we can all have a discussion and a dialogue. Leaders, state your intentions even if you have an unintentional impact.” -Amber Wendover [25:45]

• “The best leaders are ones who show up as their true selves, who are authentic, who don't have all the answers, who are inspiring, who can have meaningful conversations, who talk about their weekends, who talk about their families.” -Tom Perry [19:13]

Expert Takeaways

• Recognize the critical transition from individual contributor to manager and the importance of management excellence.
• Understand the value of fostering a growth culture versus a genius culture in the workplace.
• Acknowledge the importance of authentic leadership and human connections, especially in the context of remote or hybrid work environments.
• Remember the influence of personal brand and intention in leadership, contributing to a growth-oriented and learning-supportive environment.

Timestamps

(01:46) Unlocking Potential: The Seven Secrets of Successful CEOs

(04:50) Addressing the Needs of the Forgotten Middle Community

(10:26) Identifying the Eighth Secret of CEO Success

(14:39) Transforming Corporate Culture: Growth Versus Genius

(20:52) Fostering Authentic Leadership and Growth Culture

(29:41) Reflecting on Legacy and Building Supportive Leadership Networks

(32:14) Interpreting Interactions With Respect and Intention

(44:48) Empowering Employee-Driven Learning and Development

Links

Maxio

Upcoming Events

Maxio Institute Report

Randy Wootton LinkedIn

Amber Wendover LinkedIn

Thinking People

Tom Perry LinkedIn

Engaged Pursuit

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Josh Aharonoff, CEO of Mighty Digits and Your CFO Guy, and the Founder of Modelwiz. With a diverse background that includes a start at the Big Four accounting firm KPMG, experience as a startup founder, and strategic finance roles, Josh has carved out a niche as a fractional CFO. Josh emphasizes the importance of having a robust financial model, detailing the four stages of building one. He also highlights the critical differences between traditional accounting roles and the value-add of a fractional CFO, especially for seed and Series A companies. Randy and Josh discuss actionable takeaways that underscore the essence of financial rigor and strategic planning for burgeoning SaaS companies.

Quotes

• “I think the key to having a month-end close completed in a short timeframe is first, real-time classification, categorization, reconciliations, not waiting until the next month when all the data is available to be able to do all of that.” -Josh Aharonoff [14:13]

• “The financial model should serve as a centralized hub for all the information related to what's happening in the business historically, as well as what you think is going to happen in the future.” -Josh Aharonoff [19:27]

Expert Takeaways

• The Importance of a Robust Financial Model: The four stages of creating a vital financial model, including revenue build, P&L layering, balance sheet integration, and the final stage connecting the chart of accounts to accounting software.
• Differentiating a Fractional CFO: Unlike traditional accountants, a fractional CFO offers nuanced, strategic financial guidance tailored to the specific growth needs of startups.
• Financial Operations and Month-End Close: Critical best practices for financial operations, emphasizing real-time classification, standard operating procedures, and efficient month-end close activities.
• Leveraging Excel for Financial Planning: Modelwiz, an Excel plugin that automates complex financial modeling processes, highlighting the ongoing relevance and power of Excel in financial operations.
• Engaging Content for Finance Professionals: With Your CFO Guy, Josh has built a significant following by providing daily newsletters on various finance topics, showcasing the value of consistency and engaging content.

Timestamps

(00:40) From Big Four Accounting to Startup Founder

(04:14) Lessons Learned from Entrepreneurial Failures and Consulting Success

(13:30) Automating Financial Forecasting with Model Wiz and Excel Integration

(23:19) Four Stages of Building a Financial Model

(32:44) The Importance of Budget Versus Actuals in Financial Reporting

(44:25) The Importance of Gross Margin in SaaS Companies

(45:40) Negotiation Strategies and Influencer Insights in SaaS Tech

Links

Maxio

Upcoming Events

Maxio Institute Report

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Jon Cochrane, Director of the Maxio Institute, to discuss the latest insights from their SaaS Growth Trends report. Randy and Jon delve into the significant findings of the Q1 2024 report, discussing the differences in growth patterns between subscription-based and consumption-based pricing models, as well as the dynamics between companies below and above one million dollars in revenue. Jon also shares a detailed analysis of the strongest and weakest sectors, with notable mentions of the developer and engineering tech space and the transportation and logistics sector.

Quotes

• “There are unique challenges that private markets face. And you typically don't know if things are kind of trending in the right direction or companies are struggling until you kind of get that press release that comes out and takes everybody by surprise.” -Jon Cochrane [02:42]

• “People who know how to leverage AI are going to outperform people who don't know how to leverage it.” -Jon Cochrane [23:24]

Expert Takeaways

• Growth Uptick: SaaS companies are beginning to see a rebound in growth, with a noticeable improvement from previous quarters, particularly in usage and consumption-driven models.
• Pricing Models: Companies utilizing consumption-based pricing models are currently outperforming those with annual subscription renewals.
• Revenue Tiers: A distinct difference in performance exists between companies under and over one million dollars in revenue, with smaller companies experiencing a significant growth spike.
• Vertical Performance: Developer and engineering tech, and the transportation and logistics sectors have shown substantial growth, while e-commerce and retail lag behind.
• Market Dynamics: Insights into the dynamics between public and private market trends, indicating a cautious optimism in the industry.

Timestamps

(04:29) Economic Growth Uptick Amidst Recession Uncertainty

(10:00) Revenue Growth Dynamics for Early Stage vs. Established Companies

(20:10) Navigating Layoffs and Efficiency in the Tech Sector

(22:33) AI Augmentation's Impact on Efficiency and Investment in Marketing

(25:03) E-Commerce and Retail Struggle Amid Consumer Price Sensitivity

(27:06) Unpacking What Makes Top 10% Companies Stand Out

Links

Maxio

Upcoming Events

Maxio Institute Report

Randy Wootton LinkedIn

Jon Cochrane LinkedIn

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Nathan Latka, CEO of Founderpath. Known for his entrepreneurial spirit, data-driven approach, and thought-provoking insights, Nathan shares his three-phase entrepreneurial journey, starting with his initial foray into the booming social media world and progressing into the creation of the Latka Agency, and then Founderpath. Randy and Nathan discuss the changing landscape of the startup market, the importance of media-led growth, and the role of debt financing in funding software companies. Nathan shares insights from his extensive experience interviewing SaaS CEOs and highlights the need for founders to have a clear vision, build their tribe, and understand the value of inorganic growth.

Quotes

• “You cannot buy attention anymore. Doesn't matter how much money you have. If you are a bootstrapped founder competing against a VC-backed competitor, and they're trying to buy attention, but you're more creative and you have figured out to get the attention of your customers in a creative way, you will win long term.” -Nathan Latka [11:35]

• “I think there are two kinds of founders. There are founders that sort of read and are consumers of intellect all day long and they're terrible at taking action. I would much rather go for the founder that takes action quickly and learns from a person versus the one that just reads all day.” -Nathan Latka [28:50]

Expert Takeaways

• Successful entrepreneurs often have a deep grasp of industry pain points and innovate based on their experiences, leading to founder-market fit.
• Debt financing can be a strategic alternative to VC funding for SaaS startups, offering non-dilutive capital that aligns with an entrepreneur's vision for growth.
• In the current digital landscape, companies must earn attention through creativity and engaging content, rather than solely relying on paid advertising.
• Savvy founders are turning to inorganic growth and financial engineering, including M&A activities, to scale their businesses and achieve arbitrage opportunities.
• The role of the CFO in a SaaS company has evolved from purely managing finances to being strategically involved in driving growth and operational efficiency.

Timestamps

(02:20) Aspiring for Financial Freedom Through Entrepreneurship

(06:41) Podcasting as a Long-Term Investment in SaaS Marketing

(10:06) Venture Debt and Revenue-Based Financing in Software Deals

(15:44) Evolving Strategies for Startup Success and Market Attention

(24:09) Distinguishing Founder and CEO Roles in Company Growth

(30:42) VC Involvement and Board Dynamics in Startups

(38:42) Transitioning CFO Roles and Optimal Hiring Timelines

(43:13) Insights on Influencers and Intelligent Investment Analysis

Links

Maxio

Upcoming Events

Maxio Institute Report

Randy Wootton LinkedIn