I train Finance Teams at Soft Skills | Corporate Training Facilitator | Course Instructor | Keynote Speaker

You can build the best reports…
and still struggle to make people do something about it

(I know because I used to do that, even as FP&A Manager)

I could spend weeks preparing the reports and the deck
only to see eyes glaze over when I presented them.

My “storytelling” looked like this:
- 40 slides
- 200 KPIs
- 0 engagement

Then… silence
No decisions. No alignment. No impact.

The reality check hit me when the CFO told me
"Soufyan, bring me the story. People I will present to need more than tables and graphs"

And he was right: If leaders don’t understand the story,
they can’t act on it, no matter how accurate the numbers are.

That moment changed everything.

I stopped trying to impress, and started trying to connect.

→ I simplified the narrative
→ I turned variance bridges into business stories
→ I built frameworks to help others do the same

A few years later, I was training entire finance pros.
Then entire teams.
Then CFOs started calling.

Today, I run The Finance Circle,
where I help FP&A teams, controllers, and CFOs
turn reports into stories that drive decisions.

Here’s how it works:

• The Finance Stage  for teams
• Financial Storytelling Program — our flagship training for professionals
• Coaching programs — for CFOs and Leaders
• Workshops on AI, Copilot & Storytelling

I’ve trained teams at Holcim, Deloitte, Bauer Media, Ansell, and Proximus.
Different industries, same goal: make Finance heard.

Because the best insight in the world means nothing
if no one remembers it after the meeting.

Ready to make your next presentation land?
Send me a message — let’s make your story stick.

Soufyan Hamid

Every FP&A problem has a root cause

And most CFOs only see it when it’s already expensive

Here are 8 signs to watch out for

After 4 years at The Finance Circle, I’ve worked with enough FP&A teams to know this pattern by heart:

99,99% of the people have all the skills to do the job

But the small signals that feel manageable… are actually the ones derailing the team

The CFO delegates more operational responsibility to FP&A: 
- The forecasting direction
- More analysis led
- More interaction with the business

Generally, we call that "progress"

In practice, something else often happens

As FP&A becomes more autonomous, it naturally starts carrying the narrative day to day

Decisions need context and questions need answers

So FP&A fills the space of being the "delegated right-hand" of the CFO

Over time, the story of performance settles inside the team

And it becomes the default reference in conversations with the business

The CFO is still accountable but no longer the daily point of gravity

While alignement CFO-FP&A should always keep going

And that’s usually when the distance starts

Here are 8 signs your FP&A team may already be struggling:

1️⃣ Conflicting numbers
Different reports tell different stories
And suddenly, no one knows which number to defend

2️⃣ Endless reforecasting
Forecasts keep changing, but no one can clearly explain why
Ownership fades. Confidence follows

3️⃣ Unclear business ownership
FP&A produces analysis, but it’s unclear who owns the metric or the decision
So insights float. Nothing lands

4️⃣ Over-engineered models
Models become impressive artifacts instead of decision tools
Few understand the and even fewer trust them

5️⃣ Misaligned KPIs
Metrics look clean, but don’t reflect how the business actually creates value
This is often when people start to ignore reports

6️⃣ Low stakeholder trust
Business partners challenge every insight or quietly bypass finance
Why would they?

7️⃣ Reactive, not strategic
Most energy goes into explaining the past
Very little shapes what happens next

8️⃣ Executive escalation
Issues surface at ExCo before FP&A raises the flag
And finance ends up explaining surprises instead of preventing them

The good news is that every one of these signals is fixable when you spot them early

But only if you’re willing to look beyond outputs…
and address how FP&A actually works, decides, and communicates

I’ve captured concrete ways to tackle each of these points

If you’re leading an FP&A team today, take a look: 

I'm sure you’ll recognize more than one

Which of these signs have you seen most often?

♻️ Repost if this helps another CFO spot the warning signs before they turn into nightmares

Communicate Like A Strategic CFO | Storytelling for Finance | EMBA Lecturer | Keynote Speaker

In 2026, FP&A teams will face a choice

(Small hint: it won't be an AI choice but a leadership one)

𝗢𝗽𝘁𝗶𝗼𝗻 𝟭: Chase what makes noise
𝗢𝗽𝘁𝗶𝗼𝗻 𝟮: Build what actually holds

Because, right now, you almost only hear about:
- New planning platforms
- Plug-and-play FP&A apps
- AI forecasting tools
- Real-time dashboards
- “Next-gen” analytics

And with so much energy that you can only feel behind if you don't jump on the train

Whatever happens, you feel like you're late

But my take is (and it will maybe not be shared with everyone):

That’s the surface level...and it moves (too) fast

If you focus on them, you will run without moving

On the contrary, there are 2 things that will build serious foundations

𝗙𝗶𝗿𝘀𝘁: 𝘁𝗵𝗲 𝗳𝗼𝘂𝗻𝗱𝗮𝘁𝗶𝗼𝗻𝘀 𝘁𝗵𝗮𝘁 𝗻𝗲𝘃𝗲𝗿 𝗰𝗵𝗮𝗻𝗴𝗲

I know, it's not exciting or trendy, but it's non-negotiable
- Single sources of truth
- Clean data architecture
- Clear metric definitions
- Forecast accountability
- Strong planning cadence
- Repeatable close routines
- Consistent executive narratives
- Trust in the numbers, every month

It's tempting to skip them but believe me, if they break, your whole function breaks

𝗦𝗲𝗰𝗼𝗻𝗱: 𝘄𝗵𝗮𝘁 𝘄𝗶𝗹𝗹 𝗿𝗲𝗮𝗹𝗹𝘆 𝗺𝗮𝘁𝘁𝗲𝗿 𝗶𝗻 𝟮𝟬𝟮𝟲

Helping decisions (and we know there will be a lot in 2026)

- Driver-based and capacity-based planning.
- Scenario modeling that leaders actually use.
- Cross-functional planning that reflects how the business runs.
- Forecast-to-action loops
- Financial storytelling
- Business partnering

This is where FP&A becomes leadership-ready

And builds its future

When you have that set, tools with enhance your value

But only in that order

So now, tell me, what are your priorities this year?

There is a massive difference between Information and Insight

And I made a template for you to avoid the trap

I've reviewed hundreds of finance presentations, and I see teams constantly falling into "Information Mode":
• Detailed tables 
• Every single variance explained 
• A comprehensive look at "what happened"

But stakeholders are looking for Insight:
• What actually matters? 
• Why should I care? 
• What are we going to do about it?

The problem is that most finance professionals know they need to be more strategic, but they 𝗹𝗮𝗰𝗸 𝘁𝗵𝗲 𝗺𝗲𝗰𝗵𝗮𝗻𝗶𝘀𝗺 to filter the noise.

So I created a system.

It’s the exact logic I use with my clients to turn a 50-slide data dump into a 5-slide strategic narrative.

Inside the "3 Filters Framework™" folder:

✅ The Excel Filter Template: A structured tool to validate every KPI against Materiality, Explanation, and Actionability 
✅ The "Noise vs. Signal" Logic: How to cut 80% of your data without losing credibility
✅ The Video Walkthrough: A step-by-step guide on how to apply this to your P&L immediately

Use it once 

You'll never build a presentation the same way

I’m giving the full system away for free today

Want it?
- Follow me (so I can DM you)
- Like this post
- Get your template AND the video on https://lnkd.in/e_vDMm-m

PS: there are a lot of requests and as weird as it can sound in 2026, I don't use automations here so it will take some time. Thank you for your patience 🙏

7 Principles of Powerful FP&A Storytelling

1️⃣ Start with tension
Open with the problem/opportunity the business needs to face

2️⃣ Make it human
Show judgment, trade-offs, and impact
Your opinion matters more than you think

3️⃣ Speak in business images
Impacts and visuals will be stronger if shown in business drivers

4️⃣ Make it about them
Frame insights around executive priorities and risks

5️⃣ Show the stakes
What happens if nothing changes

6️⃣ Close the loop
Tie outcomes back to the original question

7️⃣ Leave a decision
End with a clear choice the room needs to make

Each of these is illustrated in the visual below 👇

If you work in FP&A or lead a finance function, storytelling isn’t a typical "soft skill"

It’s how strategy gets understood, trusted, and acted on

💬 Which of these principles do you find hardest to apply in real meetings?

If FP&A had a transit map, this would be it 🚇

Too often, finance processes are viewed in isolation

Budgeting happens here, reporting happens there

But in a healthy organization, these are continuous lines of transit

The 4 Lines that keep the business moving:

🟢 Green: Telling the story of what happened.

🔵 Blue: Uncovering the drivers behind the numbers.

🔴 Red: Modeling the path forward.

🟡 Yellow: Guiding the capital allocation.

The goal is to ensure the connections are seamless. 

When "Reporting" feeds "Planning" without friction, and "Analysis" automatically triggers "Decision Support," you have a world-class function

FP&A Central is where data meets dialogue

Where does your organization experience the most "delays" on this map?

You can tell a lot about a CFO

by how they run their 1:1s

If it is just a status meeting, they might as well use a checklist

But if they're serious about building the best finance team they can,
their 1:1s look very different

That’s why how you frame questions will determine the value you'll get from your teams 

Here are 10 questions great CFOs ask in 1:1s 👇

1️⃣ What’s been the most frustrating part of your week?
Because friction always shows you where the system is broken.

2️⃣ Where do you feel you’re doing your best work right now?
That’s where leverage already exists.

3️⃣ What’s one thing you wish we did differently as a finance team?
This tells you more than any engagement survey.

4️⃣ Is there a decision you’re waiting on that I can help move along?
Speed is leadership.

5️⃣ What part of your role feels unclear or messy at the moment?
Ambiguity is where performance quietly erodes.

6️⃣ If you could fix one process overnight, what would it be?
Listen carefully. This is usually expensive friction.

7️⃣ What skill do you want to build next, and how can I support that?
Future capacity starts here.

8️⃣ What’s a win from this month that deserves more visibility?
Because finance teams don’t lack impact. They lack airtime.

9️⃣ Where do you feel stretched, and where do you feel stuck?
This is how you prevent burnout before it shows up in performance.

🔟 What would make your job feel easier next quarter?
Small answers. Big signals.

Don't get me wrong: being supportive is not the number 1 priority here

But thanks to these, you'll build capacity

Which one of these questions do you already use?
And which one do you avoid asking?

-----

I'm Soufyan and I do 3 things to help CFOs and FP&A Leaders
- I train your teams to become real Finance Business Partners https://lnkd.in/ee66bB4q
- I teach you how to prepare and deliver engaging presentations https://lnkd.in/ezh29XRk
- Every week, 20,000s finance leaders learn to go beyond the numbers with my newsletter, FP&A Stories https://bit.ly/fpastories

46 Executives. One Saturday. 1 topic: The art of Storytelling

This weekend, I led the Public Speaking and Storytelling module for the Executive MBA at Solvay Lifelong Learning | Solvay Brussels School of Economics & Management

Usually, my audience is strictly Finance

But this group was different: a mix of (future) Executives, Engineers, Admins, Marketers and even Psychologists

I could have just taught them the theory 

But my main goal was to get them out of their comfort zone and practice as much as possible

And the energy was intense

They didn't sit the whole day in the classroom

At one point, I walked through the building and saw students rehearsing in the stairwells and practicing their pitches in the corridors

They took the "performance" aspect seriously

One student summed up the experience perfectly: "It has been an inspiring Saturday and, going forward, I'll be frequently using the offered knowledge"

We focused heavily on structure

Before you open PowerPoint, and before you worry about body language, you need to know exactly where you are taking your audience

Whether you are an executive or an engineer, if the structure isn't clear in your head, chance is it won't be for the audience

A huge thank you to the class for trusting the process...
...and for the energy in that final group photo!

----
I'm Soufyan and I do 3 things to help your teams
- I train your teams to communicate like leaders https://lnkd.in/eC8uvdZ8
- I teach your non-finance teams to understand and use finance https://lnkd.in/eAy-W7z8
- Every week, 20,000s finance leaders learn to go beyond the numbers with my newsletter, FP&A Stories https://bit.ly/fpastories

ONE big difference between Controlling and FP&A

Business 𝗔𝗰𝘂𝗺𝗲𝗻 translated into Business 𝗔𝗰𝘁𝗶𝗼𝗻𝘀

But for that, you need to value by a chain

A chain you build step by step:

It's tempting to “upgrade FP&A” by starting at the top but most of the time, you face the sitution where nothing changes

Because FP&A isn’t grounded in business understanding but if you want it to create a repercussion in the business, you can't simply show them the problems

You must first translate into values that people understand

And then translate into a narrative (because, no, people won't move unless they feel concerned)

Here’s the sequence that actually works, without shortcuts

𝟭) 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴

Before you model anything, you earn the right to model it

You know the revenue engine, the cost structure, the commercial mechanics, the operational constraints

𝟮) 𝗩𝗮𝗹𝘂𝗲 𝘁𝗿𝗮𝗻𝘀𝗹𝗮𝘁𝗶𝗼𝗻

You translate finance into business levers

That means that every $/€ movement will lead to a change in drivers...
...and vice-versa

𝟯) 𝗦𝘁𝗼𝗿𝘆𝘁𝗲𝗹𝗹𝗶𝗻𝗴 𝗮𝗻𝗱 𝗶𝗻𝗳𝗹𝘂𝗲𝗻𝗰𝗲

Now you shape how leaders interpret performance

Your message framing makes the decision easier for leaders

(Small tip: think of the 3 What)

𝟰) 𝗘𝘅𝗲𝗰𝘂𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗲𝗻𝗮𝗯𝗹𝗲𝗺𝗲𝗻𝘁

This is where FP&A becomes real

If decisions are made, you don't let them die in the meeting.

You make sure they are in the rolling forecasts
You follow up on the action points with the people accountable
You make it a routine

Each layer builds on the previous one

If you jump straight to forecasting routines without business acumen, you get prettier templates and the same misunderstandings
If you jump straight to storytelling without value translation, you get great slides and zero action
If you jump straight to execution without influence, you get meetings that feel busy and outcomes that feel random

If you want FP&A to be valuable, treat it like a craft with a progression

Start at the bottom

Where does your team spend most of its time today: business understanding, value translation, influence, or execution?

Insight Communication for Modern Finance Teams (Storytelling Done The Right Way) | EMBA Lecturer | Keynote Speaker

There are dozens of storytelling frameworks

But only one of them really works in Finance

---------
 I'll share tips about this framework and help leaders like you improve their storytelling skills in a webinar organised by Lucanet called Stop Reporting, Start Influencing - The Storytelling framework for Finance Leaders

It's FREE, it's on January 21st at 2pm CET and I want to see you there

Register here https://lnkd.in/esqapHNu
--------

The difference is that we are not on a TEDx stage

The goal of our presentations is to bring decisions to the table

And in a decision room, leaving things open-ended is a risk

That’s why I put a score on each framework in this visual

Not to rank storytelling theory

But to reflect what actually works when you sit with a CFO, an ExCo, or a board that expects direction by the end of the meeting

Over the years, I’ve used all of these.
Golden Circle ⭐⭐⭐
Driver-based storytelling ⭐⭐⭐⭐
Scenario planning ⭐⭐⭐
Bridge frameworks ⭐⭐⭐
Even Monroe (in very specific moments) ⭐⭐

They all have value
They all have limits
And they don’t perform the same in our context

In finance, the question is rarely “Is this a nice story?”
It’s “What decision does this lead to?”

That’s why some frameworks do a better job
Why some bring a real outcom
Why some help leadership move

Like the SCQA 

And yes, this is the clear winner in my heart

The one that consistently survives board pressure, time constraints, and executive impatience

But I’m curious

What frameworks have you actually used in real finance meetings?
And which one helped you land a decision when it really mattered?

Don't forget to register if you want to learn more about the SCQA and see how I use AI to prepare my presentations
https://lnkd.in/esqapHNu

I’m genuinely interested in your winner

I am repeating myself but I keep on seeing the problem in so many finance teams

- we want impactful FP&A teams
- we need to automate our work
- my team needs AI

The problem is that, although this is something I would love to see in finance teams, most teams are not ready for it

Because these processes are fed with the wrong base

Data that's either wrong or doesn't mean anything

And despite all your efforts, you can’t automate that

You can’t shortcut it either

That’s why I like to think about FP&A as a funnel and each stage is a progress towards the famous impact that we want

Here’s how it actually plays out.

𝗦𝘁𝗮𝗴𝗲 𝟭 – 𝗦𝗖𝗥𝗔𝗠𝗕𝗟𝗘
Most of your job consists in chasing and fixing data 
Time investment is extreme, and nothing really sticks

Most teams live here longer than they admit

𝗦𝘁𝗮𝗴𝗲 𝟮 – 𝗔𝗟𝗜𝗚𝗡𝗠𝗘𝗡𝗧
You start creating consistency and that often goes along with standard reports and shared definitions
It’s less visible work, but it’s foundational

This is where discipline starts to matter

𝗦𝘁𝗮𝗴𝗲 𝟯 – 𝗜𝗡𝗦𝗜𝗚𝗛𝗧𝗦
Now numbers begin to mean something, and not only for finance but for the whole business
Decisions happen faster because finance explains

This is where FP&A earns credibility

𝗦𝘁𝗮𝗴𝗲 𝟰 – 𝗔𝗨𝗧𝗢𝗠𝗔𝗧𝗜𝗢𝗡
Systems finally run the show and you can count on them to provide your insights in due time 
Automation works because the groundwork is done

Not before

𝗦𝘁𝗮𝗴𝗲 𝟱 – 𝗜𝗠𝗣𝗔𝗖𝗧
FP&A drives strategy with finance-led decisions that create value
The team is guiding with influence and human touch

I know, it appears more sexy to jump from SCRAMBLE straight to AUTOMATION with fancy tools

But skipping stages will make the whole setup fragile

The real breakthrough is to find at which stage you're in...
... and know how to go to the next

That’s how FP&A becomes useful

♻️ Repost if this matches what you see in your organization
👇 Curious: which stage do you see most FP&A teams stuck in today?

-----

I'm Soufyan and I do 3 things to help CFOs and FP&A Leaders
- I train your teams to become real Finance Business Partners https://lnkd.in/ee66bB4q
- I teach you how to prepare and deliver engaging presentations https://lnkd.in/ezh29XRk
- Every week, 20,000s finance leaders learn to go beyond the numbers with my newsletter, FP&A Stories https://bit.ly/fpastories

Systematizing Storytelling for Finance Teams | EMBA Lecturer | Keynote Speaker

A CFO once told me something I wish I’d learned earlier in my career:

“People in front of me don't work in your models
So bring them what influences their decisions”

That sentence is still what brought doing what I do

Because, contrary to the usual storytelling, where you keep the a-ha moment for the end

In finance, you have to be clear about what you expect from the review...

...and count on your performance to generate trust

Presence is what allows you to:

• Frame the decision before the data
• Hold attention when numbers get uncomfortable
• Stay credible when assumptions are challenged
• And actually land an outcome, not just a discussion

When it slips, even a perfect work goes nowhere

So to avoid that, here are 9 moments where your presence disappears:

1️⃣ Opening with numbers instead of context
2️⃣ Apologizing for the forecast
3️⃣ Burying the recommendation
4️⃣ Reading the deck word-for-word
5️⃣ Freezing when challenged
6️⃣ Fighting the sceptic
7️⃣ Drowning in detail
8️⃣ Rushing the close
9️⃣ Ending without a clear ask

Yes, your work, data, dashboard are expected to be perfectµ

But most of them are and yet, most finance presentations are not great

That’s exactly why you should also care about "how" you deliver your presentation

So tell me: 

Which one have you seen most often in your own meetings?

9 Mistakes That Kill FP&A Presentations

7 ideas I wish more FP&A teams carried with them into 2026

Save this

These are the kinds of principles that quietly shape better decisions

If you’re serious about influence in finance, stay around

7 powerful ideas to carry with you in 2026

I’ll admit it
Early in my career, I was a bit of a snob
I thought storytelling was only for FP&A

---------
👉  24 hours before my webinar with Lucanet called 𝗦𝘁𝗼𝗽 𝗥𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴, 𝗦𝘁𝗮𝗿𝘁 𝗜𝗻𝗳𝗹𝘂𝗲𝗻𝗰𝗶𝗻𝗴 - 𝗧𝗵𝗲 𝗦𝘁𝗼𝗿𝘆𝘁𝗲𝗹𝗹𝗶𝗻𝗴 𝗳𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸 𝗳𝗼𝗿 𝗙𝗶𝗻𝗮𝗻𝗰𝗲

I'll share tips about 𝗦𝘁𝗼𝗿𝘆𝘁𝗲𝗹𝗹𝗶𝗻𝗴 𝗳𝗼𝗿 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 incl. frameworks, tips and AI tools

It's FREE, it's on 𝗝𝗮𝗻𝘂𝗮𝗿𝘆 𝟮𝟭𝘀𝘁 (𝘁𝗼𝗺𝗼𝗿𝗿𝗼𝘄) 𝗮𝘁 𝟮𝗽𝗺 𝗖𝗘𝗧 and I want to see you there

Register here https://lnkd.in/esqapHNu
--------

Our unique value

Later, I realised every finance role is already telling stories...
...just in very different ways:
- Accounting tells the story of rules being followed
- Tax tells the story of efficiency
- Treasury tells the story of resilience
- FP&A tells the story of choices

Trouble starts when we use the same approach everywhere

That’s when we lose people

Because what works in the ExCo won’t reassure regulators
And what convinces auditors won’t inspire executives

Storytelling in Finance must not only adapt to the audience

It must also adapt to its message
 
So ask yourself:
- What does this audience care about?
- What language will they trust?
- How do they make decisions?

This framework helps you find the right angle

Good finance professionals master the numbers
Great ones know numbers only matter when they become useful.

👉 Don't forget to register if you want to learn more on how to manage different audiences in your finance specialty https://lnkd.in/esqapHNu

Not all CFOs are influential

That's because being the best won't help

Just before you read further, yes I know

You have to be technically good to be a CFO, I don't discuss that

But doing your job and having your job approved are 2 different things

People resist when
- they don't understand
- they don't agree
- they don't see the added value (for them)

And a way to go over that resistance is influence

In finance, there are a few predictable principles to influence

Here are the ones every CFO should understand:

• Reciprocity
Executives become far more open to finance when you first help them see something they hadn’t fully understood yet

• Consistency
Decisions land more easily when they feel like a natural continuation of assumptions leaders have already agreed to earlier

• Social proof
Uncertainty drops when finance shows how similar decisions played out elsewhere, because risk feels smaller when it’s shared

• Authority
Clear, calm explanations of complex situations build trust faster than confidence theatrics ever will

• Strategic scarcity
Focus increases when finance protects leadership attention by saying no to low-value work and yes to what truly matters

Together, these principles change how finance is perceived

Resistance fades, conversations change, and finance stops being questioned at the end of the meeting

80% of finance presentations fail to influence decisions

I'll fix that in a free webinar on Jan 21 with Lucanet 👉 

Register here https://lnkd.in/esqapHNu

Most executives leave finance meetings unconvinced, unconcerned, or unsure of what to do next

The numbers are right, no concern about that

But we, finance, didn't make it important or actionable

In this session, I’m breaking down the exact storytelling framework I use, built specifically for finance, not generic "hero stories"

We will cover: 

▪️ How to structure insights so execs instantly grasp the "so what" 
▪️ 3 concrete tools to turn data into decision-ready messages 
▪️ How AI can support your narrative (and prep you for tough questions)

I’ll be joined by Tobias Riffel from Lucanet to discuss the strategic shift finance leaders need to make right now

🚨 Important: This is NOT a product demo. It’s a mindset shift and a practical training session

Stop reporting. Start influencing.

See you there?

Register now on 
https://lnkd.in/esqapHNu

We all think "presenting the numbers" is like this:

Align on the data → share insights → decision made

But that happens maybe 1 time out of 10

Normally, this happens: 
- Numbers get challenged
- Priorities shift mid-meeting
- You get interrupted at least once
- Someone asks the one question you didn’t prepare for
- Stakeholders interpret your insights diff
- Tensions rise
- Time runs out

And somehow… “good enough” wins

Every finance leader has lived this moment

We spend hours preparing the slides but once we’re in the revie, we get hijacked by timing, pressure, and politics

That’s not a failure of storytelling

It’s proof that decision-making is human

And this is why storytelling is so important

If it was just “presenting the numbers”, it would be easu

But you need to steer attention when everything else is pulling it away

So for your next MBR, just think this one thing

How is the reviw going to be?

...and prepare for the inevitable

Stop presenting like a tree 🌳

Many finance pros are taught to stand still, deliver the data, or sit down

But standing like a statue (or twisting like you're using a hula-hoop) signals stress

And stress = lack of trust

If you want to be convincing, you have to move with intention

Here are 3 micro-adjustments that instantly boost authority:

1. 𝗧𝗵𝗲 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗦𝗶𝗹𝗲𝗻𝗰𝗲

Don't rush to answer tough question

Pause for 2 seconds

It makes you look calm, sure of yourself

2. 𝗧𝗵𝗲 𝗗𝗲𝗹𝗶𝗯𝗲𝗿𝗮𝘁𝗲 𝗣𝗮𝗰𝗲

Slow down your hands

Fast hands signal nervousness; controlled movement signals leadership

3. 𝗧𝗵𝗲 𝗗𝗶𝗿𝗲𝗰𝘁𝗶𝗼𝗻𝗮𝗹 𝗠𝗼𝘃𝗲

Don't just stand there

Move in all 4 directions to cover the space and occupy the sight

These are tools to help you lead with authenticity

Try just one of these in your next meeting

And tell me: which one did I forget?

8 Body Language Shifts

Reporting vs Explaining vs Influencing
Where would you put your team?
(Test it on on https://tally.so/r/ODlAXA)

It's important because you can't change anything with reporting

But today, most teams I've seen are still blocked there

It could still work 10 years ago (and even so...) 
- gathering the different data sources
- cross-checking to verify the accuracy
- setting them in a usable report/dashboard

But the problem has always been that the rest of the company expects more from our job

Even 10 years ago, our stakeholders thought: "and now what?"

Leaders push back because they still don’t know what to do with what you showed them

So there's only one thing to do: move from hindsight to foresight

When you move your partners from the rear mirror to your windshield 

You become a finance business partner

If you want a simple way to diagnose where your team stands (reporting, explaining, or influencing) I’ve put together a visual that breaks down the differences with business impact included

It’s the framework I use in my workshops when teams want to raise the level of the conversation inside the business

If you want the high-res version, I’ve made it available as a free PDF

👉 https://lnkd.in/e9m42D9Y

And if you want to see where your team is, go to 

👉 https://tally.so/r/ODlAXA

Early in my career, I believed: “If the work is good, it will speak for itself”  
Then I started presenting

That’s the moment executives decide whether to trust you...
...often before they’ve even understood the results

The reassuring part: strong presenting is a set of behaviours you can practice

And because finance doesn’t teach that nearly enough, I turned my biggest public-speaking takeaways into a resource

A few that consistently help:
- 𝟱–𝟱–𝟱 𝗲𝘆𝗲 𝗰𝗼𝗻𝘁𝗮𝗰𝘁 (calm eyes, calm room)  
- 𝗧𝗵𝗲 𝗽𝗮𝘂𝘀𝗲 (silence used on purpose)  
- 𝗧𝗵𝗲 𝟯-𝗽𝗮𝗿𝘁 𝗼𝗽𝗲𝗻𝗲𝗿 (problem → why it matters → what’s coming)  
- 𝗟𝗶𝗴𝗵𝘁𝗵𝗼𝘂𝘀𝗲 𝗮𝗻𝗰𝗵𝗼𝗿𝘀 (repeat the 2–3 points that orient the audience)  
- 𝗖𝗮𝗹𝗹𝗯𝗮𝗰𝗸𝘀 (make the deck feel like one story)

Pick the technique that fits the moment

When people feel your certainty, they’re far more willing to follow your conclusions

The hardest part of variance analysis is selecting what to keep and what to leave out
In other words, getting the "signal" from the "noise"

We all struggle to know which insights are "important" and which are just "interesting"

So I built the 3 Filters Framework™ to make that decision for you and I explain it in a video I just released

👉 Watch it here https://lnkd.in/eFxftH5D

It’s a dynamic Excel model designed to do one specific thing: 
- take your messy raw data
- filter it through your industry drivers
- emphasise the 3 or 4 key "Root Causes" you actually need to pay attention to

It helps you: 
✅ Automate Price-Volume-Mix 
✅ Ignore immaterial variances (The Noise) 
✅ Build a "Board-Ready" waterfall chart instantly (The Signal)

Don't let the noise kill your message

Grab the template and watch the guide here:

👇 https://lnkd.in/eFxftH5D

👇50% off all Financial Modeling Courses this week only.

Theory is great until someone sends you 17 blurry PDFs and says "hey what's our business worth?"

This is the wake-up call that happens in the real world.

Businesses still need cash to operate, and they need profit if they eventually want to sell, but 9 times out of 10 the underlying data is a mess, and the "finance team" isn't sophisticated enough to build a forecast.

That's where YOU come in, right?  Just jump in and "stand up the model."

It's easy enough to understand on paper, but when you open that blank spreadsheet, suddenly, you can just freeze up.

Having spent over 15 years in Private Equity & FP&A, I know exactly how that feels.

When it's just you, some incomplete data, and AI isn't helping at all, how do you move forward?

That's where I can help -- I teach you to build (and own) the financial models that run real companies -- completely from scratch.

(𝘣𝘦𝘤𝘢𝘶𝘴𝘦 𝘵𝘩𝘢𝘵'𝘴 𝘵𝘩𝘦 𝘰𝘯𝘭𝘺 𝘸𝘢𝘺 𝘵𝘰 𝘳𝘦𝘢𝘭𝘭𝘺 𝘭𝘦𝘢𝘳𝘯, especially in an unstructured environment).

This is financial modeling in the real world.

🌐 𝗟𝗲𝗮𝗿𝗻 𝗺𝗼𝗿𝗲 𝗵𝗲𝗿𝗲 👉 https://www.financialmodelingeducation.com/ 


———

𝗥𝗲𝗰𝗼𝗴𝗻𝗶𝘁𝗶𝗼𝗻 𝗶𝗻 𝘁𝗵𝗲 𝗺𝗮𝗿𝗸𝗲𝘁:

🏆 Trusted by over 91,000 students with 4.9/5.0 Star average rating

🏆 Over 100,000 followers on LinkedIn & other social media platforms

🏆 Recognized by Business Insider and Financial Modeling World Cup

🏆 Featured by Wharton Online, Wall Street Prep, & LinkedIn Learning


———

𝗥𝗲𝘃𝗶𝗲𝘄𝘀 𝗳𝗿𝗼𝗺 𝗽𝗿𝗼𝗴𝗿𝗮𝗺 𝗮𝗹𝘂𝗺𝘀:

"𝘛𝘳𝘢𝘪𝘯𝘪𝘯𝘨 𝘪𝘴 𝘧𝘢𝘯𝘵𝘢𝘴𝘵𝘪𝘤..."
⭐⭐⭐⭐⭐

"𝘉𝘦𝘴𝘵 𝘮𝘰𝘯𝘦𝘺 𝘦𝘷𝘦𝘳 𝘴𝘱𝘦𝘯𝘵..."
⭐⭐⭐⭐⭐

"𝘈𝘣𝘴𝘰𝘭𝘶𝘵𝘦 𝘨𝘢𝘮𝘦 𝘤𝘩𝘢𝘯𝘨𝘦𝘳..."
⭐⭐⭐⭐⭐

"𝘉𝘦𝘴𝘵 𝘤𝘰𝘶𝘳𝘴𝘦 𝘐'𝘷𝘦 𝘵𝘢𝘬𝘦𝘯 𝘰𝘯𝘭𝘪𝘯𝘦..."
⭐⭐⭐⭐⭐

"𝘔𝘰𝘴𝘵 𝘤𝘰𝘮𝘱𝘳𝘦𝘩𝘦𝘯𝘴𝘪𝘷𝘦 𝘤𝘰𝘶𝘳𝘴𝘦 𝘐'𝘷𝘦 𝘵𝘢𝘬𝘦𝘯..."
⭐⭐⭐⭐⭐

"𝘐 𝘩𝘢𝘷𝘦 𝘵𝘢𝘬𝘦𝘯 𝘴𝘦𝘷𝘦𝘳𝘢𝘭 𝘮𝘰𝘥𝘦𝘭𝘪𝘯𝘨 𝘤𝘰𝘶𝘳𝘴𝘦𝘴, 𝘵𝘩𝘪𝘴 𝘰𝘯𝘦 𝘪𝘴 𝘵𝘩𝘦 𝘣𝘦𝘴𝘵..."
⭐⭐⭐⭐⭐

🌐 𝗟𝗲𝗮𝗿𝗻 𝗺𝗼𝗿𝗲 𝗵𝗲𝗿𝗲 👉 https://www.financialmodelingeducation.com/

Chris Reilly

A Balance Sheet even your 𝗸𝗶𝗱𝘀 𝗰𝗮𝗻 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 👇


Even though I live in Excel every day, I was never a "finance person" in school.

(in fact, I started as an Art Major 🎨).

All the "business terminology" used to confuse me.

The only way I could understand things was to break them down to their simplest form, and talk about it like I was at the kitchen table.

So sometimes when I'm building a model, I bust out this guide and ask myself, 𝘥𝘰𝘦𝘴 𝘵𝘩𝘪𝘴 𝘮𝘢𝘬𝘦 𝘴𝘦𝘯𝘴𝘦?

𝘈𝘳𝘦 𝘵𝘩𝘦 𝘯𝘶𝘮𝘣𝘦𝘳𝘴 𝘮𝘰𝘷𝘪𝘯𝘨 𝘵𝘩𝘦 𝘸𝘢𝘺 𝘵𝘩𝘦𝘺 𝘴𝘩𝘰𝘶𝘭𝘥 𝘪𝘧 𝘵𝘩𝘪𝘴 𝘸𝘢𝘴 𝘴𝘪𝘮𝘱𝘭𝘦?

Hopefully this clears up anything you might find confusing 🙂


➕ 𝗔𝘀𝘀𝗲𝘁𝘀:

𝗖𝗮𝘀𝗵: Dollars in my bank account.

𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝘀 𝗥𝗲𝗰𝗲𝗶𝘃𝗮𝗯𝗹𝗲: Money people owe me (for work I've already done)

𝗜𝗻𝘃𝗲𝗻𝘁𝗼𝗿𝘆: Physical stuff I'm trying to sell

𝗣𝗿𝗲𝗽𝗮𝗶𝗱 𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀: Stuff I paid for (in cash) in advance & will expense this year

𝗙𝗶𝘅𝗲𝗱 𝗔𝘀𝘀𝗲𝘁𝘀: Assets I bought (in cash) & will expense over several years

𝗧𝗢𝗧𝗔𝗟 𝗔𝗦𝗦𝗘𝗧𝗦: Everything I Have (or will be getting soon)

~~~
✨ Here's a guide to model it 👉 https://lnkd.in/ew4nwaVx 
~~~


➖ 𝗟𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀:

𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝘀 𝗣𝗮𝘆𝗮𝗯𝗹𝗲: Money I owe other people

𝗨𝗻𝗲𝗮𝗿𝗻𝗲𝗱 𝗥𝗲𝘃𝗲𝗻𝘂𝗲: Cash I've received, but I haven't done the work yet (or delivered the service)

𝗔𝗰𝗰𝗿𝘂𝗲𝗱 𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀: Expense I know is coming (this year) that I'll pay in cash later

𝗗𝗲𝗯𝘁: Money I borrowed to start the business or cover a cash crunch


🟰 𝗘𝗾𝘂𝗶𝘁𝘆:

𝗖𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗲𝗱 𝗖𝗮𝗽𝗶𝘁𝗮𝗹: My own money to start the business or cover a cash crunch

𝗥𝗲𝘁𝗮𝗶𝗻𝗲𝗱 𝗘𝗮𝗿𝗻𝗶𝗻𝗴𝘀: A record of what I did with the profits (not cash)

𝗧𝗢𝗧𝗔𝗟 𝗟𝗜𝗔𝗕𝗜𝗟𝗜𝗧𝗜𝗘𝗦 & 𝗘𝗤𝗨𝗜𝗧𝗬: Where Everything Came From (or needs to go)


⚖️ 𝗪𝗵𝘆 𝗗𝗼𝗲𝘀 𝗶𝘁 𝗕𝗮𝗹𝗮𝗻𝗰𝗲?

To satisfy the accounting equation: 𝗔𝘀𝘀𝗲𝘁𝘀 = 𝗟𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀 + 𝗘𝗾𝘂𝗶𝘁𝘆.

This means all things a company owns (𝗔𝘀𝘀𝗲𝘁𝘀) are either:

   * Financed by borrowing money (𝗟𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀)
   * Or created by what the owners invest (𝗘𝗾𝘂𝗶𝘁𝘆)

It balances because every transaction affects 𝗯𝗼𝘁𝗵 𝘀𝗶𝗱𝗲𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗲𝗾𝘂𝗮𝘁𝗶𝗼𝗻 equally.


𝗜𝗳 𝘆𝗼𝘂'𝘃𝗲 𝗵𝗮𝘃𝗶𝗻𝗴 𝘁𝗿𝗼𝘂𝗯𝗹𝗲...

No worries at all.  I've been there.

🧠 See what you're missing with a 𝗾𝘂𝗶𝘇 👉 https://lnkd.in/eccYpT-R 

🎓 Or look at a 𝗰𝗼𝘂𝗿𝘀𝗲 if you're interested 👉 https://bit.ly/FMECourses 

"...𝘣𝘦𝘴𝘵-𝘪𝘯-𝘤𝘭𝘢𝘴𝘴 𝘵𝘰𝘰𝘭𝘴 𝘵𝘩𝘢𝘵 𝘐’𝘷𝘦 𝘴𝘦𝘦𝘯."

Private equity & FP&A veteran that teaches you to build the financial models that run real companies | 🎓 91,000+ students

So this is called the "pro forma balance sheet."  It's what a PE deal looks like right after the deal closes.  Here's how I model it... 👇

It's a 5-minute video on social media, no captions (sorry).

BUT...

This is 𝗼𝗻𝗲 𝗼𝗳 𝘁𝗵𝗲 𝗵𝗮𝗿𝗱𝗲𝘀𝘁 𝗽𝗮𝗿𝘁𝘀 of building an LBO model.

So it takes a little longer to explain and I didn't have room for captions.

So take a few minutes, turn the sound on, and learn to model the Pro Forma Balance Sheet.

𝙉𝙚𝙭𝙩 𝙎𝙩𝙚𝙥𝙨 ⤵️

📥 Grab the template 👉 https://lnkd.in/ex6BKa4E

The 13-week cash flow is the lifeblood of the business.  Can we actually keep the lights on?  Here's how I'd start 👇


🕜 𝗧𝗶𝗺𝗶𝗻𝗴?

13 weeks, 4 weeks, 7 weeks?

Doesn't matter.

I just need a general sense of what cash will do in the short term.

When will I collect payments?

Can I pay vendors?

Can I make payroll?


😡 𝗔 𝗙𝗿𝘂𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻

What drives me nuts about these forecasts?

They have become so overly "professionalized" that no one understands them.

I just want to know:

"What will my bank account look like next week?"

"How about two weeks from now?"

Enough of the fluff.


📚 𝗤𝘂𝗶𝗰𝗸 𝗦𝘁𝗮𝗿𝘁 𝗚𝘂𝗶𝗱𝗲

Open a spreadsheet and whip this thing together.

You build it like this:

1. Stuff that comes in

-- minus --

2. Stuff that goes out

= What you have left.

(repeat for next week)

(💡𝗽𝗿𝗼 𝘁𝗶𝗽: add "float" to your beginning balance = cut checks that haven't been cashed)


🖼️ 𝗣𝗶𝗰𝘁𝘂𝗿𝗲 𝗧𝗶𝗺𝗲

In the example image I'm focused on three things:

1. Mapping out the past

2. Making reasonable estimates about the future

3. Figuring out if I have shortfall (so I can do something about it 𝙣𝙤𝙬)


➕ 𝗘𝘅𝘁𝗿𝗮 𝗧𝗶𝗽𝘀

💡𝗣𝗿𝗼 𝘁𝗶𝗽 𝟭: Build a "cushion" line called "unknowns" to make things conservative

💡𝗣𝗿𝗼 𝘁𝗶𝗽 𝟮: forecast expenses early, receipts late (making it conservative)

💡𝗣𝗿𝗼 𝘁𝗶𝗽 𝟯: forget about weeks, just 𝗯𝘂𝗶𝗹𝗱 𝗶𝘁 𝗯𝘆 𝗱𝗮𝘆

(you can always summarize by week later)


🧠 𝗟𝗲𝗮𝗿𝗻 𝗶𝗻 𝗬𝗼𝘂𝗿 𝗦𝗽𝗮𝗿𝗲 𝗧𝗶𝗺𝗲

The best way to practice?

𝗦𝘁𝗮𝗿𝘁 𝘄𝗶𝘁𝗵 𝘆𝗼𝘂𝗿 𝗼𝘄𝗻 𝗹𝗶𝗳𝗲:

   + paycheck in

   - expenses out

Build a short forecast, maybe 4 weeks at most.

How'd you do?

If you were even 𝘥𝘪𝘳𝘦𝘤𝘵𝘪𝘰𝘯𝘢𝘭𝘭𝘺 close,

you have the raw skills to do this at the business level.


📌 𝗧𝗟;𝗗𝗥

   1. Map out history
   2. Make conservative estimates about the future
   3. Make a plan now


𝙉𝙚𝙭𝙩 𝙎𝙩𝙚𝙥𝙨 ⤵️

Here's a personal cash flow template to get you started.

📥 https://lnkd.in/edmwgYCv

Financial models can get insanely complicated, so I made this simple video to show how just ONE inventory purchase travels all the way through, which helps you visualize the cash conversion cycle 👇


✔️ 𝗧𝗵𝗲 "𝗥𝗲𝗴𝘂𝗹𝗮𝗿" 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵

Model Revenue & COGS first.

Then, calculate 𝘪𝘮𝘱𝘭𝘪𝘦𝘥 working capital using DSO, DPO, or DOH.


📙 𝗔𝗻𝗼𝘁𝗵𝗲𝗿 𝗪𝗮𝘆 𝘁𝗼 𝗗𝗼 𝗜𝘁

Model Inventory 𝗣𝘂𝗿𝗰𝗵𝗮𝘀𝗲𝘀 𝙛𝙞𝙧𝙨𝙩, and:

   - Watch it flow through AP
   - Then your Income Statement
   - And lastly through AR where cash is received


📝 𝗠𝘆 𝗳𝗮𝘃𝗼𝗿𝗶𝘁𝗲 𝗽𝗮𝗿𝘁?

This is a great way to 𝗹𝗲𝗮𝗿𝗻 𝗮𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝘁𝗵𝗿𝗼𝘂𝗴𝗵 𝗺𝗼𝗱𝗲𝗹𝗶𝗻𝗴, and also helps you "see" the cash conversion cycle over a few months.


𝙉𝙚𝙭𝙩 𝙎𝙩𝙚𝙥𝙨 ⤵️

I wish I could give away the model in this video but it's a half-broken WIP I use to create one-off lessons (like this one).

So here's the next-best thing: a guide to help you build the Balance Sheet.

📥 Grab it here: https://lnkd.in/ew4nwaVx

Here's a video on how I build direct and indirect cash flows in the 𝘴𝘢𝘮𝘦 financial model (and it's an awesome double-check) 👇


📘 𝗥𝗲𝗴𝘂𝗹𝗮𝗿 𝗪𝗮𝘆:

Normally, a three statement model uses the 𝗶𝗻𝗱𝗶𝗿𝗲𝗰𝘁 method only.

That means Net Income + 𝘤𝘩𝘢𝘯𝘨𝘦𝘴 in the Balance Sheet.


🔑 𝗧𝗵𝗲 "𝗧𝗿𝗶𝗰𝗸" 𝘁𝗼 𝘁𝗵𝗲 𝗗𝗶𝗿𝗲𝗰𝘁 𝗠𝗲𝘁𝗵𝗼𝗱:

How do I build both?

I use something called the "𝗕𝗔𝗦𝗘" or "𝗖𝗼𝗿𝗸𝘀𝗰𝗿𝗲𝘄" modeling technique, which works like this:

𝗕𝗲𝗴𝗶𝗻𝗻𝗶𝗻𝗴 𝗕𝗮𝗹𝗮𝗻𝗰𝗲
   (➕) Plus: [additions]
   (➖) Less: [subtractions]
𝗘𝗻𝗱𝗶𝗻𝗴 𝗕𝗮𝗹𝗮𝗻𝗰𝗲


📜 𝗔𝗥 𝗘𝘅𝗮𝗺𝗽𝗹𝗲:

So for Accounts Receivable it would be:

𝗕𝗲𝗴𝗶𝗻𝗻𝗶𝗻𝗴 𝗔𝗥
   (➕) Plus: Revenue
   (➖) Less: Cash Receipts
𝗘𝗻𝗱𝗶𝗻𝗴 𝗔𝗥


🔁 𝗛𝗼𝘄 𝗜𝘁 𝗟𝗶𝗻𝗸𝘀 𝘁𝗼 𝗬𝗼𝘂𝗿 𝗠𝗼𝗱𝗲𝗹

You can 𝗹𝗶𝗻𝗸 𝘁𝗵𝗲 𝗰𝗮𝘀𝗵 𝗽𝗼𝗿𝘁𝗶𝗼𝗻 of these BASE accounts to your direct method cash flow.

This makes the overall cash section so much easier to understand and also serves as a great way to double-check the structure of your model.

I've been putting this "direct method double-check" into every model I build.


𝙉𝙚𝙭𝙩 𝙎𝙩𝙚𝙥𝙨 ⤵️

📥 𝗦𝘁𝗮𝗿𝘁: Grab this indirect one-pager › https://lnkd.in/ez9Af7er 

🎓 𝗔𝗱𝘃𝗮𝗻𝗰𝗲: Join 91k+ students › https://bit.ly/FMECourses

My simple process for refreshing Actuals each month (helpful if you're the person who "owns the model") 👇


𝗞𝗲𝗲𝗽 𝗶𝘁 𝘀𝗶𝗺𝗽𝗹𝗲:

It all starts with an IF trigger - a formula that identifies whether we're looking at "Actual" results or still in "Forecast" mode.

If Actuals are available, it pulls directly from the Chart of Accounts (its own tab).

If not, it uses the forecast formula.

I control this through a LATEST_ACTUALS named range on my control panel.

That way, one simple date change updates the entire model.


𝗟𝗼𝗴𝗶𝗰 𝗳𝗹𝗼𝘄:

This logic flows through everything:

- Income Statement updates based on actuals
- Balance Sheet pulls new actual data
- Cash Flow Statement is automatic (indirect method)
- Support schedules adjust accordingly


𝗪𝗮𝗶𝘁... 𝗶𝘀 𝘁𝗵𝗶𝘀 𝗿𝗶𝗴𝗵𝘁?

Most importantly, I always include validation checks on my Control Panel to ensure everything reconciles properly.

- Does net income match QuickBooks?
- Does the balance sheet balance?
- Does ending cash match?


𝗣𝘂𝗻𝗰𝗵𝗹𝗶𝗻𝗲:

The beauty of this system is its simplicity:

↳ Formulas do the heavy lifting
↳ Built-in validations catch errors
↳ No manual data entry needed
↳ One trigger cell controls everything

Hope this helps 🙂.


𝙉𝙚𝙭𝙩 𝙎𝙩𝙚𝙥𝙨 ⤵️

If you want help mapping out a model, grab this checklist.

📥 https://lnkd.in/eVTU67fY

I still see this mistake 𝘢 𝘭𝘰𝘵, so I just want to drive home the fundamentals on building the balance sheet / SCF 👇


❌ 𝗙𝗶𝗿𝘀𝘁, 𝘁𝗵𝗲 𝗺𝗶𝘀𝘁𝗮𝗸𝗲:

Using the Statement of Cash Flows to 𝗿𝗲𝘃𝗲𝗿𝘀𝗲 𝗲𝗻𝗴𝗶𝗻𝗲𝗲𝗿 the Balance Sheet.

That's a "no no."

I see it most often in the Cash from Investing section.

For example, if someone knows they're going to spend $10,000 on new equipment:

1. They'll add $10,000 to the Cash Flow Statement first, and 𝘵𝘩𝘦𝘯;

2. Add that amount to the Fixed Assets account in the Balance Sheet


👎 𝗧𝗵𝗲 𝗗𝗼𝘄𝗻𝘀𝗶𝗱𝗲

It's not "wrong" from an 𝗮𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 perspective.

That's actually fine, but...

It will likely mess you up from a 𝗺𝗼𝗱𝗲𝗹𝗶𝗻𝗴 perspective.

Once you've got stuff from the balance sheet going to the cash flow statement 𝘢𝘯𝘥 vice versa, it's very likely you will create an error or unintended circular reference.


✅ 𝗛𝗲𝗿𝗲'𝘀 𝘁𝗵𝗲 𝗰𝗼𝗿𝗿𝗲𝗰𝘁 𝘄𝗮𝘆 𝘁𝗼 𝗱𝗼 𝗶𝘁:

1. Build the Income Statement

2. Build the Balance Sheet

3. 𝘛𝘩𝘦𝘯 build the Statement of Cash Flows (using the "indirect method")

What do I mean by the "indirect method"?

It means you refer to items that 𝘢𝘭𝘳𝘦𝘢𝘥𝘺 𝘦𝘹𝘪𝘴𝘵 in your Income Statement and Balance Sheet, and calculate the difference b/t time periods.

It works like this:

= Net Income (from Income Statement)

+ D&A (from Income Statement)

+/- the 𝘤𝘩𝘢𝘯𝘨𝘦 𝘪𝘯 Assets, Liabilities, & Equity


➕ 𝗔𝘀𝘀𝗲𝘁𝘀

For Assets, it's the previous period minus the current period

(i.e., January's ending AR balance minus February's ending AR balance)


➖ 𝗟𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀

For Liabilities, it's the current period minus the previous period

(i.e., February's ending AP balance minus January's ending AP balance)


🟰 𝗘𝗾𝘂𝗶𝘁𝘆

For Equity, it's the current period minus the previous period (same as Liabilities)

(i.e., February's ending Contributed Capital balance minus January's ending Contributed Capital balance)


⚠️ 𝗢𝗻𝗲 𝗘𝘅𝗰𝗲𝗽𝘁𝗶𝗼𝗻

The only exception to this rule is Fixed Assets, where you will also pull out the Depreciation because it's 𝘢𝘭𝘳𝘦𝘢𝘥𝘺 captured in the Cash from Operations.

(i.e., January's ending Fixed Asset balance minus February's ending Fixed Asset balance 𝘮𝘪𝘯𝘶𝘴 𝘍𝘦𝘣𝘳𝘶𝘢𝘳𝘺'𝘴 𝘋𝘦𝘱𝘳𝘦𝘤𝘪𝘢𝘵𝘪𝘰𝘯)


𝙉𝙚𝙭𝙩 𝙎𝙩𝙚𝙥𝙨 ⤵️

📥 𝗦𝘁𝗮𝗿𝘁 𝗵𝗲𝗿𝗲: one-pager download: https://lnkd.in/ez9Af7er 

🎓 𝗚𝗼 𝗱𝗲𝗲𝗽𝗲𝗿: master the full skillset: https://bit.ly/FMECourses

A short one-pager to explain "GRR" (Gross Revenue Retention) in SaaS 👇


𝗚𝗥𝗥 𝟭𝟬𝟭

GRR or "Gross Revenue Retention" is a common metric used in SaaS companies.

I like to think of it as, "here's how much ARR I have left after accounting for Downsells and Churn."

You're basically seeing how much your Revenue shrunk without accounting for anyone who might have upgraded (via an Upsell).

It's expressed as a percent, so the basic formula is:

(Beginning ARR - Downsells - Churn) / Beginning ARR


𝗤𝘂𝗶𝗰𝗸 𝗘𝘅𝗮𝗺𝗽𝗹𝗲

So if ARR looked like this:

Beginning ARR     $100,000
+ Upsells                $10,000
- Downsells            ($5,000)
- Churn                   ($3,000)
Ending ARR           $102,000

Then GRR would be:

GRR = ($100,000 - $5,000 - $3,000) / $100,000

GRR = $92,000 / $100,000

GRR = 92%


𝗦𝗮𝗶𝗱 𝗦𝗶𝗺𝗽𝗹𝘆...

"I only have 92% of the Recurring Revenue I started with."

 
𝗦𝗼 𝗪𝗵𝗮𝘁...?

Then, to actually do something about it, the next thing you'd ask is "why?"

Reach out to the customers, get the story, and hopefully make some changes in the future.


𝙉𝙚𝙭𝙩 𝙎𝙩𝙚𝙥𝙨 ⤵️

When it's time to take 𝘢𝘤𝘵𝘪𝘰𝘯 on what to do, this guide can help:

📥 Data storytelling guide: https://lnkd.in/dCt-P3Na

This remains my favorite "tagging" technique when building time-series models. Awesome guide that Jason Hershman put together 👇


Having trouble tagging him, but Jason Hershman put this together (https://bit.ly/PointFPA) -- he's a long-time modeler and fellow FTI Consulting alum.


𝗔 𝗳𝗿𝗲𝗾𝘂𝗲𝗻𝘁 𝗶𝘀𝘀𝘂𝗲 / 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝗜 𝘀𝗲𝗲:

"𝘏𝘰𝘸 𝘤𝘢𝘯 𝘐 𝘣𝘶𝘪𝘭𝘥 𝘵𝘩𝘦 𝘮𝘰𝘥𝘦𝘭 𝘲𝘶𝘢𝘳𝘵𝘦𝘳𝘭𝘺 𝘰𝘳 𝘢𝘯𝘯𝘶𝘢𝘭𝘭𝘺?"


Here's the catch: you DON'T build it by quarter.

You 𝙗𝙪𝙞𝙡𝙙 𝙞𝙩 by month and then 𝙨𝙪𝙢𝙢𝙖𝙧𝙞𝙯𝙚 by quarter, year, etc.

You do this by building the "hooks."

Jason illustrates this on Slide 7 (sometimes called "tags" as well).

Those additional rows act as reference points for rolling into a larger summary.


𝗦𝘂𝗺𝗺𝗮𝗿𝗶𝘇𝗶𝗻𝗴

From there you can use SUMIFS, INDEX/MATCH, XLOOKUP, SUMPRODUCT to 𝙥𝙧𝙚𝙨𝙚𝙣𝙩 your data in a different format such as quarterly or annually.

But most importantly, you still have your detailed monthly model sitting underneath it all.


💡𝗣𝗿𝗼 𝗧𝗶𝗽: Fiscal vs Calendar year

If your 𝗳𝗶𝘀𝗰𝗮𝗹 𝘆𝗲𝗮𝗿 differs from your 𝗰𝗮𝗹𝗲𝗻𝗱𝗮𝗿 𝘆𝗲𝗮𝗿...

1. Create a lookup/mapping tab that maps calendar dates to fiscal dates, then;

2. Using a lookup function, you add the fiscal dates as another "hook" to the model

(i.e., another row as shown on Slide 7).

✓ This allows you to 𝘀𝘂𝗺𝗺𝗮𝗿𝗶𝘇𝗲 𝘆𝗼𝘂𝗿 𝗺𝗼𝗱𝗲𝗹 𝗯𝘆 𝗳𝗶𝘀𝗰𝗮𝗹 𝘆𝗲𝗮𝗿.


𝙉𝙚𝙭𝙩 𝙎𝙩𝙚𝙥𝙨 ⤵️

📥 Grab a copy here: https://bit.ly/excel-hooks

Building Excel tags/hooks to summarize your model

My first Private Equity interview started at 9am, 𝗲𝗻𝗱𝗲𝗱 𝗮𝘁 𝟭𝟬𝗽𝗺, and was a head-to-head competition with someone else 👇


𝗣𝗮𝗿𝘁 𝟭:

The day started normal enough: show up wearing "the suit," feeling jitters.

Told there was an "accidental schedule conflict," so I'd be interviewing alongside another candidate.

(deliberate of course, but I didn't realize it at the time).

Weird, I thought, but I just said "okay" and kind of moved on.

Regular day from there -- conversations with the team and a modeling test.

(I could 𝘯𝘰𝘵 get my balance sheet to balance, btw 🫠)


𝗣𝗮𝗿𝘁 𝟮:

We moved to dinner and drinks, much more casual.

But with another candidate there, I'm left wondering...

  - Am I saying enough?
  - Is he sounding smarter than me?

I've always been super introverted, so while I can "turn it on" in those social settings, it's not my comfort zone.


𝗣𝗮𝗿𝘁 𝟯:

The Partners "call it a night," and we head to the bar with the Associates.

The other candidate invites a girl to the bar, then kind of disappears.

I sat and talked with the Associates most of the time.

Eventually, we got an Uber back to my hotel, said thanks and goodbye, and parted ways.

I had no idea "how I did," but in my gut felt like it was decent that I at least finished the night with team members.

(and they were cool guys, so it was easy).


𝗣𝗼𝘀𝘁 𝗴𝗮𝗺𝗲:

I eventually got the job.

I'll never truly know how "well I did" vs the other guy, but since I submitted a busted model (🙃) , I have to assume the fit was better.‍


𝗧𝗵𝗲 𝗷𝗼𝗯 𝗶𝘁𝘀𝗲𝗹𝗳

It turned out to be really hard (at least for me).

I wasn't prepared for the hours or the travel schedule.

(I came from a more "comfy" 9-5 FP&A role).

Honestly, it was too much for me at times.

But, 𝗜 𝗹𝗲𝗮𝗿𝗻𝗲𝗱 𝗮 𝗧𝗢𝗡.  There was more growth in that one role than there was anywhere else in my career (other than going out on my own).

It's also why I created a modeling program: to help people learn faster and not struggle like I did: https://bit.ly/FMECourses 


𝗟𝗲𝘀𝘀𝗼𝗻𝘀 𝗹𝗲𝗮𝗿𝗻𝗲𝗱:

1️⃣ A huge part of PE is 𝘩𝘰𝘸 𝘺𝘰𝘶 𝘩𝘢𝘯𝘥𝘭𝘦 𝘺𝘰𝘶𝘳𝘴𝘦𝘭𝘧 𝘸𝘩𝘦𝘯 𝘵𝘩𝘪𝘯𝘨𝘴 𝘢𝘳𝘦 𝘶𝘯𝘦𝘹𝘱𝘦𝘤𝘵𝘦𝘥.

   - the "double booking"
   - unplanned travel
   - long hours

2️⃣ Also, 𝘩𝘰𝘸 𝘥𝘰 𝘺𝘰𝘶 𝘩𝘢𝘯𝘥𝘭𝘦 𝘺𝘰𝘶𝘳𝘴𝘦𝘭𝘧 𝘴𝘰𝘤𝘪𝘢𝘭𝘭𝘺?

Modeling skills get you in the door, but a huge part is spending time on the road meeting management teams.

That means all different types of personalities.

You need some level of EQ to build a partnership.

And although the travel was a lot for me, I loved the time onsite.

Meeting the entrepreneurs ultimately inspired me to do my own thing.


𝗣𝘂𝗻𝗰𝗵𝗹𝗶𝗻𝗲

PE is no joke, but it can be a really fulfilling career if you can find a good team and build genuine, human relationships with your portfolio companies.

I put this guide together as one small tool that can help.

📥 https://lnkd.in/ewh-x6_k

Private Equity Interview Guide

My quick thoughts on AI & financial modeling:

- AI is great in 𝗲𝘅𝗽𝗲𝗿𝗶𝗲𝗻𝗰𝗲𝗱 hands

- Experience can interpret what AI builds (and spot any mistakes)

- You gain this experience “the hard way,” building models from scratch

- By doing so, not only do you gain technical skills (Excel, etc.)…

- You 𝘭𝘦𝘢𝘳𝘯 𝘵𝘩𝘦 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴 along the way (which is ultimately your job)

AI can definitely save you time on the front end, but you’ll likely use that same time on the backend (1) interpreting/auditing the model and (2) learning the business.

That’s why I still prefer using the time to build by hand.  The total net time may be greater, but I’ll understand more.

𝗣𝗲𝗿𝘀𝗼𝗻𝗮𝗹 𝘀𝘁𝗼𝗿𝘆: taught myself to build a ROU Asset / Operating Lease with AI in a client model.  It worked because I already knew the underlying finance and accounting — my experience allowed me to take advantage of the tool.

I think the professionals best-suited for the future will have the foundation of old school learning coupled with new school tools.  That’s the edge.


𝗔𝗻𝗱 𝗮𝘀 𝗮 𝗻𝗲𝘅𝘁 𝘀𝘁𝗲𝗽...

If you're building a model from scratch, sometimes it's hard to know where to start.

📥 This checklist can help: https://lnkd.in/eVTU67fY

Which of the following is 𝘯𝘰𝘵 part of Cash from Investing Activities?

Take the full quiz here 👉 https://lnkd.in/eccYpT-R

Which of the following is not part of Cash from Investing Activities?

The author can see how you vote. Learn more

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