This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Jim Delaney, CEO of Traction AI, and Kristian Marquez, President, CEO, and CFO of FinStrat Management. Randy, Jim, and Kristian discuss the significance of pairing robust revenue operations with meticulous financial strategies to foster startup growth. Jim shares his experience at Canvs AI and the intriguing role AI plays in gauging human emotions—a significant leap from traditional social media monitoring tools. He highlights the importance of unifying marketing, sales, and customer success teams with integrated systems to drive performance metrics. Kristian, with his telemedicine and financial expertise, unlocks the mystery behind early-stage fundraising and financial management, guiding founders through the journey from inception to exit by crafting solid financial foundations and leveraging key metrics to fuel growth ambitions.Quotes“If your foundation is built on quicksand, what difference does it make? It's not up to us to set expectations that we're doing a lot of cleanup. We've become very adept at it. We share with our clients, our founders, and our CEOs that we don't like cleanup any more than you guys do. We like standard repeatable processes. It is essential to have a big focus on getting everything right because the old garbage in and garbage out dashboard models are meaningless if the underlying data is wrong.” -Kristian Marquez [46:19]“It's locking down a forecast, something as simple as that. And how well and accurate our forecast really says so much about our level of professionalism because of all the things that are incorporated in that. Especially with earlier stage ventures, where you're thinking about your cash-out date, you're thinking about your cash burn, you're thinking about your current cash position. How much cash is actually coming through business? It's absolutely imperative that it be predictable, reliable, and accurate. We're making funding decisions at board meetings about whether or not we're going to go hire those next two or three sales guys or customer success. So that's the basis of why it's so important.” -Jim Delaney [25:28]Expert Takeaways How emotions can be measured through AIThe vital role of connecting RevOps with FinOps for streamlined operations and informed decision-making, promoting efficient revenue generation.Christian Mark's approach to financial management emphasizes the importance of clarity on founders' ultimate goals, which can inform actionable financial strategies.The significance of establishing product-market fit before scaling operations for startups in the zero to one million ARR phase.Practical recommendations for early-stage SaaS companies on financial operations, including the necessity of professional bookkeeping and system integrity.Timestamps(00:04) Jim Delaney and Krstan Marquez intro(12:06) CMS star ratings, the role of data, and minimizing biases(16:29) “SaaS in a Box”(21:00) Accurate invoicing and revenue recognition(23:56) The challenges of data hygiene(27:15) Identifying the best and worst performing campaigns and channels(43:48) Focusing on customer volume with a billing module in b2b and b2c SaaS companies(50:14) Establishing repeatability and predictability (53:15) CAC (Customer Acquisition Cost) efficiency for go-to-market companiesLinksMAXIO

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Anthony Nitsos, Founder and CEO of SaaS Gurus. With a background that intriguingly intertwines medical school education and extensive expertise in finance, Anthony has over 25 years of experience building SaaS financial models. Randy and Anthony discuss principles for building and scaling backend financial systems that can transition from startup to scaleup without creating a "tech pile." By drawing parallels between human anatomy and business functionalities, Anthony emphasizes the significance of a single source of truth in accounting systems and the critical nature of precise and actionable data for organizational leadership. Quotes“If your spine and your core muscles are not strong, the rest of your body hanging off of that isn't going to be. The same thing works in the back office of finance systems. You need to have a rock-solid accounting system that ties to a rock-solid forecasting system that both feed into a KPI system. That is our three-part, financial core.” -Anthony Nitsos [17:00]“One big challenge is creating that one holistic view of the customer and product data that then helps inform not just the statements, but also the operating reports that you're using to run the business. Understanding what's going on with churn, understanding what's going on with retention. There are some exceptions, but you have to go and figure it out, you have to recode it. I think early-stage companies are just scrambling to get product out.” -Randy Wooton [14:39]Expert Takeaways Interconnected Thinking: Addressing root causes and systemic connections in finance and operations in SaaS companies.The Financial Core: A strong, streamlined accounting system tied to a precise KPI system is crucial for providing actionable intelligence to executive teams.Tech Stack vs. Tech Pile: Creating a proper technology stack rather than a disjointed tech pile for seamless data flow and informed decision-making.Cash is King: Accurate cash flow forecasting is paramount and enables CEOs to plan effectively for growth or investment.Building Valuation: The ultimate objective of a CFO in the venture-backed SaaS environment is to assist companies in growing their valuation and preparing for successful exits or investor rounds.Timestamps(01:20) Anthony Nitsos: Applying medical training to problem-solving(08:57) Preventing, detecting, and correcting in-process optimization(13:30) Need for a unified customer list for integrated analysis(19:05) Providing actionable intelligence as a strategic enabler(26:13) The significance of accurate revenue recognition for SaaS companies(34:30) The CFO: “Cash Flow Oracle”(41:06) Projecting cash and analyzing it(47:05) What is the mission of the CFO?LinksMAXIOUpcoming EventsMaxio Institute Report

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Jeff Epstein, Operating Partner at Bessemer Venture Partners and a distinguished figure in the business and finance sectors. Randy and Jeff discuss the rationale behind budgeting, emphasizing its role in predicting financial futures, resource allocation, motivation, and maintaining fiscal discipline with investor funds. Jeff talks about the recent introduction of the Rule of X by Bessemer Venture Partners, examining the balance between growth and profitability. Jeff also shares pragmatic wisdom from his time at Oracle about setting realistic yet ambitious targets and flourishing within set constraints.Quotes“I think the Rule of X is my favorite metric because it combines revenue, growth and profitability. There is always that tension and that trade off. Should we grow faster and invest more or should we try to get more profitable sooner? And both the CEO and the CFO, that's one of the key resource allocation decisions they make. Another way to think about it is it's short term versus long term. You need to do both. You need to both achieve your goals this year and build the company for the long term. And the Rule of X captures both concepts.” -Jeff Epstein [40:21]“I think the way we think about that, and I'm only going to B2B SaaS guy, is what is the pipeline that has to be built to match the capacity, the sales capacity? So street quota, what is that? So for using an example, like 10 million bucks, marketing sales have to be totally aligned in terms of how many dollars need to be invested in paid surge versus events, et cetera, to create the pipeline, the days to close and the percent win rates that gets you to an 80/80 hit. So I think that's a great rule of thumb.” -Randy Wootton [25:40]Expert Takeaways Rule of X: a nuanced approach to evaluate a company's performance by combining growth with profitability.Budgets serve as a predictive tool, a resource allocation guide, and a motivational scorecard, and are fundamental for fiscal discipline, especially when using investors' money.The importance of aligning annual budgets with a company's strategic three to five-year plan and the careful management of board expectations.50/50 probability when setting revenue targets should ideally lead to aggressive but achievable goals.Executive compensation strategies: balancing individual accountability and sharing in company-wide success.Timestamps(01:28) Jeff’s time at Oracle(03:06) Building budgets(06:37) The Rule of X(09:09) The relationship between strategy and budget(16:00) The need for more evidence before relying on AI efficiency improvements(21:00) The 50-50 rule for team performance(29:17) The three-part compensation plan and the alignment of incentives with profit goals.(32:48) Driving incentives and motivation through MBOs and OKRs(36:02) Addressing the tension between annual budgets and actual performanceLinksMAXIOUpcoming Events

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Dawoud Nasraty, Director of Consulting at Armanino. After serving as an accountant at a Big Six firm, Dawood's career trajectory includes roles for a European telecommunications company in Afghanistan and as a CFO. Dawoud and Randy talk about the intricate world of data and decision-making, the technological advancements shaping accounting practices, and lay out the essential lessons and best practices drawn from Dawood's extensive stint as both a consultant and an in-house financial controller. They also discuss the necessity of solid infrastructural investment and why startups often fail without robust financial systems. Quotes“Sound metrics built on sound data. And a lot of companies that get started, not all, but a lot of them, in the beginning, don't pay as much attention to the back office, the finance, and accounting. So it's important, like finance and accounting takes like second or third place, but it's important to establish a solid foundation in that area sooner than later, not too early, but not too late. So the CFO, the CFO needs to encourage investment in the finance function at different stages in the company's life cycle.” -Dawoud Nasraty [18:18]“Someone once said to me that the number one deal killer in M&A is accounting issues and that's because companies haven't done the work, hiring professional consultants, advisors, fractional CFOs to come in and help put the systems in place so the data works and so that they can represent the reports.” -Randy Wootton [11:41]Expert Takeaways  Establishing strong finance and accounting foundations early is critical for startups to manage reporting and withstand investor scrutiny effectively.A coordinated system of record is essential for assembling a 'single source of truth' that facilitates accurate decision-making.Overlooking the importance of meticulous financial management and data integrity can lead companies toward a wind-down state.Implementing effective technologies can change the game for SaaS companies in aligning with sales teams and managing cash flows.Learning from failures and 'worst practices' informs better approaches and readiness for future business challenges.Timestamps(00:39) Dawoud’s background(06:10) Working with a startup company and setting up accounting systems(12:29) Good data and its role in statistics, finance, and economics(18:08) Sound metrics are built on sound data(24:21) The challenge of transitioning from spreadsheets to a solid tech platform(29:08) The impact of revenue recognition on business metrics(31:11) The need for a thoughtful approach to data managementLinksMAXIOUpcoming EventsMaxio Institute ReportRandy Wootton LinkedInDawoud Nasraty LinkedIn

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with David Nilssen, CEO of DOXA Talent, and a forerunner of revolutionizing how businesses think about and engage with borderless talent. Randy and David take a look at the intricacies of borderless talent acquisition and the attributes that contribute to the success of a CEO in today's ever-evolving SaaS landscape. They discuss how purpose-driven approaches to outsourcing can bring about positive global change and how talent scarcity, remote work, offshoring, and AI integration are altering the business world permanently. David also talks about the value of peer groups and why you need to invest in your tribe. Quotes“The interesting thing about the Guidant business is that we don't make a tremendous amount of money financing businesses. That's what we're known for. But we actually really try to break even, as you're pointing out, on that particular deal. And then we have tax and accounting, payroll and 401K administration on the back end. And so what's really interesting about that business is that we've figured out a way to acquire a customer, profitably acquire a customer and then provide them with other services that really has no acquisition cost associated with it.” -David Nilssen [30:32]“How do we operate at the edge of our own ignorance? How do we keep learning and how do we have enough humility to ask? Because part of the thing I think as a CEO is people look at you for the answer and sometimes you don't know what the answer is. And so you got to admit that you don't know and then go ask questions of everyone you can. Like what you're describing with learning about subscription businesses and how that model works, is going to help you be a better leader and create a better business.” -Randy Wootton [42:22]Expert Takeaways The talent landscape is being reshaped by four key trends: talent scarcity, the rise of remote work, the necessity of offshoring, and AI advancements.Creating a meaningful employee experience is crucial for retention and productivity, particularly in remote work settings.A focus on 'impact' and 'income' helps secure a sustainable career progression for remote employees, generating value for both the employee and employer.Peer groups provide valuable support for personal and professional growth, benefiting not only business leaders but also their interpersonal lives.Today’s CEO: curious and open to learning, embraces their role with humility and has a keen sense of responsibility.Timestamps(01:46) Trends in talent scarcity and remote work(04:31) Challenges and advantages of focusing on SMB and mid-market(10:50) Creating a culture of purpose, leadership, team, client, and career(17:05) The value of career pathing and continuous learning for employees(22:19) Tracking the key metrics(30:38) Investing in your tribe: mentor, coach, peer group, and peer advisory(34:56) How to be a CEO: learning and humility(37:26) EO, peer groups, and investing around you(42:16) Success: curiosity, ownership, and a people-first mentalityLinksMAXIOUpcoming Events

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Dave Boyce, a GTM-focused SaaS Advisor, board member for Winning by Design and Forrester, and professor at BYU. Dave shares his unique approach to career decisions, focusing on his need for challenging work that ensures personal growth and impact. This approach has shaped his strategies for businesses to adopt a customer-centric mindset that aligns the product with the user's core needs, creating a successful PLG strategy. Dave and Randy discuss the framework required for a PLG model, identifying the mindset, talent, and timeline necessary for successful adoption, and how go-to-market strategies differ and can coexist in today’s business environment.Quotes“There are three really hard pills to swallow. One is mindset, one is talent, and one is timeline. For mindset, I'm going to get in an empathy and generosity mindset where I'm simplifying down and meeting a customer right where she is. I'm going to put metrics into the product so that when she's stumbling or not making her way through, I'll know about that. Because I don't have a human in the room anymore either selling or implementing or coaching or training. That customer is on her own and I need to know when she's having trouble. Empathy, generosity, and metrics help me get that user experience right.” -Dave Boyce [08:33]“PLG introduces this low threshold of payments that are tied to value. I think that creates discipline in your marketing motion. It creates discipline in the way you think about satisfying customers' pain with your claim, the delivery of the capabilities, and how you do fast iteration and improvements. So I think it's this dynamic constraint or mixing of two metaphors, but you've got these constraints in terms of your business model and what you can afford to do, and that makes you super scrappy. So it is in line with innovation, fast fail, rapid turn type motions.” -Randy Wootton [14:47]Expert Takeaways PLG strategies focus on the product selling itself, with immediate value creation for users as opposed to the typical sales involvement in SLG.Go-to-market fit requires a scalable and economical source of customer acquisition, aiming for a customer acquisition cost (CAC) payback period of less than one year.Scaling PLG into a viable business unit involves understanding a growth model dependent on new customer acquisition, renewals, and expansion.The dynamic between PLG and SLG isn't necessarily an 'either-or' scenario; they can and often do function as complementary strategies in a hybrid model.Timestamps(02:03) Guiding principles for career pivots(10:23) Differentiating between bottom-up and top-down approaches in PLG(13:41) Adapting to PLG with a lower ACV(21:29) The false dichotomy between PLG and SLG, the hybrid approach(26:00) Rolling out a PLG business: product-market fit, go-to-market fit, and scale(32:35) Designing applications to get product usage metrics(42:41) Building a flywheel and repeatable processes for PLG(44:47) CAC payback for unit economics and disciplineLinksMAXIOUpcoming Events

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with CJ Gustafson, CFO, and writer behind Mostly Metrics, to discuss the CFO's transformation from a back-office statistician to a front-office strategist, the evolving landscape of SaaS, and the future of finance leadership. Randy and CJ discuss the qualities that distinguish outstanding CFOs, the integration of strategic planning with finance, and the powerful impact of technology on the CFO's role. Listen as CJ shares how CFOs are leveraging technology to streamline processes, enhance decision-making, and drive company performance while balancing risk in the dynamic SaaS sector.Quotes“I think there's a lot of idea generation that's made easier and then being able to link together different areas of work. So there are a lot of cool tools that are coming about that will take, basically information from the front of the house, from customer support, or maybe like a BDR, getting information to then link and say, does this person have an account with us? What's their historical spend? Have we ever talked to them before? It's linking data from different parts of the organization in a way that you can tell a story and then go back and have a conversation with the customer, which I think before would have taken a lot more time.” -CJ Gustafson [40:38]“Being deeply integrated with the CEO and the CRO in terms of monetization strategy, I've talked about that as moving from the back office to the front office. What pricing should we be using, and packaging should we be trying, for which segments, for which products, in which regions? How does it impact our win rates, and how does it impact our churn? That, owning pricing and being able to provide options and being willing to experiment.” -Randy Wootton [08:33]Expert Takeaways Good CFOs are distinguished by their role as chief resource allocator, chief truth-teller, and chief risk officer, balancing strategic investments and maintaining honesty in communication.Modern CFOs must effectively integrate operational and financial data analytics for strategic insight, which demands both a high-level "eagle" perspective and a detail-oriented "mouse" focus.The evolving fintech stack and advancements in AI are enabling finance teams to elevate performance, with tools like Maxio automating revenue reporting and aiding in strategic planning.As technology proliferates within finance functions, a key challenge for CFOs is to ensure that tools are adopted and add value, rather than merely becoming shelfware.AI in finance is less about creating standout performers and more about raising the baseline performance of a team, but vigilance is necessary to avoid data "hallucinations" and inaccuracies.Timestamps(01:26) Qualities that separate good CFOs from great CFOs (06:18) Evolution of the CFO role and moving from back office to front office (13:13) Empowering the management chain and setting up monitoring systems. (22:15) Tailoring metrics for different audiences (26:35) The importance of planning in preparation (30:37) One database or data lake for production, operational, and financial data. (35:10) Improving both people and technology. (42:27) Creating guardrails and running AI models multiple times for accuracy. (44:39) The evolving role of the CFO and embracing augmented intelligenceLinks

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Lihong Hicken, Co-founder and CEO of TheySaid, about her journey in the SaaS industry and her insights on customer retention. Lihong shares her experiences as a sales executive and CRO, and discusses the challenges of preventing churn and driving net retention. Lihong shares how TheySaid is pioneering a way to capture customer sentiment and unearth early indicators of churn, fundamentally shifting how companies interact with their customers for improved retention and revenue growth. Listen as Randy and Lihong discuss strategies and solutions for improving customer retention in the SaaS industry.Quotes“Every decision needs to have one decision maker. You can't have multiple decision-makers. One person needs to own it directly. And then, how do you make decisions? So, if I am a decision-maker, I make the decision. I say I want to try this new initiative. It's new, it's scary, but I want to try it. And if you or someone else wants to challenge my decision, I welcome you to challenge. But if you need to challenge me and make me change my decision, you need to come up with data that is a higher degree than mine.” -Lihong Hicken [32:51]“What we find is best in class companies are north of 90%. The idea is if you're losing 20% of your customers at the beginning of every year, you have to start over and fill that leaky bucket with that amount of revenue just to get back to where your starting point was before you start to layer in new logos. And with the SaaS model, the idea is you get a customer, you keep a customer, customers for life, you hopefully have them. And that's measured in terms of gross retention. And then you were alluding to another metric. Net retention is where you get to grow them. They grow either by buying more seats or they're buying more products or they're division hopping.” -Randy Wootton [10:20]Expert Takeaways Refocusing on Retention: Retaining customers goes beyond simply delighting them; it requires ensuring that they are receiving tangible value.The Reactive Nature of SaaS: The industry's approach to churn involves waiting and responding to declining product usage, which Hicken argues is inherently flawed.Insights Over Usage Metrics: Listening to customers' voices to predict churn risks and growth opportunities before they manifest in usage data.Ownership and Decision-Making: A clear ownership of the gross retention metric and decision-making based on hierarchical data can drive better retention strategies.Voice of the Customer: Implementing journey-based, personalized questions can give companies an edge in uncovering true customer needs and mitigating churn risks.Timestamps(02:50) Lihong's journey to the US and starting in sales(08:38) The leaky bucket problem and the importance of retention (15:49) Customer delight does not equal renewal, value does (22:38) Use automated personalized questions to uncover churn risks (29:25) Decision-making dynamics and the challenges of multiple decision-makers (32:47) Clear decision-making authority and data-driven decision-making (33:23) The four levels of decision-making: customer data, expert views, team experience, and personal experience (34:35) Engaging in data-driven conversations when making decisions (37:27) CCOs need to be proactive and strategic in driving adoption and preventing churn (38:17) Challenges in the CCO role: CCOs often adopt a team-based decision-making process Links

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Tom Hood. Tom shares the myriad of challenges he's faced, victories achieved, and lessons learned throughout his career, which currently has him at the helm of AICPA's digital engagement and growth initiatives. Randy and Tom discuss the CPA Vision Project from 1999, which laid the groundwork for the accounting profession's future vision. This forward-thinking project has lasted well into the present, influencing the 2025 report and shaping the CPA's role in today's rapidly changing technological landscape. Listen this week as they touch on the breadth of opportunities that technology brings to the accounting field, the importance of adaptive learning, and the AICPA's role in upholding professional standards across the globe. Quotes“On top of our technical skills, CPAs and accountants have to have technical accounting skills. We have to have some data literacy and an understanding of technology. So there are deep technical skills that come with an accounting or finance degree. But across the top, we need what we call boundary-crossing competencies. Leadership and sense-making, anticipating and serving evolving needs, and synthesizing critical strategic thinking. The other one would be communication, storytelling, integration, and collaboration. And then you can add agility.” -Tom Hood [39:00]“Now you have access to incredible algorithms at large language. Also, it's generative versus predictive. But second gen and I think you're right, this idea of a fifth industrial revolution, in terms of how we think about engaging with augmented intelligence across every function of my company, we're talking about it, and I think for accounting in particular, it's going to be radically changed, and it's going to bump up against that natural tendency of accountants to not want to embrace technology.” -Randy Wootton [33:38]Expert Takeaways The CPA Vision Project catalyzed the accounting profession's future-oriented transformation, emphasizing the need for continued evolution and adoption of technology.The AICPA, in partnership with CIMA, is driving global standards in accounting, supporting 690,000 members in around 180 countries.The CGMA designation is a strategic credential for accountants that aligns closely with the needs of CFOs to embrace broader business strategy roles.Tom Hood stresses the significance of technologically savvy CFOs, particularly as industries face the dawn of the fifth industrial revolution characterized by generative AI advancements.CPA educational resources and certifications are crucial in preparing finance professionals for their evolving roles in strategy, risk management, and financial leadership.Timestamps(01:31) Importance of building a tribe and networking for professional growth(07:52) Trends that drove the CPA Vision Project and the impact of technology (14:02) Technology can do a lot of the work for us if we let it(19:11) The future CFO role is shifting from back office to front office, focusing on strategy(22:43) CPAs and CGMAs have continuing education requirements to stay current(27:26) The top issues in finance: digital transformation, Gen AI, and new skills(28:30) CFOs leading Gen AI initiatives due to their data knowledge and strategic role(35:16) Educating finance professionals on Gen AI and implementing it within organizations(36:32) Relationship-building and emotional intelligence (39:07) The importance of boundary-crossing competencies in accounting and finance(40:31) Inflection points in a career and the need for different skills at each

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Mark Gandy CEO of G3 CFO and the founder of the Financial Operating System. With an extensive career that started at KPMG, Mark has a background rich in accounting and financial expertise. Randy and Mark discuss the importance of a financial operating system and how it can help businesses get unstuck. Mark shares his insights on the CAMELS system, which stands for capital, asset quality, management, earnings, liquidity planning, and sensitivity to market risk. Listen this week as Randy and Mark explore growth trajectories, operational successes, and future relevance for CFOs in an ever-changing market landscape.Quotes“My definition 25 years ago of a CFO is the same as it is today. It's a financial expert, with deep domain financial expertise, who has a really good grasp on marketing, sales, and operations, who could take over being CEO for one entire year. Sales don't go down, cashflow doesn't go down. The value of the business might even go up. Oh, the culture might even improve a little bit. But after that one year, they're extremely happy to go back to being the CFO because that's what they love doing. That is the definition of a CFO.” -Mark Gandy [30:57]“Unless you have a very clear sense of what's happening with your cash and then your growth model growth engine, that's going to show why you're going to generate more cash, EBITDA as a proxy, over time, VCs may take their bat and go home and say, give me back my cash. I think what we're seeing with a lot of companies that are going out of business, or declining, is that maybe that pressure from the investors is saying, look, it's not clear to me that you have product market fit and that this is going to be a company that's going to be viable for the next two or three years.” -Randy Wootton [28:07]Expert Takeaways Financial Operating System and modified CAMELS Framework: Applying the CAMELS framework (Explore capital, asset quality, management, earnings, liquidity planning, and sensitivity to market risk) to a financial leadership construct.Liquidity Planning: The critical nature of having a clear and actionable understanding of the company's cash flow and forecasts.Role of a CFO: Explored through the historical lens of John Rascob as well as Mark's personal definition, tying in a strategic grasp of marketing, sales, operations, and the capacity to lead as a CEO.Operational Efficiency: Challenges companies face in transitioning from startup to scale-up, particularly in streamlining the 'finding, getting, and doing' process within the business model.Relevance and Sensitivity to Market Risk: The imperative of continuously assessing a company's future relevance and positioning within the market.Timestamps[01:33] Mark discusses the founding of G3 CFO and his background.[04:18] The financial operating system and the use of the camel system in consulting[13:00] The plateau in business growth is due to lacking marketing and sales skills. [16:28] CEOs need to consider the broader context of earnings, including units sold and average transaction size. [19:19] Above the fold: focus on unit economics and what drives the growth engine. [20:08] Below the fold: consider operating cash flow, debt service coverage, and unfunded tax liability. [25:48] The best liquidity model is no liquidity model. [30:17] CEOs should focus on tomorrow's opportunities, not yesterday's problems. [33:27] The CFO: financial expert with

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Brian Bell, Managing Partner of Team Ignite Ventures, about his journey from finance to product management to becoming an investor. Brian highlights how his eclectic background has shaped his investment philosophy. Randy and Brian discuss the importance of customer validation, the impact of AI in the advertising industry, and the patterns of success and failure in early-stage startups. They also explore the trends in fintech and the office of the CFO, including the unbundling and bundling of services and how emerging AI technologies are forging new frontiers for startups and conglomerates alike.Quotes"A lot of investing is pattern recognition. It's just heuristics. It's at bat. It's kind of like a golf swing or a basketball shot, figuring out what startups to work with and investing in them to help them grow.” -Brian Bell [19:13]“I think that idea of going through those stages of getting product market fit, and then the stage that I'm most interested in is that expansion, growth, and then you start to move into the scale. So how do you start to take advantage of the foundation? You have to get to some level of scale.” -Randy Wootton [30:26]Expert Takeaways The transition from traditional careers to emerging tech-focused roles can lead to valuable, diverse experiences that shape successful investment strategies.Understanding customer needs and validating product-market fit is crucial for startups and can significantly influence investment decisions.AI is not only transforming existing industries but is also enabling the creation of novel business models and company structures.The unbundling and re-bundling of services, particularly in fintech, are pivotal trends shaping the landscape and presenting new investment opportunities.The impact of AI on future employment and corporate structures could lead to companies operating with minimal human staff, altering traditional business models.Timestamps[01:20] Brian's journey from finance to product management [04:16] The impact of AI in the first generation at Rocket Fuel [05:44] Lessons learned from Rocket Fuel and investment strategy[07:08] Importance of customer validation and empathy in product development [08:57] The evolution of AI and its impact on industries[14:45] Amazon and Microsoft Culture[19:55] Venture capital and starting Team Ignite [21:39] Pattern recognition involved in investing [23:07] Strategy for investing in startups [23:40] Six questions to ask startups [34:18] Evolution of the office of CFO and the unbundling happening [38:43] AI revolutionizing core capabilities and becoming a central focus [42:46] The singularity and the unimaginable future with advanced AILinksMAXIOUpcoming EventsMaxio Institute Report

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, welcomes Matthew May, President of Acuity and CEO at Verify IQ, for a deep dive into the evolving world of SaaS finance and the transformative roles of CFOs within technology companies. Randy and Matthew discuss the strategic evolution of the CFO's office and the vital adaptations necessitated by rapidly advancing technologies. Matthew talks about the impacts of technology automation and AI on traditional finance roles and the convergence of CFO and COO responsibilities. Listen this week as Randy and Matthew explore the upward shift from data processing to data strategy and the importance of proactive business planning.Quotes"The office of the CFO has changed in that there's this excuse that there's no talent there, but really what there is. There is just a harder training problem that people haven't solved yet.” -Matthew May [07:15]“So CPQ historically has been something I would say runs up through sales op. It's a CRO decision to buy because it's usually a salesperson that's using it. We found that CFOs are now influencing that decision in a way because they want to make sure that the contract's accurate. They can ingest it from the CRM system into something like a Maxio or have it go into the other financial systems.” -Randy Wootton [21:30]Expert Takeaways CFOs are increasingly taking on COO roles as finance functions automate and require more strategic focus.Content creation success hinges on consistency and authenticity; an essential lesson for finance professionals considering digital channels for their messaging.Emerging CFOs find themselves needing to understand the forward-looking aspects of the business, such as weekly operating metrics, rather than focusing solely on traditional financial reports.Global staffing and training present opportunities and challenges for modern CFOs, underlining the international expansion of talent acquisition.Utilizing employee churn as a critical metric, reflecting company stability and the overall health of its operations.Timestamps(02:20) Publishing content: consistency and authenticity(03:42) Evolution of the role of the CFO in the tech space (05:29) Key technologies enabling CFOs to step into the COO role (06:09) Automation of general ledgers and challenges with data diversity(09:16) Global staffing and the importance of a globalized workforce (11:48) CFOs moving from compliance to strategic advisory services (12:26) The shift from translating accounting to focusing on KPIs. (15:18) CEOs gaining fluency in accounting around $3-5 million in revenue.(17:03) Lagging and leading indicators: financial metrics and operating metrics.(19:43) Recommended KPI tools: sift, giraffe, and 90 for EOS adoption. (20:51) Shifting from reviewing financial statements to predictive KPIs. (25:36) App fatigue and consolidation in the market. (27:59) Building AI into accounting products for 2024. (32:23) AI trends and building partnerships for AI tools. (35:15) The challenge of balancing change and safety as a CFO. (36:00) Focusing on prevent controls rather than detect controls (39:33) Attrition has decreased due to fewer job opportunities, with employees hunkering down and staying in their current roles LinksMAXIO

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Jon Cochrane, VP of Strategy at Maxio and Director of the Maxio Institute, to discuss the Maxio Institute Growth report and the future of the Maxio Institute. Randy and Jon delve into key insights from the report, including the resilience of B2B businesses and the impact of the pandemic on different industries. They discuss how data can drive growth and inform business strategies and the challenges faced by sales and marketing tech companies amid competitive pressures and shifting budgetary priorities. Listen as they explore the unique paths to growth among small SaaS businesses, emphasizing the importance of predictable invoicing and cash management.Quotes"Build a great team, make sure that you have great data that you can access regularly, that can be surprisingly hard. And then talk to somebody who has been there and done that and who has done this well in the past. I think you'll find that the community is quite generous with their thoughts and their insights and sharing that, because all the people who love number crunching and data crunching, this stuff is fun too, to be able to share and analyze.” -Jon Cochrane [25:49]“[What] we're trying to do is help the SaaS industry get better through better insights. And for CEOs like me who are freaked about what's unfolding day to day and how are we going to continue to grow in this world and deliver shareholder value, being able to share insights that create a collective understanding of reality is better for everyone.” -Randy Wootton [32:33]Expert Takeaways The Maxio Institute Growth report provides essential benchmarks for private SaaS businesses based on real-time invoicing data.The SaaS industry appears to be returning to normalized growth rates with an average annualized growth rate of about 15% in 2023.Industry-specific differences are pronounced with the restaurant, hospitality, and leisure sectors leading year-over-year improvement.Early-stage SaaS companies with a consumption-based monetization strategy under one million dollars in billings show minimal growth.Potential future expansions of the report include deeper industry analysis and coupling quartile analyses with industry benchmarks.Timestamps[03:44] Maxio Institute: providing real industry benchmarks and insights for the private markets[05:00] The challenge of obtaining accurate data in the private markets[06:01] The importance of timely data in the Maxio Institute report[09:20] Key insight: B2B businesses have proven resilient and have returned to more normalized growth rates[10:59] Impact of the pandemic on different industries[13:51] Challenges in marketing tech with numerous competing vendors[18:27] Importance of predictable invoicing for early-stage companies[21:48] Cash management and milestones in SaaS growth[33:01] Investing in insights for growth and shareholder valueLinksMAXIOUpcoming Events

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Thomas Lah, co-founder of the Technology Services Industry Association (TSIA). Randy and Thomas take an in-depth exploration of the journey from traditional software models to SaaS, the dynamics of profitability within the industry, and the development of key success metrics. Thomas shares valuable experiences from his tenure at Silicon Graphics to his groundbreaking approach in founding an association focused on data and insights for the technology services industry. Randy and Thomas navigate through the transformational shift from on-premises software models to cloud-native SaaS businesses, revealing trends, challenges, and strategies for acclimating to new market realities. Quotes"If your RAC (revenue acquisition cost) number is higher than your competitors, you have a problem. You have a serious problem because you are not as efficient at generating revenue growth. And that's going to catch up with you. How much time and treasure you're going to have to spend to get market share.” -Thomas Lah [22:20]“SaaS companies can be replaced. As a CEO or CFO, you have to think about your unique value in a way that doesn't lock the customer in. You have to continue to give value. It's a value conversation versus a price increase conversation.” -Randy Wootton [38:58]Expert Takeaways The Rule of 35, proposed by TSIA, serves as a new benchmark for operational efficiency, complementing the well-known Rule of 40 in guiding SaaS companies towards profitability.Monetizing service motions, migrating commercials, and leveraging data for growth are crucial levers for improving SaaS profitability.The RAC (Revenue Acquisition Cost) to CAC (Customer Acquisition Cost) metric provides a clearer picture of growth efficiency compared to CAC alone.There has been an increase in focus on financial austerity among SaaS companies, with significant layoffs marking a move toward more sustainable growth strategies.Timestamps[03:25] Transformation from on-prem to cloud-native software [07:13] Migration from on-prem to managed service offers [10:19] Challenges of achieving profitability in the SaaS business model [13:07] Tech companies have eliminated almost a million jobs [14:18] Importance of being profitable and the rule of 40 [22:10] Salesforce, ServiceNow, and Zscaler's rack numbers compared to competitors [24:37] CFOs need to shift from Excel to database models for data analysis [29:15] CFOs need to shift from compliance to strategic partnership [31:44] The "porpoise principle" of becoming profitable before making growth investments [40:01] Changing the operating model is the hard work for profitability [40:57] "Digital Hesitation" and "As a Service Playbook" are recommended booksLinksMAXIOUpcoming EventsMaxio Institute Report

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks to Bebe Kim, a seasoned entrepreneur and CEO of Basis, to shed light on the changing landscape of the office of the CFO and the evolving role of finance professionals. They take an in-depth exploration into the intersection of finance, technology, and leadership, offering valuable insights for those in the SaaS industry. Bebe shares the three-stage evolution of the office of the CFO and how financial acumen is crucial in today's fast-paced, software-driven business environment. With an emphasis on data-driven decision-making, cross-functional collaboration, and continuous learning, Bebe provides a wealth of knowledge on becoming a strategic financial leader in the 21st century.Quotes"Growth at what cost is more of the question than growth at all cost.” -Bebe Kim [08:35]“As a CFO, you need to move from just reporting to helping your entire executive team become financially literate so they can understand how decisions are made in trade-offs. So you have this team dynamic versus the CFO off by themselves, building their budget and getting it approved.” -Randy Wootton [34:40]Expert Takeaways The office of the CFO is undergoing significant transformation, driven by advances in technology like AI, software managed services, and out-of-the-box financial tools.The evolution of the CFO's role can be marked in three stages: working in spreadsheets (no box), software-managed services (out-of-the-box phase), and finally, the incorporation of AI (black box).For modern CFOs, successful execution relies on understanding databases, trusting system-driven calculations, and adapting QA methods beyond traditional bottom-up approaches.Automation and AI are pivotal in scaling the finance function, necessary to counteract the dwindling pool of accounting and finance professionals entering the workforce.Continuous learning and adaptability in finance are indispensable, enabling CFOs to transition from mere reporting to becoming key strategic partners to executive teams.Timestamps[01:19] Bebe Kim's journey as an entrepreneur and the evolution of her role [05:25] Challenges and lessons learned from raising venture capital [09:47] The importance of growth efficiency and discipline [11:32] Lessons learned in a growth-conscious, VC-backed company [12:03]  Capital allocation and starting basis [13:29] The challenge of understanding financials for non-finance executives [16:47] The three stages of CFO role transformation [19:47] The importance of cash management for the CFO [22:06] The skill sets required for stage two CFOs [23:41] The challenges of working with databases for CFOs [29:48] The availability of enterprise tools at SMB and mid-market prices [32:57] AI's potential to replace repetitive tasks [34:40] The role of CFOs in partnering with fast-growing companies [37:03] Contact BasisLinksMAXIOUpcoming Events

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Ron Baker, CEO of Verasage Institute, author, and long-time influencer in the finance and accounting space. Ron and Randy discuss the concept of value-based pricing and the need for businesses to move away from the traditional hourly billing model. Ron also highlights the need for CPAs to shift from being problem solvers to strategic advisors, guiding businesses toward their desired future state. Ron and Randy discuss the value of taking risks and adapting to change to stay ahead in a disruptive market as a business. Quotes"For value pricing, it is just a different mindset. It's more of an entrepreneurial mindset than a production mindset. It's more of being a true professional, a definition of a professional, somebody who's accountable for creating a result, not performing a series of tasks. If I want a series of tasks, I'll hire a day laborer to walk my dog, mow my lawn, and clean my gutters. But if I hire a professional, I'm looking for some type of outcome. Perfect eyesight from an eye doctor, that type of thing. And the problem with the timesheet and the billable hour, the mindset that it creates is that's what we sell.” -Ron Baker [04:47]“The distinction between a series of tasks versus result orientation, one of the keys is vertical expertise. So, understanding the nuances, I used to talk about that with selling. You could sell into travel, but selling travel is super different when you're selling to hotels versus airplanes versus car rentals and seats versus heads and beds. The language you used, how they thought about getting people, and the acquisition costs, are all very unique to the sub-verticals. 20% of accounting firms that are doing well by being advisors is they have context, industry context, probably they know a bunch of people and they've got a bunch of. They're able to do pattern matching.” -Randy Wootton [12:49]Expert Takeaways Value-based pricing is a more effective approach than hourly billing, as it focuses on customer value rather than time spent.CPAs should move from being problem solvers to strategic advisors, guiding businesses toward their desired future state.Subscription business models offer simplicity, convenience, and peace of mind to clients while providing firms with planned capacity and the ability to offer additional services.Deep industry expertise and specialization are key factors in the success of advisory services.Businesses should be willing to take risks, as profits come from risk-taking.Timestamps[00:02] Introduction to Ron Baker and his work on value-based pricing [02:43] The need to move away from billing based on time [03:37] The problem with timesheets and the importance of measuring results [06:10] The pricing revolution in corporate America [08:46] Moving away from cost-plus pricing to customer-value pricing [12:43] Characteristics of successful accounting firms [16:33] Subscription business model for accounting services [21:37] Amazon's acquisition of One Medical and the subscription model [23:12] Differentiation in willingness to pay and understanding customer needs [31:13] Evolution of accounting and finance function to strategy and possibility [33:21] Profits come from risk, not just past data LinksMAXIO

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Robbie Baxter, CEO of Peninsula Strategies and a leading expert on subscription business models and monetization. She has worked with companies like Netflix and has written two books on the topic: "The Membership Economy" and "The Forever Transaction." Robbie shares her background and interest in subscription models, as well as the key concepts and best practices outlined in her books. Robbie shares insights on the importance of designing products for ongoing value, the need for organizations to focus on customer outcomes, and the challenges of scaling and staying relevant in a subscription-based business. She also highlights the example of Strava and how they successfully built a community of loyal customers. Quotes"You need a lot of discipline, I think, in a SaaS model. So you need to know this kind of customer, this is how the relationship is going to expand over time and I think together to kind of start to set expectations about where is this relationship going to go after the moment of sale. The moment of transaction is the starting line, not the finish line.” -Robbie Baxter [13:03]“One of the interesting things about the SaaS business model, in general, is, obviously for Maxio, we help people understand their SaaS operating metrics, and we're able to pattern match across the 2300 customers. I think all VCs and PE firms are doing the same. So they say, look, if you're a SaaS company, this is what your net retention should be. This is how much you spend on sales and marketing. So I do think there's pattern matching going on, and everybody has the playbook now.” -Randy Wootton [21:50]Expert Takeaways Subscription business models require products that solve ongoing problems and are designed for easy deployment and expansion over time.Organizations need to focus on customer outcomes and align their pricing with the value they provide.Balancing acquisition metrics with retention metrics is crucial for long-term success in the subscription economy.Subscription fatigue is a real challenge, and companies need to continuously demonstrate value to retain customers.Listening to the voice of the customer means considering not just existing customers, but also lapsed customers and prospects.Timestamps[01:28] Robbie's career journey [08:33] Focus on customer success and engagement for retention [11:44] Sales-led growth vs. product-led growth models [13:35] Aligning pricing with customer outcomes in SaaS models. [17:06] Moving from short-term revenue to long-term customer relationships. [17:46] "The Forever Transaction" as a playbook for B2B SaaS success. [20:52] Loyalty vs. Inertia [25:31] Subscription fatigue and managing multiple subscriptions is complex. [29:30] Staying current and responding to market evolution is crucial. [31:31] Subscription dieting and the pressure to demonstrate value and justify prices. Connect MAXIOUpcoming Events

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Dan Owens, CFO of Maxio, about the disruption of the Office of the CFO and the changing role of the CFO. Dan shares his insights and experiences from working with various portfolio companies and PE firms, highlighting the importance of data organization, the challenges of managing multiple systems, and the need for tech savviness and adaptability in the modern CFO role. Dan discusses the value of soft skills, such as leadership and communication, and the integration of sustainability in finance operations.Listen this week as Dan gives recommendations for those starting their careers in finance and shares his favorite and most misunderstood metrics in the SaaS industry.Quotes"Technology can be your friend, or it can actually be a burden when you look at all the nice shiny tools out there that are going to solve your problem. But at the core, you have to get to the fundamentals, the tool and the technology will help you get faster and more efficient at the fundamentals. But I think I never want to be in a position where I can't get to the answer or have to do it.” -Dan Owens [10:39]“I think as I describe it, the worst thing about a CEO and a CFO going to a board meeting is going into math camp, where the investors start poking and they find inconsistencies between what you may have represented last quarter or the quarter before. So one of the things is having a common understanding of where the data is coming from, a framework for reporting on it, and then making sure it's consistent .” -Randy Wootton [05:33]Expert Takeaways Data organization is crucial for CFOs to meet the needs of investors and partners and make informed decisions.The tension between different metrics reported by sales and finance teams can be resolved by having a unified data system.The modern CFO needs to be tech-savvy and adaptable to effectively use data and technology tools.Soft skills, such as leadership and communication, are essential for CFOs to partner with go-to-market teams and drive growth.The integration of sustainability in finance operations is becoming increasingly important for companies.The challenges for CFOs include attracting talent, managing remote teams, and making strategic decisions on technology investments.Timestamps[01:16] Dan's experience with portfolio companies and the need for better data organization [08:17] Changing skill set of CFOs: tech savviness, soft skills, and integration of  systems [01:06] Importance of data architecture and interoperability between systems [13:33] The value of bi-directional data sharing across departments [14:17] CFOs transitioning from back office to front office roles [17:41] The benefits of using the Maxio solution [20:19] The shift towards analysis and providing insights in finance [22:38] Balancing technology investments with ROI considerations [26:06] The importance of bringing people together in a remote team [27:39] Budgeting for internal use software [31:46] Favorite SaaS metric: Gross retention [33:07] Most misunderstood metric: Leverage ratio [34:29] Cash engine and growth engine in a business Connect MAXIO

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Kevin Sonsky, a finance executive with extensive experience in the SaaS industry. They discuss the evolving role of the CFO in the face of technological disruption and the importance of understanding and leveraging SaaS metrics. Kevin shares his insights on the transition from traditional accounting to business intelligence analytics, the dynamics between the executive team, and the challenges of implementing a metrics policy. He also highlights the need for CFOs to educate sales and customer success teams on SaaS metrics and the importance of aligning incentives with ARR growth. Listen as Randy and Kevin discuss the role of the CFO in driving strategic go-to-market partnerships and the potential for AEs to act as CEOs of their territories.Quotes"When you're not in the room while difficult decisions are being debated, you don't always appreciate the fact that sometimes there's not always an easy or even great answer. Sometimes you're choosing from two suboptimal choices. It's not always easy. You do your best to do what's best for the company, for the employees, for the customers, and sometimes you have to take trade-offs on that.” -Kevin Sonsky [04:21]“I think that's what we're seeing even more broadly in the disruption of the office, the CFO. It's a new way of aggregating data. It's a new way of connecting technology. It's a new way of thinking about the reporting. It's not just the financial close and the three financial statements. But now you have a limitless number of operating metrics tied to the SaaS business model that you can pull together.” -Randy Wootton [09:07]Expert Takeaways The CFO plays a critical role in educating the business on SaaS metrics and helping teams understand how to measure success in a subscription-based model.A metrics policy is essential for defining and standardizing SaaS metrics within an organization, including definitions, reporting cadence, and incentive structures.CFOs can add value by running analytics on customer ARR and providing insights to account executives for better decision-making.Net retention value is a key metric to track the growth of existing customers and determine if the business is expanding without adding new customers.CFOs can help sales teams understand the sensitivity of churn rate on ARR growth and the impact of retaining existing customers.Timestamps[01:00] Kevin's background and career transitions [04:00]  Importance of educating sales and CS leaders about the business [06:11] Challenges in measuring ARR and SaaS metrics [08:07] The Role of the CFO in educating teams and leaders[10:03] Components of a metrics policy and its importance [11:03] Ensuring data integrity and system alignment in reporting metrics[12:52] Importance of consistent metrics and reporting [14:58] Shifting salespeople's focus to incremental dollars from customers [18:45] Alignment between the executive team and ARR growth[21:26] FP&A adding value through analytics and cohort analysis[22:24] Strategic pricing, packaging, and understanding unit cost economics[24:46] CAC metric: payback period for sales and marketing investment [26:07] Best way to contact Kevin Sonsky: LinkedInConnect MAXIO

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Chris Ortega, CEO and founder of Fresh FP&A. With almost 20 years of experience in accounting and finance, Chris is a leading expert in the field. Randy and Chris discuss the top three changes in the accounting and finance profession over the last 15 years and the impact of technology. Chris talks about the increasing value proposition of CFOs and the era of disruption in the office of the CFO. Listen as they delve into the role of AI in finance and the importance of employee NPS as a metric for success.Quotes"People above profits, impact over income, purpose over praise. The more that we can have that inside the business, the more value we're going to bring outside.” -Chris Ortega [26:28]“You want to be able to find replicable things. The process, the information flow, and the data flow. Then you're able to layer in automation. What's interesting in the office of the CFO is there is this feeling of, I want to look at my spreadsheet because I trust that.” -Randy Wootton [07:02]Expert Takeaways Technology has dramatically evolved in the accounting and finance profession, providing tactical advantages and streamlining operations.The value proposition of CFOs has shifted from being scorekeepers to strategic partners, bringing more value to the organization.The office of the CFO is poised for disruption, driven by technology and the changing role of CFOs.AI is not meant to replace CFOs but to level them up and enhance their capabilities.Employee NPS is an undervalued metric that CFOs should focus on to gauge employee satisfaction and engagement.Timestamps[00:00] Randy’s Intro [00:34] Chris’ Intro[00:59] Top three changes in the finance profession[03:45] Embracing technology in the office of the CFO[07:33] Resistance to AI in the accounting profession[10:49] Prompting GPT-4 to create an ASE 606 memo for a retail client [14:24] Impact of AI on every function, data strategy, and go-to-market [18:21] Finding connections and insights through local meetups and events [25:25] Undervalued metric: Employee NPS for CFOs to focus on[26:28] CFOs partnering with HR to improve employee engagement [28:22] CFOs prioritizing people connections and real-life interactions[31:06]  Legacy and the importance of writing one's own storyConnect MAXIOUpcoming EventsMaxio Institute ReportRandy Wootton LinkedInChris Ortega LinkedInAbout MAXIOMaxio helps businesses accelerate growth efficiency with the industry’s only all-in-one billing and financial operations platform purpose-built for the needs of B2B SaaS. With Maxio, businesses...