Ep. 282: Aaron Levine - Exploring Today's Modern CFO Role

Aaron will also provide valuable advice on team building, effective communication, and balancing risk and innovation with a fast paced environment. This conversation offers a wealth of knowledge in optimizing finance functions and preparing for the future of financial leadership. So sit back and join us for an engaging discussion. Let's dive in. Well, Aaron, I'm really excited to have you on count me in, and we're gonna be talking a lot about the evolving role of the CFO.

And you, you know, who work, as the CFO at Prophix, you know, a company that, you know, gears toward the the CFO. You know, maybe we can start by talking a little bit about what your journey to becoming the CFO of Prophix. I know it wasn't your first time.

One of them was a company called Blackboard. Blackboard is a learning management system, for higher higher ed. Many people know of Blackboard or have used Blackboard in in college. So I was the controller of Blackboard for many years. And then I pivoted my career to more of the finance side.

I was the VP of finance at another public software company called Vocus. Vocus is in the PR and marketing automation space. But I've kinda done both, you know, both sides in in in finance and accounting. I always tell people, you know, I have I've posted journal entries. I've done, you know, account reconciliations.

I have done, you know, budgets and forecasting. I feel like I've kind of done, you know, done it all, inside the office of the the CFO. And those experiences have led me now to 5, CFO roles of really venture and PE backed, software businesses. I've been in like I said, I've been in software my whole whole career, but I've been in different industries inside of software. So I've mentioned I've been in education.

I've been at a, a nonprofit, company that sells into the nonprofit space. I've been at a restaurant tech, company. I've been in cybersecurity. Now, obviously, I'm selling inside of the office of the CFO. So I've been at many different, you know, industries.

I've also been at, companies with different go to market motions. So I mentioned Vocus. Vocus was, SMB sale. So it was a transactional sort of high velocity, go to market motion. I've also been in businesses that sell big, you know, enterprise, 7 figure deals. So kind of, done the spectrum in terms of go to market motion as well. But, yeah, happy to be be at profits now. It's pretty pretty fun, you know, being at a a business, like this, which obviously I'm very comfortable with.

You know, and trust is built obviously in different different ways. I think as a CFO, you know, trust is really built by, you know, being open and honest with with the the board, the c suite. Right? Our our role is to sort of, you know, bring it all together and kinda read out the read out the results. And I think, you know, the way we do that is is, is important.

You know, there's certainly an art art to it. Right? I mean, news is not always always good news. You know, you obviously wanna highlight, you know, the positives, but I think, you know, putting a spotlight on some of the negatives or some of the challenges of the business is is super important as well. So, you know, I think building trust is kind of a key key leadership challenge today.

But, look. We're all just, like I said, we're all just humans, and and, you know, I think these business relationships are, you know, similar to other, you know, personal relationships that you have. Right? Everyone's got relationships with friends and family, and, there's a certain human aspect of it. And I think sorta, you know, digging into that that human aspect is is really important as a as a CFO.

You know, as you are trying to to hire and recruit people and and sort of bring people into the industry, I mean, I think it's really important to to, move away from that narrative. Right? I mean, finance and accounting is cool. It can be sexy. Right? I think the role has, obviously, you know, the role has evolved. Right? We're we're no longer reporters of data. Now we we, you know, our role is much broader. Right, finance, particularly CFO, you know, other than the CEO.

Right? We have a unique view on the business. Right? We we kinda see all the pieces, bring it together. And it's our role to sort of analyze and report report out on it.

And it's more than that. And more than just analyzing reporting out, our role is really to drive the business forward. So it's like, hey, we see something, and then we work with the business to to to action it. Right? And and and and sort of, you know, whether that be, you know, changing a process or, you know, dealing directly with with product issues, you know, my role in particular.

Right? I have a unique perspective on the product. Right? So I think that the finance role is is much broader. And, you know, when you're hiring people, articulating that role is is is really important.

But look, I mean, hiring finance people is like hiring, you know, other other folks. Right? I think today, people look for flexible work, you know, like, arrangements, I think, which is which is very important. Here at Profix, we spent a lot of time, you know, highlighting our commitment to diversity and innovation. The role and the the industry has changed so much and continues to evolve.

Really fostering a environment of continuous learning and personal growth is super important. So, you know, I think these are all just other sort of, you you know, benefits that that are important to articulate to to candidates. But, but more than that, like I said, it's just really painting the picture of what this role, can be and and should be and and will be for for candidates.

Right? I think so technology companies can be seen as more more, you know, risky than than others, and some of them certainly certainly are. But, look, you know, my career, like I said, has been mainly in in in public companies and more private equity backed businesses. And and while those businesses, you know, can certainly, you know, have challenges, I think, you know, pretty pretty stable stable businesses. But, you know, for for for, people who who value, you know, stability, you know, I think, venture backed and and smaller software and technology companies may not be, you know, the place for them, but but others thrive in in that environment.

So, you know, yeah, you gotta find find the fit for for people. Right? We're all we all have different different, different preferences, for sure.

So there's just data everywhere. Product, services, they all have their own tools. So the biggest I think, really, the number one biggest challenge is sort of getting a handle on on all of this data and then bring it together, preferably in 1, you know, one platform, and really, you know, bring it together in a single source of truth. Right? I think, you know, we've all been in meetings where, you know, sales comes with, you know, their their own, you know, PDF with their numbers on it, and then finance has their numbers.

And, you know, you spend half the meeting arguing, you know, about whose numbers are right and and trying to reconcile, you know, those numbers. So, you know, that that really is the biggest the biggest challenge, I think today for for CFOs. And, look, I think also, you know, the the finest accounting is back office. Right? We're we're g and a, so we are also, you know, resource constrained.

Right? I think today's environment, EBITDA is is, much more in focus for for businesses, and cash flow. So, you know, we we are resource constrained. So, that ties back into the data, sort of data consolidation and the importance, right? Because the better job we do sort of getting our handle, your hands around the data and getting it in a central repository with a single source source of truth and a central set of numbers, right, the the more efficient we are.

And, you know, the the, when we think about tools, you know, automation is also key. Right? I think, you need a tool that will will help, you know, centralize data and and automate automate processes, right, to to to find efficiency. So, you know, those are a couple of really the biggest, I think, biggest challenges today.

Because I've seen it work both ways, and I don't know, you know, what the better thing is. I think the CFO and the IT director need to be connected very closely. But should they report to each other? How does that work? What do you think about that?

It's really the biggest honestly, it's really a lot of my time today is spent on on on just doing that. Right? I mean, it's working with these different teams and and and, you know, sort of bringing bringing the picture together, bringing the data together, and then reporting back back to them. And, you know, you do that enough, and you build enough trust. And and, you know, they they, you know, become reliant, you know, they rely on on the finance and accounting organization, and and everybody's sort of marching from the same, you know, same song sheet.

Right? It's just it's just incredible. You know, when I think about technology, I think back. I started my career in public accounting. And late nineties, in public accounting, we we still, we had audit paper.

Like, we had physical, like, audit workbooks and paper. We used to have these big columns, and I wanna get when we get too long on the paper, we would actually fold fold the paper over and tape it tape it together, and you put it in the binder. Like, it's just amazing to think, you know, how how this discussion has has evolved so rapidly. So, look, like I said, AI is here to stay. I think we're in the early innings of of AI.

I think there are some, you know, use cases. They're they're, you know, obvious sort of, inside of finance and accounting. You know, things like chatbots are are are becoming, you know, much more, impactful. You know, in terms of account reconciliation, that's a great, you know, use case. Right?

I think auto matching is kind of you know, it's been around, but I think that's getting, getting better. And I think, you know, a lot of account recs will rely on on AI. You know, here at Prophix, we have a feature called report insights within our product. And what it does is it does the, line item, narration. Right?

So it'll kinda draft, variance explanations. Right? So you have budget actual. It'll kinda take the first stab at writing out, you know, the the the explanation for for the variance. And it's pretty good. It's not, you know, it's not it's not perfect. Right? But I I think it gets you, you know, gets you on 3rd base. Right? It gets you gets you there.

And I think, you know, it's it's it's, the team's job to sort of beef it up and put the human human touches on it. But, you know, a lot of the things like just the calculations and a variance explanation. Right? A variance explanation usually starts with, you know, r and d is up, you know, x $1,000,000 and y percent over the prior year. Right?

So I think just, you know, saving someone the time from, you know, getting their calculator out and, you know, calculating that percentage and putting it in the, the variance explanation, you know, it just just, you know, saves time. So, again, you know, as we're resource constrained, I think AI becomes much, much more important. And, really, what it's gonna do is it's gonna free up free up resources to do the fun stuff. You know? So say, you know, maybe some of this, you know, new new functionality gets us to, you know, 2nd or 3rd base.

And, you know, it's the team's, the team's job, and it'll be that human touch, which which really kind of brings it brings it home. Right? And, usually, the first, you know, the first getting to 50 yard line is, you know, the the harder part. Right? Scoring scoring the touchdown, and that example is is the fun part.

So, I think, broadly speaking, I think finance and accounting folks are sort of, you know, they're they're, smart people. Right? We are very analytic, you know, analytical in our thinking and, and, you know, using that skill set and and, you know, those resources to sort of, you know, drive business outcomes and and analyze analyze versus versus, you know, reconciling and putting data together is really, you know, what the role, is gonna gonna evolve into even more.

Right? Like, understand, you know, where these numbers are coming from. You know, understand, you know, sort of how it how it comes together, understand, you know, how to do an account rec, you know, on their own. So I think that is, that is a piece that, you know, will be important for for managers and and leaders to sort of, you know, reinforce, the foundations. Right?

That's just kind of foundational, you know, finance and accounting stuff. But, look, I mean, these are bright, you know, bright, bright young people coming out of school. And, you know, I think it's it's exciting for them to, you know, be spending their time, you know, like I said, you know, involved in the business, involved with the different functional areas, of the business. Right? You can have someone focused on, you know, a certain certain, you know, project inside of, you know, the go to market function, right, and supporting that that project from a finance perspective.

So I think it just sort of, you know, elevates elevates us, you know, us all and elevates the role. But but I do agree. You know, I think I think there's, you know, there's a there's a risk there that, you know, some kind of fundamental, key skills will will be you know, won't be developed as well as they had had in the past.

Because a lot of it, you know, we started with a blank page, but in today's world, you don't necessarily have to start with a blank page with the tools that are out there.

Business, everyone thinks they're a genius and, you know, can solve it all. But really a lot of things in business are, you know, are out of your control. Right? So

I think, you know, having data at your fingertips, being able to decision, and action quickly, is imperative, today. And I think it's really competitive advantage for for for business. And and, it's it's really critical for CFOs to sort of drive that that that mindset and that that that style. So Mhmm. Now you make, keep the balls, you know, keep the ball moving and, make decisions with the best information you have.

And and, you know, you kinda correct correct as needed over time, but, speed is speed is critical today.

I find myself talking to a lot of customers and and talking through, you know, my experiences, and how we use we use the product and and, you know, giving, you know, tips and tips and tricks on on profits. And and, it's a really cool, you know, cool cool role for for me.

So I think, you know, additional, you know, products like that that we we we roll out and, offer to the to the, to the customer base is is a win for for for everybody. Right? And and having it all in the same platform. Right? So we've got if you have one platform where you can do your your account close, your account rec, your budgeting and forecasting, and then all the way through to your reporting. Right? It's just so it's just so powerful as a as a CFO. So