The Future of FP&A with AI for Finance Professionals to Move Beyond Excel Analysis with Derek Baker

Why It Matters

AI‑driven FP&A eliminates spreadsheet bottlenecks, accelerates insight, and positions finance as a strategic bridge to executive decision‑making.

Key Takeaways

• AI will replace Excel for ad‑hoc financial analysis
• Focus on a few high‑impact assumptions, not endless spreadsheet models
• Build “focus areas” within FP&A to deepen expertise as firms scale
• Leverage AI‑driven skills (Claude, ChatGPT) to automate reporting pipelines
• Transition data to warehouses; use semantic layers for reliable AI queries

Summary

In this episode of FPNA Unlocked, Derek Baker, head of strategic finance at Circle, explains how artificial intelligence is reshaping the role of financial planning and analysis. He argues that traditional spreadsheet‑driven models are becoming obsolete and that the future hinges on identifying a handful of critical business assumptions and feeding them to AI engines for faster, more accurate insight.

Baker highlights several concrete shifts: AI‑powered automation of Circle’s monthly finance report (the AIOS project), the move from ad‑hoc Excel analysis to code‑based queries in data warehouses, and the creation of focused FP&A “focus areas” that allow analysts to dive deep into specific go‑to‑market segments while retaining a big‑picture view. He also stresses the importance of AI “skills” – repeatable, instruction‑driven processes that can be trained in tools like Claude – to replace one‑off spreadsheet hacks.

A memorable quote underscores the urgency: “If you’re doing analysis in Excel, you’ll get left behind really quickly.” Baker’s own journey—from using ChatGPT to learn Python syntax to relying on Claude for autonomous reporting—illustrates how quickly the toolset evolves. He points to the data‑warehouse‑first approach and semantic layers as the foundation for reliable AI‑driven analysis.

For finance leaders, the takeaway is clear: upskill teams, re‑architect data pipelines, and embed AI into the FP&A cycle now or risk falling behind. Organizations that adopt these practices can expect faster decision cycles, higher‑quality forecasts, and a more strategic partnership between finance and executive leadership.

Original Description

In this episode of FP&A Unlocked, Paul Barnhurst chats with Derek Baker, the Head of Strategic Finance at Circle, a growth-stage SaaS company. Derek shares insights from his experience in building strategic finance functions, scaling finance teams, and using AI to optimize financial reporting.

Derek Baker is the Head of Strategic Finance at Circle, a growth-stage SaaS company focused on building an all-in-one platform for online communities. He has built the Strategic Finance function from the ground up, covering areas like pricing, sales compensation, investor due diligence, and AI-powered financial reporting. Prior to Circle, Derek co-founded The FP&A Hub with Paul Barnhurst and Liran Edelist to support finance professionals. His career spans FP&A roles across SaaS, marketplace, and biotech startups.

Expect to Learn:

How AI is transforming financial reporting and analysis in FP&A.

The role of business partnering in aligning FP&A with strategic decisions.

Derek's transition from spreadsheets to AI-driven financial models.

How FP&A evolves as companies scale.

Here are a few relevant quotes from the episode:

“Spreadsheets are great for MVP models, but AI and data warehouses are the future for repeatable, scalable analysis.” – Derek Baker

“AI can manage context better than prompts, and this is what drives its power in finance.” – Derek Baker

Derek shares that the future of FP&A is all about embracing technology and innovation. He emphasizes that it's no longer just about spreadsheets and traditional methods; it’s about leveraging AI and data to drive smarter financial decisions. By focusing on both the strategic and technical sides of finance, professionals can better align with business goals and create more impactful outcomes.

Follow Derek:

LinkedIn: https://www.linkedin.com/in/derek-d-baker/

Website: https://community.thefpahub.com/home

Earn Your CPE Credit

For CPE credit, please go to earmarkcpe.com, listen to the episode, download the app, answer a few questions, and earn your CPE certification. To earn education credits for the FPAC Certificate, take the quiz on earmark and contact Paul Barnhurst for further details.

In Today’s Episode

[00:00] – Trailer

[06:00] – What Does Great FP&A Look Like?

[12:00] – Scaling Finance Functions in Startups

[17:00] – The Role of AI in FP&A

[22:00] – Building an AI-Powered Financial Reporting System

[28:00] – Why Data Architecture is Key to AI Success

[33:00] – The Future of Financial Modeling with AI

[40:00] – Automating Monthly Finance Reports Using AI

[45:00] – Data Integration and Financial Modeling for Future Growth

[50:00] – Insights on Scaling FP&A Teams in Tech Startups

[53:00] – Final Thoughts & Key Takeaways