Financial Planning and Analytics is a financial discipline with a unique skill set that every business needs to really understand their financial condition beyond the snapshot in time as displayed in their financial statements. For example, updating a budget or forecast usually focuses primarily on replacing projections with the more current actual results. However, if done properly, the FP&A process analyzes variances in the actual results vs. budget, determines whether these factors will continue to affect future results, and if so, folds the projected impact into the budget or forecast update.
The process of establishing a budget based on information regarding expenses and income is a critical part of the financial planning process. An organization’s accounting systems are made up of assets, liabilities, income and expenses. Executing a budget, tracking investments and documenting results is the responsibility of financial planning, with support from accounting. However, FP&A has another dimension to their role. The Analytics of results and variances is the basis by which future projections in the budget or forecast are made or adjusted.
The FP&A update process should also allow for the more current results to initiate conversation about possibly making changes in the strategic plan, which in turn will require updating the budget and cash flow forecast, etc. Such a process can possibly change some annual goals. This is not a bad thing. Rather it is a critical part of reallocating corporate resources as marketplace realities dictate.
The analytics of financial planning consists of assessing profitability, liquidity, solvency, and stability for the organization. The use of benchmarks and comparisons to similar organizations often help companies make decisions about which business strategies to use.
Contact H. J. Corbett & Associates, Inc. to discover more of how our FP&A Support can help your company improve operations and profitability.
Financial planning and analytics with H. J. Corbett & Associates, Inc. is the driving force behind developing better organizational profitability. Financial planning and analytics help and guide the entire business in making better decisions and maximizing value. Financial planning and analytics is, in effect, the basis behind the role of the CFO, the accountant or the financial controller to turn the financial planning and analytics reports into actionable insights for the profitability of the company.
A number of tools are used for financial analytics. These include:
1. Corporate performance management software,
3. Planning and forecasting software,
4. Core financial management systems and
5. Enterprise resource planning (ERP) platforms.
For a insightful planning and forecasting process, here are five (5) implementation strategies Corbett and Associates help implement:
1. Standardizing and automating processes and tools to streamline planning and forecasting.
2. Collecting financial data in one place to improve data accuracy.
3. Unifying financial and operational data for advanced planning, forecasting, and what-if analytics.
4. Using flexible processes and tools to accommodate changing business conditions.
5. Ensuring data security, availability, and access controls for improved data integrity.
Accurate, timely, and high quality financial analytics and advice to decision-makers is what H. J. Corbett & Associates, Inc. financial planning and analytics provides. This helps both small and medium sized businesses increase profitability, track and control costs, and tightly align operations with business strategy.
H. J. Corbett & Associates, Inc. helps companies execute financial planning and analytics processes with greater efficiency improving future results.
For more information, contact HJ Corbett and Associates today!