The modernization of financial planning and analysis
The shift from back office support to front-end strategy
WHITE PAPER |
Financial planning and analysis (FP&A) has long been a key component of the office of the chief financial officer (CFO). However, the FP&A role is undergoing significant evolution, gaining prominence in a rapidly changing business environment. While the core responsibilities of FP&A have generally remained the same, the methods, demands and expectations have drastically changed.
FP&A works with a company’s overall picture, considering past and present trends to help achieve a future reality. Recently, FP&A has evolved from a reactive role to a proactive one, as new sources and quantities of data are now available to finance professionals, as well as powerful new applications for enhanced analysis. With increased pressure from upper management for real-time insights, FP&A has become an integral guiding hand for more effective strategic decision-making.
With its growing importance, companies must understand the evolution of FP&A in order to take advantage of its true potential. Companies should consider:
- What are the common FP&A challenges of the past? While the finance team has been seen as having an inward-looking approach and operating in a vacuum, the FP&A function typically brings a much more collaborative approach.
- How are companies keeping up with the evolution of FP&A? To respond to market changes and challenges to stay competitive, companies are largely investing in big data technology, enterprise resource planning (ERP) systems, and corporate performance management (CPM) tools to transform the planning process.
- What is the future for FP&A? With today’s technology and amount of data at our disposal, FP&A teams can analyze information deeper than ever before, providing impactful, forward-looking analysis.
To learn how modern FP&A professionals have become strategic business partners by moving beyond the basics of reporting to provide insight into the future, unlocking greater insight and business value, download our white paper.