Financial planning and analysis is a process that empowers decision-makers in an organisation to use insights generated from data to make decisions that create meaningful results for their business. It helps business managers create reasonable budgets that actually work. It also enables them to ensure that the businessโs resources are aligned with growing demands and external changes. Our tech accountantsย have worked with thousands of businesses to help them see real value in using FP&A to make business decisions and predictions.
What is FP&A, or financial planning and analysis?
FP&A, or “financial planning and analysis,” is a crucial function for growing companies in particular. These companies concentrate on strategic finance by means of analysis, planning, and forecasting to offer the board of directors and the executive team useful information.
Using FP&A to make decisions for the firm by having access to an increased amount of knowledge is the final objective.
A business or company’s finance team will have an Accounting team and a Financial Planning and Analysis team. Accountants and financial controllers document firm spending and budgets. In parallel, FP&A experts assess the organisation’s financial and behavioural data to counsel senior management on possible future courses of action.
The Financial Planning and Analysis team is in charge of making complex calculations and performing regular trend analysis. They are then able to turn this information into digestible visual forms such as reports, dashboards and commentary, which act as the foundation for the business’s long-term success, stability, and expansion.
Though accountants are a part of almost every company, shockingly, few finance teams have dedicated Financial Planning and Analysis specialists. Studies reveal that just 3% of businesses have completely integrated and linked financial, operational, and strategic planning procedures. This is generally due to the costs involved in the hiring and managing of a dedicated team of FP&A specialists.
By working regularly with high-growth companies, we realised early on that FP&A abilities are most needed when a company is growing or planning to grow. We, therefore, worked on creating a team of FP&A specialists whose services can be outsourced to our clients at a fraction of the cost it would take to hire a team of experts. Ask us if you would like to know more.
Business Finance Basics: Bookkeeping, Forecasting, and Valuation
FP&A Outsourcing services can
- Offer data rigour to support the alignment of operational objectives with corporate strategy.
- Help create a budget, establish specific goals, and monitor results versus projections.
- Convert departmental and outside data into useful information and financial projections.
- Build pressure-tested strategies and projections using modelling and scenario planning.
- Add tools and systems to raise the level of financial reporting.
Our clients have confirmed time and again that our tools and services have enabled them to examine their Business Performance, utilising a variety of data points, such as projects, clients, individual contributors, and revenue per employee. It provides them with a plethora of fascinating KPIs to examine in order to conduct the kind of business analysis that they have always wished for!
Executing Your Goals with Dynamic Operational Planning
- Convert the strategic objectives of your business into focused KPIs and daily operating budgets. Good outsourcing professionals can facilitate comprehension of the relationship between strategy and operational performance.
- They can help dismantle standalone processes to combine operations with finance.
- They will ensure that continual visibility and tracking are included in operations.
- They will provide support around cost controls, risk assessment, and forecasts for efficient planning.
Budgetary Planning
An effective FP&A process will make sure that you.
- Maximise Your Budget Plan Both Before and After It Is Executed
A budget cannot be meaningful if its objectives are not reasonable and long-term. A capable FP&A consultant will help you develop the proper templates and identify the relevant targets to produce flexible budgets at the proper granular level. They will help you choose the best budgeting technique for your company and industry, such as zero-based budgeting for precision or a top-down approach for convenience. They will also make sure that you are able to track results against budget by carrying out variance analysis in order to make sure you can change course or refocus if required at the right time. If you do not have a system in place, they will help you create the instruments to obtain real-time data for upcoming budgeting and financial planning.
We have seen in various cases that the Flexibility in Analytic Leadership generally Promotes a 15% Increase in Margins.
Revolutionize Your Finances: Zero-Based and Recruitment Budgeting Insights
Create Accurate Forecasts for Your Company
Our financial planning and analysis professionals can work with you at your specific data capability level, whether you require in-depth financial research for a possible deal, a market move or just basic cash flow modelling, to assess if you can support your day-to-day operations.
Cash Runway
To address fundamental issues and make the way obvious, start with basic cash flow forecasting.
Lifting off
Model the effects of company decisions and provide scenarios and sensitivity analysis to show answers to investor questions.
Growing Altitude
Use cutting-edge forecasting methods such as AI forecasting to proactively preserve stability, predictability, and advancement.
From Forecasting to Surplus: Essential Cash Flow Strategies
Access Knowledge More Quickly with a Clear House Accountantโs FP&A Consultant
While financial planning, budgeting, and forecasting skills cannot be developed overnight, using fractional talent makes the process quicker and easier. Bring in a Clear House specialist, and you immediately get the following:
- Modern knowledge and abilities without having to pay a full-time income.
- FP&A Services are generally Proven to increase profitability through various financial modelling packages and analytical tools.
- Get access to the top 2% of accounting and finance professionals with tested experience in over 55 different sectors.
Review our Growth readiness package designed with the intention of enabling high growth companies tap into the resources that would help them increase or sustain their growth.
