Cost Accounting in FP&A

By Karl Kern, Founder/President, Kern Analytics LLC

Cost Accounting provides insight into the relationship between financial sacrifices and financial benefits.  There are a number of elements within this discipline that support this relationship. FP&A stimulates thinking about activities that create sacrifices in order to create benefits.  These activities develop a framework for understanding what organizations are doing and where they are going.  The question is: which element of Cost Accounting develops a meaningful framework that links activities to understanding?

CPM Framework Overview

by Michael Coveney, co-author of "Budgeting, Planning, and Forecasting in Uncertain Times"

CPM is concerned with the way in which an organisation manages its overall performance. As defined by Gartner it involves combining the methodologies used to manage strategy, the metrics that evaluate performance and the processes used to direct people within the organisation – all of which should be supported by a technology solution. 

FP&A’s Push to Transform from Cost to Collaborator

By Ken Fick, President and CEO at Pierce The Fog LLC

Defining exactly what Financial planning and analysis (FP&A) does has always been tough.  
Most people place FP&A in the Office of the CFO, and that makes sense, for many of us have certainly played the role of CFO a time or two, but as business partners, strategists and advisors, that is also not necessarily a perfect fit and as our roles continue to expand to become the central hub of corporate analytic and reporting this categorization may change.
According to the recent survey by the Argyle Forum, 40% of the companies that are looking to transform their FP&A model stated that increasing collaboration between the finance team and other departments is the most common end goal. Why is that? Is it because when Finance is involved, better decisions are made, costs are controlled and growth initiatives are enacted? Possibly?  

As the founder of Pierce The Fog, my mission is to help those in the world of corporate finance find answers, make decisions and move businesses forward.

With a background in accounting, management consulting, financial reporting, corporate finance and investing, I write from the perspective of a battle tested corporate insider that utilizes the knowledge gained from years of experience working in the internal operations of various companies helping them turn their business ideas into reality in order to provide actionable insight to readers.

Look for my commentary to be insightful and clear, helping readers decode the complex world of finance and distil it into readable, actionable knowledge.

Evaluating CPM/FP&A System: Nine Key Areas for Consideration

by Michael Coveney, co-author of "Budgeting, Planning, and Forecasting in Uncertain Times"

 

There are many software products that claim to support CPM, but often they only support some aspects, for example, financial planning, and reporting. One of the issues is that the term CPM is synonymous with budgeting, forecasting and management reporting which by itself cannot provide a complete solution. 
Similarly, some vendors have multiple products covering different parts of CPM. For example, many have a scorecard application that they deem suitable for strategy management; a separate solution for collecting budgets and forecasts; and yet another for reporting and analysis. In the context of this framework, these multiple solutions can only work if they are truly integrated and can be made to operate as a single system. Without this level of the integration, system maintenance becomes an unbearable nightmare that cannot suitably adapt to the dynamics of the economic environment. 

This article gives an overview of 9 key areas that should be considered for the overall evaluation of CPM/ FP&A system.

Utilizing Technology in FP&A

By Karl Kern, Founder/President, Kern Analytics LLC

This article  addresses technology in FP&A.
In his book "THE INNOVATORS" Walter Isaacson describes two ways of utilizing technology.  One way is artificial intelligence, machines thinking on their own.  Another way is augmented intelligence, people using machines to help organize information.  Both ways are seen as improvements in our ability to make better decisions.  The ability to make better decisions is an important part of FP&A. 
I see artificial intelligence in FP&A.  

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