The longer these types of primitive FP&A analysts and accountants delay implementing ABC, then the greater the risks. The issue here is not mainly about product and standard service-line costing to understand their profit margins. The issue is about the emerging need to report and analyse distribution channels and customer profitability.

Building an analytically led organisation, focused on bending the cost curve and reinvesting those savings into opportunities that are earlier on the product lifecycle are key steps to growing and sustaining shareholder value.  No company will continue to grow forever.  In order to stick around, you’ll need to one day start to bend the cost curve. 

Any crisis raises the question of whether costs can be truly fixed. What fixed costs can be reduced? There are several expense categories that should be investigated further when thinking about reducing costs.

Building a good FP&A team is essential to the success of the finance function and even for the whole organisation. In today’s business world, FP&A teams need to build a strong foundation before they can take advantage of the new technology trends.

The first Pan-Australian FP&A Board was held digitally as a response to the pandemic outbreak. This digital meeting was devoted to 6 facets of the New Normal FP&A including Scenario Planning, Cash Flow Planning, FP&A Team Building, Technology, Driver Based & Predictive Planning and FP&A Skills and Roles.

The current world is full of dead budgets and unrealistic forecasts, and FP&A teams need to adapt quickly to prepare for the future. At the first Digital Pan-Asian FP&A Board, senior finance practitioners from large organisations shared their insights on a variety of topics.