Believe it or not, organizations do not collapse if they don’t have a plan or a budget! If a business is already established then two things will impact future results, irrespective of what is planned - organic growth and external influences.

We live in an unpredictable world where the future is uncertain. If it was then we would all make a fortune by making strategic ‘bets’ on certain outcomes. But the world is not like that.

This blog post  addresses the acquisition of FP&A skills. People who want to become financial planning and analysis (FP&A) practitioners obtain advice on how to achieve this goal.  One piece of advice is to acquire education by taking courses in subjects like accounting, economics, and finance.

One can find many definitions of financial analysis. Investopedia defines financial analysis as “the process of evaluating businesses, projects, budgets and other finance-related entities to determine their suitability for investment.”

One of the realities that FP&A professionals need to realize is people tend to be too optimistic in their financial plans.  People tend to expect higher revenues, lower expenses, or less time to recover the amounts of their investments.  Psychologists label these expectations as optimism bias. As an accountant, I am guided by the conservatism principle.

In this recent interview with GTNews, Larysa Melnychuk sets out the fundamentals of FP&A,  its vital role within the organisation, its international aspects and future FP&A trends to watch.