Although there are some substantial differences between Financial Modelling and Predictive Analytics, both help us cope with uncertainties and make better decisions.
The future of IBP will be to plan across the whole value chain. A final step in IBP scope will be to understand and incorporate constraints to create a global view.
By Karl Kern, Accountant / Lecturer / Writer
Making predictions is an important part of our work as FP&A practitioners. Its importance is due to need but need can be hindered due to incomplete knowledge.
The world of financial planning and analysis has observed changes of such magnitude that they cannot be described by our traditional statistical and analytical models.
Future coordination is a brainer - not a no-brainer. Combining the Now and the Future requires a well-prepared FP&A team. AI as Robotic Process Automation (RPA) can support with the “no-brainers”. Looking ahead requires diligence and thinking time, which RPA can provide space for. Also, computer algorithms prescribe to keep exploring for future gains. This includes looking to the Arts and the Artificial Intelligence developments.
How can an FP&A practitioner assess the effectiveness of financial reporting processes? This article describes five tips that could be used in order to establish a starting point in the process.