One of the most important aspects of the FP&A role is to be able to provide insights by analysing the P&L. On the surface, P&Ls measure the profitability of the whole business and a lot of times FP&A professionals will look at P&Ls for the overall health of the organisation.
The webinar will take place on 28 September at 11:00 AM PDT to discuss Managing Profitability in Uncertain Times.
Changing consumer behaviours, supply chain shifts, and innovations in data analytics have pushed FP&A professionals to reconsider their approach to revenue planning processes. Those processes are both strategic and operational and require complete visibility on all data and drivers.
Using P&L as a map for the journey (see image 1 below), the first three articles explored three initial steps focusing on the pre-P&L analysis and price management. In this article, we will move via net sales to marginality and look at how finance can take initiative and lead the effort to increase both sales and business profitability.
FP&A and finance need to have a set of scenarios to support the decision-making process. This is especially important in the fast-changing and evolving environment.
Price is a strong lever of the company performance, which is often underestimated. Having mastered price management skills, the company gets a strong boost not only on top but also and mainly on the bottom line.