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.

This series of articles focuses on blowing up this stereotype by demonstrating how Finance in general and financial planning and analysis (FP&A) in particular can change its language, use the right part of the brain to throw light on the most important business drivers, revive figures and make them tell a story that is easy to perceive and take action on. 

This article focuses on why there is a risk of too much focus on the profit and loss (P&L) or income statement and too little focus on the Balance Sheet among FP&A practitioners.