Unlike traditional management methods, Financial Planning and Analysis solutions are a new way to manage your business rationally. With the FP&A systems in place, business processes become more accurate and agile, preparing your company for the challenges and uncertainties of today's economic climate.
The main criticism of the traditional budget is that it does not react to what is actually happening in the business during the year. But a Rolling Forecast solves that problem, helping companies to continuously plan (forecast) over a set time horizon.
Utilising modern technology like Artificial Intelligence and Machine Learning solutions in their Rolling Forecasts has enabled large, multinational companies to achieve real-time, continuous forecasts with 90% accuracy and in some cases, even higher.
The CFO at Swiss Railway Freight Logistics (SBB Cargo AG) shares how his own company successfully implemented this agile alternative to traditional budgeting
There has never been greater uncertainty and a faster pace of change than over the past months.
And yet, at a time that requires speed and agility, and in a function that needs these qualities more than others, we cleave to our traditional management accounting methods and adhere to our longstanding processes.
Traditional legacy and static methods are no longer sufficient for budgeting, planning, and forecasting. To help navigate this challenge, we must turn to Scenario Planning and Rolling Forecasts to guide us.