Skip to main content
Home
The Online Resource for Modern FP&A Professionals
Please register to receive the latest FP&A news, updates and tips Login

Main menu

  • Home
  • FP&A Insights
    • Contributors
    • FP&A Trends Digest
    • FP&A Talks Series
    • FP&A Trends Research
  • FP&A Board
    • Amsterdam
    • Boston
    • Brisbane
    • Brussels
    • Chicago
    • Copenhagen
    • Dubai
    • Frankfurt
    • Geneva
    • Hong Kong
    • Houston
    • Kuala Lumpur
    • London Board
    • London Circle
    • Melbourne
    • New York
    • Paris
    • Perth
    • San Francisco
    • Seattle
    • Shanghai
    • Singapore
    • Stockholm
    • Sydney
    • Tokyo
    • Toronto
    • Washington D.C.
    • Zurich
  • AI/ML Committee
    • Introduction
    • Meetings
    • Members
    • Resources
  • Video Content
    • Digital FP&A Boards
    • FP&A Webinars
    • Short Videos
  • Contact Us
  • About Us
    • Ambassadors
    • Privacy Policy
    • Company Policy
    • Editorial Guidelines
    • Our Sponsors & Partners
2022 global CPM trend report

2022 global CPM trend report

Click here to view details and register

 

Top 5 FP&A Trends and Challenges
New
January 6, 2016

By Larysa Melnychuk, CEO and Founder at FP&A Trends Group and International FP&A Board

FP&A Tags
Financial Planning and Analysis
Modelling and Forecasting
FP&A Technology

The past 5 years have seen significant transformations in the FP&A world.Trends

I have been fortunate enough to have travelled extensively and seen these changes. I observed many restructures, system implementations, analytical insights and innovations, redundancies, frustrations, deadlines… In other words- I saw a lot of changes in the FP&A World first-hand: both successful and painful. I met a lot of FP&A professionals – hard-working, exciting, inspiring and often burned out.

In this article, I want to share my list of the Top 5 FP&A Trends.

1.  Quality of FP&A data

Good quality FP&A analytics starts from clean and reliable data. In other words, data quality is an essential characteristic that determines the reliability of data for making decisions. When different systems and tools do not speak to each other, finding "the one source  of truth" can be a very time-consuming and expensive exercise. Lack of good quality FP&A data is a renowned reason for many FP&A inefficiencies. When the valuable FP&A effort is spent on data cleansing and reconciliations, there is not enough time left for analytics. In the new year, we will continue to see many projects focusing on improving data quality.

2. Flexible and Dynamic FP&A Models

Traditional budgeting, planning, and forecasting have always been too detailed. Many companies still plan and forecast to the level of their General Ledger. Such a detailed planning process leaves no time for decision-making and improvements. In the near future, we will see more companies re-adjusting their planning models to driver-based, less detailed, more flexible and dynamic ones.

3. Shorter FP&A Cycles will improve the decision-making process

If your company is still involved in a lengthy and inefficient planning and forecasting battle, it is time to reconsider your process. If your forecasting cycle is more than 3 days and your annual planning process is longer than 3 months, you are most probably not realizing the true potential of your FP&A capabilities. Decision-making has a lead-time and FP&A process should be capable of supporting it. In the near future, many companies will restructure their FP&A processes in order to decrease the planning and forecasting cycles.

4. FP&A and Strategy Execution

Historically, FP&A often stayed away from the strategic planning process. Today the FP&A world is becoming more involved in long-range planning processes. We will continue to observe the gradual harmonization of these two processes. Modern systems can help FP&A to connect Strategic and Business planning through drivers and collaborative routine.

5. Modern FP&A Education will be in High demand

There is a high demand for fresh FP&A talent in the market place. The demand drives the supply. In the near future,  we will see a high interest in modern FP&A education. The world needs a new generation of FP&A professionals: bright, analytical, communicative, strategic and influential.

Enjoy the challenges that lie ahead of us. At the times of black swans and perfect storms, the FP&A world needs these changes and disruptions.

“Great innovation only happens when people aren’t afraid to do things differently”.  
                                                      --George Cantor, the founder of Set Theory

The full text is available for registered users. Please register to view the rest of the article.
  • Log In
  • or
  • Register
+

Subscribe to
FP&A Trends Digest

We will regularly update you on the latest trends and developments in FP&A. Take the opportunity to have articles written by finance thought leaders delivered directly to your inbox; watch compelling webinars; connect with like-minded professionals; and become a part of our global community.

Create new account

Maximizing FP&A Value Through Automation

The FP&A Trends Webinar: Maximizing FP&A Value Through Automation

Click here to view details and register

Pagination

  • ‹‹ Previous
  • May 2022
  • Next ››
Su Mo Tu We Th Fr Sa
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Reinventing FP&A: Key Lessons Learned from the Pandemic
 
Cash Flow Planning - Why the Traditional Profit-Driven Mindset Needs to Be Rethought
 
Reinventing FP&A: Key Lessons Learned from the Pandemic
 
From Traditional to Better and Beyond Budgeting
 
15
16
17
18
19
20
21
Digital FP&A in Practice: Dorrington Plc Case Study
 
22
23
24
25
26
27
28
Reinventing FP&A: Key Lessons Learned from the Pandemic
 
Top Five FP&A Challenges and How to Address Them
 
Maximising Value Creation with FP&A Business Partnering
 
Reinventing FP&A: Key Lessons Learned from the Pandemic
 
29
30
31
1
2
3
4
 
 
 
 
All events for the year

Future Meetings

houston
The Face-to-Face Houston FP&A Board Reinventing FP&A: Key Lessons Learned from the Pandemic
June 2, 2022
Maximising Value Creation with FP&A Business Partnering
The Digital Middle Eastern FP&A Circle Maximising Value Creation with FP&A Business Partnering
June 6, 2022
chicago-june
The Face-to-Face Chicago FP&A Board Reinventing FP&A: Key Lessons Learned from the Pandemic
June 7, 2022
Frankfurt
The Face-to-Face Frankfurt FP&A Board Reinventing FP&A: Key Lessons Learned from the Pandemic
June 9, 2022
Toronto
The Face-to-Face Toronto FP&A Board Reinventing FP&A: Key Lessons Learned from the Pandemic
June 9, 2022
dc
The Face-to-Face Washington D.C. FP&A Board Reinventing FP&A: Key Lessons Learned from the Pandemic
June 14, 2022
New York
The Face-to-Face New York FP&A Board Reinventing FP&A: Key Lessons Learned from the Pandemic
June 15, 2022
Reinventing FP&A: Key Lessons Learned from the Pandemic
The Face-to-Face Boston FP&A Board Reinventing FP&A: Key Lessons Learned from the Pandemic
June 21, 2022
The FP&A Trends Webinar
The FP&A Trends Webinar Maximizing FP&A Value Through Automation
June 22, 2022
Agile FP&AAI/ML FP&ABeyond BudgetingBusiness Intelligence (BI)Capital PlanningCash PlanningCollaborative FP&ACorporate Performance Management (CPM)Cost PlanningData-Driven FP&AData VisualisationDigital FP&ADriver Based PlanningExtended Planning & Analysis (xP&A)Financial Planning and AnalysisForecasting QualityFP&A AnalyticsFP&A Business EnvironmentFP&A Business PartneringFP&A Case StudiesFP&A DashboardsFP&A KPIFP&A Maturity ModelsFP&A PeopleFP&A Predictive AnalyticsFP&A RPAFP&A Scenario PlanningFP&A SkillsFP&A StorytellingFP&A Strategic PlanningFP&A Team BuildingFP&A TechnologyFP&A TransformationFP&A Trends ResearchIntegrated FP&AModelling and ForecastingPlanning and BudgetingProfitability AnalysisRisk-Adjusted PlanningRolling ForecastWhat is FP&AZero-Based Budgeting (ZBB)

Please register to receive the latest FP&A news, updates and tips.

info@fpa-trends.com​

              

Foot menu

  • FP&A Insights
  • FP&A Board
  • FP&A Videos

Footer countries

  • Amsterdam
  • Boston
  • Brisbane
  • Brussels
  • Chicago
  • Copenhagen
  • Dubai
  • Frankfurt
  • Geneva
  • Hong Kong
  • Houston
  • Kuala Lumpur
  • London Board
  • London(Circle)
  • Melbourne
  • New-York
  • Paris
  • Perth
  • San Francisco
  • Seattle
  • Shanghai
  • Singapore
  • Stockholm
  • Sydney
  • Tokyo
  • Toronto
  • Washington D.C.
  • Zurich

Copyright © 2022 fpa-trends.com. All rights reserved.

0