Here are two laws that should question a few paradigms in company management and finance. Applied to company management those two laws bring few questions.
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Among the difficult subjects for FP&A and management, there is the very “sensitive” relation between budget or forecast and managers compensation scheme.
The first step in forecasting is to understand where we are today and how we arrived at that point from the past. This is gain through analysis and reporting.
Tools and processes used by finance and FP&A (commercial management, billing, accounting, operational statistics, competitive intelligence, planning, budget, forecast, variance analysis, reporting) needs to be customized in order to achieve both efficiency and relevance. There is nothing like on the shelf tools.