Today’s uncertain times mean that it is no longer good enough for organizations to have one fixed plan and forecast. Historic data by itself cannot help predict the future, nor can classical planning methods and standard variance analysis provide sufficient information to manage a business. It is time to change and adopt a fact-based mindset towards business decisions.

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.

The Digital Swiss FP&A Board was proudly sponsored by:

Watch the full recording of the FP&A Trends Webinar to look at the examples of Predictive Analytics in FP&A and understand how we can implement the process for the benefit of the whole organisation.

The result is this paper that covers the elements crucial for any organisation approaching AI or ML for the first time including challenges, methods and key success factors.

Financial planning and analysis (FP&A) functions are at the forefront of guiding organisational performance and supporting the decision-making process. Over the years, the challenges faced by management have required different planning approaches and techniques. Some have stayed and become ‘the norm’, for example, driver-based planning.

Yet, at the same time, the technological systems that underpin FP&A’s work have been constantly evolving to support faster decision-making, more scenarios and increasing volumes of data.

As Einstein said, “In the middle of every difficulty lies opportunity.”  This survey we believe offers hope, insight, and a much-needed reality check on where FP&A is today.  It also forecasts what needs to happen for FP&A teams to develop their best practices from theory into reality. 

Integrated FP&A involves harmonising the three levels of planning - Strategic, Financial and Operational levels. This is done both horizontally (cross-functional) and vertically (top-down and bottom-up), using integrated processes, people and platforms that connect all parts of the business. The case studies presented some real-world examples of implementing and applying integrated FP&A.

The longer these types of primitive FP&A analysts and accountants delay implementing ABC, then the greater the risks. The issue here is not mainly about product and standard service-line costing to understand their profit margins. The issue is about the emerging need to report and analyse distribution channels and customer profitability.

With so many digests behind us, we have collated contributions from a substantial number of finance professionals, on a considerable variety of relevant topics. That is why, for this issue, we have chosen to share articles that discuss FP&A from different points of view.