How Do FP&A Consultants Help Your Business?
Financial planning and analysis is a vital component of any organization — but as it involves many different areas of business, it can be difficult to understand where and how to allocate the right resources that fuel sustainable growth.
As experts in driving financial transformation, we’ve outlined some helpful information regarding financial planning and analysis — and why it’s best to turn to an FP&A consulting team for guidance.
Understanding FP&A Consultants:
- What is Financial Planning & Analysis?
- Why is Financial Planning & Analysis important?
- What do Financial Planning & Analysis teams do?
- How can Financial Planning & Analysis teams help your business?
What is Financial Planning & Analysis?
Financial planning and analysis (FP&A) is a process that fuels sustainable financial growth by ensuring the efficiency of budgeting, forecasting, modeling, analysis, reporting, KPI development, strategy development, process rework and more.
In order to develop a healthy FP&A function, business leaders need to focus on gathering accurate financial data so they’re able to make estimates and predictions that help them effectively meet company goals.
Why is Financial Planning & Analysis important?
FP&A is the best tool for understanding which decisions you need to make to reach desired financial outcomes, as it provides a roadmap of the main objectives your company should focus on, sets up processes to track progress, and shows you how to manage your day-to-day operations so they bolster the health of your finance and accounting functions.
What do Financial Planning & Analysis teams do?
Oftentimes, internal finance departments don’t have the resources needed to conduct proper FP&A activities and must turn to a trusted partner to help them out.
By performing FP&A on a project basis rather than hiring internal staff, businesses are better prepared to proceed on the highest priority items and effectively execute on financial initiatives.
Duties of FP&A experts and consultants:
- Annual budget preparation
- Quarterly re-forecasting
- KPI development and reporting
- Sales and profitability analysis by customer, product line, channel or other variables
- Refinement of operations/manufacturing finance/costing methodologies
- Marketing and advertising ROI evaluation
- R&D budgeting
- Forecasting model creation
- Pricing analysis
- Acquisition and divestiture analysis
- Preparation of Annual Operating and 5-year plans
- Capital expenditure analysis and planning
How can Financial Planning & Analysis teams help your business?
If you’re having issues gaining real-time visibility into financial on goings, gathering information for budgeting, reporting or forecasting purposes, or you find that your business or employees aren’t performing as expected, hiring an FP&A team can be beneficial in identifying specific issues across your finance function that need improving and integrating the right systems and solutions to help you reach your financial goals.
Consider contacting DLC for all your financial planning & analysis needs.
Need Financial Planning & Analysis Support?
DLC is a professional services firm helping companies drive transformation and growth, one project at a time. Our team provides flexible, efficient, on-demand execution of your financial planning and analysis projects.
Contact us today or click on the link below to learn more about our FP&A support services.