In today’s dynamic business environment, most CFOs are dissatisfied with their Financial Planning and Analysis (FP&A) process, citing its lack of value delivery and resource wastage. The biggest challenge lies in accurately predicting future revenues and cash flows, especially in the face of global events that disrupt traditional business activities. As a result, FP&A planning has become increasingly complex, requiring a fresh perspective backed by hard data.
So, what are the best practices in FP&A that can lead to success?
The Institute of Management Accountants conducted an extensive survey involving over 700 organisations, gathering key insights and opinions to identify the characteristics of great FP&A. These successful organisations consistently meet or exceed their targets and outperform their competition. The good news is that there are a number of best practices that organisations can implement to improve their FP&A process. These best practices are based on the experiences of the most successful organisations in the world.
The 12 best practices for FP&A are:
Align FP&A with the organisation’s strategy: The FP&A process should be closely aligned with the organisation’s strategy. This means that FP&A should be used to help the organisation achieve its strategic goals.
Align FP&A with the overall business strategy: Many well-conceived projects fail due to poor planning and budgeting. The budget is the key to achieving strategic targets, but it’s often not used effectively.
To know all the best practice, Download the full report!