Being Right More Often Starts With Quality FP&A
What if every question had a clear answer and every decision produced the desired outcome? That’s the dream of every entrepreneur – to act with confidence and clarity while being correct a lot more consistently. And even though it sounds like an impossible ideal, making the right move more often is possible for any business regardless of size, industry, or age. It all starts with quality financial planning and analysis (FP&A).
Leveraging FP&A for Strategic Success
Financial planning and analysis encompasses a number of activities with one common objective: using financial data from the past to inform decisions in the present and plans for the future.
Businesses rely on FP&A to help them build better budgets and track their financial performance throughout the calendar year. They also use it to indicate when to seek funding or financing and then to make their case for financial support. Accounting keeps the books in order. FP&A, on the other hand, uses financial data to explain what’s happening, why, and what to expect next.
Every decision a business makes, from developing major strategic plans to tweaking operational practices, improves by having FP&A as a source of insights and guidance. If the success or failure of any decision is measured in economic terms, financial analysis reveals what’s at stake and what’s most likely to happen. Financial planning then devises the best course of action to avoid failure and lock in success.
FP&A doesn’t guarantee a business makes the perfect maneuvers – nothing can. It does, however, provide the insight and foresight necessary to act wisely in the face of anything.
What Distinguishes Quality FP&A?
Crucial as FP&A may be for informed decision making, the quality of that process determines the results. A simplistic financial analysis or a rushed planning process offer little value and can have plenty of unintended consequences. Executives and entrepreneurs must trust they have the very best information available before they can act confidently upon it and see their goals turn into real performance.
So what distinguishes quality FP&A from the rest? Mostly the team behind it. One with the experience, technology, and (most importantly) desire to take a deep dive into the numbers will discover more insights, both in terms of quality and quantity. Those same strengths lead to financial planning that balances strengths, weaknesses, opportunities, and threats to put the annual goals within reach. The biggest difference between ordinary and quality FP&A? The first is informative while the second is effective.
There are many important decisions to make in 2022. All will benefit from having FP&A in the works. Illuminate the year to come by partnering with Proseer. Our diverse team of expert financial advisors can help you see – and act upon – everything your financial data has to show you.
Is your current plan the correct one? Contact us to find out.
