In today’s rapidly changing business environment financial planning and analysis (FP&A) professionals are dealing with…well…everything – from the pressure to quickly report financial numbers to providing analysis and insights to support high quality decisions.
The role of financial planning and analysis is expanding as professional track, assess and report financial performance of the organization, while planning investments that affect future results. To generate meaningful and reliable information, they must access and collect information from BI, ERP and other internal and external sources. They must also coordinate with other departments and functions as they gather, analyze data and share results.
As organizations place additional burdens on financial planning, FP&A professionals face five major challenges.
- Forecasting Errors: Finance teams struggle with mistakes that occur when people collaborating inside a vast organization make errors, confuse versions, miss important data and place heavy burdens on data collection.
- Handling Uncertainty: Teams often deal with incomplete data or information that is in flux. FP&A professionals don’t have the luxury of having 100% certainty when planning for the future.
- Unified View of Data: Numbers come from various areas within the company and in various forms. Unifying these numbers poses a massive challenge.
- Collaboration & Communication: Consolidating inputs from multiple sources, analyzing the data and communicating results that are understood and respected by decision makers.
- Real-time Results: Everyone wants up-to-the-minute information. FP&A teams are under massive pressure to deliver analyses when and where decision makers need them.