The FP&A Process

To correctly predict future business decisions that a company should make, FP&A professionals must go through a specific process of finance-driven activities. This FP&A process includes the following series of activities:

1. Data Collection, Consolidation, and Verification
   • Collecting financial and operational data from accounting management software systems, especially ERP systems.
   • Ensuring the accuracy and completeness of the data through consolidation and verification.
   • Data cleaning and organization for further analysis.
2. Planning and Forecasting
   • Using the collected data to develop financial reports.
   • Forecasting business performance through statistical and predictive models.
   • Creating multiple scenarios to understand potential future outcomes and guide strategic decisions.
3. Budgeting
   • Creating a comprehensive master budget for the entire company.
   • Ensuring that the budget aligns with company goals, objectives, and forecasts.
   • Managing rolling forecasts for continual budget updates and real-time adjustments.
4. Performance Monitoring and Analytics
   • Ongoing analysis of the company's financial performance through KPIs.
   • Evaluating sales, expenses, profit margins, working capital, and cash flow data.
   • Leveraging data analytics tools to uncover insights and trends in the financial data.
   • Creating “data stories” to help decision-makers understand the current business status and plan future actions.

Advanced Financial Planning & Analysis (FP&A) Modules

1. Financial Modeling
   • Learn to build and customize detailed financial models using Excel.
   • Understand the concepts behind income statements, balance sheets, and cash flow models.
   • Use dynamic financial models for better forecasting and business decision-making.
2. FP&A Financial Analysis
   • Master the techniques of analyzing financial data to assess company performance.
   • Understand financial ratios, profitability, and liquidity analysis.
   • Learn how to interpret financial reports and present insights to management.
3. FP&A Data Transformation
   • Transform raw data into actionable insights through advanced data manipulation techniques.
   • Apply financial analysis tools to clean, sort, and prepare data for in-depth analysis.
   • Learn how to work with large data sets, ensuring accuracy and relevancy in your analysis.
4. FP&A Data Analysis
   • Leverage data analysis techniques to examine trends, anomalies, and key performance indicators (KPIs).
   • Analyze financial performance across different business units and geographies.
   • Utilize advanced Excel formulas, pivot tables, and charts to perform detailed financial analysis.
5. FP&A Data Visualization
   • Learn how to use charts, graphs, and dashboards to visualize financial data effectively.
   • Create interactive visualizations to communicate insights clearly to stakeholders.
   • Develop compelling financial reports that tell a story and help guide decision-making.

Building Strong FP&A Capabilities

• Carry out a Financial Analysis
  • Develop comprehensive analysis of company financials, highlighting key strengths and weaknesses.
  • Use financial modeling techniques to simulate different financial scenarios and outcomes.
• Define Your Financial Plan
  • Create a robust financial plan that aligns with your company's long-term strategic goals.
  • Ensure that your financial plan accounts for potential risks and opportunities in the market.
• Implement, Track & Manage Progress
  • Effectively implement your financial plan and monitor its progress through key performance metrics.
  • Track actual performance against planned forecasts to identify variances and corrective actions.
  • Leverage performance analytics and KPIs to refine and optimize the financial strategy over time.