Principles of Modern FP&A
Reliable Financial Planning and Analysis (FP&A) is more important than ever in the quickly evolving financial world, but it’s frustratingly hard to come by. Modern FP&A is most effective when it’s dynamic, complete and shared. These three core principles provide a starting point for creating a more effective FP&A model, and NextProcess’ automation software can make it easier to implement. Our software helps free-up time for employees to focus on FP&A and makes reliable data about your company’s finances readily available.
Rather than using a calendar-driven approach, financial planning should be event-driven so it’s more flexible. Modern FP&A models are also most useful if they update in real-time so you can quickly see how changes and events impact the entire financial plan. The goal is to create a dynamic model that you can adjust as needed to reflect any changes that affect the company.
It takes time to create a dynamic FP&A model for your company. Often employees in the FP&A department also handle financial basics like process administration, data management, and working with the accounting staff. Implementing easy-to-use, reliable automation like AP Automation Software helps free up time so they can focus on FP&A.
When developing a modern FP&A strategy, you want it to be as complete as possible, and that means the FP&A team needs reliable information to analyze. Planning and analysis should also take into consideration every line of business, rather than just financial line items. This helps ensure your FP&A model will generate correct data that is reliable and useful.
NextProcess software does not directly handle FP&A, but implementing NextProcess automation can make it much easier for you to access reliable data to use in your planning strategies. Automation like our Capital Project Management Software makes it simple to look back at your company’s financial history and gather data to use in forward planning.
Even the most reliable information is useless if it’s not getting to the right people. Make sure that everyone who needs to be involved in FP&A strategies has access to the same information. Building a secure environment where plans can be shared and discussed is key to helping employees work together to develop a strong FP&A plan. The FP&A model should also be set up so business users can manage it directly, rather than relying on outside sources.
With NextProcess’s Document Management Software, you can store all your records in a secure searchable database and share access with everyone on the financial planning team. This system is accessible online anywhere, anytime. Document Management helps your company simplify record keeping, and is useful across the board, not just in making FP&A more efficient.