Effective financial planning and analysis enhances an organization’s finance department's capacity to control the organization’s performance. Planning and budgeting, integrated financial planning, management and performance reporting, and, forecasting and modelling are the four tasks that support an organization's financial health during financial planning and analysis (FP&A).
Financial planning and analysis backs up the company plan and lays out a procedure for ensuring that the primary goals and core objectives of the firm are attainable financially.
Ideally, financial planning and analysis focus on the future. The strategy is linked to a long-term plan as well as annual operational and capital budgets. The financial planning and analysis process gives direction to the finance department, ensuring that annual budget results are delivered and cash flow predictability is improved.
Consistency is vital, and a good financial planning and analysis process removes variation and provides consistent and trustworthy data, based on which you can make informed decisions. A well-run financial planning and analysis consultancy firm like, TRC Corporate Consultancy also creates and distributes exception reports, highlight reports, and other analytical reports (such as ratio analysis) to help the organization's leadership make better decisions.
The financial analysis and planning function is critical to a company's performance because it enables management to successfully manage cash flow, make the best use of resources, and plan efficiently to guarantee that the company's strategic goals are achieved.
Let’s see how financial planning and analysis works as an added advantage for a firm:
Financial planning and analysis is a comprehensive process. Planning, forecasting, budgeting, modelling, and scenario analysis require common, standardised business information. For financial analysis and planning, performance control, reporting strategic and operational results, standard scorecards and dashboards are used. To bring out accurate and reliable results, it would be advantageous to leverage services of expert professionals, who have been in the industry for a couple of years.
To mark a few basic steps of financial planning and analysis, here’s a list:
Gather and prepare data for Profit & Loss statements for both short and long-term planning. Plan scenarios based on a variety of forecasting considering the losses and risks.
Make a budget for a specified period (typically one year). Monitor the plan's month-to-month implementation, including income and expenses, cash flow projections, and debt reduction. Adjust the plan if necessary.
Compile budget, cash flow reports on a weekly, quarterly, and annual basis. Gather and analyse financial and operational data to gain insights that can help you make better decisions. Report the same to the accountable party/ person.
Using historical data, forecast financial performance over the following four to twelve quarters. For a rolling forecast, re-predict the next 12 months after each quarter.
Gather data quickly throughout the year for ad-hoc analysis and reporting. Based on your results, make management recommendations.
Financial planning and analysis enables businesses for optimal resource allocation and enhances organisational understanding of the business strategy by outlining each stakeholder's involvement in its realisation. Many businesses, however, confront the difficulty of not having practical knowledge to support optimal financial analysis and planning, wherein, TRC Corporate Consulting’s unparalleled services prove to be useful. We help you with concrete ideas and best-practice principles that will help your company implement excellent financial planning and analysis.
Internal financial planning and analysis teams who completely rely on software to manage various financial planning and analysis processes face difficulty to keep up with their growing to-do list and changing norms. However, TRC Corporate Consulting’s financial analyst experts gather real-time data for offering planning and budgeting solutions, which enhances the value of the firm with prudent and credible results.
A successful business is built through sweat and hard work. Every decision acts like a baby step...
29 Jun 2022
The question of what is company secretarial services or what is corporate secretarial services is...
27 Jun 2022
In today’s competitive markets, business modelling lies at the heart of every decision-making...
27 Jun 2022
The word Manpower Outsourcing is self-explanatory. When companies are looking for people to work...
23 Mar 2022
If you need to speak to us about a general query fill in the form below and we will call you back within the same working days
How can we help?