23 Jan 2022 Ankit Chadha

What is Financial Planning and Analysis? How Is It Valuable to Your Business?

Financial Planning and Analysis | TRC Corporate Consulting

The finance department is one of the most critical areas of concern within the organization’s structure. Financial planning is as important as the execution of the plan. Moreover, financial planning and analysis include not only the planning bit but also many other functions of the organization that involve finance. So, the question is, what is financial planning and analysis?

Financial Planning & Analysis, also known as the FP&A process, is essential for the efficient management of all the operations and strategic functions such as business planning, management, and administrative supervision. The financial planning and analysis process is essential for the overall performance of the firm since it supports the most critical management functions of them all – finances.  Thus, we can say that financial planning and analysis support or deal with the key element for the organization’s growth. So, let us understand in detail what is financial planning and analysis exactly.

What is Financial Planning and Analysis?

In every organization, and especially in midsize organizations, there is a team or an experienced individual who takes charge of the company’s complete financial analysis and planning. The financial planning and analysis process includes budgeting, allocation and assessment of the funds in the organization and thus, is essential for the smooth functioning of the business.

Organizations that don’t have an internal team for that partner with a consulting firm like ours to get expert guidance for their organization’s financial planning and analysis process and eventually to successfully achieve their business goals.

At TRC corporate consulting, we have a panel of skilled FP&A professionals or financial planning analysts who can support the senior management of your organization and provide the needed support in forecasting the company’s financial operating performance timely.

How Financial Planning and Analysis is Valuable for Your Business?

The financial planning and analysis process is one of the most critical and vital functions of your business, and here’s why:

  • It helps you analyze the results of previous business strategies and investments and enables you to identify the areas that need improvement through insightful assessment and observation. Financial planning and analysis also suggest the changes that you can incorporate in order to grow and not make similar mistakes that you made in the past.
  • Allocate funds and prepare budgets, both on a business-wide and department levels
  • Form and update forecasts for the future analytics and expected performance of the business.

FP&A or financial analysis and planning plays a major role in helping the business achieve success by fulfilling all the financial goals and objectives. How? Simply by helping your executive team manage the cash flow better, enhancing the financial planning for the future, and efficiently allocating capital across the organization. The financial planning analyst’s job is to make sure that the firm is moving in the right direction and all the actions are leading towards meeting its calculated financial goals.

Therefore, to put it in simple words, FP&A is the key to driving valuable business decisions.

What are the Benefits of Hiring TRC Corporate Consulting for Financial Planning and Analysis? 

Now that you know what is financial planning and analysis, we hope you understand how important it is to partner with a reputable and reliable consulting firm. At TRC corporate consulting:

  • The controllers participate actively in the financial planning process of all the organizations we partner with.
  • Minimum support and training sessions are needed from the client as compared to establishing an in-house finance team.
  • The controllers can create more accurate forecasts.
  • There is a significant reduction in uncertainty across the entire process.

We have a team of experts who enhance the productivity of your organization by saving time and adding value through:

  • Deviation Evaluation
  • Accurate Forecasts and Predictions
  • Cash-Flow Modelling
  • Knowledge Pool Concerning the Financial Performance

To consistently and constantly adapt to the dynamic finance spectrum, it is essential for you to consider experts and professionals who can enable innovation, agility, and growth for your organization by reinforcing the appropriate financial planning and analysis process and giving advice for Financial Planning and Analysis Tools, assessments, recommendations, and backing.

TRC Corporate Consulting’s Methodology For FP&A Process 

At TRC Corporate Consulting, we adhere to a streamlined approach for handling Financial Planning and Analysis related services that includes the following steps:

Step 1: Knowing financial planning and analysis report goals

Step 2: Planning team’s Financial Planning and Analysis’ reporting procedure

Step 3: Gathering and regularizing data

Step 4: Establishing data and information

Step 5: Collaborating in real-time

Step 6: Evaluating approvals and sign-off of policies

Step 7: Articulate final reports 

Step 8: Leveraging extensive experience to enhance the FP&A process

Step 9: Implement custom Financial Planning and Analysis framework as per business requirements

When you partner with us, our expert Financial Planning and Analysis services help you benefit from the extensive experience and expertise that our consultants bring with them.

Processes That Fall Under Financial Planning and Analysis Process

There are five main processes under the financial planning and analysis that you must know:

Planning: At TRC, our first financial task involves strategic proposals as it initiates the planning functions of the business.

Budgeting: Our financial analysts manage, assist, and monitor business expenses on a regular basis.

Forecasting: Our experts devise predictions for financial performance based on multiple market variables such as inflation, foreign exchange, and economic growth. Business predictions are critical contributions to both budgets and plans.

Management Reporting: construct and update critical management reports.

Decision Support and Controls: While there is no list of tasks that can methodically distinguish the decision-making process, it generally depends on the financial analysis for guidance, such as M&A analysis, activity-based costing, and auxiliary financial modelling.

At TRC Corporate Consulting, we consider you to be more than just our clients. We partner with companies to provide them with a wide range of services, including the FP&A, M&A, financial advisory, taxation advisory, and GRC services. To know more about our Financial Planning and Analysis process, contact us!

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