Financial planning and analysis (FP&A) refers to business activities such as planning, budgeting, management reporting, and forecasting, all of which support the financial health of an organization.
Planning and budgeting refers to the setting of targets and the creation of a budget that provides management with a basis on which they can rely on to evaluate business conditions and financial targets.
Integrated financial planning refers to the aggregation of different financial plans from different functions and bringing them together into one plan.
Management reporting involves collecting information from various departments, integrating it, and creating reports for decision makers so that they have a better understanding of financial conditions.
FP&A Software
FP&A software makes it easy to streamline financial processes. Customizable dashboards and data management tools make it easy for departments to monitor performance. With software applications, users are granted more flexibility and greater interactivity with data.
FP&A software can help analysts measure the financial health of their organization thanks to various metrics. Analysts often create and maintain financial models and forecasts for their business, and are tapped to make performance reports.
Benefits of FP&A
FP&A can help organizations with a variety of goals including:
- Converting goals into actionable plans
- Integrating operations with financial planning
- Ensuring data accuracy
- Developing useful KPIs
Learn about FP&A trends and developments.
