What Is Financial Planning and Analysis (FP&A)? Financial planning and analysis (FP&A) professionals own the financial planning, budgeting and forecasting process at a company to inform major decisions made by the executive team and board of directors. These employees collect, prepare and analyze fin...
When performing financial ratio analysis, it is important to compare companies that are in the same industry. Ratios can vary widely among industries. For example, a retail company will have much lower profit margin than a technology company. This would result in very different profitability ratios...
FPA is a series of four practices that support the financial health of an entity: preparing and budgeting, integrated financial planning, management and reporting on performance, and predicting and modeling. The activities of the organization support financial health. FP&A solutions strengthen the capaci...
A financial analyst is the person who examines and investigates a company’s assets, debts, investments and growth potential. She may do this for the general interest of one or several shareholders, but more often, the information she gathers is used as a guideline for potential investments, ...
Financial analysis and reporting is a method of looking over a company's financial records to make decisions about the future...
Financial Statement Analysis: Discover the 3 key types, learn how to analyze them like a pro, and apply your knowledge with a real-world case study.
Variance analysis and revisionsThe final step of FP&A is like balancing an equation in math class, albeit with budgets and forecasts. Variance analysis is just another way of saying pinpointing data discrepancies. For example, your budgeted expenses may be greater than your sales forecasts, which ...
The FP&A process is a continuous cycle of data collection and analysis. As businesses grow and expand into new markets, and in times of market volatility and rapid change, the process becomes more complex. More data needs to be collected and more analysis needs to be done – which is why ...
Cash flow insights and analysis Providing useful information to current and potential investors and creditors Internal controls to prevent fraudulent activities What Is the Purpose of Financial Reporting? The main objective behind financial reporting is to provide business owners, shareholders, and other de...
What is financial feasibility analysis? Analysis: Analysis represents a mainstay of business, as stakeholders must assess rationally the extent to which their strategy, operations, and other elements of the business are sound. One type of analysis is the financial feasibility analysis, or financial ...