Just before starting to implement a new NetSuite Planning & Budgeting (NSPB) implementation our consultants schedule sessions (most of the times after signing an NDA) where you share with us your FP&A current process and we understand how NSPB can leverage on how you currently work, but additionally we can establish some “incremental agreed improvements” that NSPB allows.

What is FP&A ?

According to the Institute of Management Accountants (IMA), “Financial planning and analysis (FP&A) is a decision-making platform that includes reporting and analysis, planning and budgeting, forecasting, and financial modeling”, being “platform” a combination of tools, processes and skills, and that’s why implementing NSPB can’t be your only focus in order to improve your FP&A, and that’s why we support you to improve your skills and processes (subscribe to our Newsletter to download the full whitepaper).

What is the value of an effective FP&A process ?

According to the same whitepaper, the value an FP&A delivers to an organization depends on how well it is performed. If done well, it has the potential to drive shareholder and stakeholder value by:

  • Ensuring the optimal allocation of resources (how time and money will be invested for
    maximum results).
  • Driving planning and execution of the strategy.
  • Better management of expenses and risk analysis.
  • Generating ideas for new business opportunities.

What if my FP&A is not an effective one ?

If NSPB is implemented under an ineffective FP&A process. its value will not be fully realized, additionally to other undesirable outcomes defined by the IMA, as:

  • Waste of the organization’s resources (time and money).
  • Reduced chance that financial and operational goals will be achieved.
  • Increased likelihood that departments will act at cross purposes.
  • Reduced chance that the strategy will be properly executed.
  • Continued deals with lower to no profitability.

How to get your FP&A process improve ?

As any process improvement, you first need to understand your current state, and define a target timeframe for that improvement, based on your own organization FP&A team, leadership and current situation (skills, barriers to change, priorities, etc.), being our recommendation to SME to start under Quick-Hit initiatives following the IMA’s 12 Key Principles you can download at www.imanet.org, or by subscribing to this Blog.

Use this as a guide to start improving your processes event before starting your NSPB implementation.

Start assessing your FP&A skills and processes

Download our Free Guide to assess your processes and skills after the IMA’s Principles of Effective FP&A.

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