Budgets vs. forecasts - Why budgets are important, but forecasts are even more important Budgets are typically prepared annually and provide financial targets and constraints for a specified period of […]
In today's business environment, it is critical to be able to respond quickly and confidently to internal and external influences. To achieve this, companies need a reliable platform that provides comprehensive support in financial planning and data analysis. However, many companies encounter major challenges in the planning process.
Our FP&A platform Fiplana accompanies you through every step of the planning and analysis process: from data integration and preparation, to merging and analyzing the data, to planning and evaluating the results.
Almost every company faces the problem of data silos. Data silos occur when information and data are stored in isolation from each other in different departments or systems within a company. They make it difficult to access and analyze data, which can negatively impact collaboration and decision-making within a company.
In this article, we highlight the core challenges in the financial planning process and show how Fiplana can help you overcome them to ultimately optimize your financial performance and achieve sustainable business success.
1. Elimination of data silos
Bringing together data from different departments is often a challenge for companies. Fiplana eliminates these data silos by providing a centralized tool for all departments such as Marketing, Production, HR, Sales, Controlling and IT. This creates a single point of truth that promotes collaboration and communication within the company. Fiplana also enables the integration of reconciliation and approval processes as well as workflows to optimize the exchange of data between the different decision-making levels. You can even pre-define the different steps of your workflow to ensure compliance with your process chains.
2 Budgeting and Forecasting
Once the data has been cleanly prepared and presented, you can move on to the next important aspect of financial planning: Budgeting and Forecasting. Just before the start of a new fiscal year, budgeting sets the financial goals for the coming year. During the year, several rounds of forecasting are carried out, comparing the actual data to date with the budget for the remaining months. Fiplana helps you to prepare budgets and forecasts accurately, to react effectively to deviations from the plan, and to identify major discrepancies early on through in-depth and comprehensive analysis of these deviations so that targeted countermeasures can be taken.
3. Scenario planning and analysis
In order to be prepared for all eventualities and to be able to assess them in advance, the planning and analysis of different scenarios is a key aspect in the financial planning process. Fiplana allows you to map best-case and worst-case scenarios, among others, and better understand their impact on your company. By combining historical data with current information, Fiplana provides valuable insights into potential business developments and helps you make informed decisions for the future.
4. Holistic P&L analysis
Among other things, Fiplana offers you the possibility to perform a P&L analysis. This allows you to see live how the figures of the individual departments flow in during the planning phase and thus influence the business result in the respective scenario. Thanks to the flexibility of the data analysis, you can dive as deep as you like into the individual granularities of the data and thus perform detailed analyses from the top level down to the finest level. This allows you to compare your actual figures with the forecast values and, if necessary, take action to improve your financial performance.
The challenges in the financial planning process are many, but with Fiplana as a powerful FP&A tool, you can overcome them effectively. Fiplana helps you with scenario planning, budgeting, forecasting and analysis, among others, to optimize your financial performance and achieve sustainable business success. Don't hesitate to request a demo of Fiplana today to learn how our platform can help your company revolutionize financial planning and successfully meet future challenges.