Changes in the finance department: From report creator to business partner
To adapt to the significant changes in finance, the changing role of the finance department comes into center stage where innovation, agility and growth are now even more important. This also applies to employees, processes and technologies. The classic finance model must therefore grow beyond the traditional functions of accounting, controlling and reporting. Finance’s goal is to maximize its potential by providing new insights and better forecasts. This enables better decision-making in all departments across the organization.
The Benefits of Corporate Performance Management in FP&A
Corporate Performance Management (CPM) or Enterprise Performance Management (EPM) is one of the central management tasks in a company. It summarizes the systematic, strategy-oriented management of corporate performance. This includes all processes and methods required to manage a company: all financial strategy processes such as planning, budgeting, forecasting and reporting. Consequently, EPM represents a particular benefit for FP&A, as it provides automation for multiple processes.
Modernization of planning, budgeting and forecasting
Numerous budgeting and planning processes can be simplified company-wide by using a digital EPM solution. Using a unified digital solution enables today’s controllers to become tomorrow’s decision makers. EPM solutions give controllers insight into accurate and more up-to-date data.
Advantages for finance:
Controllers play a greater role in the integrated planning process
- Less support and training required for the finance team
- Controllers can create more accurate forecasts
- Uncertainty is reduced across the entire process
Digital CPM solutions generate immediate benefits because they:
- Automate data entry
- Minimize manual intervention
- Reduce the reporting burden
Save time and create added value:
- The analysis of deviations
- The production of rolling forecasts
- Cash flow modelling
- The knowledge gain that affects financial performance
Did you know?
Tight integration with Microsoft Excel enables users from other areas to create their own reports and act independently of the finance department when collecting data and information. Self-service applications are also useful for finance professionals. They provide a variety of intuitive visualization and evaluation options that allow users to get started quickly.
What is Financial Planning & Analysis (FP&A)?
Financial Planning & Analysis is the intersection between finance and corporate management. It comprises all management measures for coordination within the finance division, and the intersection between finance and the service division.
One of the most important objectives of FP&A is to safeguard liquidity, i.e. the company’s ability to meet its payment obligations at all times. Financial planning, budgeting and forecasting are the primary instruments used to ensure liquidity. FP&A also includes financial consolidation. It enables precise group reports, fast financial statements and comprehensive financial control.
In addition to maintaining liquidity, maximizing profits or increasing shareholder value is another goal. Consequently, FP&A coordinates the company’s financial resources in such a way that investments in performance will lead to an increase in value.