FP&A complexity, high market volatility, and aggressive competition are few of the many reasons why your CFO is stressed out today. Your CFO is expected not only to respond swiftly and effectively to market stressors, he or she is also expected to manage the operational and financial risks of the company efficiently.
Indeed, CFOs and their finance personnel put on many hats these days. Their function extends in scope regularly and their tasks are non-standard and many.
When we look at just the very definition of FP&A, a CFO and his or her staff are expected to understand accounting, finance theory, data sources, business modeling, the dynamics of the world economy, and creative problem solving methodologies.
The CFO and his or her team carry on their shoulders the burden of performing budgeting, forecasting, strategic planning, management and statutory reporting, financial analysis, capital planning, and business modeling.
In all these, it is therefore not unusual that at certain times of the month and year, these CFOs and finance personnel walk around with what seems to be their nth cup of coffee accompanied by dark round circles in their eyes and a general aura of being grumpy. I mean, who wouldn´t be?
FP&A Problems That Just Won´t Go Away
Recognizing and swiftly responding to the magnanimity of the financial risks that exist today has never been more necessary. CFOs and their teams struggle with the following FP&A problems regularly:
- Unacceptably high forecasting error rates
- Inefficient budgeting and planning process
- New task of meeting demand for operational insights
- Data that isn´t quickly transformed to valuable business insights
- A lack of standards of discipline e.g standard chart of accounts, commmon processes, globally mandated standards, and common definitions
- Inefficient and ineffective data gathering process
- Disconnectedness of line of business systems and ERP systems
For an organization to truly overcome these challenges, several factors must be considered – values, internal processes, organizational culture, people, and technology.
The process of change and improvement becomes even more difficult for mature and established businesses. However, as they say, one has to start somewhere to get anywhere.
Investment in technology can be a good place to start.
Epicor Financial Planner for FP&A
Epicor Financial Planner provides leading practices in financial planning and analysis. EFP more than just automating select finance processes believes in providing multidisciplinary solutions to the many complex issues plaguing finance departments today.
EFP not only automates high transaction volumes of data like when consolidating, it also automates reporting, and budgeting. On top of that, it supports integration of several ERP and line of business systems, supports unstructured data, supports ad hoc reporting, supports unlimited scenario planning, enables business users to do self-service analytics, and it increases overall process visibility and control across the organization.
Epicor Financial Planner is one of the very few CPM tools in the market today that truly delivers corporate performance management capabilities which includes elements of processes, workflows, analytics, decision support, and data visualization which enables business users to process data into useful information in several dimensions. These subsequently result to access to rich analytical insight that will allow the business to respond accordingly to the risks and challenges as they unfold.
Can you relate to these FP&A struggles experienced by many finance departments?
Would you like to explore how Epicor Financial Planner can help streamline and optimize your FP&A process today?