6 Facts to Know About NetSuite Next-Level Financial Planning Analysis
A dedicated individual or team for FP&A can provide valuable insights, as confirmed by a recent survey conducted by the Association of Financial Professionals. If your company doesn't have one, you may be missing out on crucial information.
To succeed your team needs an understanding of 6 key areas
- Time-Sensitive Financial Statements
The FP&A team plays a crucial role in aggregating up-to-date profit and loss, cash flow, and other pivotal financial information. This task becomes significantly streamlined by implementing automation in functions such as accounts receivable, accounts payable, and the general ledger. This liberation of finance personnel allows them to shift their focus towards analysis and provides them with the necessary data to facilitate informed business decisions.
- Determining profit margins
To identify the departments, product lines, or services with the highest profit margins, it is crucial to consider all costs associated with producing and selling the products or services. The margins can be based on gross profit, operating profit, or net profit.
- Scenario Analysis
Scenario planning helps sales teams to be more flexible and make informed pricing decisions. The team should be able to outline best-case, expected, and worst-case scenarios by projecting different numbers.
- Budget and Actual Performance
Financial Planning and Analysis (FP&A) is focused on forecasting the future financial performance of a company. As a result, FP&A teams need to monitor the differences between budget and actual performance and understand any variances, emerging trends within the business, and broader economic and industry trends.
- Trend Monitoring and Ad-hoc Reporting
FP&A teams should work closely with departments such as sales, operations, and HR to provide them with data and insights that can help them monitor trends and resolve any issues. For example, they can track sales trends between different regions, the number of service tickets resolved in a week, or the reasons for higher PTO costs in a specific location.
- Data-driven Insights
To enhance FP&A capabilities, it is essential to incorporate a variety of data sources, including external information such as seasonal demand changes, local unemployment rates, and data from suppliers such as consumer or producer prices, and supplier delivery dates. Automation is also a significant investment to consider.
Bringing it all together
Next-level financial planning and analysis involve leveraging technology, utilizing predictive analytics, integrating non-financial data, and focusing on continuous improvement to drive informed decision-making and long-term success.
Don't wait any longer, take the first step towards streamlined NetSuite financial Management and analysis by implementing in your organization with the expert guidance of our NetSuite consultants.
Contact: +91-8882709959
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