Financial Planning and Analysis (FP&A): It’s Time to Upgrade Outdated and Non-Integrated Systems

Financial Planning and Analysis (FP&A) - Top Challenges and Solutions

Small and mid-sized businesses often rely on Excel to create Financial Planning and Analysis (FP&A) which is a tedious and cumbersome tool. If you rely on reporting it’s usually the task of a Controller or someone in accounting to provide the owners, CFO, or the CEO with the right kind of data to make strategic decisions. This person usually spends an enormous amount of time and effort collecting and creating reports that include budgeting, forecasting and analysis from many data sets throughout the business. If you rely on Excel or are working in a system that’s not integrated, your reports are probably taking too much time to generate. Collecting, reporting and analyzing the data with manual processes is not only cumbersome but it makes it hard to be strategic and make smart decisions about the business.
The challenge with generating FP&A reports manually is the accounting system’s reporting is not integrated to all the data needed from the various departments. You now rely on each manager to pull the right data from these disparate systems. The old adage that “timing is everything” applies to FP&A reporting because any delays in the right information at the right time interrupt your ability to generate timely accurate reports to make decisions with reliable data. Timely data assembled in a way that’s accurate and efficient is essential to make decisions when needed and not when it’s too late for after-the-fact reporting.

If you are working with manual reporting tools like Excel and non-integrated systems, the benefits of creating Financial Planning and Analysis (FP&A) reporting is diminished. Here are some signs your Financial Planning and Analysis (FP&A) needs an overhaul.

3 Top Challenges with Financial Planning and Analysis (FP&A) Reporting Manually

1. Lack of Teamwork Between Departments - Pulling the right data required for accurate and timely FP&A reports requires buy-in and teamwork from several departments. If you don’t have the kind of collaboration between departments, your FP&A reports will not be generated in a timely manner. It’s common for managers in other departments to withhold data because it’s too hard to compile or it’s easier to not cooperate then produce the data.
2. Flying Blind - If you rely on managers in other departments to produce the data you need, it can be intimidating and cause a lack of cooperation because it opened them up to exposure. If they are flying blind without readily available and real-time data it opens them up to criticism and may be a cause of further lack of cooperation. This will be a cause of missed deadlines you will not have the information you need.
3. Little Emphasis on the Importance of Budgeting, Forecasting & Reporting - Have you ever heard a little bit goes a long way? Such is not the case when it comes to investing in analytics technology. A little more goes a long way. By not investing in human capital and technology, odds are you are going to see lackluster results downstream. Both of these are vital to performing next-level budgeting, forecasting and reporting. Unfortunately, if you aren’t making the investment in technology today, your competition probably is and you are going to be left behind.

If you experience any of these challenges with your FP&A reporting, we have a solution for how you can fix it!

3 Ways to Solve Your FP&A Reporting Challenges

1. Technology is Available to Integrate Data - Excel is not the only tool! There are so many other options out there to drive change and deliver results. Analyze the human effort to execute duties and research how technology can shift those efforts more towards analysis and being a more dynamic finance organization.
2. Create a Top-down Environment to Encourage Teamwork - Step out of your siloed environment and join together to promote a culture of teamwork and partnership. You must start at the top and lead by example, aligning goals across teams and your teams will invest and follow.
3. Research - It's a new age, see how processes have changed and how you can update yours. Don’t keep doing the same processes the same way because “that’s the way it’s always been done”. Recruit charismatic and progressive individuals who can help promote the change in the organization.

Ready to fix your failing FP&A process and not sure where to start? Let Oasis help. 

About Oasis Solutions

Since 1991, Oasis Solutions has been serving businesses throughout North America with software consulting, development, training, and support. Oasis is an award-winning business management software partner for Sage software, NetSuite, and Adaptive Insights.

Oasis has been around since before technology was a buzzword, assisting businesses in assessing, attaining and supporting business management software.

With more than 250 years of combined industry experience, our team of software specialists offers expertise in accounting, human resource management, salesforce automation and custom software development.

Oasis Solutions has offices in Louisville and Lexington, KY, and Nashville, TN.

It’s Not Just What We Bring To The Table, It’s Who.

This blog was repurposed and originally written by John Stanovich, MBA on February 23, 2018 - 3 Reasons Why Your FP&A Is Failing And How To Fix It

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