Importance of having Financial Analysis & Planning

Looking for a progressive growth for your organization? Maintaining a powerful financial planning & analysis function is a key fundamental to success.

The role of a financial planning & analysis (FP&A) specialist or function is to deliver accurate, timely financial evaluation & advice to the members of the organization.

Why is financial analysis important?

Executing financial planning is critical to the achievement of any business. It strengthens the business plan & determines a process to guarantee that the objectives set are attainable from a financial point of view. Sufficient financial planning & analysis creates an understanding of how well you venture your business will do & measures your success respectively. The process is ongoing & should serve as a sensible guide to operating your enterprise smoothly.

Furthermore, if funding is required, then FP&A operations prepare you to present the financial sector of your business plan in relatively short order. Whether you are seeking investment from private equity firms, venture capitalists, or angel investors, they will certainly require numbers as evidence that your business will grow & that there is an exit strategy for them on the horizon, during which they can make a profit. Any bank or lender will ask to evaluate a proper financial plan, as they need to ensure loan repayment terms as well.

Financial planning is focused with respect to keeping the future in mind. It links the scheme to a long-range plan & yearly operating & capital budgets. It gives multiyear financial modeling & annual target-setting processes. It utilizes the process of translating the calculated targets into comprehensive annual operating & capital budgets.

Additionally, consistency is vital, & a strong financial analysis is one that excludes variation & generates consistent & reliable information on which to base concrete decisions. In addition, an experienced CFO will acquire & distribute exception reports, highlight reports, & other analytical reports (i.e., ratio analysis) to enhance the decision making of the organization’s leadership.

The benefits of financial planning are abundant. A well-crafted plan shows investors that you take your business seriously & also gives all the stakeholders a sense of direction to where the operations are being executed.

The CFO can establish goals & devise methods to achieve them appropriately, the company a plan with clear targets. This way, the entire team & management works collectively to the targeted goals.

Overall, a monthly review of the designated financial plan will keep giving a consistent image of the current financial status. This holds the company in a more secured position. Regular financial planning & analysis helps keep budget management strategies in place.

How can we help?

One of the most important issues preventing your business from growing the way you want is the accurate financial management. Meaning, you can’t analyze the numbers in a way that makes you able to know your biggest risks and opportunities, not to mention your inability to properly plan the financial roadmap for your business growth.

Where Spicer-Pegler Chief Financial Officer (CFO) services provide you with the ability to:

Give you instant financial reports as soon as you request them, summarizing your financial position with the utmost accuracy.

Give you advanced financial analyzes extracted from your financial reports written in a simplified manner that is easy for you and your board of directors to understand and assimilate, providing you with the ability to make more accurate financial decisions.

Provide financial consultations to help you and your board of directors make your strategic financial decisions about your company’s future to achieve your business goals during various economic challenges.

Contact us to outsource our CFO today!