FP&A - Focusing on the real issues...
...and decide with serenity.
You are an entrepreneur. Your company is well-established and recognized in its field and geographic area, or you are embarking on a new project involving creation, acquisition, diversification, or any other undertaking requiring significant time and investment.
The stake is high, and the decisions made today will shape the future.
Your legitimate questions aim, in one case, at solving an identified or even suspected problem, or ensuring smooth continuation and steady progress, or even controlled acceleration, in line with clearly defined and verifiable pre-established performance objectives.
In the other case, you wish to know in advance the future performance of your project, the objectives to set, the necessary investments and commitment, a proper quantification of risks and how to minimize them, and the optimal roadmap.
A fruitful collaboration
Just like the company's CPA, the FP&A consultant usually intervenes on a regular mid to long-term basis.
However, he does not duplicate, nor replaces, the CPA's role.
The CPA is responsible for ensuring the accuracy of the company's accounts before the tax authorities. He is expected to provide basic, general and implicit advice during the financial statements and/or on an occasional basis.
However, where the accounting firm might say that "the company should downsize", the FP&A consultant shall specifically recommend "that 50% of the sales force should be replaced with n profiles y within a timeframe t, which will generate immediate savings of $1,000,000 per month. This will allow an additional $100,000 to be then invested over three months according to a boosted communication strategy. This will result in a 14% increase in EBT compared to the initial end-year target.".
FP&A & CPA Service
FP&A in real-life situations
The expected accurate and reliable answers
Quezaquo :
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What will the cash position be at the end of the year? Is the company truly profitable?
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How can we increase profitability by 20% in two years with the same number of employees?
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What annual objectives should we set for Sales next year?
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What will be the impact of our new pricing policy on sales volume, revenue, and profitability?
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What KPIs should we continuously monitor? What criteria must be met?
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How can we evolve our purchasing policy to increase gross margin by 25% in one year? What will be the impact on internal organization and the resulting net margin?
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Which departments need to be optimized? How? Which functions should be streamlined, and which should be strengthened?
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What Compensation & Benefits policy for Sales would generate a 40% increase in revenue? How long would it take? Will sales staff turnover increase? What impact will this have on net profit?
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What will be the impacts of this new government legislation?
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How should we use our profits this year? How much should we allocate to dividends this year? Next year? What EPS?
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What investment and diversification options are to be considered for the next three years?
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How can we increase the company's valuation by 50% in the next three years?
And much more.
The enhanced FP&A
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FP&A focuses on feature data (level 1) that directly affects the company's financial outcome.
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xP&A (Extended Planning & Analysis) integrates more deeply internal data concerning the different departments of the company (level 2), and examines the impact of their evolution on the financial result.
Like many, we consider xP&A to be a inherent part of the term “FP&A”.
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BI&E will integrate external data (level 3), such as the market, competition, local legislation, economic & monetary policies, and other socio-economic factors that may impact the Business Model, the operation and the result of the company, today and tomorrow.
We continuously integrate and balance these 3 levels according to the agreed time and resources allocated to the mission.
