The Importance of Data in FP&A Success

If you think data visualization and statistics don’t apply to FP&A -- consider just how much valuable information is hidden away in those financial processes. For instance, understanding not only the average days payable but also the variance around those payables can shed light on potential risks or opportunities. The same approach can be applied to other metrics, such as sales forecasts or overhead expenses: analyzing forecast accuracy, identifying anomalies, or even spotting correlations between different expense lines can significantly enhance strategic decision-making. Of course, transforming raw spreadsheets and disparate systems into a structured, analysis-ready format requires effort, but it pays off once those cleansed datasets are in place. With the right data visualization and statistical techniques, these metrics become more than just numbers on a page -- they become actionable insights that drive better decisions. FP&A actually benefits substantially from this kind of analysis, and those who overlook its potential may be missing out on valuable guidance. Embracing data analytics and visualization can help surface insights that might otherwise remain buried and give organizations a more comprehensive view of their financial health and future direction.

As a former CFO, I’ve made some big mistakes. I’ve seen great FP&A leaders make them too. Here are 3 that hurt the most — and how to avoid them: 1. Thinking the numbers speak for themselves They don’t. Your business partners need context, and lots of it.  If you want your insights to drive decisions, invest in: i) Relationships to build influence ii) Storytelling to highlight the WHY behind the numbers iii) Visualization to paint a picture they can’t ignore That’s how you get buy-in. 2. Getting stuck in data cleanup mode When messy data and reporting chaos take over, strategy always takes a backseat. And with it, your ability to drive real business impact. How do you fix this? Start with the *Finance Hierarchy of Needs*: i) Clean data ii) Reliable reporting iii) Forward-looking planning iv) Insights that drive strategic impact Skip a step, and everything wobbles. Then bring in automation and AI. Let it handle the grunt work so your team can focus on what really moves the business forward. (That’s exactly what we built Cube to help with. DM me for details.) 3. Leaning into being service desk and away from being a decision driver If all you do is answer ad hoc questions and pull last-minute reports, you’ll become a support function vs. a driver. Want a seat at the table? You’ve got to think ahead of the business. Speak to: -Revenue levers (not just budget lines) -Headcount ROI (not just hiring plans) -Tradeoffs and risk (not just what happened in Q1) Your turn: What’s your #1 lesson learned from the finance trenches?