FP&A Best Practices for Business Partnership

The most common mistake FP&A people make is: → They focus on the data and reports. Yes, we all need to focus on those, but that’s scratching the surface. Instead, focus on these 3 areas: 1. Understand the business. FP&A pros must build expertise in sales, marketing, and operations, not just finance. This offers well-informed input drawn from across the organization. 2. Master the systems. Because data volumes are growing so quickly, FP&A needs skills in technology, modeling, and analytics. This helps see patterns in the data. 3. Deliver value. FP&A must drive accountability and performance across the company, providing the context for the business to make better decisions. It’s not about "reporting.” It comes down to this: 1. Don't just present reports and models. 2. Use your capabilities to provide decision-making insights. This means FP&A must: - Model different scenarios. - Identify opportunities and risks. - Influence strategy and planning. - Communicate insights effectively. - Become a trusted advisor to the business. This is how effective FP&A works.

It's been a while since posting insights, but wanted to get this out there! When does FP+A come in? At what point does FP+A play a role in scaling or helping leaders understand a business? The answer is pretty much ALWAYS. The beauty of this job is having the opportunity to speak to strategic leaders and investors in range of exciting businesses, learning approaches and philosophies on how to scale. The key takeaways I've learned from leaders in PE/VC companies recently: - How are you looking at the business? Do you trust the numbers? Get the basics right. --- This came from a leader in a very complex business ($500 mil rev, carve out, lots of acquisitions). Without ensuring the right data and accuracy are being considered, there's no hope in unlocking synergies, understanding customers, CAC and growth tactics. FP+A is the solution to this. - Optimisation and cash management. Are you being sensible? --- Lots of discussions and tactics have varied so much, particuarly in the VC arena. For the most part, we've seen a slight shift from 'growth at all costs', but does this mean that leaders are being sensible on how they're managing cash? This is always an interesting and very healthy discussion to have, particularly when founders are still involved. Strategic finance specialists are here to maintain and unlock value in the business, essentially hold the mirror up to the business. - Transformation, systems and processes --- I've been speaking to a number of CFOs who's businesses have expereinced huge growth at pace, going from (20-100, 100-400 revenue etc). How do you manage this? Particularly when it's inorganic with a range of systems and processes feeding in. A key person in maintaining sustainable growth is FP+A. A brilliant FP+A specialist will be at the center of system transformation, reporting improvements and wider operational efficiency. They will also be the key driver for any inorganic growth and integrations, which most fast-growing businesses This may be no surprise, but you should always have an FP+A specialist in a business, no matter the size or complexity. You won't be able to grow without FP+A. FP+A lifts up the hood, tells the story of the business and can unlock levers to help create value. They're also central to any wider fundraising/financing initiatives. For C-suite and naturally investors, FP+A is your best and arguably most important business partner. Whether it's competitor valuation, pricing tactics, or simply being an effective business parter for the company, galvinising the wider operations and sales teams to bring the company journey and objectives to life, FP+A is fundamental for success. I focus purely on working with top FP+A specialists in investor-backed tech businesses, drop me a message for insights or enquiries. #fpanda #valuecreation #privateequity #venturecapital #tech #finance

The FP&A role is changing. Here's what's new: 1. Increased focus on strategic insights: Where FP&A roles were traditionally more focused on reporting historical financial results, there is now a much stronger emphasis on using data analytics and insights to help guide strategic business decisions. FP&A professionals are expected to provide predictive analysis and what-if scenario modeling to inform strategies around investment, M&A activity, and more. 2. Broader business partnering: Along with strategic insights, FP&A professionals spend more time partnering closely with business unit leaders across different functions. This involves understanding operations from an end-to-end perspective and communicating financial tradeoffs in a way that business stakeholders understand. The ability to act as an internal business consultant and trusted advisor has become increasingly important. 3. Advanced analytics and modeling: Leveraging software and tools to pull complex data from various systems, conduct advanced analytics, and build sophisticated models is now standard for FP&A. Professionals need skills in areas like predictive modeling, optimization, data visualization, and translating analysis into actionable recommendations. Traditional accounting knowledge alone is no longer sufficient. 4. Continuous learning mindset: The pace of change means that what used to be suitable for the FP&A role will quickly become outdated. Success requires continual learning to keep skills and knowledge relevant. Professionals must stay on top of the latest analytics techniques, technologies, and best practices to future-proof their careers and maximize value-add to their organizations. ** It's important to carefully evaluate FP&A job opportunities to make sure the role offers opportunities to impact broader strategic decisions rather than just financial reporting. FP&A professionals in strategic roles can steadily increase their compensation over their careers, providing a solid long-term career path and good work-life balance. All the best out there.