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FP&A is a Swiss multi-tool in a pocket of a management team

Fpanda Club

With constantly evolving role of the finance function in the organization, these are FP&A practitioners who feel the most pressure to be jack-of-all-trades. Growing variety and complexity of tasks force them to develop skills, both hard and soft, to keep up with all requirements and expectations. There is a specific product on the market I could associate FP&A with, and this is a Swiss multi-tool.

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How to put finance business partnering puzzle together?

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Finance business partnering is not a new concept and has been around for a while. Well, not just for a while, for more than 60 years. “ The success …depends on the extent to which finance men are capable of looking outside finance and playing an active, rather than a passive, role in the business. ” — S. R. Harding, F.C.A., (Royal Dutch/Shell Group), 1963.

Finance 130
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FP&A is the sexiest job in finance

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FP&A is the sexiest job in finance… While this may seem like an overstatement, FP&A positions are becoming incredibly popular and sought-after. Many finance professionals are starting to feel that they are too focused on historical data, reporting, compliance, etc. Moving into FP&A from other fields of finance, such as accounting and audit, has recently become very trendy.

Finance 130
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What do budgets and hurricanes have in common?

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Hurricanes are among the most violent storms on our planet producing strong winds, heavy rains and floodings. Budgeting is a type of short-term planning the goal of which is to transform strategic objectives into operational plan by allocating available resources. Though one is a natural phenomenon and the other is a business process, budgets and hurricanes have more in common than it may be noticed at first sight.

Budgeting 130
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Uncertainty Is All Around

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FP&A teams do not have a crystal ball… Yet, they have to answer management’s questions about the future every day. What sales will the company generate next year? What revenue will the launch of a new product bring us? How will the competitor’s move impact our market share? These are only few examples of the uncertainty we face. Being asked for advice about uncertain future outcomes is indeed flattering, but at the same time it adds much pressure and responsibility.

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To NPV or Not to NPV: That Is the Question

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Warren Buffett once suggested that the concepts of time value of money and discounted cash flow (DCF) model were introduced more than 2500 years ago. In about 600 B.C. oracle Aesop formulated his investment insight "a bird in the hand is worth two in the bush" and since that time the model for calculating the value of an asset as the present value of the cash generated by this asset throughout its life has remained unchanged.

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6 Reasons to Hate Budget and Annual Planning Processes

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Budget and annual planning cycle - these words can make many people tremble. Aimed at determining firm’s short-term objectives and transforming them into operational plan by allocating available resources, annual planning exercise is mostly considered by its stakeholders to be a curse rather than a savior. There are many reasons to hate budget effort.

Budgeting 147