US survey shows FP&A investment yields efficiencies
The Association for Financial Professionals’ (AFP) benchmarking survey suggest greater investment in financial planning and analysis (FP&A) systems pays off by eliminating routine tasks.
The Association for Financial Professionals’ (AFP) benchmarking survey suggest greater investment in financial planning and analysis (FP&A) systems pays off by eliminating routine tasks.
The US Association for Financial Professionals (AFP) reports that there is still a gap between the goals of financial planning and analysis (FP&A) – becoming a strategic function and a better business partner – and the reality.
In its latest FP&A Benchmarking Survey, the AFP suggests that the gap can be narrowed by making more time available to spend on high-level tasks. The survey examines the relationship between the percent of the total FP&A budget companies spend on technology and process efficiency and the amount of time FP&A staff spend on routine tasks or “grunt work”.
Based on responses from 255 FP&A practitioners across the US, the path forward to closing the gap appears to be investing more in FP&A systems. Among the findings:
According to the survey, as FP&A departments close the gap between today’s traditional function and a more robust analytics group of the future, nearly half have switched to forward-looking forecasting techniques, such as driver-based modelling and rolling forecasting.
“Greater investment in technology liberates FP&A staff to do what they were hired to do, and what their organisations need them to do; namely, conduct robust analysis and forecasting to better inform their company’s strategic decisions,” said Jim Kaitz, president and chief executive officer (CEO) of AFP.