Financial Planning and Analysis

The main role of a financial planning and analysis expert (FP&A) is to offer timely, accurate and relevant financial information and advice to the senior management of the company. The analysis provided by an expert financial planning and analysis firm is crucial to the successful management of any organization. However, a well-established and experienced financial planning and analysis firm will offer this service at competitive prices. The entire process is continuous and should always serve as a wise guide to running the company. It should also have the ability to give sound advice irrespective of the size and scale of the company.

Today, financial planning and analysis are not limited to corporate financial analysts alone. This has become a part and parcel of any major company that provides financial services to its clients. Many organizations are now employing financial planning and analysis services offered by firms with expertise in providing financial planning and analysis solutions. Therefore, today any kind of organization can seek help from a financial planning and analysis agencies to analyze financial data and prepare reports according to the requirement of the client.

There are a variety of financial aspects that need analysis and planning; these include corporate and individual financial needs, cash flow management, budget forecasting, balance sheet management, investment objectives, financial plan implementation and strategy, and other aspects such as the insurance sector, real estate sector, merchant cash handling, and many more. These financial needs are often a crucial determinant for making strategic decisions in the sphere of finance. Therefore, for every organization there are a unique financial aspect and requirements, which cannot be provided by cash flow analysis alone.

Cash management is a very important aspect of any organization, therefore, a lot of care should be given to establish a sound financial planning and analysis methodology. Today, various companies provide different kinds of financial services including corporate finance, corporate accounting, and corporate financial analysts. A corporate financial analyst works with a client to design an effective strategy for financing, investing, and working capital management that meets the organizational objectives. The financial analyst analyzes all financial data provided by the client in order to formulate reports that would provide a complete picture of the organizational finances.

Some of the common financial planning and analysis techniques include: Cash Flow Analysis (also known as Flow Lading), Income Verification and Accounting, Bank Analysis, Business Finance, Consumer Discrete Mapping, Fixed Income Approach, Market Risk Management, Non-Profit Debt Analysis, Capital Budgeting, and Portfolio Analysis. These techniques help in determining the position of financial resources in terms of profitability and viability. Apart from studying current financial resources, financial analysts also need to study the past financial activities of an organization in order to evaluate future prospects. This kind of analysis is known as the gap analysis. This technique is based on the gap theory, which states that current assets and liabilities have no correlation and so the company does not face any financial problems in the future.

Financial analysts are required to be knowledgeable about the different approaches to business planning. They are usually involved in different stages of the business process and are required to be skilled at analyzing information from a variety of sources. Proper planning helps in reducing risks and providing ample financial support to the organizations. Moreover, proper financial planning and analysis to ensure the growth of the organization and improve its performance. This is the reason why many organizations prefer to hire professional financial planning and analysis agencies for planning purposes.