TREASURY & FP&A DRIVING BETTER DECISONS
AGENDA
I. Financial Planning & Analysis Defined (FP&A)
II. Technology impact on Finance & Accounting
III. Sharing Data, Creating Insights
IV. Panel Discussion
V. Recap and Q&A
FINANCIAL PLANNING &
ANALYSIS (FP&A) DEFINED
The SynFiny Advisors definition:
The critical value creation processes, which requires a deep understanding of business fluency, finance, modeling, data systems and processes, and accounting.
This typically combines financial and non-financial data as required to create strategic and operational financial plans.
When done well, these processes are a clear competitive advantage and thus are viewed as critical by senior leaders.”
WHAT IS FINANCIAL PLANNING AND ANALYSIS?
WHICH PROCESSES ARE TYPICALLY OWNED BY FP&A?
Strategic Planning
Budgeting
Forecasting
Management Reporting
Financial Analysis
Capital Planning
Business Modeling
FINANCIAL PLANNING & ANALYSIS AS GROWTH ENGINE
Higher Growth Higher Margin Investments
Competitive Cost Advantage
Improved Business Decisions & Analysis
Investment in Real Time Data & Visualization
Deliver Financial Strategy
via Financial Planning & Analysis
Lower Cost/Improved Service of FP&A Driven By Efficiency/Productivity • +6% Productivity • +25% lower SG&A cost
• Real time data (2 to 5x faster cycle times) • Master data enables analysis
Higher Sales/Lower Cost • Sales increase of app. +~2% per year • Cost decrease of app. +~2% per year
• Faster decisions and actions than competition • Make better investment decisions
TECHNOLOGY IMPACT ON FINANCE &
ACCOUNTING
A TALE OF FINANCE & ACCOUNTING SYSTEMS
COMPARING FINANCE & ACCOUNTING SYSTEMS
AREA OF WORK EARLY 90’S TODAY
Closing Books
Weeks to Months Days to Weeks
Accounting Systems Slow & poorly designed. Mostly locally, un-integrated systems
Fast & well designed. Fully integrated and standard ERP.
FP&A Systems Only excel, highly non-standard FP&A tools available.
Integrated w/ Bank Dial in bank stations, Cashiers, and mailing documents.
Web-solutions, EFT’s, and secure e-communications with bank.
Chart of Accounts No common chart of accounts, Accounts created for each use
Standard chart of accounts. Simplified for business facing use.
Ability to view details Only high level analysis. Unable to view details
Low level analysis. Drill into all levels of transactions.
SHARING DATA, CREATING INSIGHTS
TREASURY AND FP&A
TREASURY & FP&A WORKING TOGETHER
Treasury Owns FP&A Owns By working together
Explain impact of Fx, commodity, and inflation by country
Financial Strategy include impact of Fx, commodities, and inflation
Financial Strategy can be adjusted as new impacts available
Determining which country creates Fx exposures
Incorporate Fx exposures or impacts into sales/cost/profit
Fx driven gaps in Forecast or Budget identified and closed quickly
Explain current/future interest expense or income
Incorporate interest expense or revenue into forecast
Reduce overall interest expense, Increase interest income
Insurance required for catastrophic policies
Current and future forecast of by country or region profits
Reducing overall cost of insurance
Negotiating bank fees or other treasury driven transactional fees
Reflecting bank fees into the budgets
Reduce overall cost of bank or other fees
PANEL DISCUSSION
RECAP AND Q&A
How can Treasury and FP&A work together?
Expect more from Finance & Accounting systems
Big data to create insights and drive decisions
ERP for lower level, real time analytical data
Fx/Commodities modeling for P/L impacts
Work with IT on joint projects to improve data
Attend Dallas AFP and AFP National Meetings!!
TO RECAP
Questions or Comments?
Contact me directly to continue the discussion: Email: [email protected] Website: synfiny.com Mobile: (513) 884-6134