Definition
Financial planning and analysis (FP&A) is part of business activities that can enhance a company’s business decisions and help in improving its financial health. With an FP&A set-up, a company's finance team can make use of financial, operational, and external data to combine and analyze it. This helps in gaining in-depth insights for better future plans and profitable decision-making.
Example
In addition to Vareto, some of the top FP&A software include:1. Cube2. Workday Adaptive Planning3. Anaplan4. Planful5. Vena6. Prophix7. Oracle Essbase8. Oracle Hyperion9. Oracle PBCS10. Netsuite Planning and Budgeting
Why it matters
Financial Planning and Analysis (FP&A) processes are crucial for companies as they support major corporate decisions taken by the CFO and CEO. Not many companies can remain consistently profitable and achieve growth without a proper financial planning process in place.