FP&A Professionals Institute on LinkedIn: Different organizations have varying roles for FP&A Professionals. The… (2024)

What is Sensitivity Analysis?Sensitivity Analysis is a financial modelling technique used to predict the impact of different variables on a specific outcome. In the context of FP&A Professionals Institute it helps you understand how changes in inputs, like costs, revenue drivers, or interest rates, can affect a company's financial performance.Continue watching the video to learn more:✳️Why is Sensitivity Analysis important in FP&A?✳️Where is Sensitivity Analysis applied in FP&A?✳️Examples of Sensitivity analysis using Excel✳️How you can add Scenario Planning to Your Financial ModelsLink to the video:https://lnkd.in/gaqwhCHvFor more such videos on Finance and FP&ASubscribe to myYouTube channelhttps://lnkd.in/des-Fh8N

18

Busting the 9 most common FP&A mythsLearn the truth behind these misconceptions....Despite the importance of FP&A roles.There are many myths and misconceptions about FP&Athat can lead to misunderstandings. about the work that FP&A professionals do.Here are the top 9 myths about FP&A roles:Myth #1: FP&A is just about creating budgets.Myth #2: FP&A is only for finance professionals.Myth #3: FP&A is a boring and mundane job.Myth #4: FP&A is all about numbers.Myth #5: FP&A is only about the past and present.Myth #6: FP&A is only about cost-cutting.Myth #7: FP&A is only for large organizations.Myth #8: FP&A is a standalone function.Myth #9: FP&A is a dead-end career.Read the detailed document to demystify these common myths.What are some common myths you have come across? Share in the comments below 👇👇

29

How you can add Scenario Planning to Your Financial ModelsWhat is Scenario Planning?It's like mapping out various paths our business could take in the future. Which helps us make smarter decisions and adapt to changes.Let's see how we do scenario planning in Excel. Link to the video:https://lnkd.in/ddmmyujGFor more such videos on Finance and FP&ASubscribe to myYouTube channelhttps://lnkd.in/des-Fh8N

6

What makes a Good Financial Model?Building a financial model in a spreadsheet looks like a technical process.Undoubtedly, having skills in Excel is essential.But that's not the most important part.Keep these points in mind:✳️ There is a business behind the model.✳️ A good model represents that business model.✳️ It's easy to get lost in numbers. Don't lose sight of the business✳️ Understand the key drivers rather than just extrapolating the past.🚀Have a good understanding of the industry🚀Make reasonable Assumptions🚀Keep the model simpleNow the next question we get is "How to understand the business?"Here are some tips 👨🏫☑️ Research the industry☑️ Understand the business model of the company☑️ How does the company make money? What are the key costs?☑️ Compare the company you are working for with its peers.If you would like to join us in learning about Financial models for FP&A,Check out the link in the comments below Hurry up! Limited seats available!

44

3 Comments

How are Strategy and Planning connected?Strategy -> Planning -> Execution -> MonitoringAt the corporate level,we have the policies, the strategic guidelines, and corporate development plans. So, the aspects we are discussing here are related to strategic foresight, vision, values, corporate development plan, strategic policies, and guidelines. These corporate strategy aspects shape the business process. At corporate level planning, major assumptions are defined, such as macroeconomic trends, GDP growth, inflation, interest rate, the minimum required rate of return (hurdle rate), exchange rates etc. The corporate level emphasis is on key indicators, such as the company's earnings and cash flows.The Business Unit / Operational levelcomprises most of the budgeting aspects. The function/ business unit level budget is related to the areas of a company, such as marketing, sales, manufacturing, controlling, and others. The budgeting process should not start without strategic guidelines. The planning process precedes the budgeting process. The budget should follow the strategy. Here are the steps in detail:1⃣ Senior management engagementThis might sound obvious. But I've personally experienced cases where people in the company experience lack of engagement from senior management.2⃣ Organizational structure analysisBy analyzing the organization's structure, we can assess who does what from the budgeting perspective.3⃣ Identification of accounting structureIf the company's accounting structure is established, the responsibilities of the areas are already defined. Based on 2 and 3 above, managers of relevant areas are invited to participate in the budgeting process.4⃣ Identification of strategic guidelinesBy analysing the business environment, senior management defines strategic guidelines. These guidelines serve as a reference to drive the discussion in the planning process.5⃣ CommunicationNo planning would be effective without communication.6⃣ Opportunity and feasibility analysisIt helps not only identify opportunities but also detect threats. Awareness of a potential threat on the radar could help mitigate bigger risks.7⃣ ExecutionNext, the plan is supposed to be implemented. The outcome of the planning naturally goes into the budgeting process.8⃣ Monitoring and controllingAfter the budget is implemented. This is the post-budgeting phase, which comprises the analysis of results in comparison with the budget.It isimportant to have well-established mechanisms for planning and budget control. So managers can quickly correct the unit's tactical plan based on present market conditions and faster it rolls up into the corporate's strategic plan.

14

Imagine you have got your dream FP&A roleAfter all that effort you have put into the interviews.Now's the time to prove that you can learn fast, fit in, and Help your team and the new company.Early success in this role can really help you grow in your career.In this video we are going to break down The things you can do in the first 90 days in your new FP&A role using a nine-step frameworkLink to the video: https://lnkd.in/g3mUbCNfFor more such videos Subscribe to my Youtube channelhttps://lnkd.in/des-Fh8N

12

1 Comment

To ensure your financial models are both easily understood and efficient,Color codingis often very useful.Financial models serve as crucial toolsfor helping Finance and FP&A Professionalsin decision-making, forecasting, and analysis.Let's explore a color codingconvention. to visually differentiate different elements within a modelMaking it easier to understand, navigate, and maintain🔵Blue for Hard-Coded Numbers:Hard-coded numbers represent constant values or assumptions in a financial model.⚫️Black for FormulasBy using black text for formulas, model builders can quickly identify and differentiate them from other elements. 🍏 Green for LinksFinancial models often incorporate links to other worksheets in the same workbook.Assigning the color green to these internal links streamlines navigation and makes it easier to identify data sources or dependencies.🔴 Red for Links to Other FilesAlso, it's common to reference data or information from external files.Red links serve as a warning to inform that the data comes from a different source. If changes are made to the linked file, it could affect the accuracy of the model.In conclusion, color codingconventionsare powerful tools that enhance the clarity andefficiency of financial models.

27

1 Comment

Jump into our 5 DAY ACCOUNTING TO FP&A CHALLENGEwith Asif Masani and Dhawal ParvatikarThe official start of the Challenge is Monday, 10th June.We’ll have one session Every day for five days with lots of FUN and AMAZING PRIZES for the winnersZoom Invites will be shared 30 mins before the sessionsHere’s what you’ll walk away with from this power-packed 5-Day Challenge:Day 1: Create a Revenue Budget from scratch Day 2: Build Forecast using Q1 historical + Assumptions for rest of the yearDay 3: Draft your MonthendReport Day 4: Practice presenting techniques to show your Analysis and findingsDay 5: Winners Announcement + Surprises📅 10-14 June⏲ 9pm to 10pm ISTIf you want to experience real life FP&A implementations and not just passive learning.Make sure to sign up for the Challenge here:https://lnkd.in/dcugj9BfEntry Fee: Less than price of a Pizza 🍕(USD 9.99/- INR 799/-)

6

7 Most common FP&A Professionals Designations1. FP&A Associate2. FP&A Analyst, Sr Analyst, Assistant Manager FP&A3. FP&A Manager4. Director FP&A, Vice President FP&A5. FP&A Consultant6. FP&A Tools admin7. Finance Business PartnerCheck the video for morehttps://lnkd.in/d_knmpDTSubscribe to my Youtube channel for more such videos.https://lnkd.in/des-Fh8NAnything I missed ? Comment below

17