Financial Planning and Analysis (FP&A) is a relatively new term in the financial dictionary and you’d be forgiven for not having come across it.
At the risk of sounding a bit silly, it really is exactly what it sounds like: planning your businesses finances and then analysing them!
But why does your business need it? In this post I’ll be going over
- The role of FP&A in your business
- What if you don’t have/can’t afford an FP&A team?
- Brixx is a solution that does the hard work for you
- Final Thoughts
If you haven’t already, you might be interested in reading our latest posts in the Forecasting Fundamentals series, “How to create a financial model” and “What’s the right tool for creating a financial model?” to dive deeper into the world of financial forecasting and scenario modelling.
The role of FP&A in your business
Business owners need to make a lot of decisions – like, A LOT. When can I hire that next staff member, when should I introduce a new product line, should I increase/decrease prices?
You need to understand the impact of those decisions but most business owners are far too busy to take the time to crunch the numbers and analyse the effects. But this doesn’t mean you should ignore these decisions or make them without the data to back it up.
This is where FP&A comes in.
- Your FP&A team looks at the long term strategy for the business, providing data driven insights into the impact of decisions. They do this through complex financial models, budgets and forecasts.
- Your FP&A team is made up of lots of roles, which you can grow with the business.
The Corporate Finance Institute (CFI) has a great list of the roles that are generally included in a FP&A team that is worth taking a look at.
But what if you don’t have or can’t afford a team?
What if you don’t have/can’t afford an FP&A team?
If your business is in its early stages, it doesn’t mean that you don’t need FP&A.
Decisions you make early on are arguably just as important, if not more important than decisions you make later on.
But, you shouldn’t be missing out on making those decisions because you don’t have time to learn everything yourself or because you can’t afford to hire a team.
Typically you’d need to be an Excel and financial wizard to understand FP&A – and many people are (and get paid very well for being so), but what if we told you, there’s a tool that can help you build and understand your financial models for FP&A while integrating into popular applications like Xero, without needing to be an expert?
Well, there is!
Brixx is a solution that does the hard work for you
Brixx is a business modelling tool that can help you take a peek into your business’ future.
By building a picture of your business with components that represent your business activities Brixx can help you get an understanding of the impact of the decisions you make, before you make them!
Its unique time-based modelling capabilities make Brixx a flexible tool for beginners and accountants alike. With the ability to plan up to 10 years in advance, you can do your financial planning and analysis efficiently and easily, without the need for experts (and their large salaries!)
No jargon here, just your business and its activities.
And if you’re an accountant, there are plenty of reasons to use Brixx too! Brixx allows you to save time, build better relationships with your clients and ultimately, grow a new revenue stream by adding collaborative FP&A to your services.
We’ve a dedicated pricing scheme and program for accountants here.
Whether you’re a new business or well established, FP&A plays a pivotal role in your future. It can be complex, with a price tag to match, but it doesn’t have to be!
You don’t need to be an expert to start planning your business’ future, try Brixx today with a 7 Day Free Trial!
If you’re looking for more information on financial planning, forecasting and modelling, take a look at our post “The Top 4 Advantages of Financial Forecasting” to see why your business should take advantage of software systems like Brixx.