Financial Planning & Analysis (FP&A): What It Is & Why It Matters to Business Leaders

Financial Planning and Analysis

Do you want to make informed financial decisions as a business leader? 

Financial Planning and Analysis (FP&A) is a set of business functions that is critical to a firm’s success. With the goal of analyzing financial performance, creating financial forecasts, and developing financial strategies for the future, FP&A can help businesses gain a better understanding of their current financial health and make more informed decisions that will help shape the future. 

The importance of FP&A cannot be overstated, and it is essential for entrepreneurs and business leaders alike to understand the value it can bring to their organizations.

Breaking Down FP&A

While the above is a basic overview of FP&A, the topic can be broken down even further. The following bullet points are a few of many aspects of Financial Planning & Analysis (FP&A):

  • Cash Flow Analysis: tracking, measuring and analyzing the capital that exists within a business, including both the sources and uses of money.
  • Budget Management: ensuring that the company’s budget is properly allocated and managed, in addition to adjusting the plan as needed to increase profitability.
  • Financial Forecasting: analyzing both market trends and past company performance to make educated predictions about future performance and profit potential.

Performance Measurement: evaluating accuracy when it comes to any topic involved in FP&A. This could include measures related to how accurate financial forecasts or budget forecasts are. It could also include how timely and/or accurate financial reporting is.

Financial Planning and Analysis

Why Financial Planning and Analysis (FP&A) Matters

Precision matters when it comes to a business’s financials. With an effective FP&A plan in place, business leaders can rest assured that they are fully informed on where their business stands financially, and can make decisions with a greater certainty of success, maximizing returns as a result.

Additionally, FP&A provides a framework for effective resource allocation. By being fully aware of the company’s spending, business leaders can track where money is going, and identify ways to cut costs, or allocate resources more efficiently.

What happens without effective FP&A? If a company does not prioritize FP&A, leaders run the risk of making decisions that are out of alignment with strategic goals at best, and detrimental at worst. By not keeping a clear picture of the business’s financials top-of-mind, leaders lack visibility, which can impede a company’s ability to reach profitability goals, achieve true business efficiency, or even be aware of current financial positioning.

Moreover, without FP&A, business leaders are more likely to be off course when it comes to understanding which key performance indicators (KPIs) truly matter to their firm’s success. Without knowing what metrics matter, leaders cannot define success, let alone lead their company towards it. 

To ensure long-term business stability, business leaders must focus on developing strategies for long-term growth. This begins with ensuring that your business is functioning from a financial standpoint, with effective FP&A systems and processes in place. 

Improving your company’s FP&A is a critical part of staying competitive, and by taking a proactive approach, you can improve your bottom line and increase your profitability.

Seeking FP&A advice or improvements? Our team of financial strategists and accounting experts can help. Reach out today!

Valuation Planning

Blueprint CFO will work with executive leadership to determine shareholder value, and run various models to determine estimated company valuation. Together, we will determine milestone objectives to increase shareholder value and track company performance in relation to these targets. We will review your company’s organic and acquisition growth options to create shareholder value, and emphasize tax planning to optimize shareholder value upon a sale or purchase. We can also focus on Initial Public Offering (IPO) Planning and Readiness.

Analytics & Business Intelligence

We believe that being data-driven is key to profitability. As such, we can help you create meaningful dashboards and scorecards for your business, analyzing performance against key performance indicators and other factors. Our profitability reporting and analysis tools will help drive business decision-making and provide insights into trends, predictions, results, and potential strategic direction moving forward.

Goal Setting & Tracking

Our team can partner with company leadership to establish goals and objectives for the company, for both the short and long term. Additionally, we will help leaders develop meaningful Key Performance Indicators (KPIs) to track and measure results.

Insurance & Tax Planning

Blueprint CFO can work with businesses to review insurance needs and requirements, as well as plan for taxes and R&D credits.

Human Resources

We can assist your HR department with employee benefits planning, and can also perform compensation studies to ensure best practices are implemented across the business.

Accounting & Finance Support

Whether you have an internal team in place or need more hands-on assistance, Blueprint CFO can oversee and advise your accounting and finance department. From preparing general ledger transaction entries to completing month-end closes, forecasting to crafting financial statements, developing customized reporting packages to implementing more effective software, Blueprint CFO can bring you everything from a supportive junior or senior accounting team, all the way to high-level strategic CFO consulting.

Mergers & Acquisitions

Blueprint CFO can partner with company leadership to improve strategic business plans and assist with the development of organizational growth strategy. We can also create financial reporting packages and proformas for capital raises, investments, acquisitions and/or banking requirements, and provide due diligence on company-focused deals.

Financial Planning

We can prepare, create and/or review financial statements. This includes providing trend analysis, developing cash flow projections, and tracking operational and financial performance, with insight into budget and forecast variances.

Banking Services

Our team can help your company to establish high-level banking relationships, and offer expert advice and support when it comes to sourcing bank loans, etc. Additionally, we can review and determine the optimal capital structure for refinancing or a liquidity event.


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