The world of financial planning and analysis (FP&A) has been one of the hardest jobs to fill in corporate America. The basket of skills required and the reliance on clean data to work with has made the tasks associated with the job frustrating and perplexing at times. Now more than ever, the need for strong FP&A has been proven through the pandemic period.
Finance leaders have been under enormous pressure to provide guidance to their investors, management teams, and cohorts. The old school set it and forget it once a year "budget" or forecast process has its benefits. Unfortunately, with the dynamic market changes we all experience, it doesn't quite cut it.
The rolling forecast process is a best practice, yet is time-consuming and can dredge up more data risks and confusing signals if not done with accuracy and vision. In the end, sitting on the sidelines does not work for the FP&A team. Danger in every forecast... accuracy counts...pulling the right team together with the best business partners matters most. Roll on.
FP&A leaders know that by design, a rolling forecast process is future-focused and can support the need for increased responsiveness to changing business conditions. Additionally, the rolling forecast can offer greater flexibility, agility and effectiveness in identifying future risks and opportunities that inform overall business strategy.