We’ll continue our examination of the 9 upcoming trends that are transforming FP&A . In today’s article with an emphasis on “Increased use of data analytics and business intelligence tools.”
Just in case you missed the first articles in this series, here are the links.
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9 upcoming trends that are transforming FP&A
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Agile FP&A : Trend #1 Transforming FP&A
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Real-time Data : Trend #2 Transforming FP&A
Financial Planning and Analysis (FP&A) teams can increase the use of data analytics and business intelligence (BI) tools to improve decision-making in several ways:
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Identify the key business questions that need to be answered: The main business questions that the FP&A teams hope to resolve through data analysis should be identified. Then prioritize efforts and concentrate on the most significant issues, challenges and problems.
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Collect and clean the necessary data: Make sure we have access to all the necessary data in order to respond to the posed business problem. To make sure the data is correct and consistent for analysis, it needs to also be cleaned, massaged and prepared.
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Choose the right BI tools and techniques: FP&A teams should select BI tools and methods that are appropriate for their unique requirements and objectives. Traditional tools like spreadsheets and dashboards as well as cutting-edge techniques like machine learning and predictive analytics may be used in this.
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Use data visualization to communicate insights: The insights and recommendations obtained from FP&A teams’ data analysis can be effectively communicated to stakeholders by using data visualization. To convey their findings in a style that is simple to grasp, they should employ clear and succinct graphs, charts, and tables.
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Continuously improve the use of data analytics and BI: To make sure they are utilizing the most efficient tools and approaches. And maximizing the value of their data, FP&A teams should constantly assess and enhance how they employ data analytics and BI. This might require investing in new technology and methods as necessary, as well as training and development for team members.
In conclusion, the usage of BI technologies and data analytics in FP&A has grown significantly in recent years. These technologies can be applied in a number of different ways to provide a more precise, predictive analysis of financial performance. Companies may make sure their financial operations remain as effective and efficient as possible by putting the proper tools and processes in place.