In today’s article we will continue our discussion on the 9 upcoming trends that are transforming FP&A, with a specific focus on “Real-time Data and forecasting”
Here are the links just in case if you missed the earlier articles in this series.
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9 upcoming trends that are transforming FP&A
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Agile FP&A : Trend #1 Transforming FP&A
Here are a few ways that FP&A professionals can give more emphasis on real-time data and forecasting:
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Use real-time data sources: Use a variety of real-time data sources, such as ERP systems, CRMs, E-commerce platforms, and dashboards. And stay up-to-date on the latest financial and operational data.
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Implement automation: Automation can help FP&A professionals quickly and accurately analyze large amounts of data and generate forecasts in real-time. This can include using automated tools / integrations / connectors to pull data from various sources, perform calculations, and create reports.
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Leverage machine learning: Machine learning algorithms can analyze patterns in data and make predictions about future outcomes. Use machine learning to improve the accuracy of forecasts and to identify potential risks and opportunities in real-time.
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Monitor key performance indicators (KPIs): Monitor key performance indicators (KPIs) in real-time to identify trends and changes that may impact the organization’s financial performance. This can help them adjust their forecasts and make more informed business decisions.
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Regularly update scenarios: Scenario planning should be an ongoing process. As new information becomes available, FP&A should update and refine the scenarios to ensure that they remain relevant and accurate.