The success of every organization largely depends on its finance teams.
Finance team arrangements have gotten more and more sophisticated in today’s fast-paced world. In finance, there are three main teams: Financial Planning and Analysis (FP&A), Consolidation and Close, and Strategic Finance.
Although each of these teams has a specific function, organizations need to be aware of their various distinctions.
Consolidation & Close teams
are responsible for accounting and reporting financial information, ensuring accuracy and compliance with accounting standards.
FP&A teams are responsible for budgeting, forecasting, and management reporting.
Strategic Finance teams focus on long-term financial planning and work with senior management to develop financial strategies aligned with the company’s goals.
Common Challenges
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Data Accuracy and Completeness. All three teams require accurate and complete data to make informed decisions.
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Timeliness of Reporting. All three teams face the challenge of producing timely and relevant financial reports. So they can support senior management in decision-making.
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Communication. Communication between these teams and with business partners is crucial. This is to ensure that everyone is working towards the same goals and objectives.
How FP&A, Strategic Finance, and Consolidation teams work together
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Collaboration. All three teams must collaborate. And ensure that the financial information produced is accurate, timely, and relevant.
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Data Sharing. These teams must share data with each other. And ensure that everyone has access to the same information. So that senior management can make informed decisions.
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Common Goals. They all work towards the common goal. Which is improving the financial health of the organization and supporting management decision-making.
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Continuous Improvement. They are all committed to improving the financial management and reporting processes. And ensure that the organization operates effectively.
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