Financial Planning and Analysis manages all operational and strategic tasks in the areas of business planning, management and control for an organization. It supports financial management and is a key element of the division of the CFO. New technology is rapidly changing financial planning and analysis. Digitalization not only has an influence on data quality and various processes – it also changes the entire finance department and thus the role of the controller and the CFO.
Financial Planning and Analysis starts with financial planning, which is the foundation of economic success for any company. This involves drawing up detailed plans based on specific financial objectives. This enables the controller to capture, analyze and plan all the important financial aspects of the company.
Financial planning also includes an analysis of the actual situation. The controller generally includes past events in the analysis. Once the actual situation has been analyzed, the controller compares it with the target situation, which is based on specific financial objectives. This results in a financial forecast.
On the basis of this analysis, Financial Planning and Analysis builds up the financial planning of future revenues and expenditures. All objectives and results that can be derived from the financial planning process are then recorded in a financial concept.
