2020 and Beyond
FP&A needs to execute forecasts quickly to be efficient and effective.
Frequency of Forecasts in 2019, 2020 and 2021
(Percentage of Organizations Responding Frequency of Forecast)
2020, 2021 Expected
Even with new technology, FP&A needs to improve the foundations of its data structure.
Allocation of Time Spent by FP&A Collecting and Validating Data
Data and FP&A
As a direct response to this issue, nearly 40% of FP&A respondents indicate they have hired IT and data professionals to either manage data or train analysts.
At some organizations, data needs are met outside of the finance team:
“Finance has very little IT support as our systems are cloud based and the IT department focuses on Sales, Marketing and web hooks/ecommerce web front ends.”
“We often hire consultants to build programs for us based on what we need at the time.”
“We have an entire IT/Data management department.”
Spreadsheets and manual processes are still the ways to fill in gaps between systems, or the reasons a system is not seamless.
The State of Automation
Tools in Regular Use for Planning & Analysis Purposes
Spreadsheets used monthly, weekly or daily
Supplement Planning System with Spreadsheets
Monthly, weekly or daily use
Data must be prepared through spreadsheets prior to using it
Agree or strongly agree
The Future of Finance is Digital.
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Despite the lag in adoption and advancement, FP&A professionals are aware of and eager for advanced tools:
“I would like to go to the next step and use machine learning to find external trends and analyses that may provide insights for our forecast.”
“Machine learning application would take [our analyses] to the next level since.”
“I believe predictive analytics can help your organization forecast future outcomes based on historical data and analytics techniques such as machine learning.”
FP&A can visualize what a data-centric future looks like, but does not feel equipped to achieve it.
My team received more or significantly more relevant training in processing and analyzing data in 2020 versus 2019:
I believe I have the tools and resources to effectively complete my work:
Roadblocks to a Data-Centric Future
FP&A Survey: The Technology and Data Platform Supporting Finance Decisions
This survey focuses on FP&A’s management and analysis of data, both the quality and accessibility of the data, and the planning and analytical tools available to examine and interpret data, this will help decision-making, planning investments or identifying additional areas of research.
Explore these 4 Key Insights from the Survey