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FP&A is an evolving function that falls into the intersection of finance, operations and strategy aimed at driving better decision-making trough insightful analysis, forecasting and goal setting. FP&As role is to connect those insights to financialmodels and forecasts.
When you’re making small-talk with someone who isn’t in finance or accounting about how work is going, and they answer with “busy,” do you ever question how hard it really is? We spoke to 20 finance teams for research on this article. After all, how busy someone is will be relative to their business, function, and industry.
As businesses navigate their way around various technological advancements, finance teams are faced with the task to integrate analytics and automation into their existing processes, determining at the same time which specific system to transform first for maximum operational impact.
“How do you build a three-year financialmodel?” A financialmodel is a type of financial projection that pulls together important data to allow organizations to analyze their current financial position and predict their future financial position. It’s a question we get (and answer) a lot.
Generative artificial intelligence has created buzz in the past few months and it has made its way to the Finance function, imposing possible hurdles and challenges along the way which chief financial officers and leaders must definitely look into. In this regard, such risks should also be looked upon as chances for improvement.
Strengthening Internal Controls and RiskManagement Internal controls form the backbone of audit readiness. Collaborating with the strategic FP&A team early in the process is particularly valuable, as their forecasts and financialmodels provide key inputs for impairment testing and other complex calculations.
Of course well have to weigh the freight cost versus the tariff as well as other options, looking at things like geopolitical risk, natural disasters in certain countries, market fluctuations, and then thereafter use financialmodels to quantify the financial impact and to develop risk mitigation strategies.
The terms “finance” and “accounting” are often used interchangeably. There are, however, very real differences between finance and accounting. While many business owners look for a CFO to bolster their existing accounting team, here at CFO Simplified, we consider that a CFO would be categorized squarely in the finance category.
Thobile’s passion for finance sparked in high school with her love for mathematics and the challenge of balancing financial statements. This interest solidified during her BCom studies, where she found satisfaction in analyzing financial statements and market trends. What sparked your interest in finance?
AI is , transforming the finance sector, especially in financial planning and analysis (FP&A). It facilitates advanced analytics and offers valuable insights through methods like predictive modeling and scenario analysis. Top 8 AI Uses in Finance AI/ML can enhance FP&A operations in many ways.
FP&A software assists CFOs, finance leaders, and FP&A experts in ensuring the financial health of their organization by tracking and analyzing current outcomes and forecasting future performance. FP&A stands for "financial planning and analysis," and is the backbone of the modern finance department.
FP&A candidates typically have a background in finance, accounting, or a related field and possess a combination of skills and knowledge in financial analysis, modeling, and strategic planning. Experience: FP&A candidates may have prior experience in financial analysis, accounting, or related roles.
When you’re making small-talk with someone who isn’t in finance or accounting about how work is going, and they answer with “busy,” do you ever question how hard it really is? spoke to 20 finance teams for research on this article. spoke to 20 finance teams for research on this article. These processes vary.
The role of chief financial officers has long been evolving, especially following the drastic changes brought about by the advent of the COVID-19 pandemic. Jackson Ng Ng thinks the CFO oversees the implementation of robust financial controls and riskmanagement strategies to safeguard the organisation throughout the transformation journey.
RiskManagement: What-if analysis is also useful in riskmanagement. By simulating various scenarios, you can evaluate the potential consequences of risks and uncertainties on your finances or business operations.
To understand how this decision affects a CFO’s skill set, it’s essential to analyse its diverse impacts: RiskManagement: CFOs are the forerunners of risk mitigation within their organisations. The decision to maintain interest rates underscores the importance of astute risk assessment.
Strengthening Internal Controls and RiskManagement Internal controls form the backbone of audit readiness. Collaborating with the strategic FP&A team early in the process is particularly valuable, as their forecasts and financialmodels provide key inputs for impairment testing and other complex calculations.
Strengthening Internal Controls and RiskManagement Internal controls form the backbone of audit readiness. Collaborating with the strategic FP&A team early in the process is particularly valuable, as their forecasts and financialmodels provide key inputs for impairment testing and other complex calculations.
They play a crucial role in strategic planning, riskmanagement, and driving innovation, extending their influence far beyond the finance department. RiskManagement: Given the CFO’s role in identifying and mitigating risks, tasks related to safeguarding the company’s assets and financial health are critical.
By providing financial insights and analysis, they assist in evaluating investment opportunities, assessing the financial impact of strategic initiatives, and developing long-term financial plans. This enables management to take corrective actions, implement efficiency measures, and evaluate the success of initiatives.
Understanding the Role of a CFO A CFO is a high-level executive responsible for overseeing the financial activities of an organization. Their primary duties include financial planning, analysis, riskmanagement, financial reporting, and leadership of the finance & accounting team.
Angeline Chua, Chief Financial Officer & Chief Operating Officer, IBM ASEAN shared with FutureCFO what she did and how her learning during this period would change the way her finance team works. . RiskManagement. FutureCFO: How’s the finance team working together now? Business pipelines.
Furthermore, the risks and the costs of a cyber incident were difficult to quantify and present in financialmodels. Phillip Ivancic : There are several ways finance leaders can drive the conversation. Therefore, it is seen as an “IT problem”. Phillip Ivancic.
Let’s break down what CFOs need to do to be successful in this expanded role: Crafting and Sharing a Finance Vision A successful CFO starts with a clear finance agenda, pinpointing both immediate goals and long-term objectives.
Why turnover in the financial department is SO damaging for nonprofits. The reason your finance director spends just 25% of their time on finances. Why HR compliance issues are a bigger risk than tax compliance for most organizations (and why you shouldn’t trust your accountant with HR). I did riskmanagement.
And I’ve seen that a lot of times people start to think differently about their finances once they have that kind of context. We can work with pretty much anybody and help them get clarity over their finances. And then once you have the data, then you start applying the data to the planning model. They do the intake form.
KENCEL: “Barbarians at the Gate” and the financing. And what was fascinating about Drexel and kind of the diaspora, if you will, of that era was that we all basically went out looking to take that experience, particularly in high yield and kind of buyouts and financing, and do it at either banks or other investment banks. Yes, right.
Tosha Anderson: Well, you know, being an account and I’m a data person, a systems person, it’s like everything has to boil down to some sort of, you know, financialmodel or science. I’ve got, um, Swiss army nights as I call them, um, in my own business. So great, great point that you brought up.
Finance Moves FastDont Let Your Knowledge Collect Dust Why Lifelong Learning in Finance Matters In the world of finance, things change constantly. New regulations, technologies, and trends emerge, affecting businesses, investments, and financial decision-making.
As CFOs navigate this complex terrain and adapt their business processes, and decide how large a financial commitment to make to it, they must understand the implications for their financialmodels, riskmanagement practices, and overall business operations.
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