Some CFOs see the opportunity to build a robust, rolling and integrated 3-way model with planning, budgeting, forecasting and variance to actuals as an exciting challenge.

Other CFOs find it frightening and avoid learning new ways to financial modelling.

Which one are you?

The new normal for Finance and Accounting

Finance and Accounting teams are expected to take a more strategic seat given the high rates of uncertainty in 2021 in relation to profits, cash flow and general business stability.

This is not about analytics but financial modelling.

Analytics is still valuable, but scenario modelling is slightly higher in demand currently. It's the answer to the analytics so what?

Background

This often comes up in debates and discussions around the world for budgeting, planning and forecasting activities.

Preceded by Excel is dead or something crazy like that!

The finance teams forecasting is often undervalued as a result.

Typically in finance we have a particular type of cadence.

This cadence is largely consistent across different organisations no matter what the industry you support. We are likely to have some or all of these:

1. Monthly reporting,

2. Quarterly reporting and forecasting,

3. Half year reporting (if listed),

4. Annual statutory reporting and tax filing (we all have this one),

5. Annual budget process and

6. Longer range strategic planning for 3 to 5 years.

Now that's a pretty full dance card if you ask me.

So how do we keep up with all those requirements whilst making sure that we are not just hitting the deadlines but actually accelerating the value that we add to the business.

Read our latest blog for more insight without the big price tag attached.

Very few 😬 finance professionals have what it takes to build a good financial model, but if you use a few short steps you can find 👀 those diamonds👷 in the rough.

It's like changing someones title to Finance Business Partner and expect them 😁 to suddenly add value and build good models.

It doesn't work 👎that way, never will!

Without the right training and hiring you will just be running on the same tredmill 😵 with the same people with the same skills gap😱.

Being an advanced excel user📈(not that anyone can succintly explain exactly what that means) helps, but its certainly not the only criteria.☝

Forecasting does not guarantee you will be great at financial modelling. 😱

Just because you can drive a car doesn't mean you can be a Formula 1 race car driver. 🚗

Playing T20 cricket doesn't guarantee you will be a great test cricketer. 😁

The same goes for forecasting and financial modelling. 📊 📈 📉

#FinancialModelling #Finance #FutureofFinance

Is all this tech talk and Finance Transformation getting a bit much? 😵

Where do you start and stop? 🚦

There is so much on offer from RPA to Analytics to Modelling. 📈

Read my co-authored 🙌 article with Anders to learn more and demystify all the jargon and pick some practical solutions you can try. 👍

#finance #futureoffinance #analytics #Excel #cloud #digitization #FinancialModelling