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Profitability Analytics: A New Perspective on FP&A

FP&A  professionals are all generally focused on two things: (1) examining current performance and the immediate past for lessons learned and changes to replicate positive performance or change negative performance and (2) making projections and planning for the future with forward-looking scenarios, analyzing risks and opportunities, and mapping possible responses.

Advances in digital technologies increase the potential for businesses to use powerful tools to improve and expand their FP&A function. Modern organizations need a robust definition of their FP&A practices that will support the entire organization, looking well beyond finance and accounting’s traditional scope and embracing all the value creation and performance goals throughout an organization. Profitability analytics enables FP&A leaders to understand the past while focusing on developing areas of nonfinancial and financial data analytics and modeling that causally support building robust forward-looking scenarios and analyses.

Read More at Strategic Finance Magazine >