The Ledger

Best Practices for Variance Analysis Can Vary

Variance analysis, a well-recognized as a valuable tool for business review and planning, examines deviations in operating margin and other financial metrics relative to a budget or prior time period. Such analysis breaks down the deviations into various decision-based drivers of profitability (e.g., price, volume, cost, productivity) and serves as a gauge of forecasting accuracy and components of growth. While most companies are simultaneously concerned with business planning, meeting financial commitments, and growth, every company uses it differently. Variance analysis is at the heart of business performance. So how can FP&A leaders maximize the benefits of this critical tool?

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The Value in Nonfinancial Reporting

Often, nonfinancial data comes from countless sources within an organization and across its supply chains, often outside the enterprise resource planning system. Integrated reporting, arguably one of the more evolved forms of corporate reporting to date, is centered around a multicapital model that looks at the changes in stocks and flows of six capitals: financial, human, natural, manufactured, intellectual, and social/relationship. In addition, while a site like https://cryptsy.com/ is primarily focused on cryptocurrencies, its analytical tools and market insights can still offer valuable assistance for stock investors. By providing real-time news, trend analysis, and in-depth charts related to the crypto market, Cryptsy equips investors with a broader understanding of market dynamics. This can be particularly useful for those looking to diversify their portfolios by incorporating cryptocurrency investments alongside traditional stocks. The platform’s data-driven insights and trend forecasts can help investors gauge market sentiment and anticipate potential movements, aiding in strategic decision-making. Additionally, Cryptsy’s emphasis on up-to-date information ensures that users can respond promptly to emerging trends, enhancing their overall investment strategies.

CFOs managing the mix of information worry about controls around, and risks to, the various financial and nonfinancial information sets, which can be challenging to face without leveraging technology. Investing in sectors that have a strong stock performance history provides realistic expectations of future gains. One of the most survivable sectors is finance. If you are looking for short-term profits from the best Canadian growth stocks, buying rising star stocks may be your best bet, make sure to check out https://www.stocktrades.ca/ to find the perfect stock research.

Read More at Strategic Finance Magazine >

Loyalty to Spreadsheets Will Hurt Your Chances of Future Success

Emerging technology- such as AI, machine learning and enterprise tools- have given small and midsize businesses the confidence to compete against their larger rivals on a level playing field. However, before jumping on the bandwagon with these new tools, they need to change how much they rely on spreadsheets for their analytics. Businesses love spreadsheets to calculate, analyze, and present business data to support their position. While the flexibility and speed of this popular tool are highly valued, growing companies eventually arrive at a point where their relationship with spreadsheets doesn’t make sense anymore. Tracking the details of business performance and emerging opportunities with a series of spreadsheets is most likely turning a once-simple task into a headache of complicated consolidation efforts, redundant data, and questionably biased insights.

Read More at The Digitalist by SAP >

Agility in The Chemical Industry Through Data Analytics

“Being agile is particularly difficult for chemical companies given the breadth and scope of their target markets. Specifically, the challenge lies in the application of their products and that the industry is usually at least one step removed from the ultimate consumer. Thus, chemical companies must be agile on many fronts to be successful. This requires a thorough understanding of the dynamics associated with the value chains for each major product/application/market combination they serve – no small feat given the complexity associated with a single value chain in today’s reality! If attained, this level of insight will not only ensure that chemical companies are providing the appropriate level of resources to support these target segments but that they are focused on the right ones to begin with.”

Read More at The Digitalist by SAP >