The Ledger

FP&A Trends: The Evolving Role of Zero-Based Budgeting

“What is new in ZBB?

1. ZBB is not a cost-cutting exercise. It is part of every line of the planning process.
2. It is also a method to identify key drivers, so it is linked to driver-based planning.
3. It is a rethinking of the traditional budgeting process.
4. It is improving Business Partnering due to collaborations and the use of modern technology.”

Read More at FP&A Trends >

Harvard Business Review: When to Change Your Company’s P&L Responsibilities

“Changing an organization’s primary dimension, i.e., making a different choice of which verticals have full P&L responsibility, is not something to get into lightly. But don’t do it belatedly either, when your degrees of freedom and the time to handle it carefully are severely limited.”

Read More at Harvard Business Review >

CFO Journal: Pandemic Sharpens Government Focus on Data

“Maintain the emphasis on data technology and relationships established in response to COVID-19. The value generated by these technologies and relationships is too great to let them falter. A data-centric approach provides greater value to constituents while improving performance. And when the next crisis comes, data could play a valuable role.”

Read More at The Wall Street Journal >

CFO Magazine: Why Does Excel Survive in Finance Departments?

“Business processes can be complex, and data can be messy, McIlheran said. Cloud-based financial applications enable finance departments to move away from manual processes in Excel.

“Because of its flexibility, Excel can be the glue that binds imperfect systems and processes together,” McIlheran said. “It can be a crutch to bring organizational processes or reporting together, but ultimately the business “will, and must, outgrow Excel.””

Read More at CFO Magazine >