The Ledger
Curated content foranalytical business leaders
Forbes: 2022 Will Be The “Year Of The Management Accountant”
December 20, 2021
“In fact there is room for optimism given the new emphasis business leaders are placing on agility for the short-term and anticipatory thinking for the long-term. This represents a pivot in thought and action, perhaps one that was long overdue. At IMA, we have been championing the need for finance and accounting professionals to move beyond the compliance mindset to engage as full business partners and as future-focused strategic planners who use data to anticipate the future. It is this future-focused orientation that makes management accountants so valuable to their organizations, and I believe 2022 is the year when their skills will be best utilized and recognized.”
FP&A Trends: Caution: Forecast Accuracy is Seasonal Too!
December 16, 2021
“The benefits of measuring seasonality of accuracy are that users can plan high/low scenarios for each prediction based on the season-specific range of possibilities. Departments can adjust how much capacity, safety stock, or cash reserves are needed based on their own worst case. And it’s easier to determine missing factors for model improvement when you focus on adding predictors to the high noise areas of the model.”
CFO Journal: Financial Reporting Considerations: Supply Chain and Labor Disruptions
December 16, 2021
“For many companies, such disruption is significantly increasing the costs associated with moving goods through the supply chain. If the higher costs are included in inventory, companies should consider whether these costs drive up the cost of the inventory in such a way that adjustments based on the expected net realizable value of the inventory are warranted.”
FP&A Trends: Best Practices in Implementing the Rolling Forecast
December 15, 2021
“The main criticism of the traditional budget is that it does not react to what is actually happening in the business during the year. But a Rolling Forecast solves that problem, helping companies to continuously plan (forecast) over a set time horizon.”
