If you want to grow your company, you need to have a roadmap; a plan. To make a decent plan you need the right tools. I use Excel (for some things). It’s great for certain tasks, but it has its limitations and if you’re making business-critical decisions, as you grow you need something more robust and powerful that can deliver intelligent insights without having to write lots of tricky Excel formulas – you need a tool like Oracle NetSuite Planning and Budgeting Cloud Service (NSPB).
What is Oracle NetSuite Planning & Budgeting (NSPB)?
Oracle NetSuite Planning & Budgeting is a Financial Planning & Analysis (FP&A) tool, which is built on the powerful Oracle Hyperion EPM technology that has been used by mid-sized businesses and enterprises worldwide for over 20 years.
Financial Planning & Analysis (FP&A) are the processes that helps an organisation to create value from inside. Financial Planning & Analysis helps an organisation to determine their short and long-term financial goals by creating a balanced plan to meet the goals, defining the budget and studying / analysing the forecast.
The FP&A Process
Why is FP&A important?
FP&A can directly impact a company’s valuation. It is important because you can:
- Reduce planning, budgeting, and forecasting cycles by weeks or months – making insights and information realtime
- Improve accuracy of plans and forecasts – enhancing decision making
- Identifying which products have the highest profit margin – increase the profit
Who uses FP&A?
Financial Planning and Analysis is useful for companies of any size. Starting from a small to medium-sized enterprise up to a large size company, improving FP&A accuracy is very important. The financial planning studies are oriented to the management team and head of department. Their purpose is based on data research, collection and analysis so that the management team can obtain the most financially efficient means to allow growth of the organisation and business profits.
What is the difference between Accounting and Financial Planning & Analysis?
Accounting and FP&A are two sides of the same coin. Accounting focuses on the “what” and FP&A focuses on the “why”.
While they both work in the same department within an organisation, the purpose of their work is very different. The FP&A Analyst is investigating any change in the numbers, while accounting is primarily responsible for processing, recording and auditing the accuracy of financial transactions. FP&A professionals find the story hidden in the financial data to provide upper-level management information needed to make strategic, operational, and tactical decisions.
Budgeting? What is it and why is it important?
The budget is an estimate of costs, revenues, and resources over a specified period, reflecting a reading of future financial conditions and goals.
Knowing where the budget stands, provides companies with up the ability to plan the hiring of new staff, investment in new product lines and setting earning goals in line with the organisation’s corporate financial objectives. Other benefits include:
- The potential to attract investors
- The ability to set sales goals
- The chance to open lines of credit
- The ability to make decisions about salaries, bonuses, benefits and overhead operating expenses
- Easier tax preparation
What is the relevance of the forecast?
Forecasting is important because businesses thrive on being prepared. If you are a business leader, you need to know as accurately as possible what your outlook will be in the future.
The most valuable forecasts do more than that, allowing a proactive business owner to:
- Identify risks and take pre-emptive action
- Spot opportunities and take positive action
- Plan and control cash flow, breeding a sense of confidence about balancing spending with revenues
- Manage sales and adjust sales targets
- Formulate new marketing strategies and tactics
- Fulfil due diligence requirements for potential lenders or investors
For many companies planning and reporting is an arduous task – departments often undertake this in silos, working on a plethora of spreadsheets with unreliable data, that often yields inconsistent results. With Oracle NetSuite NSPB, financial, contractual, sales and operational planning can be completed with relative ease. This is such an important business function, yet because it is so time-consuming it’s normal for companies to plan budgets at the beginning of the year as a one-off task – with NSPB it can be an ongoing all-year-round exercise.
Advantages of using NetSuite PBCS:
- Fewer errors – data is more reliable improving forecast accuracy
- Time-saving – planning and reporting is much faster meaning you can focus on growing your business
- Operational / financial business decisions can be made more quickly<
- Low cost and quick to implement
- It can be customised to meet specific business requirements
- Cloud-based – you will always have the latest software version
NetSuite PBCS integrates with a number of Microsoft Office applications such as Outlook, Excel, Word and PowerPoint and you don’t need to be a NetSuite customer to take advantage of it – it will also work with other ERP systems.
With uncertainty over Brexit it might be tempting to be hold back until the dust settles and put investment plans on hold. However, a recent Bloomberg study found that during a recession the companies that performed better were those that actively invested in business improvement rather than those that were overly cautious (we’re not suggesting a recession is imminent, merely using the scenario to illustrate a point).
So, if you’re too reliant on spreadsheets in your business and want to know more about Oracle NetSuite PBCS, get in touch and we’ll be happy to discuss how it might help you reach your business objectives.
☎ +44 (0) 203 733 2110
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