Financial Planning & Analysis (FP&A) is increasingly being outsourced to provide a competitive advantage while others are using the opportunity to uncover additional savings and process improvements. 

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Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives.  Usually, a company creates a Financial Plan immediately after the vision and objectives have been set.  The Financial Plan describes each of the activities, resources, equipment and materials that are needed to achieve these objectives, as well as the timeframes involved.

The financial planning activity involves the following tasks:

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• Assess the business environment.

• Confirm the business vision and objectives.

• Identify the types of resources needed to achieve these objectives.

• Quantify the amount of resource (labor, equipment, materials).

• Calculate the total cost of each type of resource.

• Summarize the costs to create a budget.

• Identify any risks and issues with the budget set.

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Financial analysis refers to an assessment of the viability, stability and profitability of a business.  It is performed by professionals who prepare reports using ratios that make use of information taken from financial statements and other reports.  These reports are usually presented to management as one of their bases in making business decisions.  Financial analysis may determine if a business will:

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• Continue or discontinue operation or part of its business.

• Make or purchase materials in the manufacture of its product.

• Acquire or rent/lease equipment.

• Issue stocks or negotiate for financing to increase working capital.

• Make decisions regarding investing or lending capital.

• Make other decisions on various alternatives in the conduct of its business.