Scenario Testing – Fast, Simple, Accurate

Exact Planning Brings Agile Analytics to FP&A (part 2)

This is the second in a series of posts that describe how an innovative new software design, Exact Planning, uses account intelligence to unclog the FP&A information bottleneck that’s keeping finance professionals from achieving agile Balance Sheet, P&L and Cash Flow Planning results.

Exact Planning provides predictive analytics for supporting strategic decisions by automating complex accounting calculations and reconciliations using learned intelligence about the accounting purpose of G/L accounts, high-level parameters and data collected from ERP systems.

It’s common for business leaders to propose, for example, a new sales office or a merger, in between planning cycles, and ask FP&A to translate their ideas into operational forecasts for measuring the financial impact on sales and spending.

Analyzing scenarios isn’t simple.  For example, a new sales office will likely impact multiple Balance Sheet & P&L accounts.  Business leaders expect a fast turnaround and FP&A has only limited resources.  That’s why FP&A resorts to using load factors and high-level estimates and get their work done sooner rather than later.

Exact planning automates more cause and effect than any other solution and takes the guess work out of scenario testing.  Using account intelligence for automating accounting calculations for interrelated accounts Exact Planning makes it easier for FP&A to create comprehensive, flexible and accurate Balance Sheet, P&L and Cash Flow results for any scenario, every time.

Exact Planning doesn’t just calculate directly related accounts, Sales and Accounts Receivable, for example, it uses machine intelligence to learn the accounting purpose of each GL account and automates work so that users don’t need accounting skills or deep operational insights.  For example, Exact Planning can accurately forecast the 401K company contribution for a sales rep’s commission earned on Support Renewals for each of next 10 years from a single entry to Sales.

Exact Planning provides agile results for every scenario, automatically and users can easily test multiple versions of each scenario to zero in on the most likely results.

Look for future discussions about easy ways for FP&A to keep track of projects once they’re approved at stevemohun.com.

 

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