From Bookkeeping to Breakthrough: Why FP&A Is Your Competitive Edge
From Bookkeeping to Breakthrough: Why FP&A Is Your Competitive Edge
Companies invest millions in accounting systems to meticulously track every penny, yet often neglect financial planning and analysis (FP&A), leaving valuable insights untapped. Consider the CEO of a mid-sized physician practice who dismissed budgeting entirely: “We don’t budget. We’ve never needed it to make decisions.” They expanded into new services and locations without understanding the costs. Were these expansions profitable? Which parts of the business were thriving, and which were losing money? They had no idea. While a solid accounting team kept the books in order, without an FP&A expert, they were navigating blindly.
We have developed a framework to clarify the distinction between Accounting and FP&A—two essential functions that are often conflated:
Accounting: Typically the first hire in any finance team, it is the foundation of precision. It ensures compliance, tracks historical data, and produces financial statements and controls. Essential, but retrospective.
FP&A: Often the last hire, it is the strategic powerhouse that businesses desperately need. It transforms data into foresight, driving growth with budgets, profitability analyses, and operational insights. This is the engine of decision-making.
Imagine cutting through the fog of financial confusion as a business owner or fractional executive. This framework could be your guide, illuminating the path to clear financial operations. Are you tired of looking in the rear-view mirror, piecing together the past? It’s time to take the wheel and confidently chart the course ahead.
The Viability Company would love to discuss how this framework could help business owners and fractional executives gain clarity in their financial operations. Let's connect. What has been your experience with Accounting versus FP&A? Feel free to reach out to us to meet with Kirk Finchem, our resident FP&A expert.
What are your thoughts on Accounting versus FP&A? How has it worked for you? Let’s talk!
