If financial planning, budgeting, and forecasting are inexact sciences at the best of times, they may seem especially tenuous in periods of unprecedented change.
However, change can bring opportunities and leading finance functions are the ones that respond to changing conditions with dynamic thinking and flexible tools, so that decision makers are supported by relevant, insightful information about where things stand and where the business may be headed.
Earlier this year, KPMG in the US brought together finance leaders from major companies to share their approaches to financial planning and analysis in current conditions. In Brave New World: Financial Planning, Budgeting, and Forecasting, they offer insights on how to get better visibility by:
- Using a flexible planning process to navigate economic uncertainty
- Setting an appropriate level of detail at which to plan, thereby reducing the volume of customary calculations
- Implementing a centralized, top-down approach to forecasting, with input from a smaller group of knowledgeable senior stakeholders
- Relying less on paid research forecasts and more on real-time empirical data from a wide range of sources, including the company's own sales team
- Focusing on controlling operating expenses and finding a consensus on revenue amounts.
Please click here if you would be interested in attending a KPMG share forum on financial planning, budgeting, and forecasting, or other financial management topics. We will contact you when dates and registration information become available.
Brave New World: Financial Planning, Budgeting, and Forecasting [PDF 648Kb]