Our experience building technical solutions across a variety of industries has exposed our team to the benefits and drawbacks of different methodologies related to budgeting/forecasting, cost allocation, and profitability analysis. We've seen the best and worst of it, and that experience has given us a keen sense of how to best achieve the desired transparency, accuracy, and granularity of results without introducing performance risk or unnecessary cost.
Here are some examples of the trade-offs and questions you should be asking yourself when evaluating your FP&A process methodologies. Partner with Parkview and together we can take the right approach to get the right answers.
• Identifying the point at which execution effort outweighs the benefits. Is it worth the extra time and expense to be 2% more accurate?
• Identifying the necessary frequency and level of detail. Do you need monthly or quarterly forecasts? Would you like to analyze product-level profitability?
• Uncovering hidden downstream impacts. What is the labor impact of implementing an automated driver-based forecast? Should you consider the data storage impact of analyzing customer-level profitability?