Over the last few years, the boundaries between different departments within an organization have blurred. Financial processes are no longer limited to the finance department of a company. They have far-reaching implications that affect your organization as a whole. To stay in tune with the ongoing changes, it is important for businesses to transition from traditional FP&A to the new and evolved xP&A.
What Is xP&A?
xP&A stands for Extended Planning and Analysis. It involves taking the core elements of traditional FP&A (planning, budgeting, forecasting, analytics, performance monitoring, reporting, etc.) and extending them to the entire organization.
xP&A empowers operational departments with the features and benefits of a robust FP&A solution. While the essence of traditional processes is retained, their scope is widened. xP&A allows you to eliminate all boundaries and siloes between finance and other departments in your company. It lets you see the bigger picture and build comprehensive business strategies.
Why Should You Transition From Traditional FP&A To xP&A?
Here are a few major benefits of switching from the traditional FP&A to xP&A:
Comprehensive Business Visibility
It is always advisable for the stakeholders to have comprehensive visibility of the organization they belong to. xP&A provides you with real-time and holistic business visibility, allowing you to see how every department benefits from the core FP&A elements. Implementing modern software solutions with advanced analytics and cross-functional reporting helps you understand the impact of your decisions on multiple departments within your organization.
Centralized Source Of Truth
You cannot streamline your business processes if you struggle with finding a reliable source of truth. Businesses often face this problem because of incongruent IT systems and mismanagement of large data volumes. Moving to an xP&A solution provides you and all your team members with a single source of truth, eliminating the scope of confusion and errors.
Seamless Sync And Collaboration
When you extend the essence of FP&A to multiple departments, you establish a sync between them. In 2023, there is hardly any business process that affects a standalone section of your business. xP&A lets you understand how the decisions made by one department affect the others, encouraging your teams to come on the same page.
xP&A gives you a comprehensive and cross-function view of your organization, making you better equipped to understand the bigger picture. This improves your company’s agility and ability to course-correct at the right time. It also helps you identify risks and seize new opportunities before it is too late.
When processes like continuous planning are extended to the entire organization, it helps you stay updated with the ongoing internal and external changes. New and automated xP&A solutions ensure that a change in an element is reflected across the entire plan in real-time.
Transition To xP&A With VIZIO
If you are willing to take the much-needed leap into the world of xP&A, VIZIO helps you make the transition in a sustainable way. Our team of trained and certified professionals helps you implement a robust software solution tailored to your specific business needs.