Should startups outsource Financial Planning and Analysis?
Financial Planning and Analysis (FP&A) is an essential function for startups that helps make informed business decisions and secure the financial health of a business. However, should startups keep an in-house FP&A position or outsource the FP&A functions?
What is Financial Planning and Analysis?
Financial planning and analysis is a process of planning, forecasting, budgeting, and analytical activities that help companies make informed decisions about their business.
It is a vital subset of CFO services that enables startups to look ahead and bring the future into the present so that startup founders can plan appropriately and prepare themselves for any adverse situation.
Why is FP&A essential for startups?
FP&A is a crucial and must-have function for startup success as it helps to translate business vision into numbers that tell its growth story. It enables the startups to:
Attract and convince investors by demonstrating the potential to achieve results.
Understand key metrics that businesses may achieve in the future, such as monthly recurring revenue, gross margin, etc.
Set realistic goals and a quantitative roadmap to achieve them.
Identify risks, challenges, and opportunities for the business.
Why should startups outsource the FP&A function?
Can you imagine driving a car without a steering and dashboard? It is needless to say, the answer is no. Similarly, how can you drive your business without financial planning and analysis? However, because of limited resources, it becomes difficult for startups to have a dedicated FP&A department. So, the ideal solution is to outsource the FP&A to experts having the relevant skillsets and experience to manage it for your business.
So, if you have decided to outsource the FP&A function for your startup, we are here to help you. AdmirablePro is a full-service FP&A (Financial Planning and Analysis) and MIS Reporting outsourced firm helping startups make informed financial decisions.
Our top-notch fractional CFO services (such as budgeting, financial analysis, and MIS Reporting) help startup founders and business owners get financial information and insights, enabling them to know what's ahead and plan their business more appropriately, optimize their top line and profitability, and manage cash flows efficiently.
Please check out the illustrative list of how our services can help your company optimize your reporting needs.
Revenue and Profitability Optimization: Get an annual budget, monthly projections, and periodical rolling forecasts prepared for your business. It helps you know what's ahead in your business and achieve your sales and profitability targets more conveniently.
MIS Reporting with Advanced Excel: Get customized decision-ready MIS Reports tailored to your reporting needs, enabling you to track progress, identify areas for improvement, improve operational efficiency, and make informed financial decisions.
Expenses Planning and Variance Analysis: Get tailored expense dashboard and reports, enabling you to understand when and how much to spend, track and analyze budget vs. actual results, and identify the areas for cost-savings.
Performance Monitoring and Optimization: Get Key Performance Indicators (KPI) and scorecards designed for your company and analyze the actual performance through a data visualization tool, enabling you to strategically navigate towards sustained growth and drive your company's success.