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7 FP&A Predictions

The document outlines seven significant shifts in Financial Planning and Analysis (FP&A) expected by 2025, including the automation of forecasting through AI, the importance of real-time data for decision-making, and the integration of financial and operational planning. It emphasizes the need for scenario planning to navigate uncertainties, enhanced collaboration across departments, the growing importance of sustainability reporting, and the use of advanced analytics for strategic insights. These changes aim to improve accuracy, efficiency, and alignment with business goals in FP&A processes.

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Neeru Bajaj
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61 views9 pages

7 FP&A Predictions

The document outlines seven significant shifts in Financial Planning and Analysis (FP&A) expected by 2025, including the automation of forecasting through AI, the importance of real-time data for decision-making, and the integration of financial and operational planning. It emphasizes the need for scenario planning to navigate uncertainties, enhanced collaboration across departments, the growing importance of sustainability reporting, and the use of advanced analytics for strategic insights. These changes aim to improve accuracy, efficiency, and alignment with business goals in FP&A processes.

Uploaded by

Neeru Bajaj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

7

Big Shifts
Happening in
FP&A
(2025)
Erik Lidman
CEO & Founder Aimplan
1. AI will automate forecasting

Artificial Intelligence (AI) will handle


complex data analysis, making
forecasts more accurate and
efficient.

Siemens, for example, uses AI models


that feed data into interactive
dashboards, turning information into
actionable insights for managers.
This approach has improved their
prediction accuracy by 10%.
2. Real-time data will drive
decisions

Access to real-time data will let


teams make quick, informed choices,
boosting business agility.

Cloud platforms enable real-time


data access and collaboration,
improving the efficiency and
effectiveness of FP&A activities.
3. Integrated planning will
break down silos

Merging financial and operational


planning will remove departmental
barriers, leading to unified strategies.

This integration allows for a


streamlined flow of data between
different departments and reduces
the risk of errors caused by manual
data entry.
4. Scenario planning will
prepare for uncertainty

Creating various financial scenarios


will help businesses navigate
unpredictable markets effectively.

AI-driven financial modeling enables


companies to examine the tax
implications of different actions,
allowing for effective and efficient tax
planning.
5. Collaboration will enhance
financial strategies

FP&A teams will work more closely


with departments like marketing and
HR to ensure financial strategies align
with overall business goals.

This cross-functional collaboration


promotes a holistic approach to
organizational planning and
performance management.
6. Sustainability reporting will
become important

Environmental, Social, and


Governance (ESG) factors will
become part of financial planning,
meeting demands for transparency
and ethical practices.

Incorporating ESG considerations into


FP&A processes not only meets
regulatory requirements but also
drives long-term value by promoting
sustainable business practices.
7. Advanced analytics will
provide strategic insights

Using big data and advanced


analytical tools, FP&A professionals
will offer deeper insights to guide
business decisions.

AI-powered financial modeling and


forecasting enable businesses to
create goals, budgets, and
expectations by using financial
forecasting to estimate future
performance.
I have spent 25 years of my life working in
the FP&A, EPM, and CPM spaces, both as a
consultant and within software companies
delivering FP&A solutions.

I share daily PowerBI & FP&A tips, talk


about finance trends, and share life
lessons to empower finance and
accounting teams.

Hi, I’m Erik!


CEO & Founder Aimplan

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