What is Financial planning and analysis

Question

Accepted Answer

Financial planning and analysis involves the process of forecasting, budgeting, and analyzing financial data to support decision-making and strategic planning.

Financial planning and analysis helps organizations create budgets and financial forecasts to guide their operations and investments.
It involves analyzing historical financial data and market trends to make informed projections about future performance.
Financial planning and analysis also includes monitoring and evaluating financial performance against targets and identifying areas for improvement.
It plays a crucial role in strategic planning by providing insights into the financial implications of different business decisions.
For example, a financial planning and analysis manager might analyze sales data to determine the profitability of different product lines and recommend adjustments to pricing or production strategies.