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Financial Planning & Analysis (FP&A) Turn the budget into a living management tool

With a driver-based integrated budget, rolling forecasts and variance analysis, management can track its plan in numbers throughout the year.

What is FP&A?

Financial planning and analysis (FP&A) is the finance discipline that turns a company’s targets into a financial plan, compares the plan with actual results and guides management with forecasts that are updated during the year. A budget is not a document prepared once and filed away; it is a management tool that is measured and refreshed.

Prime Numeris takes a driver-based approach: we identify the real drivers of the business — volumes, prices, capacity, headcount — and plan the P&L, balance sheet and cash flow in one integrated model linked to those drivers.

Who is it for?

  • Companies formalising their budget process Businesses whose budget lives in a single spreadsheet and depends on one or two people.
  • Multi-division or multi-site businesses Organisations that want to plan and track revenue and cost by unit.
  • Teams reporting to a board or shareholders Management that must regularly present targets, actuals and the year-end outlook.
  • Companies preparing funding or capacity expansion plans Businesses that need multi-year projections and scenarios.
  • Typical sectors Manufacturing, retail chains, services, technology and subscription-based business models.

COMMON CHALLENGES

What problems does FP&A solve?

The budget is outdated by Q1

Conditions change but the budget is never refreshed, so comparisons lose their meaning.

Nobody knows why variances happen

Actuals differ from budget, but it is unclear whether price, volume or cost is the cause.

Plan and financial statements are disconnected

The sales plan, expense budget, balance sheet and cash flow are not linked.

Scenarios take days

“What if sales fall by 10%?” is answered late, through manual recalculation.

Inconsistent KPIs

The same metric is calculated with different definitions in different reports.

SCOPE OF SERVICE

What our FP&A service covers

Annual budget

A budget process covering revenue, expenses, capex and financing, with inputs from each unit.

Multi-year financial planning

Three- to five-year projections aligned with strategic goals.

Rolling forecast

A year-end and 12-month outlook refreshed periodically against actuals.

Budget-versus-actual analysis

Monthly comparison of targets and actuals, with commentary.

Variance analysis

Separating variances driven by price, volume, product mix and cost.

Revenue and cost drivers

A model structure that links the plan to operational drivers.

Scenario modelling

Rapid comparison of outcomes under different sales, price, cost and FX assumptions.

KPI tracking

Monitoring financial and operational metrics with clear definitions.

Management reporting packs

Standard, repeatable report packs for management and the board.

Is this scope right for your business?

In a short initial call we listen to your current situation and expectations, and define the right scope for your business together.

What it brings to your business

Realistic targets

Targets rest on the real drivers of the business, so they can be debated and measured.

Clear causes of variances

Differences are not just reported; their cause and owner are identified.

An up-to-date outlook

Management sees every month where the year-end result is heading.

Fast answers to what-ifs

Scenario questions are answered in hours rather than days.

What you receive

  1. Integrated budget model

    An updatable model linking P&L, balance sheet and cash flow to business drivers.

  2. Rolling forecast

    A year-end and 12-month forecast file, refreshed periodically.

  3. Budget variance report

    Monthly target-versus-actual comparison with price/volume/cost breakdown.

  4. Scenario analyses

    Tables comparing profit, cash and funding needs under different assumptions.

  5. Financial performance dashboard

    Trends and target comparisons for clearly defined KPIs.

How we work

  1. 01

    Review of process and data

    We review the budget process, chart of accounts, reports and data sources.

  2. 02

    Driver definition

    Together with management we define the key drivers behind each P&L line.

  3. 03

    Integrated model build

    We build a budget model that links P&L, balance sheet and cash flow.

  4. 04

    Budget and scenarios

    The budget is prepared with unit inputs; core scenarios and sensitivities are built into the model.

  5. 05

    Monthly analysis and forecast cycle

    Budget-versus-actual and variance analyses are run, the rolling forecast is updated and the process is handed over to your team.

Frequently asked questions

Does a rolling forecast replace the budget?

No. The budget sets the annual target; the rolling forecast updates expectations based on actuals. Used together, they let you track both the target and a realistic outlook.

Which tools do you use?

By default we build a documented, Excel-based model. If you already use a planning system, the structure can be designed around it.

How are budget responsibilities shared?

Targets and inputs belong to your management. We design the process, build the model, challenge inputs for consistency and analyse the results.

How does FP&A relate to CFO advisory?

FP&A is one of the services within CFO advisory. CFO advisory runs the overall monthly management cycle; FP&A is the part of that cycle covering the budget model, forecasting process and variance analysis. It can be engaged as part of CFO advisory or on its own.

How long does it take?

It depends on the number of business units, data quality and your budget calendar. The scope is agreed in writing with phases and delivery dates after our first conversation.

Request an FP&A consultation.

Tell us briefly about your budgeting process and where you struggle most — variance analysis, forecasting, scenarios — and we will discuss a suitable model and process.

  • Complimentary initial consultation
  • Needs assessment
  • Tailored approach

Meeting request

Briefly describe your situation and we will contact you to arrange a suitable time to talk.

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