Financial Planning & Analysis

One of the most universal recommendations I make to clients is to schedule regular financial planning and analysis (FP&A) sessions.  Whether performed monthly, quarterly or annual, FP&A encompasses a broad range of activities that are critically important to implementing growth strategies and ensuring basic financial survival. 

FP&A helps organizations keep their day-to-day activities aligned with their over-arching strategies.  It improves budgeting and planning to reduce financial risk and increase financial performance and helps to anticipate pitfalls or opportunities.  Once implemented, it also informs operations to identify areas for improvement, while integrating operational data into planning.

 

 

 

So, What is Financial Planning & Analysis?

 

At its most fundamental, FP&A is a process for developing and revising budgets based on information and forecasts about income and expenses.  It is informed by the balance sheet, the income statement and cash flow.  The process should also include mechanisms to implement budgetary decisions throughout the organization, track performance and progress and document results in an organized fashion. 

Based on this process, VFA then analyzes the results to assess and improve profitability and to maintain a greater vision that can inform major decisions, such as capital and financing structures and positioning in the market, while aligning day-to-day decisions with your overall goals.

 

Why Should I Trust Vineyard Financial Associates with my FP&A?

 

In theory, in-house personnel and/or their outside accountants can manage their own FP&A processes.  Many wine businesses do not have the internal skill sets or bandwidth to do this.  Conversely, VFA can bring in industry benchmarks, unbiased detachment from office or family politics and a one-of-a-kind nexus of industry knowledge and technical expertise.  Your accountant has never run vineyards, made wine or operated a tasting room.  Your accountant is a critical source of data for FP&A, but he is not a forecaster or a data analyst.  VFA brings all of these skills to your business to boost your profits.