When we speak about financials, the first things that come to mind are financial statements, reviews, tax reports, and things of that sort – and let’s face it, these topics are a bit dull to record an episode about. But if we take a different perspective, and look at the Finance Department as a tool that helps all other departments grow and move forward – that sounds much better, doesn’t it?
“People think of finance as the ‘bad cop’, but it’s actually a tool that allows us to reflect to each department where it stands, show it how to better reach its targets, and enable it to grow.” (Eyal Bar)
One of the main methods we use to check ourselves in terms of meeting the goals we set to ourselves – both at the company level and at the team level, is the FP&A – Financial Planning & Analysis. When used properly, this tool can assist a company in its decision-making process, and in understanding the effect of each decision on the annual forecasts.
So how do you use a budget as an aiding factor rather than a limiting tool? In what way should the Finance Department work with the other departments on their projections? And how do you model uncertainty?
This week we are hosting Eyal Bar, Director of FP&A at monday.com. Eyal talks about the questions a company must ask itself to optimize its analysis, about the importance of the cooperation between the Finance Department and all other departments, and about the challenge in creating a financial forecast for a company that changes completely every year.