FPM is Financial Performance Management.
Every organisation wants to do more with less. To have outcomes that they can have more confidence in. To be in control. This is the goal of Performance Management.
The foundation of any organisation is Finance and in companies that are delivering the best returns, the Finance team is at the core. Not only have they closed the loop on their own internal processes, they are trusted advisors to the rest of the organisation, adding real value.
This is only possible where companies have addressed their Financial Performance Management processes. Releasing finance team talent from manual, unproductive procedures to help at the sharp end.
At Aramar, we see Financial Performance Management as made up of four distinct but inter-related functions that almost all organisations need to perform:
Accounting ledger close and financial data consolidation, providing control and confidence over the reported actual data.
Forward-looking, target setting and scenario modeling, forming the basis against which actual performance is measured.
The presentation of performance against targets, dissemination of relevant information throughout the organisation, and insight into business opportunities and threats.
Final publication of results, whether statutory financial statements, annual reports, press communications or Industry returns.
Consistent structures and data flowing freely between these functions is the foundation of successful, integrated FPM: Plans use actual data as a base; Analytics compare plan vs actual; Published reports must agree to the audited financials.
The joined-up nature of integrated FPM minimises inefficiencies for the finance functions, enables them to react more quickly to organisational change and late adjustments, and provide better information.
Whilst its home is within the finance function, the benefits of FPM are delivered throughout an organisation. Implementing an integrated FPM solution ensures control of the essential functions and at the same time joins the future outlook with actual performance so that decisions can be made quickly and with an understanding of their expected impact.
Aramar helps it's customers to implement joined-up Financial Performance Management.