Quick Reference: The Three Questions of FP&A
Recall the core questions that make planning, forecasting, and variance reviews sharper.
What is the first question to ask when a plan number looks wrong? Which operating driver moved? Go upstream before arguing about the reported line. Target vs budget vs forecast Do not let one number do all three jobs. “The total is still fine, so we do not need to revisit the assumptions.” Finance reply If the total holds for different reasons than we planned, we still need to update the driver story so the next variance is explainable. Totals can stay flat while the underlying economics get weaker. It defends the value of driver visibility without sounding academic. What…
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