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Rookie FP&A Mistakes

What's a rookie FP&A mistake?


Not connecting your forecast to actual results.


A forecast's primary purpose is not to impress an investor...


It is a tool to help you run your business.


This can stem from:


1️⃣ A forecast created by a guru that's too complex for a team to manage after they're gone

2️⃣ A forecast that is not mapped to the chart of accounts

3️⃣ Bad or muddy actuals - not enough granularity in the results data


What's the solution?


Ensure your forecast and actuals are apples : apples...

and that the forecast is manageable by the people who will be using it.


Look at your forecast as a tool - if it's not useful, fix it.


If your forecast has channels, but your actuals are only recorded at the account level, you can't look at budget-to-actual variances by channel.


If things are too complex, SIMPLIFY.


You can always add more complexity later.


Usefulness > Fanciness

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