Updated: Jan 23, 2021
Financial planning has always been an important factor in the success of businesses on a global scale. As companies experience growth and diversify their spending, while acquiring additional cost centers, the concept of converting from traditional, simplistic financial planning to enterprise financial planning arises.
So, how is Enterprise Financial Planning (EFP) defined and does it only apply to "enterprise" level corporations.
The answer, in short, is both yes and no.
EFP can be defined as a system or process of managing financial data that spans across various departments and divisions of a company with the intent of furthering the company's growth.
From finance to sales, to marketing, to IT - and even operations, as a business grows, so does the complexity of its over all financial spend and the need to plan for said spending in a responsible and accurate way.
Enterprise Financial Planning doesn't only take financial data into account - it also takes the data that impacts financial decision-making into account as well.
This helps companies appropriately forecast products and services required for future time periods and helps department heads understand just how much of X an Y they'll require to ensure they've hit their goals.
Large or small, every business needs to plan for their enterprise's future.
Importance of Having Transparent Data to Help with Enterprise Financial Planning
Companies that seek to be successful must have transparent data to ensure the accuracy of their planning and projections. This can be difficult to acquire at times due to many companies leveraging multiple data systems to draft financial planning documents and plans.
Integrating HR programs with other platforms like Salesforce and general Excel spreadsheets can be arduous without the right unified financial planning platform solution.
Transparent, unified data is essential for decision makers to possess in order to make accurate predictions about where a company is headed, financially.
This data also can be leveraged to show the strengths and weaknesses of existing operations, such as if a department is ordering more raw materials than needed or if it makes more sense to invest in other products that are in greater demand.
Transparent data is also essential to have on hand when an organization faces risk mitigation, demanding accurate decision-making, quickly and effectively.
Stella Financial Services Helps Companies Ensure Data Availability and Improve Forecasting
Considering the importance of data availability, transparency and accuracy, and also understanding the definition of enterprise resource planning, decision makers in corporations have an ever greater challenge when considering how to properly utilize EFP when they need to most.
Many companies either lack the financial experts to conduct proper financial planning exercises or simply don't feel confident in the accuracy of their data due to manual entry errors or simple data availability.
Stella Financial Services is an enterprise financial planning as-a-service provider that offers both products and services to help companies unify data and design best-in-class forecasting models.
Stella supports the needs of decision makers by helping meet corporate expectations by leveraging multi-departmental data. Stella can also isolate data to ensure that only designated decision makers and data aggregators can input and access information relevant to their responsibilities.
All of this is completed by leveraging the Stella platform to unify data while working with Stella's expert financial advisors to create the best data models for your company.
Our team wants to discuss your company's goals for enterprise financial planning and help you understand how to improve your data and create solutions that accelerate your company's growth and empower your teams.