How can FP&A teams influence their organizations earnings reports when it comes to things like investor relations?
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CFO in Finance (non-banking)a year ago
Typically investor relations go to FP&A to understand the story because they are the ones telling the narrative, working with the CFO. The data is generally coming from FP&A, so they need to really understand the data so that when Investor Relations has a question, they can help walk them through it. Make sure they understand and it’s clear because the last thing you want to do is share something with investors that is not correct or doesn't accurately reflect the story. FP&A people need to be crisp and consistent because there are often challenges with data and the methodology. If you're not careful with your words, there could be a change to what you're saying the next quarter because somebody did the analysis differently. The need for FP&A to be consistent with the story and aid investor relations is true regardless of whether it is investors in general or ESG investing.Principal in Finance (non-banking)8 months ago
FP&A plays a vital role in earning reports and calls. Often earnings calls will be held with the CFO or other senior financial leadership. They explain to journalists and equity analysts what happened in the company, both from an ops and financial perspective. The people who know this best are often FP&A.Director of Finance7 months ago
Financial Reporting is highly summarized and many investors just need the story behind the numbers and any changes to the planned or forecasted earnings. Financial Planning & Analysis teams often have the detail of how the previous plan was constructed and what contributing factors to come or just passed in actuals have impacted earnings. The ability to deep dive into transaction detail in the moment to identify a specific accounting impact, vendor or customer transaction or macro factor like a currency or interest rate is essential to building investor confidence and showing FP&A bench strength.