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FP&A is more than just number-crunching. It evolved because businesses needed a forward-looking, analytical function that traditional accounting couldn't provide. In this post, we'll explore how FP&A emerged as a distinct discipline, what FP&A teams do, the challenges they face, and how they're meeting those challenges with best practices and new tools. Whether you're new to the concept or a seasoned finance professional, this overview will clarify why FP&A is crucial in modern organizations.

Financial consolidation is essential for combining financial statements from multiple subsidiaries into one cohesive set. This blog explains the methods, benefits, and challenges of consolidation, such as enhancing transparency, improving decision-making, and ensuring accurate reporting.

The indirect method for cash flow statements adjusts net income for non-cash items and working capital changes to determine operating cash flow. It's preferred for its simplicity, using data from existing financial statements. Key adjustments include depreciation, non-operating items, and changes in current assets and liabilities.