Data is everywhere, and it’s critical to FP&A's work. At an AFP Member Meet-Up, FP&A professionals shared how they’re using AI, large language models and automation to manage their data more efficiently.
A more accurate search query: The FP&A team at StreamlineClose needed to efficiently search and query their diverse data, so they implemented a Retrieval-Augmented Generation (RAG) tool. When searching a PDF, Word or Excel file, traditional keyword searches can be limited. Because RAG searches by meaning rather than keyword, you get much more accurate results.
Time series model to forecast sales: The FP&A team at Uline is using a time series model to forecast where their sales are going to end each day. They are manually feeding historical and recent data into the time series model in order to teach it over time the seasonality of their sales revenues.
The AFP Pinnacle Awards celebrate the very best and brightest in treasury and finance. Let us know about your idea that sparked change and helped your organization thrive. Submit your solution by July 12.
An effective chart or graph is more than just getting the numbers right. Many small decisions go into a chart, and they add up to have a big impact on your effectiveness as a finance professional in communicating the data.
Colors and shading: If applied consistently, color can add meaning to graphs and charts. Shading can be especially useful for FP&A professionals who often need to show the range of possible future expected cash flows from a project with considerable uncertainty.
Words to enhance meaning: Remember to include important details or assumptions that are driving the analysis. The audience may be unaware of the details they need to understand the graph fully.
Time is running out – take advantage of the opportunity to share your expertise, gain recognition and receive complimentary registration by leading a session at the 2025 AFP FP&A Forum. Session submissions are due July 19. Learn more.
It’s a question we’ve been noodling on lately. We want to hear your thoughts on it, whether they’re mild or spicy.
One perspective from Larry Maisel: “The question is, who needs it? What decisions are going to be made? What actions are going to be taken if you have a daily close? Maybe there’s a need in treasury where you have cash management issues or FX issues. But in other areas, what would you do if you had the information on a more frequent basis?”
What do you think?Share your perspective for a chance to be featured in a future AFP newsletter and on social media.
Capital budgeting is the process organizations use to evaluate whether or not to fund major projects or investments intended to increase cash flow or advance strategic objectives. It involves the planning and analysis of investment in long-term assets such as new or replacement machinery, new plants, products or R&D.
Why it matters:Because capital expenditures are large, irregular items, they receive a lot of scrutiny. The budgeting process needs to ensure efficient resource allocation to meet the long-term strategic plan within the defined risk tolerance.
FP&A’s role:FP&A is generally involved in supporting the creation of a business case that includes the strategic rationale, detailed valuation, operational risks, opportunity costs and various other factors.
