Deflytics: Streamline Financial Planning and Analysis by Moving Beyond Excel

Mumbai, Maharashtra Aug 30, 2024  – Spreadsheets are the go-to tool for finance professionals in various industries, as Deflytics Consulting has observed in its 55+ projects. Whether it’s budgeting, planning, variance analysis, forecasting, or scenario modeling, spreadsheets are the default choice for FP&A professionals.

However, as organizations grow and become more complex, spreadsheets become cumbersome and challenging to manage. Some of the key limitations include:

• No multi-dimensional analysis – Spreadsheets are inherently two-dimensional, making it difficult to analyze multiple dimensions simultaneously. Adding a third dimension often requires creating additional tabs, which can be inefficient.
• Calculations and assumption set-up – Creating macros, formulas, and linking them across sheets can be tedious. Different definitions, rules, and logic may be needed for various segments or functions within the organization. Mistakes or inconsistencies can lead to inaccurate results.
• Multiple versions – Financial planning and analysis often involve creating multiple versions of a process. For example, annual operating plans often require 10+ revisions before finalization, and the same applies to forecasting. Comparing these versions and tracking changes can be challenging, potentially leading to missing important updates.
• Tedious “What-if” Scenario Planning – While spreadsheets can be used for scenario analysis, analyzing multiple parameters together can become cumbersome.
• Predictive Analytics – Machine learning-driven predictive analytics can enhance forecast accuracy, but spreadsheets lack this capability.
• Difficult to integrate source data – ERP data is essential for comparing actuals with budget and forecasts. Importing, manipulating, and transforming this data can consume more than 60% of a financial analyst’s time, leading to extended monthly close cycles and time-consuming ad-hoc analysis.
• Limited data security, access control, and Audit-trail – Spreadsheets can be easily shared, but they lack audit trails and robust access control mechanisms.
• Cannot have workflow and process Automation – Most FP&A processes involve timelines and cross-team collaboration. While spreadsheets have improved, they cannot embed processes, tasks, and timelines effectively.
• Person-dependency – When a person who created macros and formulas leaves, recreating and maintaining the spreadsheets can be extremely difficult.

Modern, new-age solutions address these spreadsheet drawbacks by offering speed, collaboration, scalability, and robust analytical capabilities. These solutions can help organizations improve their planning cycles, decision-making, and accuracy with their Financial Planning & Analysis services.