The short answer is, yes, all companies have FP&A functions. Even single-owner businesses have FP&A functions. After all, FP&A stands for “financial planning and analysis.” Establishing a successful business without performing some degree of financial planning and analysis is nearly impossible.
Cash flow is the fuel for any growing business and the lifeblood for those in distress. Monitoring cash flow and related balances is an absolute necessity for any company that doesn’t just want to stay in business – but wants to turnaround, revitalize and thrive.
Accounting is responsible for tasks such as handling and closing the books, reconciling transactions, controllership, tracking assets, managing accounts payable and receivable, budgeting, and preparing taxes. Therefore, accountants need to have a record-keeping, transactional mindset.
There’s no question that modern technology is disrupting industries across the board. We’ve been living in a digital revolution for the last few decades, and the recent pandemic served as a catalyst for enhanced technological innovation and disruption.