Articles
FP&A Needs to Step Out of Accounting’s Shadow
Last year, AFP announced the formation of its APAC FP&A Advisory Council (FPAAC). The networking and advisory group meets three to four times a year to discuss best practices, common challenges and innovative initiatives in the Asia-Pacific region. We’ll be profiling individual members of the council every month. This month we spoke with Danny Shiu, FPAC, CTP, MOS.
Last year, AFP announced the formation of its APAC FP&A Advisory Council (FPAAC). The networking and advisory group meets three to four times a year to discuss best practices, common challenges and innovative initiatives in the Asia-Pacific region. We’ll be profiling individual members of the council every month. This month we spoke with Danny Shiu, FPAC, CTP, MOS.
04/28/2021
Virtual Accounts: A Solution for All?
For treasurers, attaining visibility to, and control of, cash is a critical objective. Although today’s technology makes achieving that objective easier than ever before, it does require companies to know how best to deploy the various solutions and innovations that are available.
For treasurers, attaining visibility to, and control of, cash is a critical objective. Although today’s technology makes achieving that objective easier than ever before, it does require companies to know how best to deploy the various solutions and innovations that are available.
04/27/2021
Four Practices to Create a Culture of Intentional Learning
The latest buzzword in many companies today is “intentional learning.” Any employee has the ability to be an intentional learner — someone who makes a deliberate effort to refresh and upgrade their skill sets. However, that investment in learning must start with leaders of an organization.
The latest buzzword in many companies today is “intentional learning.” Any employee has the ability to be an intentional learner — someone who makes a deliberate effort to refresh and upgrade their skill sets. However, that investment in learning must start with leaders of an organization.
04/27/2021
Two Critical Mindsets for Intentional Learning and the Career Advantage
Why are intentional learners at a higher career advantage than most in the professional world? It is because intentional learners are continually in an unconscious, reflexive mindset — one at which they operate at all times to improve their skills. Anyone can unlock intentionality in their lives by simply adjusting two critical mindsets: growth and curiosity.
Why are intentional learners at a higher career advantage than most in the professional world? It is because intentional learners are continually in an unconscious, reflexive mindset — one at which they operate at all times to improve their skills. Anyone can unlock intentionality in their lives by simply adjusting two critical mindsets: growth and curiosity.
04/27/2021
Transitioning from Accountancy to FP&A
FP&A professionals are helping organisations better understand economic and business trends, identify opportunities, and anticipate obstacles and potential treats. This has led the finance function to spend less time on basic budgeting and reporting responsibilities and relying on its FP&A teams to focus more on data analysis and recommendations to drive future growth.
FP&A professionals are helping organisations better understand economic and business trends, identify opportunities, and anticipate obstacles and potential treats. This has led the finance function to spend less time on basic budgeting and reporting responsibilities and relying on its FP&A teams to focus more on data analysis and recommendations to drive future growth.
04/20/2021
AFP 2021: Searching for New Solutions in the Payments Landscape
AFP recently caught up with Susan Glass, CTP, member of AFP 2021 Payments Task Force, to discuss what the task force has planned for the payments track, and what she is personally most looking forward to about attending AFP 2021.
AFP recently caught up with Susan Glass, CTP, member of AFP 2021 Payments Task Force, to discuss what the task force has planned for the payments track, and what she is personally most looking forward to about attending AFP 2021.
04/19/2021
AFP FinNext Asia: Intensive Learning Customized for FP&A in the Asia-Pacific Region
The future of the FP&A profession is expanding around the world, particularly in the Asia-Pacific (APAC) region. The Association for Financial Professionals created AFP FinNext Asia – a complimentary conference event in partnership with FP&A Trends – to bring customized, exclusive content for FP&A practitioners in the APAC region.
The future of the FP&A profession is expanding around the world, particularly in the Asia-Pacific (APAC) region. The Association for Financial Professionals created AFP FinNext Asia – a complimentary conference event in partnership with FP&A Trends – to bring customized, exclusive content for FP&A practitioners in the APAC region.
04/19/2021
Coming in 2022: Same-Day ACH Limit Increases to $1 Million
The National Automated Clearing House Association (Nacha) approved to increase the Same Day ACH per-transaction limit to $1 million, effective March 18, 2022.
The National Automated Clearing House Association (Nacha) approved to increase the Same Day ACH per-transaction limit to $1 million, effective March 18, 2022.
04/15/2021
Three Pillars for Reimagining Data Strategy
According to KPMG, while CFOs agree that data-driven insights are critical to better decision-making, 84% of CFOs do not trust their company’s data. As a result, 66% of CFOs admit to using their gut instincts over data-driven insights when making strategic decisions.
According to KPMG, while CFOs agree that data-driven insights are critical to better decision-making, 84% of CFOs do not trust their company’s data. As a result, 66% of CFOs admit to using their gut instincts over data-driven insights when making strategic decisions.
04/12/2021
Why You Need to Take Unclaimed Property Seriously
Almost all organizations hold property that technically belongs to someone else from time to time. Most of the time possession of that property, whether funds or goods, is usually transferred successfully to the owner in the normal course of business. Sometimes, however, checks remain uncashed or customer deposits are not translated into full sales, resulting in organizations holding unclaimed property.
Almost all organizations hold property that technically belongs to someone else from time to time. Most of the time possession of that property, whether funds or goods, is usually transferred successfully to the owner in the normal course of business. Sometimes, however, checks remain uncashed or customer deposits are not translated into full sales, resulting in organizations holding unclaimed property.
04/12/2021
Aspiring Business Partner: FP&A is Falling Short of CFO Expectations
CFOs and finance teams have recognized the need to transform FP&A for some time. Yet despite years of redesigning processes and investing in new technologies, many have not achieved their expected results. Our experience working with CFOs and finance groups reveals five challenges companies encounter when trying to transform their FP&A.
CFOs and finance teams have recognized the need to transform FP&A for some time. Yet despite years of redesigning processes and investing in new technologies, many have not achieved their expected results. Our experience working with CFOs and finance groups reveals five challenges companies encounter when trying to transform their FP&A.
04/07/2021
CTP: The Shifting Landscape of Treasury
AFP recently caught up with Aziz Samji, CTP, senior consultant of Capital Markets and Corporate Liquidity at Financial National Information Services Inc., to discuss his decision to earn the CTP, and how it has affected his life and career journey.
AFP recently caught up with Aziz Samji, CTP, senior consultant of Capital Markets and Corporate Liquidity at Financial National Information Services Inc., to discuss his decision to earn the CTP, and how it has affected his life and career journey.
04/05/2021
Federal Reserve Panel Discussion on Libor Transition Concludes, We Need Standardization Fast
The Alternative Reference Rates Committee (ARRC) recently hosted the first in a series of webinars regarding the Libor transition. The SOFR Symposium: The Final Year, focused on progress in transitioning away from Libor, and on areas such as the loan market where progress has been slower.
The Alternative Reference Rates Committee (ARRC) recently hosted the first in a series of webinars regarding the Libor transition. The SOFR Symposium: The Final Year, focused on progress in transitioning away from Libor, and on areas such as the loan market where progress has been slower.
03/30/2021
5 Questions for Kayla Davis on Becoming the Head of M&A
Kayla Davis’ new role as vice president of mergers and acquisitions at ABM Industries, a leader in the facility management space and a Fortune 500 company, has provided her with a fresh perspective. The newest member of AFP’s North American FP&A Advisory Council and the AFP 2021 Planning Task Force, read about Davis' background and how FP&A plays a role in planning.
Kayla Davis’ new role as vice president of mergers and acquisitions at ABM Industries, a leader in the facility management space and a Fortune 500 company, has provided her with a fresh perspective. The newest member of AFP’s North American FP&A Advisory Council and the AFP 2021 Planning Task Force, read about Davis' background and how FP&A plays a role in planning.
03/30/2021
Embracing Multiple Points of View: A Probabilistic Approach to Forecasting
People often trust precise forecasts more than vague forecasts because precision is associated with knowledge and expertise. But what if data science and analytics trap organizations in a deductive approach to planning and managing the business?
People often trust precise forecasts more than vague forecasts because precision is associated with knowledge and expertise. But what if data science and analytics trap organizations in a deductive approach to planning and managing the business?
03/30/2021
Implementation of the ‘X’ Factor in Your Organization
Last year, Gartner coined the term xP&A, proclaiming that it is the natural evolution of planning. The aim of xP&A is to apply FP&A tools to any department within the organization that produces business plans, and layer in automated forecasting, thereby increasing the velocity of forecasting and simultaneously deriving forecasts from teams that are close to information sources.
Last year, Gartner coined the term xP&A, proclaiming that it is the natural evolution of planning. The aim of xP&A is to apply FP&A tools to any department within the organization that produces business plans, and layer in automated forecasting, thereby increasing the velocity of forecasting and simultaneously deriving forecasts from teams that are close to information sources.
03/25/2021
Five Core Skills for Intentional Learning and the Career Advantage
For intentional learners, learning is not work. It does not require extra effort. Instead, it is unconscious, reflexive – a mindset from which they operate all the time. In today’s world, where all professionals are expected to refresh and upgrade their skill set on an ongoing basis, intentional learners have the career advantage. Fortunately, we all have the ability to become intentional learners.
For intentional learners, learning is not work. It does not require extra effort. Instead, it is unconscious, reflexive – a mindset from which they operate all the time. In today’s world, where all professionals are expected to refresh and upgrade their skill set on an ongoing basis, intentional learners have the career advantage. Fortunately, we all have the ability to become intentional learners.
03/22/2021
How Virtual Accounts Create Efficiency
With organizations more focused on cash than ever before, finance is under pressure to operate as efficiently as possible. Making best use of the available technology is naturally seen as one way to do so. In an environment in which there is constant innovation, with different fintech companies promoting their individual solutions, it can be difficult for finance professionals to identify the best technology for their organization.
With organizations more focused on cash than ever before, finance is under pressure to operate as efficiently as possible. Making best use of the available technology is naturally seen as one way to do so. In an environment in which there is constant innovation, with different fintech companies promoting their individual solutions, it can be difficult for finance professionals to identify the best technology for their organization.
03/22/2021
Nine Rules to Manage Performance Metrics: Tips from FP&A Experts
Anything with a number has a measure, but a metric drives a business decision. How do organizations use metrics to drive the right business decisions, and how do they manage the proliferation of metrics when we have the capacity to measure and store everything? In today’s shifting financial environment, companies need to ensure their metrics guide the best outcomes – outcomes that align with the organization’s goals.
Anything with a number has a measure, but a metric drives a business decision. How do organizations use metrics to drive the right business decisions, and how do they manage the proliferation of metrics when we have the capacity to measure and store everything? In today’s shifting financial environment, companies need to ensure their metrics guide the best outcomes – outcomes that align with the organization’s goals.
03/22/2021
Implementing AI to Automate Cash Forecasting – Highlights, Challenges and Benefits
Despite it being the top buzzword in technology today, there is still a lot of confusion about artificial intelligence (AI). In simple terms, artificial intelligence is an umbrella term for approximately a dozen related technologies all attempting to gain insights from analyzing data or performing tasks based on data that aren’t ideally suited to humans. They include machine learning, deep learning, and robotic process automation.
Despite it being the top buzzword in technology today, there is still a lot of confusion about artificial intelligence (AI). In simple terms, artificial intelligence is an umbrella term for approximately a dozen related technologies all attempting to gain insights from analyzing data or performing tasks based on data that aren’t ideally suited to humans. They include machine learning, deep learning, and robotic process automation.
03/17/2021
RTP Rides Payment Trends But Faces Hurdles
Market demand is pointing today’s payment rails toward immediate payments. Although The Clearing House’s RTP Network is furthest along that path and picking up speed, it faces a major challenge, as well as a future competitor.
Market demand is pointing today’s payment rails toward immediate payments. Although The Clearing House’s RTP Network is furthest along that path and picking up speed, it faces a major challenge, as well as a future competitor.
03/16/2021
CTP: Growing Our Understanding of Treasury Across the Region
A global symbol of excellence, the Certified Treasury Professional (CTP) designation sets the standard in the treasury profession. Earning the CTP signifies that you have demonstrated the knowledge and skills required to effectively execute critical functions related to corporate liquidity, capital and risk management. AFP recently caught up with Marcell Wiradinata, CTP, a manager of treasury in East Java, Indonesia, to discuss his decision to earn the CTP, and how it has affected his life and career journey.
A global symbol of excellence, the Certified Treasury Professional (CTP) designation sets the standard in the treasury profession. Earning the CTP signifies that you have demonstrated the knowledge and skills required to effectively execute critical functions related to corporate liquidity, capital and risk management. AFP recently caught up with Marcell Wiradinata, CTP, a manager of treasury in East Java, Indonesia, to discuss his decision to earn the CTP, and how it has affected his life and career journey.
03/16/2021
FP&A Indicator: Outlook Brightens on Spending Growth
AFP has launched the FP&A Indicator, a quarterly survey designed to take the pulse of the business community as seen from the point of view of the FP&A department. The survey was developed by members of the AFP FP&A Advisory Council.
AFP has launched the FP&A Indicator, a quarterly survey designed to take the pulse of the business community as seen from the point of view of the FP&A department. The survey was developed by members of the AFP FP&A Advisory Council.
03/15/2021
FP&A: Developing Bold, Externally Focused, Curious and Business-Minded Finance Professionals
Last year, AFP announced the formation of its APAC FP&A Advisory Council (FPAAC). The networking and advisory group meets three to four times a year to discuss best practices, common challenges and innovative initiatives in the Asia-Pacific region. We’ll be profiling individual members of the council every month. This month we spoke with Weng Hong Yong, FPAC, executive director, City Mental Health Alliance.
Last year, AFP announced the formation of its APAC FP&A Advisory Council (FPAAC). The networking and advisory group meets three to four times a year to discuss best practices, common challenges and innovative initiatives in the Asia-Pacific region. We’ll be profiling individual members of the council every month. This month we spoke with Weng Hong Yong, FPAC, executive director, City Mental Health Alliance.
03/15/2021
FCA Makes Clear the End of USD Libor With Announcement of Set Dates
Two dates have become critical in the face of Friday’s announcement from the Financial Conduct Authority (FCA). The following are the dates that panel bank submissions for all Libor settings will cease, after which representative Libor rates will no longer be available.
Two dates have become critical in the face of Friday’s announcement from the Financial Conduct Authority (FCA). The following are the dates that panel bank submissions for all Libor settings will cease, after which representative Libor rates will no longer be available.
03/09/2021
AFP FinNext 2021 Virtual: Discover the Future of FP&A with Top Industry Experts
Finance is a constantly changing, unpredictable environment. It’s crucial that financial planning and analysis (FP&A) professionals stay on top of the latest trends in the industry, and one way to ensure they perform at their peak is to gather fresh and innovative ideas.
Finance is a constantly changing, unpredictable environment. It’s crucial that financial planning and analysis (FP&A) professionals stay on top of the latest trends in the industry, and one way to ensure they perform at their peak is to gather fresh and innovative ideas.
03/09/2021
Tips for Harnessing the Power of Digital Body Language
While remote collaboration and digital learning can be successful in the COVID-19 era, it can also be challenging to understand tone, body language and other non-verbal cues that provide meaningful context to communication. Even before the pandemic, virtual communication was prevalent with emails and conference calls.
While remote collaboration and digital learning can be successful in the COVID-19 era, it can also be challenging to understand tone, body language and other non-verbal cues that provide meaningful context to communication. Even before the pandemic, virtual communication was prevalent with emails and conference calls.
03/03/2021
Building Actionable Resilience: The Real Options Approach
All organizations have some amount of resilience, the ability to mobilize resources to absorb negative impacts. Forward-thinking organizations will plan their resilience in advance, perhaps even making investments in “contingent capabilities,” responses that activate only in specific circumstances to carry the organization through the risk impact and back to normal performance.
All organizations have some amount of resilience, the ability to mobilize resources to absorb negative impacts. Forward-thinking organizations will plan their resilience in advance, perhaps even making investments in “contingent capabilities,” responses that activate only in specific circumstances to carry the organization through the risk impact and back to normal performance.
03/02/2021
Many Firms, Banks Still Slow to Adopt Cybersecurity Preparedness into Scorecards
As cybercrime has increased in volume and intensity, many organizations have come to rely on cybersecurity scorecards to help evaluate the security preparedness of both themselves and the third-party firms they have relations with. Obviously, that includes banks and financial institutions.
As cybercrime has increased in volume and intensity, many organizations have come to rely on cybersecurity scorecards to help evaluate the security preparedness of both themselves and the third-party firms they have relations with. Obviously, that includes banks and financial institutions.
03/01/2021
RTP Accelerates Network Expansion to Regional Banks
Spreading its coverage, the RTP network — the real-time payment system from The Clearing House (TCH) — now reaches 57% of U.S. demand-deposit accounts (DDAs), including those at regional and community banks, at a time when immediate payments have become increasingly important.
Spreading its coverage, the RTP network — the real-time payment system from The Clearing House (TCH) — now reaches 57% of U.S. demand-deposit accounts (DDAs), including those at regional and community banks, at a time when immediate payments have become increasingly important.
03/01/2021
The Importance of Good Communication Skills in the Finance Profession, Especially Now
AFP recently caught up with John Sanchez, communication consultant with The FPA Group, and upcoming instructor of the AFP FinNext 2021 Virtual pre-conference workshop, Communicating Effectively in an Age of Disruption, to get his take on the current state of communication in the finance profession — and what we can do to improve.
AFP recently caught up with John Sanchez, communication consultant with The FPA Group, and upcoming instructor of the AFP FinNext 2021 Virtual pre-conference workshop, Communicating Effectively in an Age of Disruption, to get his take on the current state of communication in the finance profession — and what we can do to improve.
03/01/2021
AFP Participation in International Roundtable Provides Members with a Voice on a Global Stage
The Association for Financial Professionals’ (AFP) director of Treasury and Payments Services, Tom Hunt, recently participated in the Financial Stability Board’s (FSB) Virtual Roundtable on Libor Transition and Benchmark Reforms. In attendance were 58 finance executives representing approximately 15 countries and the European Union. The president of the FSB, John Williams, CEO of the NY Fed, and Andrew Bailey, governor, Bank of England, ran the roundtable. The AFP was the largest U.S. treasury association in attendance.
The Association for Financial Professionals’ (AFP) director of Treasury and Payments Services, Tom Hunt, recently participated in the Financial Stability Board’s (FSB) Virtual Roundtable on Libor Transition and Benchmark Reforms. In attendance were 58 finance executives representing approximately 15 countries and the European Union. The president of the FSB, John Williams, CEO of the NY Fed, and Andrew Bailey, governor, Bank of England, ran the roundtable. The AFP was the largest U.S. treasury association in attendance.
02/23/2021
Scenario Planning with Steve Player
Scenario planning addresses the key question: What do we do? It enables you to respond to changes that cause your existing plans and forecast to be radically revised in order to deal with a new and different operating environment requiring rapid response. Examples of this could include events that radically change the demand for services, such as the COVID-19 pandemic, or the emergence of new business models that create disruption such as Airbnb, Lyft, or Uber.
Scenario planning addresses the key question: What do we do? It enables you to respond to changes that cause your existing plans and forecast to be radically revised in order to deal with a new and different operating environment requiring rapid response. Examples of this could include events that radically change the demand for services, such as the COVID-19 pandemic, or the emergence of new business models that create disruption such as Airbnb, Lyft, or Uber.
02/22/2021
FP&A: Sustainability Practices and Talent Development
Last year, AFP announced the formation of its APAC FP&A Advisory Council (FPAAC). The networking and advisory group meets three to four times a year to discuss best practices, common challenges and innovative initiatives in the Asia-Pacific region. We’ll be profiling individual members of the council every month. This month we spoke with Keyur Shah, senior finance director, FP&A COE, APAC, Johnson & Johnson.
Last year, AFP announced the formation of its APAC FP&A Advisory Council (FPAAC). The networking and advisory group meets three to four times a year to discuss best practices, common challenges and innovative initiatives in the Asia-Pacific region. We’ll be profiling individual members of the council every month. This month we spoke with Keyur Shah, senior finance director, FP&A COE, APAC, Johnson & Johnson.
02/22/2021
Treasury Pros Must Get Data-Proficient to Remain Relevant, Competitive
Treasury professionals have been told for years that the keys to career success are to know the business, to embrace technology, and to master so-called soft, or people, skills. But an entire new set of skills has been added to the must-have list, all centered on data management, data analytics and software automation.
Treasury professionals have been told for years that the keys to career success are to know the business, to embrace technology, and to master so-called soft, or people, skills. But an entire new set of skills has been added to the must-have list, all centered on data management, data analytics and software automation.
02/16/2021
ARRC Issues SOFR Recommendations for Intercompany Loans
In its ongoing effort to facilitate the transition to a new benchmark for floating-rate financial transactions, the Alternative Reference Rates committee (ARRC) recently recommended a method for using the secured overnight funding rate (SOFR) for intercompany loans. Treasury executives should discuss the language and how to address the issue most effectively with colleagues across their companies’ finance departments, if they haven’t already.
In its ongoing effort to facilitate the transition to a new benchmark for floating-rate financial transactions, the Alternative Reference Rates committee (ARRC) recently recommended a method for using the secured overnight funding rate (SOFR) for intercompany loans. Treasury executives should discuss the language and how to address the issue most effectively with colleagues across their companies’ finance departments, if they haven’t already.
02/16/2021
Nacha Mulls Same-Day ACH Limit Increases to $1 Million and Above
After receiving enthusiastic responses to last year's same-day ACH limit increase, the National Automated Clearing House Association (Nacha) has proposed layering in major limit increases over the next three years that would enable corporates to speed up a wide variety of debits and credits.
After receiving enthusiastic responses to last year's same-day ACH limit increase, the National Automated Clearing House Association (Nacha) has proposed layering in major limit increases over the next three years that would enable corporates to speed up a wide variety of debits and credits.
02/08/2021
Negotiating Bank Fees: Two Strategies Share Upfront Approach
“Do not hesitate to ask your banks for information about their fees — and even ways to lower them. They’ll respect you for it.” This was the advice imparted by experts leading an AFP 2020 Virtual Experience session addressing strategies to ensure fees are competitive and how to reduce them.
“Do not hesitate to ask your banks for information about their fees — and even ways to lower them. They’ll respect you for it.” This was the advice imparted by experts leading an AFP 2020 Virtual Experience session addressing strategies to ensure fees are competitive and how to reduce them.
02/02/2021
Even with the Extension, Corporates Struggle with Libor Transition
Support for Libor was set to end after 2021, but in November, the benchmark’s administrator proposed an 18-month extension to complete the array of complexities to transition legacy transactions. While the extension will give market participants more time to transition legacy transactions to a replacement reference rate, regulators still want new loans to reference a replacement starting in 2021, requiring significant business and operational issues to be addressed while many corporates are still in the early stages of the transition.
Support for Libor was set to end after 2021, but in November, the benchmark’s administrator proposed an 18-month extension to complete the array of complexities to transition legacy transactions. While the extension will give market participants more time to transition legacy transactions to a replacement reference rate, regulators still want new loans to reference a replacement starting in 2021, requiring significant business and operational issues to be addressed while many corporates are still in the early stages of the transition.
02/01/2021
Six Ways Scenario Planning Stretches Organizational Vision
FP&A’s response to a world of changing information and uncertainty is to maintain multiple points of view. We need to incorporate intelligence quickly (rapid reforecasting), remain focused on long-term strategy, and stretch the organizational mindset for the possibility of varied future outcomes, aka scenario planning.
FP&A’s response to a world of changing information and uncertainty is to maintain multiple points of view. We need to incorporate intelligence quickly (rapid reforecasting), remain focused on long-term strategy, and stretch the organizational mindset for the possibility of varied future outcomes, aka scenario planning.
02/01/2021
