Financial Planning and Analysis - Non-Transactional Services

Financial Planning and Analysis (FP&A) is an essential part of understanding the economics of a business, and its progression towards its desired growth and development. KROST provides management teams of such businesses the support they require with data driven analysis to help them create and utilize forecasts and budgets that allow data driven management decisions for forward looking plans.

Budgets

  • FP&A begins with an assessment of historical financial condition and trends. KROST works with management to assess potential material future changes related to local industry and market conditions to create a meaningful budget that reflects anticipated operations and capital expenditure. At the conclusion of each budgetary period, KROST performs a comparative analysis of the budget to actuals and works with management to understand the underlying reasons for material deviations and workshop solutions.

Forecasting and Sensitivity Analysis

  • KROST uses historical and current quantitative and qualitative data to identify trends which will be used to create a model of projected financial conditions for future periods based on a set of revenue and expense parameters. This includes modeling using what-if analysis to determine how different values of independent variables - for example – future pricing of a key component cost of a manufacturing process – affect dependent variables. Financial forecasts are a useful tool for making internal management decisions but are also often requested as part of the due-diligence process in buy-side and sell-side M&A transactions.
  • In addition to P&L forecasting, the KROST team can also assist with cash flow forecasting to model estimates of the operating, investing, and financing uses and sources of cash for a period of time.

Reporting and Analytics

  • Standard month-end financial reports often just scratch the surface of the details and don’t provide enough information for management to make strategic decisions. KROST works with companies and management teams to create management use financial reporting including budget to actual comparisons, financial forecasts and analysis of relevant key performance indicators to help provide a more comprehensive picture with which to make financial decisions.