How can organizations enhance performance management through a robust FP&A and cost accounting framework?
Objective: Ensure reliable, automated and structured financial reporting, key performance indicators, and performance monitoring
1
Definition of value-driven key performance indicators, and performance measures
2
Review and enhancement of financial reporting to focus on truly value-creating data
3
Optimization of the budgeting process (budgeting, rolling forecast)
4
Profitability analysis (by client, product, channel, etc.)
5
Implementation of cost accounting system (cost centers, analytical dimensions)
Case study 1:
FP&A Framework in industrial sector
As part of strengthening managerial decisions within the high-technology division of a manufacturing company, the objective was to design and implement a P&L for an activity. This new structure aimed to give management clearer visibility on performance, improve margin analysis, and provide a reliable basis for pricing, budgeting, and operational decisions.
Approach & Strategic Actions:
A complete P&L structure was developed from revenue to net profit, allowing detailed margin analysis by product line. Hourly rates and cost allocation keys were created to reflect operational activities and support pricing and budget planning. An internal reporting package combining actuals and forecasts was also implemented to improve management decision-making. Finally, the team was guided in setting up analytical accounting in the ERP, enabling autonomous production of variance and cost analyses through strong collaboration between Finance, IT, and Operations.
Results & Impact:
Reliable managerial reporting was established for both public and industrial stakeholders, improving the quality and speed of decision-making. As a result, the FP&A team gained full autonomy and was able to produce all analyses and reports internally by the end of the project. Regulatory compliance also improved, with financial statements validated by external auditors without any findings, particularly regarding inventory valuation.
At a glance
Built reliable management reporting, improving the speed and quality of decision-making
Increased FP&A team autonomy, with all analyses produced internally by project end
Strengthened regulatory compliance, with financial statements validated without audit findings
Case study 2:
Cost transparency in public sector
Support was provided to a public healthcare institution to build a cost transparency and reporting framework required by the cantonal authorities. The objective was to give a clear view of the full cost of services delivered to the population, meet strict regulatory reporting requirements, and provide management with better visibility to support funding discussions and resource allocation.
Approach & Strategic Actions:
A comprehensive FP&A framework was first established to calculate the full cost of services delivered to the population. Work was then carried out with the ERP vendor to automate data flows and add the analytical dimensions needed for service costing. In parallel, standardized financial reports were designed to meet both regulatory and board requirements, and an allocation model for staff, consumables, and indirect costs was defined in line with available policies.
Results & Impact:
Transparency was also strengthened by meeting cantonal and federal reporting standards, and full cost visibility was achieved for all medical, administrative, and support services, enabling data-driven funding discussions with the cantonal authorities.
At a glance
Built a comprehensive FP&A framework to calculate the full cost of public healthcare services
Automated data flows in the ERP to improve service costing
Designed standardized financial reports meeting both regulatory and board requirements
Achieved full cost transparency across all services, enabling data-driven funding discussions with cantonal authorities
