How to Integrate Existing In-House FP&A Processes
We advise how best to blend in-house and outsourced processes to create the best overall FP&A system. Normally, there will always be some degree of FP&A processes ran in house, so technically speaking all of our FP&A systems are hybrid systems. At DHAC we are comfortable with a wide range of reliance on in-house systems, and encourage our clients to:
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Keep their in-house FP&A systems that are working well
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Change those that are not
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Continuously add new systems where/when they add value
Although blending in-house FP&A systems with DHAC's system usually appears seamless, the methods in which we accomplish this are summarized below:
Method 1
Treating the Output of an In-house System as an Input to the Outsourced System
The objectives, views, and highlights are presented as usual, but in the highlights it mentions that a client staff member will further explain the view relying on an in-house system.
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In this case, the data presented is in-scope of the FP&A process, but in-house systems are used to further explain the balances or variances in question, similar to adding speaker notes.
Method 2
Keeping Summarized Data in the Outsourced System and Detailed Data in the In-house System
The second method is similar to the first, except that more data will be presented by the client at the review meeting using an in-house system.
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In this case, DHAC still presents the view as usual using summarized data, however during the meeting we provide a placeholder for the client staff to present the more detailed findings using the in-house system.
Method 3
Scoping out Objectives or Views to be Ran by the In-House System
For the third method, the FP&A objective is merely stated in the reporting package, or may not be mentioned at all. There is no data collected related to this objective and no views are prepared by DHAC. The highlights may mention that a client staff member will be presenting this objective.
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In this case, the objective is entirely out of scope of the FP&A process, except for a placeholder stating that a client staff member will present the findings of the in-house system at the review meeting.
It should also be mentioned that the reporting package and review meeting does not have to included all FP&A activities. In-house FP&A processes can be ran entirely separate from the outsourced FP&A processes and not presented during the review meeting.
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An example would be a separate meeting not attended by DHAC, to present detailed revenue information, and only summarized revenue information presented during the review meeting.
Method 4
Scoping out Other FP&A Processes to be Ran by the In-House System
Although not shown in the reporting package, it should also be mentioned that the reporting package and review meeting does not have to included all FP&A activities. FP&A process can be ran entirely separate from the outsourced FP&A process and not presented during the review meeting.
An example would be a separate meeting not attended by DHAC, to present detailed revenue information, and only summarized revenue information presented during the review meeting.