Fake It Until You Make It: Professionalizing FP&A Reporting for Growing Companies

Whether you're a portfolio company or an ambitious startup looking to attract investment or get acquired, one thing is clear: robust financial reporting can make or break your chances. But what if you don't have a sophisticated FP&A (Financial Planning & Analysis) function or even the three classic financial statements (Income Statement, Balance Sheet, and Cash Flow Statement)?

Don’t worry; you’re not alone! Here’s how you can start 'faking it until you make it'—but in a way that builds real credibility:

1. Use Tools Wisely: While spreadsheets are a great starting point, investing in a dedicated FP&A solution can significantly enhance your financial reporting capabilities. By automating data collection and reporting, you reduce manual effort and minimize errors. More importantly, these tools provide a polished and comprehensive presentation of your financial data, making your company more attractive to potential acquirers.
2. Start Simple, Think Big: You don’t need a complex financial model right away. Start with a basic P&L statement and cash flow projection. These will help you understand your current financial position and future outlook. Begin with what you need today, but ensure that your FP&A solution can scale as your reporting requirements and business expand.
3. Focus on Key Metrics: Investors and acquirers are interested in seeing how well your company performs against key indicators. Your FP&A software should make it easy to identify, track, and report on the KPIs that matter most to your business. With automated updates and clear visuals, you’ll always have the right data at your fingertips to impress potential partners.
4. Tell Your Financial Story: Numbers alone don’t tell the whole story. With customizable dashboards and narrative tools, your FP&A solution helps you present your financial data in a compelling way that aligns with your business strategy and market potential. This storytelling approach can significantly enhance your appeal to investors and acquirers, who want to understand both the numbers and the vision behind them.
5. Seek Expert Advice: Whether you need help getting started or advice on best practices, do not hesitate to bring in a consultant or even a fractional CFO. An outside perspective can be invaluable. Your FP&A solution should come with the support of experienced professionals who can help you set up and optimize your financial reporting.

By taking these steps, you can start building the foundation for professional FP&A reporting, making your company more attractive to investors or acquirers. Remember, it’s all about showing you have control over your finances—even if you’re still figuring things out.

Ready to fake it until you make it? Let's connect and share insights on how to get there!

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