This is a continuation of my earlier post, The Purpose of Business Modeling, and is meant to illustrate the FP&A process at a high level.
Start with building a model that accurately represents the business. It should highlight the key levers (independent and dependent) and key output metrics.
Develop a forecast based on the model. Commit to top line targets for a given month, quarter, and/or year.
Build budgets based on the forecast on a department level - S&M, R&D, G&A. These include details on spend and headcount.
Collect actuals at the end of the period. Compare actuals to forecast.
Refine model based on actuals. This is done with respect to the ratios that drive the model outputs and business function/model mechanics as they map to the business operation.