SWTCH by Pigment
Three days of predictions, insights, and advice from leaders in finance, sales, HR, supply chain and more
Register now here
SWTCH by Pigment
Three days of predictions, insights, and advice from leaders in finance, sales, HR, supply chain and more
Register now here
By Kedar Kale, FP&A Manager at Hala
Every large organization in the world today, from Apple to P&G and from Ford to Goldman Sachs has a dedicated Financial Planning & Analysis team with bespectacled finance professionals claiming to be “more than mere accountants” or even “value-adding business partners”. What is FP&A and why has it become arguably the most important function in a company’s finance organization?
While Investment bankers may scoff at any acronym that ends with “&A” other than their all-too-glamorous “M&A”, the FP&A buzz has surely caught on within young finance students and professionals. FP&A Heads are being looked at as the CFO’s right hand and in many instances, their potential successors. What is it that FP&A professionals really do? Let’s try to demystify the buzz.
The work profile of FP&A Professionals can be divided into two broad components clearly indicated by the name – Planning & Analysis.
1. Financial Planning:
2. Financial Analysis:
An ever-increasing amount of analysis and insightful inputs are expected out of FP&A teams today. Let me categorize this broad analysis function into three heads –
a) Actual Performance vs Budget / Past Performance:
b) Real-time ad hoc analysis:
c) Other Value-adding analytics:
In conclusion, I would say, as businesses increasingly build FP&A capabilities and look to them for value-adding inputs, finance professionals too need to adapt to the new reality and move past the bean counting days to find out how the beans are grown and seeking ways to grow more! Only then will we be able to become true strategic business partners!
What ignited this article? I was talking with some upcoming college graduates from a similar background...
What does it take to become a good or even great FP&A professional?
The article describes...
Who is 2020 CFO? The CFO’s are now moving from accounting to accountability and not just for...
We will regularly update you on the latest trends and developments in FP&A. Take the opportunity to have articles written by finance thought leaders delivered directly to your inbox; watch compelling webinars; connect with like-minded professionals; and become a part of our global community.