Financial Planning and Analysis (FP&A)

While accounting focuses on recording what has happened, FP&A looks forward. Its teams build budgets and forecasts, track actual results against plans, explain variances and provide analysis that supports strategic decisions.

Typical FP&A work includes preparing the annual budget, updating forecasts during the year, building financial models for new projects, analysing the profitability of products or customers and preparing reports for senior management and the board.

For example, if a company is considering opening a new office, FP&A might model the expected costs and revenues, test different scenarios and recommend whether the investment makes financial sense.

FP&A acts as a bridge between finance and the rest of the business. It works with sales, operations, marketing and other teams to understand what drives performance, and translates their plans into financial terms. In many organisations, it is a key adviser to the chief financial officer and the chief executive.