Companies are investing in more Financial Planning & Analysis roles so if you don't know what exactly they do, this explainer will help you out.
Financial Planning and Analysis (FP&A) is the process of forecasting business performance that informs the decisions taken by company executives. FP&A teams gather, transform and analyze financial and business data to paint a clear picture of the current and future state of the company.
FP&A is more short-term monthly planning alongside budget owners. Strategic finance focuses on longer term growth and development alongside the company C-suite.
As companies grow in size and complexity, FP&A and strategic finance tend to split. At smaller companies, specific FP&A roles don't exist, with tasks handled by a general financial analyst.
Roles with FP&A in their title often report to the CFO or FP&A Director. Strategic finance can sometimes fall under the strategy team managing the company's BizDev.
A FP&A Manager has 6-9 years of work experience before landing a senior role, while a Director level takes up to 12. This varies by company size where reaching a senior level cold take less time.
Landing a senior FP&A role usually requires prior experience in forecasting & people planning. However, those that come from accounting or corporate finance often have the expertise to take on the role immediately.
The average FPA& manager salary in three of the largest tech hubs are similar. The difference lies in the range, where West Coast US has a larger gap, while the United Kingdom is much closer with a lower top-end.
Download the full FP&A Senior Profile infographic here.
FP&A roles are increasingly becoming more valuable in today's corporate environment. Need to hire one? This infographic breaks down what's behind a FP&A Manager or Director at growing SaaS firms.
Learn more about FP&A here
FP&A has evolved. Finance automation and collaboration are now also key for other departments to understand how operational decisions affect financial results. This means turning to xP&A.
In scaling companies, FP&A and Accounting Managers may be run by the same person, but the two essentially have very different responsibilites. Here, we break down the differences between each one.