what is fpa

FP&A stands for Financial Planning and Analysis. It is a set of planning, forecasting, budgeting, and analytical activities that support a companys major business decisions and overall financial health. FP&A professionals oversee a broad array of financial affairs, including income, expenses, taxes, capital expenditures, investments, and financial statements. The FP&A process is a continuous cycle of data collection and analysis, which includes planning, budgeting, forecasting, scenario modeling, and performance reporting. FP&A is not merely accounting, but accounting is foundational to the process. FP&A analysts typically use corporate FP&A software to combine financial data, operational data, and external data (like market trends) in one place, analyze it all, and uncover the in-depth insights they need to plan for the future and guide more profitable decision-making. The role of the FP&A professional is to connect senior management’s long-term “strategic plan” to reality by developing the operating and financial plan required to achieve management’s strategic plan.