Financial Planning & Analysis within the corporate finance hierarchy:
Key FP&A Analyst Job Responsibilities:
Performs quantitative analysis of operational and financial data
Builds and manages financial databases by organizing and analyzing a wide range of data sources
Prepares financial reports for internal use at the company by collecting, analyzing, formatting, and presenting information
Evaluates new projects and investment opportunities by comparing them with each other
Values the company’s assets by appraising their current condition and useful life
Recommends financing structures (debt and equity) and considers the company’s cost of capital
Builds budgets and forecasts of future company performance
Builds and maintains a corporate financial model that details the entire company’s operations and projects future performance
Performs ad hoc analysis for executives as required
Financial planning and analysis (FP&A) is the budgeting, forecasting and analytical processes that support an organization's financial health and business strategy. The FP&A discipline combines in-depth analysis of both operational and financial data to help align business processes and strategies with financial goals, and to evaluate progress toward those goals. It relies heavily on statistical analysis to measure and plan business operations and forecast their financial impact, taking into account internal variables but also broader demographic and economic trends, as well as subjective, qualitative evaluation.
As companies increase investments in advanced analytics, CFOs and their FP&A leaders are well positioned to provide precise forecasts and actionable insights to support quick and accurate decision making.
Why are they important?
The FP&A role is fundamental to business success as it allows management to effectively manage cashflow, make the best use of capital and plan financially to ensure the organisations strategic goals can be met.
For publicly listed companies the FP&A role is particularly important. As well as allowing the organisation to accurately allocate resources, management teams often provide revenue and net income guidance to shareholders based on the analysis from the FP&A team which has a direct and immediate impact on a company's share price.
If you need any help in FP&A function or CFO Function for your organization,
Please contact us:
SMART CFO Services