What is an FP&A job?
FP&A stands for Financial Planning and Analysis, and it is a position that involves analyzing financial data to help businesses make informed decisions. People in this role are responsible for forecasting, budgeting, and financial reporting. They work with other departments to provide financial analysis, and they help senior management understand the financial implications of their decisions.
What usually do in this position?
FP&A professionals typically spend a lot of time analyzing financial data. They may gather data from various sources, such as financial statements, market reports, and internal databases. They use this data to create financial models and forecasts, and they provide insights into the financial health of the company. They also work with other departments to develop budgets and financial plans, and they monitor the company's progress against those plans.
Top 5 skills for this position
- Financial analysis: FP&A professionals must be able to analyze financial data and provide insights into the company's financial performance.
- Budgeting and forecasting: They must be able to create accurate budgets and forecasts based on financial data and market trends.
- Communication: They must be able to communicate financial data and insights to other departments and senior management.
- Attention to detail: They must be meticulous in their analysis and reporting, as small errors can have significant financial implications.
- Business acumen: They must have a strong understanding of the business and industry in which they work, as well as the broader economic landscape.
How to become an FP&A specialist
To become an FP&A specialist, you typically need a bachelor's degree in finance, accounting, or a related field. Many employers also prefer candidates with a master's degree in finance or business administration. It's also essential to have experience in financial analysis and budgeting, which you can gain through internships or entry-level positions.
Professional certifications, such as the Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA) designation, can also be beneficial. These certifications demonstrate your expertise in financial planning and analysis and can help you stand out in a competitive job market.
Average salary
The average salary for an FP&A professional in the United States is around $85,000 per year. However, salaries can vary widely based on factors such as experience, education, and location. Senior-level professionals with years of experience and advanced degrees can earn six-figure salaries.
Roles and types
There are many different roles within the FP&A field, including financial analyst, budget analyst, and financial planning manager. Some companies also have specialized roles, such as capital planning analyst or treasury analyst.
In addition to traditional corporate roles, there are also FP&A opportunities in non-profit organizations, government agencies, and consulting firms. These positions may focus on financial planning and analysis for specific industries or sectors, such as healthcare or energy.
Locations with the most popular FP&A jobs in the USA
Some of the top locations for FP&A jobs in the United States include New York City, San Francisco, Chicago, and Houston. These cities are home to many large corporations and financial institutions, which often have extensive FP&A departments.
What are the typical tools
FP&A professionals use a variety of tools to analyze financial data and create forecasts. Some of the most common tools include Microsoft Excel, financial modeling software, and enterprise resource planning (ERP) systems. They may also use data visualization tools to create charts and graphs that help communicate financial insights to other departments.
In conclusion
FP&A jobs are an essential part of any organization, as they provide valuable insights into the company's financial health and help guide decision-making. To be successful in this field, you need to have strong analytical skills, attention to detail, and excellent communication abilities. While salaries can vary widely, the average compensation for FP&A professionals is competitive, and there are many opportunities for advancement and specialization within the field.