Financial Planning & AnalysisFP&A
Also known as: FP&A, FPNA, Financial Planning and Analysis
Financial planning and analysis (FP&A) is the forward-looking side of the finance function. Where accounting records what has happened and closes the books, FP&A works out what is likely to happen next and what the business should do about it. Its core work is the annual budget, rolling forecasts, variance analysis (explaining why actual results differ from the plan), scenario modelling, and management reporting for the leadership team and the board.
FP&A also acts as a business partner to the rest of the company. An FP&A analyst or manager typically sits alongside a business unit, a product line or a cost centre, helps its leaders set targets and headcount plans, and challenges spending against the return it is expected to deliver. Senior FP&A roles run the planning calendar for the whole organisation and own the financial model that the CFO takes to the board. The function is changing as AI tools take over data gathering and reconciliation: planning is moving from an annual or monthly cycle towards continuous forecasting, and FP&A teams increasingly build their own models, automations and dashboards.
In Global Capability Centres, FP&A is one of the finance capabilities parent companies most often move to India, alongside record-to-report, payables and receivables. A GCC FP&A team may support the parent’s global planning cycle, run reporting for specific regions or business units, or own the financial model for the centre itself. As the centre matures, its FP&A leaders are often drawn into the business case for what work moves to India next, which makes the senior FP&A hire an important one for a growing GCC.
Frequently asked questions
What does FP&A stand for?
FP&A stands for financial planning and analysis. It is the part of the finance function that builds budgets and forecasts, analyses performance against plan, and supports leadership decisions with financial models and reporting.
What is the difference between FP&A and accounting?
Accounting records and reports what has already happened, closes the books and keeps the company compliant. FP&A looks forward, using those results to build budgets, forecasts and scenarios that help leaders decide what to do next.
What does an FP&A team do day to day?
An FP&A team updates forecasts, explains variances between plan and actual results, prepares management and board reporting, models scenarios such as new hiring or pricing changes, and works with business leaders on their budgets and headcount plans.
How is AI changing FP&A?
AI tools now pull and reconcile data across systems, which shortens the time spent preparing numbers. FP&A teams are moving towards continuous forecasting and live scenario modelling, and many now build their own automations and dashboards, a skill set sometimes described as a finance engineer.
Do GCCs in India run FP&A?
Yes. Many Global Capability Centres run FP&A work for their parent companies, from regional and business-unit reporting to support for the global planning cycle. Senior FP&A leaders in a GCC often help build the business case for the centre’s future scope.