FP&A

<table><tbody><tr><td><a href="/facts/Financial_analyst/mlBpFFja">FP&A tasks and activities</a></td></tr><tr><td><ul><li><a href="/facts/Business_analytics/LWwPNm7n">Business analytics</a></li><li><a href="/facts/Capital_budgeting/YRvRMxu7">Capital budgeting</a></li><li><a href="/facts/Cash_flow_forecasting/FjsuvRYK">Cash flow forecasting</a></li><li><a href="/facts/Corporate_budget/5wR3hBvM">Corporate budgeting</a></li><li><a href="/facts/Decision_support_system/HPeJMlRM">Decision support</a></li><li><a href="/facts/Financial_analysis/0IlR6hXf">Financial analysis</a></li><li><a href="/facts/Financial_forecast/HkhTaEFs">Financial forecasting</a></li><li><a href="/facts/Financial_modeling/Qhk0pV2W">Financial modeling</a></li><li><a href="/facts/Financial_plan/QD8Wah0B">Financial planning</a></li><li><a href="/facts/Predictive_analytics/tbqzk5qe">Predictive analytics</a></li><li><a href="/facts/Financial_risk_management/sXAcYTh9">Risk management</a></li><li><a href="/facts/Scenario_planning/SHMWDWGv">Scenario analytics</a></li><li><a href="/facts/Working_capital_management/ugQCsFBQ">Working capital management</a></li></ul></td></tr></tbody></table>
<p>Financial planning and analysis (FP&A), in accounting and business, refers to the various integrated <a href="/facts/Financial_planning/QD8Wah0B">planning</a>, <a href="/facts/Financial_analysis/0IlR6hXf">analysis</a>, and <a href="/facts/Financial_modeling/Qhk0pV2W">modeling</a> activities aimed <a href="/facts/Decision_support/HPeJMlRM">at supporting</a> <a href="/facts/Corporate_finance/ugQCsFBQ">financial decisioning</a> and management 
<a href="/facts/Chief_financial_officer/MUJ9Cggg">in the wider organization</a>.

See <a href="/facts/Financial_analyst/mlBpFFja">Financial analyst § Financial planning and analysis</a> for outline, and aside articles for further detail. 
In larger companies, "FP&A" will run as a dedicated area or team, under an "FP&A Manager" reporting to the <a href="/facts/CFO/MUJ9Cggg">CFO</a>.

</p><p>FP&A is distinct from <a href="/facts/Financial_management/ACb2httF">financial management</a> and (<a href="/facts/Management_accounting/Dg3TjFdy">management</a>) <a href="/facts/Accounting/sHznDY3V">accounting</a> in that it is oriented, additionally, towards <a href="/facts/Business_performance_management/XDGvyHoe">business performance management</a>, and, further, encompasses both <a href="/facts/Qualitative_research/po7v42yR">qualitative</a> and <a href="/facts/Quantitative_analysis_(finance)/ozNLKatW">quantitative analysis</a>. 
This positioning allows management—<a href="/facts/Business_partnering/k54bRTq1">in partnership</a> with FP&A—to preemptively address issues relating, e.g., to <a href="/facts/Revenue_management/EsK8PodN">customers</a> and <a href="/facts/Operations_management/jTNFINl1">operations</a>, as well as the <a href="/facts/Financial_management/ACb2httF">more traditional business-finance problems</a>.
Relatedly, although <a href="/facts/Corporate_budget/5wR3hBvM">Budgeting</a> and <a href="/facts/Financial_forecast/HkhTaEFs">Forecasting</a> are typically done at specific times in the year—and correspondingly cover specific time periods—FP&A, by contrast, has a wider brief re both horizon and content. 
"FP&A Analysts" thus play an important role in every (major) decision by the company—ranging in scope from changes in headcount to <a href="/facts/Mergers_and_acquisitions/YfczSf3M">mergers and acquisitions</a>.

</p><p>Over the years, FP&A's role has evolved, facilitated by technological advances. 
During its early years, 1960s to 1980s, FP&A focused on more traditional forecasting and <a href="/facts/Financial_analysis/0IlR6hXf">financial analysis</a>; relying on <a href="/facts/Spreadsheets/0cvc1GeB">spreadsheets</a>, mainly <a href="/facts/Excel/Ezal6G75">Excel</a>, but in earlier years, <a href="/facts/Lotus_1-2-3/tnkvSG3M">Lotus 1-2-3</a> (and <a href="/facts/VisiCalc/6xnHrMKp">VisiCalc</a>). 
From the 1980s to the early 2000s, the scope shifted to <a href="/facts/Financial_risk_modeling/sP9jXmtw">risk</a>, <a href="/facts/Scenario_analysis/SHMWDWGv">scenario</a>, and <a href="/facts/Sensitivity_analysis/X9x3WAnK">sensitivity analysis</a>; utilizing <a href="/facts/Business_intelligence/ftThn7Wf">business intelligence</a> and <a href="/facts/Financial_modeling/Qhk0pV2W">financial modeling</a> <a href="/facts/Business_software/wjJ6Gm4G">software</a>, such as <a href="/facts/Cognos/a43DtVVr">Cognos</a>, <a href="/facts/Hyperion_Solutions/prmIln5M">Hyperion</a>, and <a href="/facts/BusinessObjects/HA9aKr02">BusinessObjects</a>. 
From 2000s to present, the emphasis is increasingly on <a href="/facts/Predictive_analytics/tbqzk5qe">predictive analytics</a>; tools include <a href="/facts/Cloud_computing/guhg0FGV">cloud-based platforms</a> and analytics packages, i.e. <a href="/facts/Amazon_Web_Services/UFVN2796">Amazon Web Services</a> and <a href="/facts/Microsoft_Azure/CCnIHTHd">Microsoft Azure</a>, and  <a href="/facts/SAS_(software)/7y2ulIMX">SAS</a>, <a href="/facts/KNIME/232lez5G">KNIME</a>,  <a href="/facts/R_(programming_language)/LSrkr8K8">R</a>, and <a href="/facts/Python_(programming_language)/YbuGqofa">Python</a>. 
More recently,  <a href="/facts/Business_software/wjJ6Gm4G">specialized software</a> 
— which increasingly  employs <a href="/facts/Artificial_intelligence/lJGauQwX">AI</a> / <a href="/facts/Machine_learning/e0w0XJTu">ML</a> 
— is available <a href="/facts/Commercial_off-the-shelf/3VxTJYc6">commercially</a>. Products here are from <a href="/facts/Jedox/Vn0QrIcz">Jedox</a>, <a href="/facts/Anaplan/h18zQglv">Anaplan</a>, <a href="/facts/Workday%2c_Inc./crJUeswK">Workday</a>, <a href="/facts/Hyperion_Solutions/prmIln5M">Hyperion</a>, <a href="/facts/Wolters_Kluwer/dlp5j9Jr">Wolters Kluwer</a>, Datarails, <a href="/facts/Workiva/3mlMUYYs">Workiva</a> and others.
</p>

FP&A open-in-new

FP&A