A Step-by-Step Guide to How To Become an FP&A Analyst
A successful FP&A analyst takes part in commercial acumen, accounting knowledge, and trend forecasting. It’s a mission-critical finance job. It sits in the engine room of any enterprise’s accounting department. It is situated between the departments that make company decisions more forward-thinking. These include strategic business development and investments.
In some respects, developing a career in FP&A parallels that of an accountant. The raw skill sets, financial knowledge, and further education required are similar. Yet, you can do a few things to better prepare yourself for a career as an FP&A analyst that will stand you in excellent stead.
Please visit our job description page to find out more about the day-to-day responsibilities of an FP&A analyst.
Step 1: Understand the Pressures of the Role
Our article emphasizes the importance of passion and knowledge in financial systems. It’s about becoming an accountant. It also highlights the significance of understanding market dynamics, math, statistics, and finance. This is vital for considering a career as an FP&A analyst.
Yet, the crucial differentiator for an FP&A is your ability to forecast financials. You must also conduct risk assessments and work closely with non-financial departments. You also prepare documentation to support future financial decisions. Experts need a financial talent to translate economic jargon for decision-makers. They must make it easy to understand. They must be financially astute and confident communicators.
Step 2: Consider Your Work Experience and Education Beyond the University
To be an effective FP&A, it takes more than savvy budget balancing. It’s equally important to understand the people behind the broader decisions. Consider how your reporting will impact future financial health and company prosperity. Consider this in the context of non-financial matters.
We mention in our FP&A Analyst Qualifications article that to enter an FPAC/FP&A course programme, you must have a bachelor’s or equivalent degree. You can also apply if you are enrolled in an undergraduate programme. Your major must be finance-related, such as finance, accounting, economics, or business.
Work experience is vital in understanding end-user relevance—the human element of the role. It also helps you understand how business decision-makers use the data and information you collect. Finance looks very different from a spreadsheet. FP&As must also be aware of many other factors. These factors include industry trends and socio-economic changes. Additionally, they must consider sustainability and ESG (environmental, social, and governance) goals.
Step 3: What Happens Next?
FP&A analysts can use the skills learned in an FP&A role to step into positions of authority in a wide range of financial and non-financial specialties. Understanding how you want your next career stage to look is vital. It ensures you target your work experience and skill development in the right way.
FP&A analysts can use their skills to pivot away from finance completely. For example, they can enter business and strategic management. They can also move into specialist, high-impact roles, such as investments or CFOs. FP&As can expect to be highly sought-after talent and will be paid well. Their mix of financial skills and market knowledge makes them a rare and necessary business asset.
Find out more about life as an FP&A analyst and other details by following the below links:
Search Jobs to find out about the FP&A job roles we currently have available.
On the hunt for your next role? Upload your CV below and we’ll be in touch to discuss your requirements.
For employers seeking the right skills and cultural fit for your business, send us your vacancy to find out more about how we can help.Submit CV Send Us Your Vacancy