FP&A is the sexiest job in finance… While this may seem like an overstatement, FP&A positions are becoming incredibly popular and sought-after.

Moving into FP&A from other fields of finance, such as accounting and audit, has recently become very trendy. Internet is full of advice, courses and trainings focused on this transition.

So, what is so special about the FP&A role that it attracts that much attention and has almost become a buzzword within the finance community?

Emerging FP&A practice steps out of the shadow of other finance functions as a standalone entity and involves its own mission, goals, organization, processes, tools and skills.

This article discusses typical activities and key responsibilities of the FP&A practitioners, the range of skills required to perform these tasks, common roles and career path of the FP&A professionals and how FP&A is distinguished of other finance functions and disciplines.

Many FP&A professionals have faced the misunderstanding of the role of the FP&A function and its core activities in the company. Unfortunately, the existence and support of some of the misperceptions create a negative image of FP&A practitioners in the eyes of their colleagues and make the profession less attractive from the standpoint of graduates and young specialists. For FP&A professionals it is critical to be aware of these misconceptions to address them as soon as possible.

From a strategic standpoint, FP&A capabilities to provide business insights and drive informed decision-making can become a source of competitive advantage for the company. That is the reason why many finance and FP&A leaders are taking the steps to transform their functions.

This article describes the FP&A maturity assessment model focused on major tasks of the function and built around 3 key areas – processes, tools/systems and people.

Many finance and FP&A leaders are now facing transformational projects trying to find the future shape of the FP&A organization. Comparing FP&A performance metrics (qualitative and quantitative) against the peers and best practices can be very useful when assessing the current state of FP&A, creating a vision of the future state, finding the ways to enhance existing capabilities and identifying opportunities for improvement.