Here’s a very important question for you: Have you ever looked up from your numbers and wondered what it would be like to shape the financial future of a company, rather than just minding its past?
If you're an accountant feeling the itch for a more strategic role, transitioning into Financial Planning and Analysis (FP&A) might be your next big move.
No, one role is not more important than the other. We need both to guarantee the success of a company.
While accounting provides a solid foundation in finance, FP&A takes it a step further by focusing on forecasting, budgeting, and guiding business decisions.
So why not having the best of both worlds?
Many of the skills you've honed as an accountant are directly transferable - and highly valued - in FP&A roles. You just need to value yourself better!
Understanding the FP&A role
So, what exactly does an FP&A professional do?
In simple terms, they analyze financial data to help businesses plan for the future. But a good FP&A professional is involved in so much more than that. Unlike accounting, which looks at historical data to ensure accurate reporting, FP&A is forward-looking. They are the ones that hold the past, present and future in their hands, or within their analysis. Where the company has been, where it’s standing now and where it’s going.
Think of accounting as reading a company's autobiography, while FP&A is helping to write its next chapter. Both are crucial, but FP&A allows you to be part of the storytelling process, influencing where the company goes next.
However, it’s not hard to find professionals that call themselves FP&A and are unable to hone the past storyline to drive the narrative into the future. These are professionals that are not familiar with the intricacies of accounting. They cannot interpret the past well.
Sabrinthia Donnelly
Transferable skills from accounting to FP&A
As an accountant, you've already got a toolkit shining with valuable skills:
Financial acumen
Understanding the financial statements is critical. FP&A professionals need to know how to interpret income statements, balance sheets, and cash flow statements, knowing well their connections and understanding the impact of every transaction in each of the statements. They need to understand the plot where the company finds itself, in order to write the future chapters.
Attention to detail
Spotting discrepancies and ensuring accuracy are second nature to you. This precision is vital when developing forecasts and budgets that the company will rely on.
Analytical skills
You've spent countless hours analyzing numbers to understand what they mean. In FP&A, you'll dive even deeper, looking for trends and insights that can inform strategic decisions.
Technical proficiency
Familiarity with financial software and Excel is a must. Your experience with accounting systems can give you a leg up when learning FP&A tools like Hyperion or SAP.
Bridging the knowledge gap
While many skills overlap, FP&A does require a few additional competencies:
Strategic thinking
Start by getting involved in strategic discussions at your current job. Offer to help with budgeting processes or financial modeling projects. You will find that many patterns from the past repeat themselves into the budget. That’s where your knowledge is invaluable.
Advanced analytics
Consider taking courses in data analysis or business analytics. Financial modeling can serve as a great bridge between accounting and FP&A. When you learn how to model projections based on historical financial results you are exponentially increasing the value of your experience.
Communication skills
FP&A roles often involve presenting findings to non-financial stakeholders. Practice simplifying complex financial concepts. Understand and learn to explain scenarios. Start working on the storyline, beginning in the past (accounting and building up in the future (projections and FP&A)
Networking can also play a significant role. Join professional groups, attend industry conferences, or find a mentor already working in FP&A. These connections can provide insights and open doors.
Sabrinthia Donnelly
Leveraging past experience
When updating your resume, highlight projects where you've done more than just number-crunching. Accountants are usually involved in multiple projects in the company, whether for contributing with solutions or just booking journal entries.
Did you contribute to cost-saving initiatives? Were you involved in budgeting processes?
Use specific metrics to showcase your impact, like "Implemented a new reconciliation process that reduced closing time by 20%." Even if you were just booking journal entries, making sure you understood the impact of your entries will give you some insights on how to demonstrate that participation in the project. Give yourself some credit.
In interviews, be prepared to tell your story. Explain why you're passionate about moving into FP&A and how your accounting background makes you uniquely qualified. Employers appreciate candidates who are self-aware and driven.
Addressing challenges
Switching careers isn't without its hurdles. You might face skepticism about your lack of direct FP&A experience. Counter this by emphasizing your willingness to learn and adapt. Share examples of how you've successfully taken on new challenges in the past.
Remember, every professional faces learning curves when making a transition. Transitioning from accounting to FP&A can be a natural progression for many finance professionals. Your accounting experience has given you a strong foundation; now it's about building on it to take a more strategic role in shaping a company's future. You will be a very complete professional if you understand how to make this leap smoothly.
I hope you're ready to move from recording history to making it. I’m sure you have more qualifications already than the most experienced FP&A professionals, so start taking those steps today. Seek out opportunities, invest in learning, and don't underestimate the value you already bring to the table. I’m cheering for you!!
Make the career change easier with FP&A Certified: Core
Learn to forecast, budget and turn complex data into insights that drive profitable business growth.
Our FP&A course is your gateway to mastering the skills and know-how needed to drive strategic business growth with the power of FP&A. This course is your comprehensive guide to mastering FP&A, including insights, case studies, and practical templates you won't find elsewhere.
So, if you want to make a big change to your career, you know where to start...
