Financial planning and analysis (FP&A) has four related areas of focus, according to Gartner: budgeting, integrated financial planning, forecasting, and management and financial performance reporting. Financial planning analysts carry out these activities.
The forecasts, performance reports and holistic view of the company’s finances provide essential insights for strategic planning and assessment of current processes. The insights from a financial planning analyst help a company define and manage risks, inform decisions, execute strategies and measure results.
FP&A professionals directly influence decision-making. They might report to top executives, like the chief financial officer. Here is a look at what a financial analyst does and how to become one.
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A financial planning analyst’s job duties vary depending on their employer’s industry and the organization of its finance department. That being said, many analysts are required to do the following:
FP&A professionals use accounting and analytics software to manage and analyze data and visualize it for presentation to company decision-makers.
Financial planning analysts need technical skills, an understanding of their company’s industry and structure, and soft skills, according to the U.S. Bureau of Labor Statistics (BLS).
In addition to the aforementioned skills, analysts need organizational skills and the ability to pay close attention to details and complete different detail-oriented tasks.
Financial planning and analysis professionals have specific responsibilities and work on different tasks and projects based on the needs of their employers. Here are some of the most common duties FP&A professionals have.
In many cases, FP&A teams compile reports based on their research, analysis, forecasts and findings.
Financial planning analysts provide holistic views of a company’s financial performance. Their budgets and forecasts affect other departments. As an analyst, you might need to work with the other departments.
For example, an FP&A specialist might work with the accounting department to ensure budgets are accurate and obtain input from the sales department to set reasonable benchmarks and track performance. If you’re interested in pursuing this role, here is a breakdown of the required education and skills.
Financial planning analysts have a significant influence over the financial plans and strategies of a company. Therefore, positions require a solid knowledge base that includes an understanding of business.
According to BLS, financial analyst entry-level positions require a bachelor’s degree in business or a related field, like finance or accounting. You might also consider an undergraduate program that includes a financial planning certificate.
In addition to business, financial planning analysts can choose to study accounting or finance. These two degrees offer different advantages: Accounting focuses more on budgeting and planning while finance focuses more on analytics and the financial aspect of business operations.
While most employers typically require a bachelor’s degree, BLS reports that some employers prefer candidates with a master’s degree. Though postgraduate degrees may not be necessary to obtain an analyst job, an MBA, along with experience and specialization, may be necessary to qualify for more senior positions.
A stand-alone financial planning certificate program can help you specialize in FP&A if you have a relevant degree. Industry certifications and licenses may be preferred or even required depending on the employer. BLS notes that a license is generally required to sell financial products. These licenses often require sponsorships by employers, meaning they will not be expected prior to being hired for a position. Industry certifications may also be preferred or required, but that is up to the employer.
Financial analysts earned an annual salary between $58,950 and $169,940 as of May 2021, according to BLS. Salary can vary depending on experience, industry, employer size, education and location. BLS projects the demand for qualified analysts to grow by an estimated 9% from 2021 to 2031.
Salary ranges are not specific to students or graduates of University of Phoenix. Actual outcomes vary based on multiple factors, including prior work experience, geographic location and other factors specific to the individual. University of Phoenix does not guarantee employment, salary level or career advancement. BLS data is geographically based. Information for a specific state/city can be researched on the BLS website.
BLS Occupational Employment Projections, 2021-2031 is published by the U.S. Bureau of Labor Statistics. This data reflects BLS’ projections of national (not local) conditions. These data points are not specific to University of Phoenix students or graduates.
If becoming a financial planning analyst sounds like the career path for you, UOPX can help. The University offers a Bachelor of Science in Business with a Financial Planning Certificate that teaches critical skills like strategic financial management and investment fundamentals.
UOPX can help you feel great about making your decision to start your degree. From fixed tuition to around-the-clock-support to opportunities to earn credit for work and life experience, UOPX offers ways to save time and money on your degree. To learn more, visit phoenix.edu. Here is a brief look at other relevant programs to consider if you’re interested in financial planning and business:
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