Knowledge Library · Component
FP&A
What it is
Budgeting, forecasting, and analysis — the work that turns raw numbers into forward-looking decisions. Often called FP&A (Financial Planning & Analysis).
Why it matters
Accounting tells you what already happened. FP&A tells you what is likely to happen next and what to do about it — connecting the finances to the strategy of the business.
What makes it work
- A realistic budget tied to how the business actually operates
- Regular comparison of actual results against the plan
- Analysis that explains the 'why' behind the differences
- Forecasts that are updated as conditions change