Financial planning & analysis
What is covered
Financial Planning and Analysis (FP&A) is a critical function within a company where bankers focus on analyzing business performance and supporting strategic decision-making. While the work can be demanding, especially during budgeting cycles or major corporate initiatives, the appeal lies in the direct impact on company strategy and resource allocation. FP&A professionals are responsible for building financial models, forecasting results, and providing insights that guide investment, operational, and capital decisions. At larger organizations, their analyses can influence major business units, product launches, or capital projects, shaping the company’s trajectory. This is a fast-paced, analytical environment where success is measured by accuracy, insight, and the ability to drive informed decisions, offering the opportunity to develop strong financial judgment and a deep understanding of business operations.
What do FP&A analysts do?
Financial Planning and Analysis (FP&A) is a corporate finance function responsible for budgeting, forecasting, financial reporting, and decision support within a company. The primary goal of FP&A is to provide management with insights and analysis that inform strategic, operational, and investment decisions.
FP&A professionals translate historical financial data into actionable guidance, monitor business performance, and help shape long-term plans to ensure the company meets its financial objectives. The function sits at the intersection of accounting, corporate strategy, and operations, and plays a critical role in resource allocation, performance measurement, and capital planning.
FP&A is often divided into several sub-functions or responsibilities. Budgeting and forecasting involves preparing annual budgets and periodic forecasts that project revenue, expenses, cash flow, and capital needs. Management reporting includes creating internal reports, dashboards, and variance analyses to compare actual results against budgets or forecasts.
Financial modeling and scenario analysis is used to evaluate the impact of business decisions, potential investments, pricing changes, or market shifts. Strategic analysis and decision support entails partnering with business units to assess project economics, support M&A or investment initiatives, and provide recommendations based on financial insights.
Some FP&A teams also focus on performance management, identifying key performance indicators (KPIs), monitoring trends, and recommending corrective actions.
FP&A hierarchy
The hierarchy within FP&A is generally structured into analysts, senior analysts, managers, directors, and vice presidents, with some larger organizations including a chief financial officer or head of FP&A at the top.
Analyst (1-3 years in role)
Associate
(3-7 years in role)
Director
(7-12 years in role)
MD
12+ years
Intern (1> year in role)
Analyst
Analysts are responsible for day-to-day financial reporting, building and maintaining models, tracking business performance, and supporting budgeting and forecasting processes. Analysts often prepare presentations for management and help interpret results, providing explanations for variances and trends. This role develops technical skills in Excel, financial modeling, and accounting principles.
Associates
Senior analysts or associates take on more complex analysis, manage portions of the reporting cycle, and often act as liaisons between FP&A and business units. They provide deeper insights, create scenario models for management decisions, and may mentor junior staff. Senior Analysts are expected to identify trends, highlight risks or opportunities, and contribute meaningfully to strategic planning.
Interns
Interns may also rotate through FP&A teams, typically during summer programs, to support basic analysis and reporting. Interns assist with data collection, preparing reports, updating models, and learning the business. Their work is evaluated based on accuracy, attention to detail, analytical ability, and adaptability.
Managers / Directors
Managers and Directors oversee teams of analysts and are responsible for ensuring timely and accurate reporting, leading budgeting and forecasting cycles, and guiding analysis for strategic decisions. They collaborate closely with department heads and senior executives, presenting actionable insights and recommendations to influence business direction.
Head of FP&A
Heads of FP&A are responsible for the overall financial planning and analysis function. They manage teams, define FP&A strategy, oversee complex modeling and analysis for strategic initiatives, and ensure alignment between financial plans and corporate objectives. Senior leadership often works directly with the CFO, supporting high-level decisions on capital allocation, investments, and growth strategies.
Salary ranges (USD)
FP&A Compensation Ranges (U.S. Averages)
Total Annual Compensation = Base Salary + Bonus
Compensation
Intern (Summer) $8K – $15K
Analyst $65K – $95K
Senior Analyst / Associate $85K – $130K
Manager / Director $120K – $200K
Vice President / Head of FP&A $180K – $300K+
Compensation typically increases with seniority, with base salaries rising steadily and bonuses tied to company performance, individual contribution, and business results. FP&A careers offer opportunities to develop analytical, strategic, and business leadership skills, and senior roles often lead to executive positions in finance or corporate management.