Considering going into FP&A because I hear a lot of people like it.... I haven't done much with it so trying to figure out if I'd like it or not. Is it like managerial or cost accounting classes in college? Or similar to finance classes in college (vs accounting classes)? Or anything to compare it to? I've done engagement economics analysis and budget to actual and enjoyed that, but not sure if that's even remotely similar? What's your experience been?

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FP&A can be confusing because it's a mix of all the things you mentioned. And on top of that, the majority of people who talk about it have never worked in FP&A and think it's just budgets/forecasts.

- Is it like cost accounting? Yes, sometimes. Especially if you work in manufacturing. You'll use it in forecasts/budgets.

- Is it like finance classes in college? Yes, when you work on strategic finance projects. I recently did an NPV/IRR analysis and built a cash flow model.

- Economics? Sure, some. I'm doing a project now where we're launching a new product due to changing consumer demands and macroeconomic changes in the industry.

So...what is FP&A? There are two main components. The breakdown just depends on company. Maybe it's 50/50, maybe it's 70/30. The interview will provide clarity.
1. Budgets/forecasts, which are routine and occur every month
2. Strategic finance projects, which are ad-hoc and can literally be anything like new product release, changing suppliers, seeking out cheaper materials, new marketing campaign, factory production efficiency, etc.

It's a lot of financial modeling and visualization tools (PPT, Tableau, etc).

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This is super helpful. Thank you!!

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