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Hi, please help me getting 11❤ to unlock dm. Thanks!
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Rising Star
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).
This is super helpful. Thank you!!