The Distinctive Skillsets of Treasury and FP&A Professionals (2024)

FAQs

The Distinctive Skillsets of Treasury and FP&A Professionals? ›

Treasury professionals are the guardians of a company's liquidity and financial stability, focusing on cash management, risk mitigation, and banking relationships. FP&A professionals, meanwhile, are the strategists and analysts, driving financial planning, performance analysis, and strategic decision support.

At the heart of the FP&A Analyst role lies a deep understanding of financial principles and the ability to perform complex analyses. This skill set includes proficiency in budgeting, forecasting, and variance analysis, as well as the capability to interpret financial statements and extract actionable insights.

“FP&A typically looks at historical scenarios to predict future needs and treasury typically forecasts the needs for future state.”

FP&A leaders need to be able to listen to their team, understand their goals, and provide direction and guidance. They also need to be able to create a productive and positive work environment. In order to do this, FP&A leaders need to have excellent communication and interpersonal skills.

FP&A professionals in general oversee a wide array of financial affairs that include financial statements, capital expenditures, expenses and taxes etc. financial analysts in particular are tasked with evaluating, examining and analyzing a corporation's financial activities and mapping its financial future.

Directors of FP&A must now excel in advanced data analytics and predictive modeling to drive strategic insights. Proficiency in digital tools, such as ERP and BI software, is essential for efficient financial planning. They should also be skilled in scenario planning and stress testing to navigate economic volatility.

FP&A is part of a larger ecosystem of corporate finance that can include accounting, treasury, financial reporting, tax, and governance, risk, and compliance.

Becoming a Treasury Analyst can be a good career choice for individuals who have an interest in finance, enjoy working with financial data, and have strong analytical and communication skills.

The main difference between the two roles is that an FP&A analyst focuses more on planning and forecasting, while a financial analyst focuses more on analyzing past data to inform present and future investment decisions.

Is FP&A hard to break into? ›

Breaking into the field of FP&A can be challenging, especially for those without prior experience. FP&A roles are highly analytical and require a solid understanding of finance, accounting, and business operations.

FP&A Team FAQs

As the company matures, the team can go from a group of analytical generalists reporting to the VP of Finance to specialized FP&A managers focused on different business units to, finally, a hierarchy of FP&A analysts reporting to specialized FP&A managers who all report to a VP of FP&A.

Good financial analysts often bring to the table good project management skills, such as leadership, cost and time management, the ability to delegate, communication skills — and overall problem-solving skills.

While you don't need to have CPA for an FP&A role, it will make you more competitive when applying compared to other applicants who may not have one. In addition, there are many courses that provide FP&A certification that can help improve your finance skills as well as provide an advantage over the competition.

FP&A isn't strictly an accounting role, although it's closely related to the field. FP&A focuses more on future financial planning and strategic analysis, helping businesses forecast revenues and expenditures, and make strategic business decisions.

To make your FP&A Analyst CV stand out, highlight your analytical skills, proficiency in financial modeling, and experience with forecasting and budgeting. Quantify your achievements, such as cost savings or revenue increases you've driven.

However, if we were asked to summarize a “common” FP&A career path, it would looks something like this: Get an undergraduate degree in accounting, spend 1-3 years in public accounting (big 4) or in accounting/finance at a Fortune 500, get an MBA and then get hired as a Senior FP&A Analyst at a Fortune 1000.

A Financial Planning & Analysis (FP&A) expert is essentially in charge of all business forecasting. They provide analysis in decision-making in all matters operational, financial, and strategic. A strong candidate combines a strong analytical mindset with technical ability and excellent people skills.