Financial planning and analysis (FP&A) is the process of compiling and analyzing an organization's long-term financial strategy.
In addition to creating an organization's extended financial plan, FP&A departments also generate management reports, analyze financial trends, calculate the monetary effects of potential business decisions and advise company leaders.
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FP&A departments use a variety of tools to do their jobs. These include corporate performance management software, budgeting, planning and forecasting software, core financial management systems and ERP platforms. FP&A employees usually report to the chief financial officer.