FP&A
Also known as: Financial Planning and Analysis
Definition
FP&A is the finance function that converts operating plans into forecasts, budgets, board reporting, variance analysis, and management decisions. In scaling technology companies, FP&A is the bridge between growth ambition and cash, margin, and capacity reality.
FP&A should steer decisions, not only explain what happened. The function is strongest when it owns definitions, forecast cadence, variance logic, and management reporting.
When FP&A is weak, every board meeting starts by debating the numbers instead of making decisions.
Related terms
- Board Pack — The recurring board reporting package that turns operating metrics, financials, risks, and decisions into one governance view.
- Forecast Accuracy — The degree to which sales, revenue, cash, or delivery forecasts match actual results. It is a trust metric for boards and buyers.
- Office of the CFO — The finance operating system around reporting, forecasting, board cadence, unit economics, cash, systems, and decision support.
Where this gets applied
- Revenue Architecture — ICP, deal-desk, sales-engineering ratios, MEDDPICC, deal-stage definitions. Move win rates from 29% to 68%.
- Unit Economics — CAC payback, NRR, gross margin by segment, cohort analysis, paid-on-bookings vs. paid-on-cash.
- Financial Infrastructure — ARR waterfalls, deferred-revenue rules, board-pack standardization, FP&A architecture.