What is the difference between accounting and FP&A? This is the topic of the first short article in our FP&A Journal.
Accounting typically focuses on what happened or what is happening. In other words, accounting diligently compiles financial data about your business to show the current state of your business financial affairs.
FP&A starts where accounting usually stops by taking the compiled financial information, analyzing it and projecting it to the future. Good FP&A creates advanced & flexible models to understand the trajectory of your revenue and expenses. In other words, FP&A shows you the projected future of your business financial affairs.
(This article was also published on LinkedIn)
What is coming next in our Journal? The next topic will be Everyday FP&A.
