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    This document provides guidance on breaking into FP&A from an accounting role. It discusses how learning FP&A can expand career opportunities and help advance to a CFO role by understanding both current financials and forecasts. It recommends building a basic financial model connecting the income statement, balance sheet, and cash flows statements. The document also stresses understanding different stakeholder needs and building strong relationships between accounting and FP&A teams.

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    This document provides guidance on breaking into FP&A from an accounting role. It discusses how learning FP&A can expand career opportunities and help advance to a CFO role by understanding both current financials and forecasts. It recommends building a basic financial model connecting the income statement, balance sheet, and cash flows statements. The document also stresses understanding different stakeholder needs and building strong relationships between accounting and FP&A teams.

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    © All Rights Reserved
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    22 views24 pages

    FP&A

    Uploaded by

    kaaouanahanen KAAOUANA
    This document provides guidance on breaking into FP&A from an accounting role. It discusses how learning FP&A can expand career opportunities and help advance to a CFO role by understanding both current financials and forecasts. It recommends building a basic financial model connecting the income statement, balance sheet, and cash flows statements. The document also stresses understanding different stakeholder needs and building strong relationships between accounting and FP&A teams.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 24

    Accounting

    FP&A

    How to break
    into FP&A from
    Accounting
    Josh Aharonoff &
    Paul Barnhurst
    Swipe
    About
    this guide

    In this guide you’ll learn

    How you can break into


    FP&A from your current
    role in accounting

    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    Contents

    Why you need to


    1 4
    learn FP&A

    2 Build a basic forecast 10

    Connect with the


    3 16
    audience

    4 Build a relationship 27

    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    1

    Why you
    need to
    learn FP&A
    Swipe
    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    FP&A

    Accounting

    Your career options will be


    limited
    if you only know
    the accounting side
    of things

    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    The strongest opportunities
    go to those who can

    (Accounting)
    Tell what’s CURRENTLY happening

    (FP&A)
    Tell what’s GOING to happen

    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    When you understand both sides deeply

    The value you create


    exponentially
    increases

    You deeply understand


    how things are
    operating

    And can make a fairly


    educated guess on what
    the future will look like

    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    Accountants who don’t learn
    FP&A will face great resistance
    on their path to CFO

    A great CFO unites the entire


    Finance & Accounting function

    Accounting FP&A
    CFO

    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    2

    Build a
    basic model

    Swipe
    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    The biggest thing you can do

    RIGHT NOW
    Is learn how to
    build a basic
    financial model
    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    Understand the
    3 statements, and
    how they all flow
    into one another

    Income
    Statement

    Balance
    Sheet

    Cash
    Flows

    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    Start by connecting
    net income + retained earnings
    on the balance sheet to the
    income statement

    retained earnings =
    last month retained earnings
    + last month net income

    net income = This month's net


    income on the income statement

    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    Create a cash flows statement
    using the indirect method
    Cash Flow from Assets =
    ▲ in prior period - current period figures on the balance sheet

    Cash flows from Liabilities & Equity =


    ▲ in current period - prior period figures on the balance sheet

    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    Separate cash
    flows by
    Cash from Operating activities
    Cash from Investing activities
    Cash from Financing activities

    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    This isn’t as scary
    as it sounds

    You already
    know a lot of this!

    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    3

    Connect
    with the
    audience
    Swipe
    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    CEO
    What is the CEO's vision for the future?

    Board of Directors
    What information does the board Want
    to see?

    Department Heads
    What projections does each department
    head have?

    Investors
    What metrics excites investors?

    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    1
    Who is requesting what?
    Understand what are the frequent
    requests by stakeholders

    2
    What’s the significance?
    Why are these important to them?

    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    Accounting

    FP&A

    Build a
    relationship

    Swipe
    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    Accounting
    FP&A

    Accounting & FP&A need to


    work in unison with each
    other

    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    Be the one to offer value

    Accounting FP&A

    Can you help with a forecast?


    More timely reporting?

    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    When Accounting &
    FP&A work together
    There are no limits on
    what can be accomplished

    Josh Aharonoff & Paul Barnhurst

    Helping You Grow In Finance & Accounting


    Thanks for
    reading!
    Did you enjoy this content?
    Do you have anything to add?
    Questions?

    Swipe
    About the
    Authors

    Josh Aharonoff
    I help Finance & Accounting
    Professionals grow in their careers

    Paul Barnhurst
    Sharing daily insights for FP&A
    teams to get ahead

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