Howard Tunnicliffe, Head of FP&A at The Economist, and Brett Hampson, Director of Finance at AllState, join host Paul Barnhurst to answer the most burning questions about FP&A in this special edition of FP&A Today. Topics include switching industries in FP&A, the need for a CPA in an FP&A job, developing KPIs, and upgrading to an FP&A tool. They also discuss preventative approaches to financial management, different approaches to headcount planning, managing stress and digital minimalism, and share their favorite Excel functions.
Soft skills like communication, networking, and stakeholder management are crucial in FP&A and can greatly contribute to success in the field.
Creating a personal budget and forecasting and tracking personal finances can develop a strong foundation in understanding cash flow, income statements, and budgeting, which are key aspects of FP&A.
Observing and learning from individuals who excel in soft skills, seeking guidance from experienced professionals, and utilizing online resources can enhance FP&A skills and contribute to professional development.
Deep dives
The Importance of Soft Skills in FP&A
Soft skills are crucial in FP&A and can set individuals apart from their peers. Developing skills like communication, networking, and stakeholder management can greatly contribute to success in the field. One way to enhance these skills is by observing and learning from skilled individuals in these areas. Seeking guidance and advice from experienced professionals can provide valuable insights and help improve one's abilities.
Starting Point for Learning FP&A: Personal Budgeting
A great starting point for learning FP&A is by creating a personal budget. By forecasting and tracking personal finances, individuals can gain hands-on experience in financial planning, forecasting, and analysis. This helps develop a strong foundation in understanding cash flow, income statements, and budgeting, which are key aspects of FP&A. Personal budgeting also provides insights into decision-making and allows for a deeper understanding of financial modeling.
Resources for Improving FP&A Skills
There are numerous resources available to enhance FP&A skills. While technical resources can be easily found, focusing on soft skills can make a significant difference. One valuable resource for improving soft skills is observing and learning from individuals who excel in those areas. Seeking guidance and feedback from experienced professionals in communication, networking, presentation, and other relevant skills can be immensely beneficial. Additionally, online platforms, books, and communities like LinkedIn and Reddit can provide a wealth of information and insights for further learning and development in FP&A.
Signs it's time to upgrade to an FP&A tool
If collaborating in Excel becomes challenging, with constant back-and-forth file sharing, linked files, and multiple spreadsheet models, it may be time to upgrade to an FP&A tool. Additionally, working late nights due to model errors and struggling to get the model right are also signs that an upgrade is needed.
Managing reporting in difficult turnaround situations
In a difficult turnaround situation, it's important to focus on short-term cash flow forecasting and prepare for various scenarios, including worst-case possibilities. Reducing metrics and looking at a shorter timeframe can also help manage reporting. Understanding the business value chain and addressing issues early on through preventative measures can prevent turnaround situations. Great communication and collaboration between finance and other teams are crucial in managing planning and consolidation challenges.
We have an all-star panel getting into the Christmas and New Year spirit. Howard Tunnicliffe, Head of FP&A, The Economist, and Brett Hampson, Director of Finance, AllState, joinin host Paul Barnhurst, The FP&A Guy in this special edition of FP&A Today. They tackle the 12 most burning questions asked on reddit.com/r/FPandA in 2023. Mid-way we give you the end of year results of the top 5 Favorite FP&A Function for FP&A Pros, based on our 80 episodes!
Let us know your thoughts on your thoughts on these questions, what you want a panel to answer for 2024 (and of course any Excel Function shamefully omitted from our top 5).