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���� vary depending on their employer’s industry and the organization of its finance department. That being said, many analysts are required to do the following: 

• Forecasting and budgeting: Financial planning analysts look at reports and define trends within the company and the overall market. They then use this information to create realistic budgets that account for variables. According to business software company NetSuite, many businesses  to continually update and improve plans. 
• Performance reporting: FP&A professionals use profit and loss (P&L), management analysis and variance reports to measure adherence to budgeting plans across the company and assess overall financial performance. In addition to these documents, executives might ask for other reports to provide insights into a specific area of the business. 
• Profit and cost-saving analysis: Analysts assess financial performance in relation to the profit margins of each product or service the company provides. They might use these insights to suggest cost-saving measures or advise increased focus on activities offering the best profit margins.
• Modeling: Financial planning analysts can also create forecasts based on specific situations within the company or economic scenarios. These insights help with risk management and planning. 

FP&A professionals use accounting and analytics software to manage and analyze data and visualize it for presentation to company decision-makers. 

Financial planning and analysis professionals have specific responsibilities and work on different tasks and projects based on the needs of their employers. Here are some of the most common duties FP&A professionals have. 

• Market research: Analysts look for market trends and analyze economic data related to their employer’s industry and competitors. Insights from this research can inform budgeting and forecasting activities. 
• Cost-benefit analysis: FP&A teams are often responsible for performing cost analysis to forecast profits and potential benefits for an impending project or a strategy change. 
• Trend analysis: Trend analysis seeks to find trends within a company or in external markets. Well-defined trends help with forecasting because they show what conditions will be if the trend continues. 
• Budgets: Financial planning analysts create budgets that take into account different departments and activities within a company. These financial plans take into account current activities and financial forecasts. 
• Risk management: Forecasting, trend analysis and market research can help define potential risks and inform overall financial management decisions. FP&A reports can focus on risks and offer situation-specific models illustrating best- and worst-case scenarios.
• Evaluation: Financial analysts also collect and analyze data to assess each department’s or team’s performance in relation to budget plans and financial forecasts. 

In many cases, FP&A teams compile reports based on their research, analysis, forecasts and findings. 

Financial planning analysts provide holistic views of a company’s financial performance. Their budgets and forecasts affect other departments. As an analyst, you might need to work with the other departments.

For example, an FP&A specialist might work with the accounting department to ensure budgets are accurate and obtain input from the sales department to set reasonable benchmarks and track performance. If you’re interested in pursuing this role, here is a breakdown of the required education and skills.

Financial planning analysts have a significant influence over the financial plans and strategies of a company. Therefore, positions require a solid knowledge base that includes an understanding of business. 

According to BLS, financial analyst entry-level positions require a bachelor’s degree in business or a related field, like finance or accounting. 

In addition to business, financial planning analysts can choose to study accounting or finance. These two degrees offer different advantages: Accounting focuses more on budgeting and planning while finance focuses more on analytics and the financial aspect of business operations. 

While most employers typically require a bachelor’s degree, BLS reports that some employers prefer candidates with a master’s degree. Though postgraduate degrees may not be necessary to obtain an analyst job, an MBA, along with experience and specialization, may be necessary to qualify for more senior positions.

A stand-alone financial planning certificate program can help you specialize in FP&A if you have a relevant degree. Industry certifications and licenses may be preferred or even required depending on the employer. BLS notes that a license is generally required to sell financial products. These licenses often require sponsorships by employers, meaning they will not be expected prior to being hired for a position. Industry certifications may also be preferred or required, but that is up to the employer.

Financial analysts earned an , according to BLS. Salary can vary depending on experience, industry, employer size, education and location. BLS projects the demand for qualified analysts to grow by an estimated 8% from 2022 to 2032.

Salary ranges are not specific to students or graduates of SM������. Actual outcomes vary based on multiple factors, including prior work experience, geographic location and other factors specific to the individual. SM������ does not guarantee employment, salary level or career advancement. BLS data is geographically based. Information for a specific state/city can be researched on the BLS website.

BLS Occupational Employment Projections, 2022-2032 is published by the U.S. Bureau of Labor Statistics. This data reflects BLS’ projections of national (not local) conditions. These data points are not specific to SM������ students or graduates.