Financial Planning & Analysis: Fees, Admission 2024, Subjects/Syllabus, Top Colleges, Top Exam, Salary, Scholarship, Cutoff

Financial Planning & Analysis (FP&A) course is a specialized course that provides individuals with the necessary skills and knowledge to analyze financial data, develop financial models, and support strategic decision-making in organizations. It encompasses various finance aspects such as budgeting, forecasting, risk management, and financial reporting.  Financial Planning & Analysis is a process of strategically devising a short-term and long-term financial plan for the future. Financial Planning & Analysis (FP&A) is a vital activity related to a company's finance department that involves anticipating, analyzing, and controlling the financial performance of the firm. Financial and accounting experts play an important role in assisting firms in making educated business decisions by providing insights into their financial health, analyzing patterns, and making recommendations for future actions.

Financial Planning & Analysis (FP&A) eligibility criteria typically include holding a Bachelor's degree in any field, preferably in Finance, Commerce, Accounting, or Economics. Some institutes may have specific minimum marks requirements. While entrance exams are not obligatory for all FP&A courses, certain institutions may consider scores from national-level management entrance exams like CAT, XAT, MAT, or CMAT. Top colleges offering FP&A courses include Indian School of Business (ISB); Symbiosis Institute of Business Management, Symbiosis International, Pune; SP Jain Institute of Management and Research (SPJIMR), and Xavier School of Management (XLRI), etc. Moreover, graduates of FP&A programs can pursue various career opportunities including Financial Analyst, Budget Analyst, Corporate Finance Analyst, Business Partner - Finance, Investment Analyst, or FP&A Manager.

Financial Planning & Analysis Course Details: Highlights

Refer to the table below to get a quick review for Financial Planning & Analysis (FP&A) course:

Note- This information is sourced from external sites and may vary.

Financial Planning & Analysis is a strategic activity to ensure the good health of a company’s finance. It is a process of combining analysis of operational and financial data to assess the business processes and strategies of an organisation and progress towards these goals. Financial Planning & Analysis as a career has good prospects with lucrative salaries and corporate benefits. One can opt for a career in FP&A if they are good with numbers and have a flair for data crunching.

It is a set of activities undertaken to forecast a company’s profit or loss in the future. The four activities include – analysis, planning, forecasting and reporting. Financial Planners inform the management on the efficacy of the company’s plans and investments viz. the present and future market trends. The key role of an FPA professional is to help the company manage its finances better by analysing various internal and external factors.

Explore: Finance Courses

Branches of Financial Planning & Analysis

There are several branches of FP&A which are implemented across different aspects of a company's Financial Management. Some of the important branches of FP&A include the following:

• Cost Management and Analysis:This section focuses on cost-cutting measures in order to reduce expenses throughout the organization's many functions. Managing costs entails discovering cost-cutting opportunities and ensuring optimal resource allocation.
• Variance Analysis: This branch assists in determining the causes of inconsistencies and in implementing corrective steps. It helps in finding the discrepancies between actual financial performance and planned or predicted figures 
• Financial Modelling: It includes creation of detailed mathematical representations of the company's financial status and provide insights into possible effects of various business decisions.
• Budgeting and Forecasting: This branch relates to the deveopment of budgets and predictions for the company's financial performance over particular time periods. Estimating income, costs, and other financial variables to drive resource allocation and company decisions is what it entails.
• Performance Analysis: Within FP&A, performance analysis entails following and assessing the company's financial and operational performance in relation to specified KPIs and standards. This branch assists in identifying areas for improvement and chances for increased efficiency.
• Capital Expenditure Planning: FP&A professionals evaluate new projects' financial feasibility and how they correspond with the company's strategic objectives.

Key Highlights of Financial Planning & Analysis

Some of the key highlights of Financial Planning & Analysis includes the following:

• Forecasting Accuracy: Financial forecasting accuracy is critical for good decision-making. FP&A experts forecast future financial performance using historical data and market trends.
• KPI Development: FP&A develops key performance indicators (KPIs) and metrics to assess the company's financial and operational health.
• Variance Analysis: FP&A teams investigate differences between actual financial outcomes and forecasts/budgets, assisting in the identification of inconsistencies and understanding the underlying causes.
• Strategic Alignment: Financial Planning and Analysis (FP&A) assists in aligning financial plans with the company's strategic goals and objectives, ensuring that financial decisions complement the overall business strategy.
• Budget Development: FP&A develops detailed budgets that distribute resources to various departments and projects, allowing for optimal resource allocation.
• Scenario Planning: Scenario analysis is used in FP&A to model multiple probable outcomes under various economic conditions, assisting in risk management and contingency planning.

Also Read: Financial Modelling Course

Basic Concepts of Financial Planning & Analysis

The basic concepts which are taught across all FP&A courses are given as below:

• Forecasting: Forecasting is the technique of predicting future financial performance using past data and market patterns. It entails forecasting income, expenses, and other financial variables to help with decision-making.
• Budgeting: It relates to preparation of a plan of expected revenue and expenses for a given period of time. It acts as a financial roadmap, guiding resource allocation and assisting in the control of spending.
• Variance Analysis: It compares the actual financial results to planned or projected values. It aids in the identification of discrepancies (variances) and the understanding of the reasons for them, allowing corrective actions to be implemented.
• Key Performance Indicators: KPIs are precise measurements used to assess and evaluate an organization's performance. KPIs in FP&A can include profitability ratios and revenue growth rates.
• Cost Analysis: It is the process of estimating the costs of producing things or providing services. It aids in the identification of cost-cutting options and locations where expenditures might be reduced.
• Financial Statements: Income statements, balance sheets, and cash flow statements are examples of financial statements that provide a snapshot of a company's financial health. These statements are analyzed by FP&A specialists in order to measure performance and make educated decisions.
• Cash Flow Management: It guarantees that a company has adequate cash on hand to satisfy its operational and financial responsibilities. To ensure liquidity, FP&A specialists monitor cash inflows and outflows.
• Scenario Analysis: It entails development of many financial scenarios based on various assumptions. This assists in determining how changes in elements such as market conditions or economic variables may affect the company's financial consequences.

How to perform financial planning?

For future financial planning, various influential factors are considered, and accordingly, professional financial planners create a financial plan. Creating a financial plan involves several steps and considerations. Let us learn about these points in detail:

• Identify Objectives: The first step in financial planning is to identify your objectives. These could be buying a house, retiring early, ensuring your children get an excellent education, etc.
• Elements of a Plan: A financial plan usually begins with a summary of your current financial situation, including net worth, income, and expenditures. The plan may address issues and make recommendations in seven key areas:
  • Day-to-day finances (budgeting, expense control, mortgages, other debt, emergency funds, etc.)
  • Insurance (life, health, disability, property)
  • Education (Registered Education Savings Plan (RESP), Lifelong Learning Plan)
  • Taxes (exemptions, deferrals, income splitting)
  • Investments (asset allocation, security selection, risk management), Tax-Free Savings Account (TFSA)
  • Retirement (pensions, Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF), annuities, etc.)
  • Estate (wills, powers of attorney, use of trusts, planned giving, etc.)
• Seek Professional Advice: If you feel overwhelmed by financial material or discussions, consider hiring a financial advisor. However, ensure you're not paying excessive fees for their services.

Also Read: Free Risk Management courses

How to analyze the strength of a financial plan?

Analyzing whether a financial plan is good enough involves a thorough evaluation of the plan's feasibility and its potential to meet your financial goals. Here are some steps to do this, as outlined by experts:

• Financial Feasibility Analysis: This is a detailed analysis of a business idea or project that determines whether it can be implemented in reality. It involves thorough research of all the financial aspects of the plan.
• Cash Flow Analysis: This is an essential part of the financial feasibility analysis. It involves figuring out all the possibilities when conducting a business, as situations may be favorable or unfavourable. Cash flow analysis can help businesses in the near and distant future.
• Business Feasibility Analysis: This is the evaluation of a business proposal to determine whether it is viable enough to pursue. It involves assessing all the necessary elements that assist you in making your ultimate business decision.
• Professional Expertise: If you lack the expertise to do the analysis yourself, consider hiring professionals. They can provide a comprehensive and holistic answer that might be hard and expensive to develop in-house.

How has Financial Planning & Analysis evolved over time?

Earlier during the 10-14th century, merchants used to record data in checkbooks which was a form of book-keeping. 

• In 1494, Luca Bartolomeo de Pacioli, known as the "father of Accounting and Bookkeeping" described the process of accounting in his book.
• The application of Financial Statement Analysis can be dated back to the advent of Industrial Revolution in Britain during 18th century and America during last half of 19th century. 
• The creation of corporations and distribution networks led to core accounting practices such as cost estimates, financial statementsand operating ratios.
• During 20th century, the accounting functions were further specialised with taxation as an important component of major countries across world. 
• Passing of standard accounting principles which made it compulsory for companies to publish balance sheet, income statement and cash flow statement. 
• 21st century witnessed the growth of various FP&A softwares widely used across top companies and private institutions.

Also Read: How to Invest in Mutual Funds: Step By Step Process

How is Financial Planning & Analysis Used in Different Industries?

FP&A is an indispensable tool in the Financial Management of large organizations in the modern times. It is widely used for strategic and financial decision-making in terms of financial analysis. It has a wide range of application in the following industries:

Key Terminologies and Jargons in Financial Planning & Analysis

The following jargon and terms are used in Financial Planning & Analysis that are used by financial experts to communicate the financial analysis of an organisation:

• Forecast: A prediction of future financial performance based on past performance and present trends.
• Budget: A budget is a detailed plan that details predicted earnings, expenses, and financial goals for a given time period.
• Variance: The difference between actual and budgeted or expected financial results.
• ROI: A metric that assesses an investment's profitability in relation to its cost.
• Key Performance Indicator: A metric used to assess the success of a company, department, or process.
• EBITDA: An operating performance metric that removes non-operating expenses and cash charges.
• Cash Flow Statement: It relates to a financial statement that depicts the cash inflows and outflows over a specified time period.

Financial Planning Courses give students in-depth knowledge of numerous aspects of financial planning such as risk assessment, retirement planning, financial planning, employee benefits, insurance planning, and much more. The main subjects taught in this course are:

What will you learn in Financial Planning & Analysis?

Learners who pursue FP&A course will be able to create a financial plan and meet the following check-points which renders a financial plan effective:

• Goal Setting: Financial planning helps you identify your financial goals and create a roadmap to achieve them. This could include retirement planning, saving for your children's education, or planning for a major purchase like a home.
• Comprehensive View: A financial plan gives you a holistic view of your finances, including your income, expenses, savings, investing, and debts. This allows you to understand your present financial situation and make informed decisions about your future.
• Professional Guidance: Working with a Certified Financial Planner can provide you expert advice and guidance. They help you understand complex financial concepts, make smart investment decisions, and avoid common financial pitfalls.
• Stability: Having a written financial plan can increase your confidence in your financial future. You'll have a clear understanding of where you stand and what steps you need to take to achieve your goals.
• Preparation for Life Events: Major life events, such as marriage, having children, receiving an inheritance, or retiring, often have significant financial implications. A financial plan can help you prepare for these events and ensure that you're financially secure.
• Regular Check-ups: Just like regular health check-ups, financial check-ups are crucial to identify potential problems early and keep your financial plan on track. Regular reviews of your financial plan can help you adjust to changes in your life and financial circumstances.
• Accountability: A financial plan provides a clear set of actions to take to achieve your financial goals. This accountability can motivate you to take the necessary steps and stay on track.
• Maximizing Opportunities: Financial planning can help you identify and take advantage of financial opportunities, such as tax-saving strategies, investment opportunities, and more.

Important FP&A Frameworks

There are various popular FP&A frameworks which are popularly used by various organisations to meet their specific business requirements. These frameworks are given as below:

Read More:

• Chartered Financial Analyst (CFA)
• Certified Public Accountant (CPA)
• Certified Financial Planner (CFP)
• Financial Risk Manager (FRM)

Financial Planning & Analysis (FP&A) careers can be both rewarding and exciting. FP&A experts are critical in assisting firms in making educated financial decisions, achieving strategic goals, and driving growth. Organisations hire experts who can analyse, predict financial growth of an organisation and suggest measures to control the losses. 

Is FP&A the right domain for you?

In present times, FP&A is an essential tool which is utilised by various organisations to analyze their liquidity, asset management, profitability and efficiency ratios. It is widely used by organisations such as Manufacturing, Automotive, Transportation, Agriculture, Food Industry, Telecommunications, Hospitality, Tourism, Financial Services etc. After pursuing this course, experts will be trained in the following domains:

• Financial Reporting
• Risk Assessment
• Data Analytics
• Strategic Planning
• Budgeting and Forecasting
• Variance Analysis
• Financial Analysis
• Scenario Planning
• Cost Analytics

Required Skills and Education for FP&A Jobs

For an effective FP&A profesisonal, one requires skills different from other qualifications. These skills help in establishing a sound Financial Planning career in top organisations. The skills required are:

• Ability to interpret the effect of Global & Local Economic environments on Financial Markets and Investments.
• Capability to forecast the impact of government economic policies on a business.
• Proficiency in analyzing Financial Statements to identify the Financial Strengths and Weaknesses of a company using various tools of Analysis.
• Understanding of corporate governance issues that arise from the separation of corporate ownership and control.
• Ability to employ working capital strategies and tools to efficiently manage current assets and liabilities.
• Skills to manage costs of long-term capital, optimize capital structure, and quantitatively evaluate capital resource investments.
• Proficiency in using statistical methods to analyze quantitative data and their applications in a range of Financial Analysis Techniques.
• Awareness of social, ethical, social, and cultural issues and the importance of professional skills and responsibilities as a Financial Analyst.

These skills are essential for professionals in the field of Financial Planning & Analysis. They enable them to make informed decisions, manage risks, and optimize financial performance.

Financial Planning & Analysis Eligibility Criteria

• A bachelor’s or master’s degree in finance or related areas such as accounting, taxation, economics, business, etc.
• MCom or MBA in Finance is an add on since most of the FP&A courses that are complemented by a postgraduate degree.
• About two to three years of work experience in a full-time mode in the relevant field is also required to pursue a Financial Planning & Analysis course.

Also Read: Financial Planning & Analysis Colleges in India

To pursue Financial Planning & Analysis as a career one can opt for short-term as well as long-term professional courses available on various E-learning platforms. Candidates can choose from courses like Fundamentals of Financial Planning, Budgeting, Accounting Data Analytics, Financial Modeling, Financial Statements, Financial Markets, etc. Some of the top finance certification courses are:

1. Certificate Program in Financial Planning and Analysis

Course Suitability: Learn to guide your employer's company to optimum financial performance with the Certificate Program in Financial Planning and Analysis

Course Provider: University of California, Berkeley

Duration: 6 months

Fees: INR 6,22,005  

Explore: Certificate Program in Financial Planning and Analysis

     2. EMBA- Financial Planning and Analysis

Course Suitability: Working professionals from the finance sector, who aim to take up careers as finance managers, financial analysts, CFOs, and investment planners

Course Provider: Mewar University

Duration: 12 months

Fees: INR 57,000  

Explore: EMBA- Financial Management and Analysis

    3. Financial Analysis and Financial Management

Course Suitability: Early-career professionals keen to transition from their existing field into various finance roles

Course Provider: IIM Kozhikode

Duration: 10 months

Fees: INR 1,74,000 

Explore: Financial Analysis and Financial Management

    4. Financial Planning and Analysis: Building a Company's Budget

Course Suitability: For Anyone Who Wants to Learn How to Create a Corporate Budget

Course Provider: Udemy

Duration: 4 hours

Fees: INR 490

Explore: Financial Planning and Analysis: Building a Company's Budget

Potential Career Paths in FP&A

As per candidate's interests, skills and aspirations, they can choose various career paths after completing a course in Financial Planning & Analysis. Here are some potential job pathways after completing Financial Planning & Analysis:

Jobs in Financial Planning & Analysis

There are variety of job opportunities after completing FP&A courses with a wide range of growth and personal benefits. This course provides stability as well as witnessing tremendous growth keeping in view of the increasingn need of financial analysis and planning across organisations. FP&A caters to the market growth by predicting expenses, managing income and assets of organisations. Therefore, there are a plethora of job opportunities available after completing FP&A courses from popular institutes.

Job Opporuntities related to FP&A

These are a few typical positions in FP&A which candidates can consider while deciding a career path in this field:

Job Market Trends and Growth Potential

Financial Planning & Analysis employment market trends and growth prospects remain promising due to the continued relevance of financial management, strategic decision-making, and data-driven insights within enterprises. 

• The demand for FP&A specialists who can evaluate financial data and give actionable insights is increasing due to heavy reliance on data-based decision making.
• The combination of financial technology, data analytics, and automation tools is transforming the FP&A landscape.
• FP&A experts acting as Strategic decision-makers for an organisation and becoming partners in the executive body. They are providing long-term plans and scenario analysis of financial plans.
• Due to increasing financial risk to organisations, Financial risk identification, assessment, and mitigation have become critical functions of FP&A professionals.
• Due to increasing trend of remote working, Many FP&A tasks are remotely performable, allowing experts to work from diverse locations or give remote support to global teams.
• FP&A positions necessitate collaboration with other departments like as operations, marketing, and sales.

Salaries of FP&A Professionals

Financial Planning and Analysis as a career offer growth, stability and monetary benefits. The opportunities for quick growth are higher in this field and at the same time there  is complete job security. Moreover, one gets many opportunities to connect with industry, thereby having a sense of fulfilment from the career. In this field, one can start as an intern or accountant and can rise up to the level of Chief Financial Officer or CFO. Given below are some of the top job roles available after completing a course in Financial Planning and Analysis:

The following is a list of the salaries as per their level of job position:

*Data sourced from AmbitionBox

Also Read:  Financial Planning a promising career

Top Companies hiring Financial Planning & Analysis Professionals

Financial Planners and Analysts are hired by banks, finance companies and auditing firms. Given below are some of the top recruiters for Financial Planning and Analysis professionals.

Candidates can refer to this section for Financial Planning & Analysis (FP&A) FAQs.