One of the realities that FP&A professionals need to realize is people tend to be too optimistic in their financial plans. People tend to expect higher revenues, lower expenses, or less time to recover the amounts of their investments. Psychologists label these expectations as optimism bias.
As an accountant, I am guided by the conservatism principle. The conservatism principle frames financial reporting around errors. The errors that I don’t want to make is overstating assets and net income. Making these errors create an impression that I am presenting a situation that looks better than it is. At its extreme presenting a situation that looks better than it is may be perceived as a fraud and this perception damages the most important qualification of an accountant, integrity.