This blog post looks at the ways of how FP&A can help entrepreneurs to accomplish their goals. The action that entrepreneurs take is described through financial reports. Financial reports establish a communication process that reveals what entrepreneurs want to do and how they will do it.

This blog post  addresses the acquisition of FP&A skills. People who want to become financial planning and analysis (FP&A) practitioners obtain advice on how to achieve this goal.  One piece of advice is to acquire education by taking courses in subjects like accounting, economics, and finance.

One can find many definitions of financial analysis. Investopedia defines financial analysis as “the process of evaluating businesses, projects, budgets and other finance-related entities to determine their suitability for investment.”

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.