Every day, companies face a myriad of challenges. Within those companies are departments that are struggling to perform because of roadblocks that get in the way of their ability to perform.

Even though financial analysts work with numbers, there’s so much more to the FP&A function than counting dollars and cents. Unlike accountants who frequently operate from a transactional and rules mindset, financial planning and analysis (FP&A) professionals have a mindset that is deeply analytical.

A solid grasp of financials is essential for every business, whether that business is a one-person operation or a major enterprise. However, many companies, especially small businesses, may lack someone with the experience and expertise necessary to effectively execute the company’s financial strategy.

I have talked previously about how to make the transition from accounting to FP&A. This is an important point because many FP&A professionals come from accounting backgrounds, including Certified Public Accountants (CPAs) and Certified Managerial Accountants (CMAs).

The short answer is, yes, all companies have FP&A functions. Even single-owner businesses have FP&A functions. After all, FP&A stands for “financial planning and analysis.” Establishing a successful business without performing some degree of financial planning and analysis is nearly impossible.

Cash flow is the fuel for any growing business and the lifeblood for those in distress. Monitoring cash flow and related balances is an absolute necessity for any company that doesn’t just want to stay in business – but wants to turnaround, revitalize and thrive.

Accounting is responsible for tasks such as handling and closing the books, reconciling transactions, controllership, tracking assets, managing accounts payable and receivable, budgeting, and preparing taxes. Therefore, accountants need to have a record-keeping, transactional mindset.

There’s no question that modern technology is disrupting industries across the board. We’ve been living in a digital revolution for the last few decades, and the recent pandemic served as a catalyst for enhanced technological innovation and disruption.

The short answer to the question “is FP&A a pathway to CFO” is YES. A recent Deloitte survey found that 47 percent of CFOs had at least some experience in FP&A before they landed their executive positions.