Definition · FP&A
Financial planning and analysis
Financial planning and analysis is the finance function responsible for budgeting, forecasting, analysis, and decision support. For financial planning and analysis, the useful boundary is the driver, assumption, source data, owner, time period, scenario logic, and decision the model is meant to support.
Also known as FP&A, financial planning & analysis
Why it matters
Understanding financial planning and analysis matters because planning only improves decisions when assumptions, drivers, owners, and time periods are explicit enough to revisit when actuals arrive. Pluvo gives FP&A teams decision-grade answers traced across connected systems, so the work shifts from assembling numbers to acting on them.
In practice
Planning example
Teams use financial planning and analysis when a forecast, budget, or scenario needs an assumption that can be revisited. The finance team should know the driver, source data, owner, and period before using it in a model.
Pluvo example
Pluvo gives FP&A teams decision-grade answers traced across connected systems, so the work shifts from assembling numbers to acting on them.
In practice, teams should define financial planning and analysis with a clear source, owner, time period, and decision before they use it in reporting, planning, or operating reviews.
Understanding financial planning and analysis matters because planning only improves decisions when assumptions, drivers, owners, and time periods are explicit enough to revisit when actuals arrive. Pluvo gives FP&A teams decision-grade answers traced across connected systems, so the work shifts from assembling numbers to acting on them.
A strong workflow for financial planning and analysis separates the definition from the action: first agree what the term means, then decide how it is measured, when it changes, and who is accountable for the next step.
Pluvo gives FP&A teams decision-grade answers traced across connected systems, so the work shifts from assembling numbers to acting on them.
FAQ
What does FP&A do?
Financial planning and analysis is the finance function responsible for budgeting, forecasting, analysis, and decision support. For financial planning and analysis, the useful boundary is the driver, assumption, source data, owner, time period, scenario logic, and decision the model is meant to support.
What is the difference between FP&A and accounting?
The boundary for financial planning and analysis differs from related terms by scope, source data, time period, and decision use. In this glossary, it covers the finance function responsible for budgeting, forecasting, analysis, and decision support, so teams should compare those boundaries before using it in reporting or planning.