Financial Planning & Analysis (FP&A) is the function in a business which forecasts future financial performance and provides management with analyses and commentaries on actual financial results. The FP&A function plays two critical roles: (1) Providing operational insight and corporate goal congruence through the budgeting and strategic planning processes and (2) timely reporting and analysis of monthly, quarterly and annual financial results. These critical activities are necessary for the successful management of a business. Corporate and Divisional Management and External Stakeholders, such as Private Equity or Venture Capital Investors, Banks and other Creditors rely on the FP&A function to perform these two critical roles exquisitely well.
Where the Financial Planning and Analysis Concentration Will Take You
By taking courses selected for the financial planning and analysis concentration, students will gain accounting and financial knowledge, proficiency in planning and forecasting, and analytical and communications skills critical in providing financial support for daily decision-making and quarterly and annual reporting to key internal and external business stakeholders.
The FP&A concentration is particularly relevant for students who: (1) plan to work within the finance or accounting function of any domestic or international business regardless of size, (2) plan to work in a career requiring a high degree of analytical and communication skills, such as corporate finance, investment banking, and/or consulting, or (3) are current or aspiring entrepreneurs who must navigate their businesses through dynamic business cycles; who must simultaneously be a strategic thinker, operational manager, and financial planner.
What You Will Study
Courses in the FP&A concentration will provide students with the knowledge of the basic processes and analytical frameworks needed to effectively prepare and communicate to both company management and key external constituents, such as investors and creditors, a financial forecast, an operational and capital budget, and a strategic plan. Required and Elective Courses in this concentration will cover key competencies tested on the Certified Management Accountant (CMA®) exam, a certification offered through the Institute of Management Accountants, (IMA), the Association of Accountants and Financial Professionals in Business.
Babson College was the first New England college to receive an endorsement from the IMA. An IMA endorsement recognizes Babson as both meeting the highest standards in accounting and general education and preparing our students to succeed on the CMA exam and in management accounting careers.
Sponsored by: Accounting and Law Division
Faculty Contacts: Rich Block, Weerapat “Go” Attachot