Many growing businesses face a common challenge. As things speed up, they need more than accounting. They need forward-looking insights. Leaders want to know what’s coming, not just what happened. This is where FP&A steps in.
It helps companies see ahead, manage risk, and make better decisions. A strong FP&A team becomes the bridge between past data and future action. And in fast-paced environments, that bridge is essential.
Duke Heninger, CPA knows this shift well. He is a Partner at Amplฤo and the creator of CFO System. He works closely with companies under $100 million in revenue, helping them build FP&A teams that work. With over ten years of experience, he started as a controller and moved into FP&A by doing the work himself.
Today, he helps CFOs focus on what matters, cut out busywork, and guide their teams with simple tools and clear thinking. He also mentors finance leaders, helping them shift from reports to real impact.
In this article, we’ll break down what makes a strong FP&A team. You’ll learn the key skills, simple systems, and daily habits that matter most. We’ll also cover how to use tools like AI, how to shift from reporting to conversations, and what every FP&A leader should focus on as their team grows.
What Makes a Strong FP&A Team in a Growing Company?
Many finance leaders start with an accounting background. They follow the typical pathโbecome a CPA, then a controller. But when a company grows fast, accounting alone isn’t enough. That’s where FP&A comes in.
Why FP&A Becomes Essential
In a growing business, leaders want to know what’s ahead. They ask:
- Why are margins shifting?
- What’s our current run rate?
- Can we afford new equipment?
Accounting can’t answer these questions. It only explains the past. FP&A helps you look forward. That shift often starts when controllers face questions they can’t answer. They dig deeper, work harder, and slowly learn forecasting.
The biggest turning point is usually learning how to build a three-statement model and forecast cash. These tools help connect what happened with what’s likely to happen. That’s when real change starts.
Key Skills Needed in Smaller Companies
Smaller companies often don’t have large teams. One person might handle both FP&A and accounting. So, the team must know more than just spreadsheets. They must think about strategy, risk, and timing, too.
A good CFO builds a support system. That means fewer small tasks and more time to focus on what matters. It also avoids being stuck in day-to-day numbers.
The Three Pillars of a Strong FP&A Team Setup
Every solid FP&A setup needs:
- People โ Skilled in numbers and decision-making.
- Process โ Simple and repeatable steps.
- Platform โ Tools that match the business size, even if it’s just Excel.
When these three work together, the CFO can focus on growth. If not, they get pulled back into busy work and lose sight of the bigger picture.
What Are the Key Deliverables of a Strong FP&A Team?
A good FP&A team helps a business understand where it stands and where it’s going. This becomes even more important in smaller companies because teams are lean, and every action must count.
What the FP&A Team Should Deliver
To support smart decisions, an FP&A team should focus on four key deliverables:
- Rolling Forecast โ Keeps financial plans updated and relevant.
- Three-Statement Forecast โ Shows how the income statement, balance sheet, and cash flow work together.
- 13-Week Cash Forecast โ Tracks short-term liquidity to avoid cash surprises.
- Accessible Data and Reports โ Helps the team and leadership spot trends and make decisions faster.
These tools give a clear picture of both short-term needs and long-term goals.
Why Small Businesses Struggle with Data
Many smaller companies don’t track detailed data. They often only monitor what comes in and what goes out. That makes it hard to answer even basic financial questions.
Someone, often the CFO, must improve systems and clean up the data to fix this. Sometimes, that means stepping into a controller role to build the basics. Once the data makes sense, the team can begin true planning work.
How AI Can Help a Strong FP&A Team
AI shows promise, but it only works well with clean data. Its best use is within tools that improve tasks like invoice reading or expense management.
AI saves time by doing repetitive work. This gives the team more room to think and plan. It doesn’t replace people. It makes their work more valuable.
The goal is simple: less guesswork, more insight, and better use of everyone’s time.
How a Strong FP&A Team Can Shift from Reporting to Strategic Conversations
FP&A teams must go beyond sharing dashboards or reports. To truly help, they must join business talks, not just deliver numbers. That means shifting from being data messengers to becoming trusted partners in decision-making.When numbers and stories match, buyers trust the business.
Focus on Speed That Adds Value
You don’t always need perfect numbers. Most business decisions rely on speed and direction, not complete accuracy. Aim for numbers that are good enough to support action.
Trying to get every detail right takes too much time and adds cost. That effort only makes sense when raising funds or preparing for a sale.
Understand the business goal first. If leadership wants to exit or attract investors, then sharper accuracy matters. Otherwise, most daily decisions need timely input, not complex models.
If you delay too long, decisions will happen without you. It’s better to join the planning, even with rough numbers, than to be left out.
Start Real Conversations
Don’t stay behind the desk. Go talk to people. Visit departments. Ask open questions like:
- What’s causing issues right now?
- What do you need help understanding?
- What would help you decide better?
Start simple. Build trust by being present. These talks give insights that reports can’t show. People working in warehouses or on the floor often spot problems before leadership does.
Be Human First
Don’t try to impress with complex terms or perfect slides. Be easy to talk to. Be curious. Build relationships. Ask, listen, and then guide. Over time, people will start asking for your input. That’s when FP&A shifts from reporting to shaping how the business thinks and acts. And that’s where it starts to make a real difference.
What Lessons and Skills Should Strong FP&A Team Leaders Focus On
Mistakes happen in every role, including FP&A. The key is how you respond. Avoid hiding problems. Instead, explain them clearly, take ownership, and offer a fix. People value honesty and are usually willing to work with you if you communicate early.the team can improve. This habit keeps performance moving forward, not just repeating old tasks.
Start Simple, Build as Needed
Trying to build a complex system from day one often causes delays and confusion. Instead, start with the basics. Focus on the core needs.
Build simple reports and models first. Once those are working, expand them based on real needs. This saves time and helps you stay focused on what matters most.
Focus on the Right Things
Every business has different priorities. Find those first. Ask what decisions need support. Then build tools, reports, or processes that help with those decisions. Don’t assume more tools mean better results. Use what fits the size and stage of the company.
Why a Strong FP&A Team Must Build Communication, Not Just Reports
Technical skills matter, but they only take you so far. You also need to understand how the business works and what people need.
Strong communication helps you connect data to real decisions. It builds trust and makes your work more useful.
The Future of FP&A
FP&A is no longer just for big companies. Even small businesses now use forecasting and data analysis early. The role is shifting toward strategy and partnership.
To succeed, focus on:
- Understanding key financial drivers
- Strong Excel or data platform skills
- Clear, consistent communication
And one final rule: improve, simplify, or stop. Focus on what truly adds value. Then use your time and skills to help the business move forward. That makes FP&A a real partner, not just a reporting function.
Conclusion
A strong FP&A team keeps a business moving in the right direction. It doesn’t just share data. It helps leaders make smarter decisions by offering simple forecasts, clear insights, and honest advice.
This role becomes even more important in smaller companies because the team often wears many hats. You don’t need complex tools to start. You need clean data, basic forecasts, and real conversations.
Moreover, the team must speak, make their own mistakes, and focus on what truly matters. That’s how trust builds. That’s also how FP&A becomes a partner, not just a reporter.
Start with simple tools and reports. Add more only when needed. The goal is to support smart decisions, not to impress with complex models.
That said, the real value of FP&A comes from how well it understands the business. Ask the right questions. Walk the floor. Talk to people. Find out what’s working and what’s not. Use that input to guide your analysis.
In the end, strong FP&A teams don’t just look at numbers. They look ahead, support growth, and help the business stay focused. They know when to keep things simple and when to go deeper. And most of all, they help others make better decisions every day.
FAQs
What tools can help a strong FP&A team improve its workflow?
A strong FP&A team can start with Excel but should explore tools like Power BI, Adaptive Insights, or Planful. The key is to match tools with business size and needs.
How does a strong FP&A team support budgeting?
It creates clear budgets based on goals and trends. It also tracks performance to keep spending aligned with plans.
Should a strong FP&A team be involved in pricing decisions?
Yes. FP&A teams can model pricing scenarios and show how they impact revenue, costs, and margins over time.
What role does a strong FP&A team play in cost control?
They track spending patterns, compare against forecasts, and flag areas where costs grow faster than expected.
How often should a strong FP&A team update forecasts?
At least monthly. In fast-changing businesses, updates may need to happen weekly or biweekly for better control.
