The role of a CFO has changed. Companies no longer expect finance leaders to only manage budgets and reports. They need CFOs to think ahead, solve problems, and drive growth. This shift has made FP&A in Finance more important than ever.
Today, finance teams must do more than track past performance. They need to analyze trends, spot risks, and provide insights that help businesses grow. With automation handling routine tasks, finance professionals now focus on strategy, leadership, and working closely with other departments.
Steve Rosvold, a finance expert with over 20 years of experience, understands these challenges well. As the founder of CFO. University, he helps finance leaders improve decision-making, strengthen financial operations, and build leadership skills. His insights offer a clear roadmap for success in today’s fast-changing finance world.
In this article, we will cover the 4 pillars of CFO success—Accounting, Finance, Treasury, and Leadership—and how they shape financial decision-making. We will also explore the growing role of FP&A, the key skills finance professionals need, and how they can prepare for the future.
The Four Pillars of CFO Success in FP&A in Finance
A great CFO needs more than just financial knowledge. Richard Greenberg explains that true success comes from mastering four key areas: Accounting, Finance, Treasury, and Leadership. These pillars help CFOs manage money, make smart decisions, and lead strong teams.
1. Accounting: The Foundation of Every CFO
Accounting keeps a company’s financial records accurate and reliable. Without it, no financial decision can be trusted. The three core parts of accounting are:
- Internal Controls – Setting up processes to prevent errors and fraud.
- Financial Reporting – Preparing reports that show a company’s financial health.
- Transaction Recording – Keeping clear, detailed records of every financial move.
2. Finance: Planning for the Future
Finance focuses on using numbers to shape a company’s future. It helps businesses grow by managing:
- Budgeting and Forecasting – Predicting future costs and revenues.
- Investment Decisions – Choosing where to spend money for the best returns.
- Strategic Planning – Aligning financial goals with business needs.
3. Treasury: Managing Cash and Risk
The Treasury ensures a company always has enough cash and handles financial risks wisely. This includes:
- Cash Flow Management – Making sure money is available when needed.
- Funding Strategies – Raising money through loans or investments.
- Risk Control – Protecting the company from financial losses.
4. Leadership: The Key to Long-Term Success
A CFO must be more than just good with numbers. Strong leadership skills help CFOs:
- Understand Their Own Strengths – Knowing where they excel and where to improve.
- Build High-Performing Teams – Training and guiding employees effectively.
- Create a Strategic Vision – Leading the company toward long-term success.
Where FP&A in Finance Fits in CFO Strategy
FP&A (Financial Planning & Analysis) connects accounting and finance by focusing on forecasting and budgeting. Some companies treat FP&A as part of accounting, while others see it as a separate function. Either way, it plays a big role in financial decision-making.
Fixing Financial Problems at a Struggling Company
A company in the Pacific Northwest was in trouble. It had lost key financial leaders, struggled with cash flow, and failed to fully use its expensive ERP system after four years. The new controller, though eager to learn, lacked experience in handling these challenges.
With the right guidance, the company:
- Fixed accounting errors by improving how financial records were managed.
- Solved cash flow issues by bringing together sales, procurement, and operations.
- Finally implemented its ERP system, improving efficiency and financial transparency.
The changes worked. The company saved over $1.5 million and set itself up for a successful year. More importantly, the controller gained the skills to lead with confidence.
A CFO’s role goes beyond numbers. By focusing on accounting, finance, treasury, and leadership, CFOs can create real value for their companies and careers.
What Sets a Great CFO Apart in FP&A in Finance
A great CFO is more than a numbers expert. They think ahead, ask the right questions, and bring people together. It’s not just about understanding finance—it’s about having the right mindset and skills to drive success.
Curiosity Leads to Better Decisions
A strong CFO doesn’t just accept reports at face value. They ask why, dig deeper, and connect the dots.
For example, if sales pushes a new product but operations has a production delay, a CFO must step in. If they don’t, sales might overpromise, leading to unhappy customers. Asking the right questions early helps prevent costly mistakes.
Learning Matters More Than Knowing
Finance keeps changing, and a CFO who stops learning falls behind. The best CFOs don’t just rely on past experience. They stay open to new ideas, tools, and strategies.
Understanding financial statements is essential, but so is recognizing patterns, analyzing risks, and spotting opportunities. A CFO who keeps learning stays valuable.
Leadership: Building Stronger Teams with FP&A in Finance
A CFO can’t do everything alone. They need a team that works well together.
That means:
- Hiring people with the right mindset, not just skills. A person who wants to learn is more valuable than one who already knows everything.
- Letting go of control. Micromanaging slows progress. Trusting the team helps them grow.
- Encouraging teamwork across departments. Finance should work with sales, operations, and leadership—not against them.
From “No” to “How”
CFOs were once known for saying “No” to spending. Today, a great CFO asks, “How can we make this work?”
For example, if an R&D leader asks for more funds, a CFO shouldn’t reject it outright. Instead, they should help prioritize projects, find funding options, and make smart financial choices.
Timing Matters in Strategic Thinking
Some CFOs get hired to fix financial problems before focusing on strategy. If a company struggles with cash flow, slow reporting, or weak controls, those need fixing first.
A good CFO knows when to focus on structure and when to shift to long-term planning. Skipping steps can lead to bigger problems later.
How FP&A in Finance Has Evolved Over Time
FP&A (Financial Planning & Analysis) used to be about tracking past numbers. It was mainly focused on budgets and reports.
Today, it helps businesses grow by using data to plan for the future. Richard Greenberg explains how FP&A has become a key part of decision-making.
What’s Different Now?
Technology has reshaped FP&A. AI, automation, and better data tools allow finance teams to analyze numbers faster and more accurately.
Instead of just reporting past performance, they now:
- Use real-time data to make better predictions.
- Analyze large datasets to find patterns and risks.
- Include external data to understand market trends.
These changes free up time for finance teams to focus on strategy instead of just reporting numbers.
What Remains Constant in FP&A in Finance
While tools have improved, the core purpose of FP&A remains the same. Businesses still need to:
- Create budgets to manage spending.
- Forecast revenue to plan ahead.
- Help leaders make informed financial choices.
The difference is that companies expect faster answers and smarter insights than before.
How Finance Teams Can Speed Up Decision-Making
One big challenge for finance teams is keeping up with the speed of business. If they take too long to provide insights, companies might miss opportunities.
Ways to Improve Speed and Efficiency
1. Be Part of the Conversation Early
Finance should work with other teams from the start, not just step in at the last minute.
2. Use Data, Not Guesswork
Decisions should come from clear financial insights, not opinions or assumptions.
3. Listen to What’s Happening Across the Business
The best finance leaders ask questions, pay attention, and identify risks before they grow.
4. Know When to Stop a Failing Project
Not every idea will succeed. Finance teams must set clear limits and avoid wasting time on projects that don’t work.
Where Is FP&A Headed in the Next 3 to 5 Years?
FP&A is changing. It’s no longer just about budgeting and forecasting. Finance teams are shifting toward strategy and business growth. Richard Greenberg explains that while budgets and forecasts will always matter, automation will handle much of the routine work.
This shift means FP&A professionals will spend less time preparing reports and more time analyzing data to guide decisions. Instead of focusing on past numbers, they will help companies decide where to invest, how to expand, and what strategies will drive growth.
FP&A will also become more connected to sales, marketing, and operations. Finance teams will work closely with other departments to improve pricing, understand customer needs, and support business expansion.
How This Impacts Finance Careers
Many accountants are moving into FP&A. With automation reducing traditional accounting tasks, finance professionals now prefer roles that involve business strategy and decision-making.
But this shift requires new skills. FP&A professionals need to go beyond numbers and develop a deeper understanding of how businesses operate.
What FP&A Teams Must Focus on Today
To stay ahead, finance teams must focus on learning and development. The key areas include:
- Data analysis – Understanding trends and risks, not just numbers.
- Business knowledge – Knowing how different departments work together.
- Clear communication – Explaining insights in a way non-finance teams can use.
Finance professionals can’t just sit behind spreadsheets anymore. The best insights come from real conversations with people across the company.
Moving Into FP&A? Here’s What Matters Most
For those starting in FP&A, certifications help, but real-world skills matter more. Success comes from learning, adapting, and working well with others.
A strong FP&A professional must:
- Communicate complex data in simple terms.
- Influence teams to act on financial insights.
- Work closely with different departments to understand their needs.
- Ask, Did I add value today? and find ways to improve.
Conclusion
FP&A in Finance is no longer just about budgets and forecasts. It now helps businesses make smarter decisions and plan for growth. Automation has reduced manual work, allowing finance teams to focus on strategy, data analysis, and business insights.
To succeed in FP&A, professionals need more than financial skills. They must understand how different parts of a business work, communicate clearly, and collaborate with teams. Strong FP&A teams don’t just report numbers—they help shape the future of a company.
As finance keeps changing, learning never stops. The best professionals stay curious, adapt to new tools, and improve their skills. Those who embrace this shift will become key decision-makers in their organizations.
FAQs
How does FP&A in Finance help companies make better decisions?
FP&A in Finance provides data-driven insights that help businesses understand trends, risks, and opportunities. It allows decision-makers to plan budgets, forecast revenue, and adjust strategies based on real-time financial data.
What is the biggest challenge FP&A in Finance teams face?
Many FP&A teams struggle with outdated systems, scattered data, and slow reporting. To overcome this, companies must invest in automation, improve data accuracy, and encourage collaboration between departments.
How does FP&A in Finance support business growth?
FP&A teams analyze financial data to find new growth opportunities. They help businesses decide where to invest, when to expand, and how to allocate resources for maximum returns.
What skills do professionals need for FP&A in Finance?
Beyond financial knowledge, FP&A professionals need strong analytical, communication, and problem-solving skills. They must explain financial insights clearly and work with different teams to drive smarter decisions.
Can small businesses benefit from FP&A in Finance?
Yes, even small businesses need financial planning. FP&A helps them manage cash flow, set realistic growth targets, and make informed financial decisions.
