A financial planning and analysis team is responsible for generating and presenting information to their organization’s board of directors. This includes presenting the organization’s budget, outlining the company’s financial performance, analyzing investments, and making. Let us know about ‘Fp&A Interview Questions.’
recommendations on capital expenditures. Financial planners also need to be able to present forecasts, such as cash flow projections or balance sheet estimates into a narrative that makes sense for their stakeholders. A financial planner must focus on quantitative analysis and evaluation of the value of each investment option for their company along with qualitative analyses such as preparation of investment packages.
The Role of the Financial Planner
FP&A directors are the chief financial officers for their respective organizations. They are responsible for directing departments that plan, analyze and control the company’s finance processes. FP&A directors also oversee the board of directors’ effectiveness in overseeing strategic planning and business development decisions. The following are key tasks an FP&A director may have to perform:
1. Directing or managing departments responsible for planning, analysis, or control of deliverables, products, or services used by the organization to deliver value to its customers
2. Directing staff that conduct analyses using quantitative skills; this includes analyzing sales trends; inventory levels; cash flow; cost accounting; expenditures; industry trends; customer demographics; competitors’ pricing strategies and inventory levels
3. Conducting regular performance reviews to determine if the organization’s management or board of directors is fulfilling their fiduciary responsibilities
4. Ensuring the company complies with regulations, policies, and procedures related to financial planning, reporting, internal controls, and risk management
5. Assessing the effectiveness of the organization’s planning systems; evaluate strategic options for implementing new solutions or processes that are cost-effective or reduce risk
6. Evaluating costs of each product line within an industry segment to determine future profitability
7. Determining which products are profitable based on the sale price, margins, or costs associated with developing, manufacturing, or delivering it
8. Clearly and concisely communicating information to the board of directors and stakeholders.
9. Ensuring that the company has a fraud and theft detection and prevention system in place.
10. Informing all levels of the organization’s leadership of the outcomes
11. Evaluating financial plan projects to guarantee policy and process compliance12. Recommending how resources should be allocated based on an analysis of current performance, industry trends, economic indicators, customer requirements, country risk assessments, or political changes
13. Ensuring financial plans are compliant with governmental regulations
14. Communicating financial plan key changes throughout the organization’s management structure
15. Providing technical assistance to executive management
16. Assigning project tasks to staff that has specific skills, work experience, or experience in an area of the organization’s operations
17. Creating budgets for departments and programs
18. Ensuring the organization’s financial planning processes are compliant with government regulations
19. Analyzing the capital structure of alternative investments to help determine which product lines are profitable and when
20. Developing investment return estimates based on analysis of an enterprise value, risk exposures, or estimated cash flows or profits
Education and Certifications for Corporate Financial Analysts
People who work in the finance industry are expected to have an undergraduate degree or certification in accounting, finance, or related field. Financial planners must also pass the Certified Public Accountant (CPA) exam and receive their license. Financial planning, governmental rules, tax legislation, fraud detection tactics, accounting processes, audit procedures, and corporate finance and management are all covered in the CPA test. CPAs must complete continuing education courses every year after getting their license to keep their licenses active.
Experience for Financial Planners
People who want to become financial planners need a minimum of five years’ experience supervising employees and working in a team environment. Financial planners need to be able to communicate financial concepts with people who come from a variety of different backgrounds, including the organization’s management, board of directors, and external auditors.
Skills for Financial Planners
Personnel who are considering becoming financial planners must know business or finance. Previous experience with managing budgets or analyzing financial data is helpful. A finance degree may be helpful for those who want to become financial planners with an opportunity to advance in their careers without earning a CPA license.
Job Outlook for Financial Planners
The job outlook for financial management positions is expected to increase by about 5% between 2012 and 2022. Job opportunities for CPA financial planners are expected to grow at a slightly lower rate of 4%. Financial planners will need to be able to market themselves effectively in a competitive environment.
Some example questions asked during the interview are given below along with answers:
Question: What opportunities do you see open for advancement in this role?
Question breakdown: This question will help the employer understand whether the applicant is passionate about their work and will be willing to learn new things.
Sample Answer: I’m interested in learning how to become a financial manager and transition into management positions.
The following are the qualities that the interviewer is searching for:
- A genuine interest in learning and growth.
- A good attitude about life.
Question: How long have you been a financial planner?
Question breakdown: This question will allow the interviewer to determine whether the applicant has a long history of working in a financial planning position.
Sample Answer: I’ve been a financial planner for about four years now.
The following are the qualities that the interviewer is searching for:
- A long history of working as a financial planner.
- A good attitude about life.
Question: What is the biggest challenge in your field?
Question breakdown: This question will make the employer understand what problems the applicant faces in their line of work. The response to this question will help the interviewer get an idea of how well the applicant can solve problems.
The following are the qualities that the interviewer is searching for:
- Self-awareness of challenges that may come up.
- A willingness to work through problems instead of letting them get in his or her way.
- A good attitude about life.
Question: What is your favorite part of the job and why?
Question breakdown: This question will give the employer insight into what makes the applicant happy.
Sample Answer: I like working with my clients because I get to help them achieve their financial goals.
The following are the qualities that the interviewer is searching for:
- A good attitude about life.
- A sense of accomplishment.
- An internal drive to learn new things and grow within the company.
- Strong communication abilities.
Question: What unique skill sets do you bring to the table?
Question breakdown: This question will give the employer insight into how well the applicant can communicate and relate with people from different backgrounds. The response will also help the interviewer determine whether the applicant is interested in working within a multi-cultural environment.
Sample Answer: I have experience working in a public accounting firm, so I’m able to work with clients from all walks of life and help them achieve their financial goals.
The following are the qualities that the interviewer is searching for:
- A good attitude about life.
- Strong communication abilities.
- An ability to communicate effectively with people from different backgrounds.
Question: What training have you received about a specific subject?
Question breakdown: This question will help the interviewer determine how prepared the applicant is to do a job-related task.
Sample Answer: I have received professional training in accounting, tax, before becoming a financial planner.
The following are the qualities that the interviewer is searching for:
- Hands-on experience.
- Proficiency in accounting and finance.
- Strong communication abilities.
Question: How do you record PP&E and why is this important?
Question breakdown: This question will help the interviewer understand where the applicant gets their ideas.
Sample Answer: I use spreadsheets to track PP&E because it allows me to enter information quickly and easily.
The following are the qualities that the interviewer is searching for:
- An ability to learn new tools quickly.
- Strong communication abilities.
Question: Walk me through the three financial statements.
Question breakdown: This question will help the interviewer determine the applicant’s knowledge of the business plan.
Sample Answer: The three financial statements are the income statement, cash flow statement, and balance sheet. I use them to determine the health of a business.
The following are the qualities that the interviewer is searching for:
- In-depth knowledge of how to interpret a financial statement.
Question: What are the five stages in capital budgeting?
Question breakdown: This question will help the interviewer determine the applicant’s knowledge of the business plan.
Sample Answer: The five stages in the capital budgeting process are initiation, feasibility analysis, preparation of pro forma statements, recommendation and decision making, and implementation.
The following are the qualities that the interviewer is searching for:
- Knowledgeable about financial statements and terminology.
- Knowledgeable about how to read a pro forma income statement and cash flow statement.
- Ability to explain a pro forma income statement clearly.
Question: Congratulate me, I’ve been selected for this position! So what? What do you think of my financial statements?
Question breakdown: This will help the interviewer see how well an applicant can communicate with people from different backgrounds. The response to this question will also show whether or not the applicant has learned how to work with people from different backgrounds.
Sample Answer: I’ve prepared financial statements for many businesses. Thanks to your pro forma statement, I can tell that you’re in great financial shape!
The following are the qualities that the interviewer is searching for:
- Strong communication abilities.
- A good attitude about life.
- Empathy towards people from different backgrounds.
Question: Why did you decide to become a financial planner?
Question breakdown: This question will help the interviewer determine how well an applicant can communicate with others. The response to this question will also show how well the applicant can explain complex matters in a way that is easy to understand to the general public.
Sample Answer: I’ve worked with people from all walks of life. I enjoy helping them achieve their financial goals.
The following are the qualities that the interviewer is searching for:
- An interest in working with people from different backgrounds.
- A willingness to learn new things and develop professionally.
Question: What is the difference between a good financial plan and a bad one?
Question breakdown: This question will help the interviewer determine how well an applicant can communicate with others. The response to this question will also show how well the applicant can explain complex matters in a way that is easy to understand to the general public.
Sample Answer: A bad financial plan will not clearly outline a client’s goals and objectives.
The following are the qualities that the interviewer is searching for:
- Strong communication abilities.
- A good attitude about life.
- An ability to communicate with a wide range of people from different backgrounds.
Question: What are some of the duties of being a financial planner?
Question breakdown: This question will help the interviewer determine the applicant’s communication skills.
Sample Answer: The duties of being a financial planner are to educate people about important topics in finance, including the economic outlook, investment choices.
The following are the qualities that the interviewer is searching for:
- An interest in working with people from different backgrounds.
- An ability to communicate with a wide range of people from different backgrounds.
- Empathy towards people from different backgrounds.
Question: Differentiate between budgeting and forecasting.
Question breakdown: This question will help the interviewer determine the applicant’s knowledge of the business plan.
Sample Answer: Budgeting involves analyzing a client’s assets and liabilities to determine their capacity to pay for future expenses.
The following are the qualities that the interviewer is searching for:
- An interest in working with people from different backgrounds.
- Genuine concern for others.
Question: How to model revenues for a company?
Question breakdown: This question will help the interviewer determine the applicant’s knowledge of the business plan.
Sample Answer: A model should be based on the financial statements of a company. Revenue forecasting can be done in three ways: bottom-up, top-down, and year-over-year.
- When it comes to financial modeling, a bottom-up strategy comprises starting with individual products/services, predicting average prices/fees per product or service, and then growth rates.
- A top-down approach starts with the entire market size, then estimates a company’s market share, and finally converts it to revenue.
- A year-over-year strategy is taking the revenue from the previous year and increasing or decreasing it by a particular percentage.
The following are the qualities that the interviewer is searching for:
- An interest in working with people from different backgrounds.
- The ability to analyze financial data.
- The ability to calculate key figures in a manner that is useful to others.
Question: What are capital budgeting techniques?
Question breakdown: This question will help the interviewer determine the applicant’s knowledge of the business plan. The response to this question will also show how well an applicant can communicate with others. The response to this question will also show how well an applicant can explain complex matters in a way that is easy to understand to the general public.
Sample Answer: Capital budgeting techniques can be used to predict potential future capital requirements such as budgets for investments and capital projects (new product development, mergers, and acquisitions, new facilities) that will result in increased revenues.
The following are the qualities that the interviewer is searching for:
- An interest in working with people from different backgrounds.
- A good attitude about life.
- Empathy towards people from different backgrounds.
Question: Differentiate between management and leadership.
Question breakdown: This question will help the interviewer determine whether or not the applicant has learned how to deal with other personalities and different perspectives about topics such as finances. The response to this question will also show whether or not an applicant can communicate with others.
Sample Answer: Management focuses on short-term results, whereas leadership focuses on long-term results.
The following are the qualities that the interviewer is searching for:
- Planning and organizing.
- Empathy towards people from different backgrounds.
- A good attitude about life.
Question: What would you do if you were in charge of a company and suddenly there was a big layoff?
Question breakdown: This question will help the interviewer determine whether or not the applicant has learned how to deal with other personalities and different perspectives about topics such as finances. The response to this question will also show whether or not an applicant can communicate with others.
Sample Answer:
I would not inform the entire company. I would gather all the information and then send a firm message to those who need to find an immediate replacement and those that need to be let go.
The following are the qualities that the interviewer is searching for:
- The ability to communicate with other people professionally.
- The ability to communicate with another person respectfully.
- A good attitude about life.
- An understanding of how business works, the importance of being competitive, and being aware of what others are doing to stay ahead of the competition.
Conclusion
Individuals who are capable of handling and effectively evaluating a mountain of different forms of data and data evaluation measures are considered good financial analysts. Financial analysts are adept at resolving issues. They can decipher the different jigsaw pieces that make up a company’s finances and envisage how to put them together to create several development scenarios. If you don’t enjoy mathematics or dealing with spreadsheets like Excel, you might want to think about a different career path. However, if you’re a problem solver with a natural or developed flair for financial analysis, modeling, and forecasting, becoming a corporate financial analyst can be the right fit for you.
