ELI5: Explain Like I'm 5

FP&A

FP&A (Financial Planning and Analysis) is like playing with your toy blocks or dolls. Just as you plan and make arrangements to build different structures with those blocks, such as a tower or a car, companies also use FP&A to plan and organize their finances.

FP&A helps companies understand how much money they have, how much they are going to spend, and how much money they will have left over. Just like you count your toy blocks to see how many you have, companies look at their finances to see how much money they have.

There are some tasks that are included in FP&A, like building budgets, forecasting the financial performance of a company, analyzing financial data, and showing how a business is doing financially. These tasks are like following instructions to build something with your blocks.

For example, you want to build a tower with a specific number of blocks, and you follow the instructions to make it perfect. Likewise, companies use FP&A to plan and make perfect financial strategies to achieve their goals.

In summary, FP&A is like playing with toy blocks, but for companies. It helps them organize their finances by building budgets, forecasting financial performance, analyzing data, and showing how the company is doing financially.