Controllers = FP&A???
The title pretty much speaks for itself. Let's take the example of MS/GS. Where is their FP&A function? Is it the Controllers division?
I am researching some companies, and they don't seem to have FP&A functions listed explicitly - they have Controllers, Audit, Tax and Treasury. So where does FP&A fall under those?
Thanks.
Great question, the best explanation that I understood/remember is that FP&A generally focuses on projections and looking into the future while the Controller is more about dealing with hard numbers/financial statements. The controller is essentially the head of accounting for a division/company.
It's VERY IMPORTANT to note (or so I was told) that this is for the US. Apparently international companies will have an FP&A Controller position. I have no idea what that means.
So if you looked at the GS website, under what sub-division of the Finance Division is FP&A?
Sorry if I am asking a repetitive question - I didn't quite understand your reply. I
I am preparing for an interview, and my only options under the Finance Division are: Controllers, Audit, Tax and Treasury - where should I expect FP&A to be?
FP&A is usually more about management accounting, while controlling is more about the financial accounting. Don't know about the banks, but at the F500s FP&A is usually in charge of the P&L statement, while controlling is in charge of the balance sheet.
Thank you. But here is my problem:
I have an interview coming up in a few days at a F500 company in the Corp Finance Division. It has 4 sub divisions - Controllers, Audit, Tax and Treasury. I think they will ask me "What do you know about this division/what does the Finance Division do?"
So, I my basic explanations will be as follows:
Controllers: P&L Treasury: Liquidity Management Audit: Internal Controls Tax: Tax
Now, where do I fit FP&A in these four?
generally, as you seem to know, FP&A would be the 5th division within Finance, however as it is not listed on GS's website, I would basically go with the answer you have. Maybe don't say that Controllers is responsible for the P&L, maybe say they do external reporting as well as internal controls (not in the same way that Audit does - they are more concerned with an internal paper trail and that any process you/your team have gone through is both documented and repeatable). Treasury is liquidity and balance sheet management.
I frankly think that if you asked the question, "within your Finance structure, where does FP&A fit in?" your interviewer isn't going to think you're dumn. He/she will probably think it's an astute question that shows you know what a finance organize generally does look like. Until recently I worked in corporate finance at a BB and have also interviewed a handful of people, and at least personally, I never thought anyone looked stupid when they didn't know everything about my bank's Finance division.
Also, just a possibility since I don't really know much about GS's finance division, but it is possible that their FP&A teams actually sit within each of the businesses (i.e. hit the business' payroll) and there are only a couple of teams (i.e. the corporate fp&a team) that rolls up all of the business data. Again, just a guess.
Chances are, the controller part of the company handles P&L - which includes FP&A - and likely tax and trade. Just depends on the subgroup.
Not all controllers are finance or accounting. Likely, there's both mixed into it. At my company, an actual "controller" is a senior finance manager who works directly with the GM of a division, and has an FP&A team.
This. The company I'm at has a similar structure where the FP&A analysts report to the division controllers.
Also, given the options you listed, controller is most likely where the FP&A function falls since there isn't a whole lot of FP&A going on in audit, tax, or treasury.
This. I’m a division controller and the FP&A analysts report to me along with BI and accounting. We have an accounting “focal” team which dotted line supports our group with month end journal entries and reconciliations, etc.
As controller, I would say the majority of my time is spent supporting our GM and providing strategic partnership to the business. More FP&A heavy than accounting.
Curious why you revived an 8 year old thread to make this comment?
In your GS example, I believe that FP&A would roll up under the Controllers section: http://www.goldmansachs.com/careers/why-goldman-sachs/our-divisions/fin…
See specifically "Product Controller and Funding Controllers".
P&L calculations, reporting, attribution and reporting to desks Price verification and management reporting Account and monitor for the firm’s secured and unsecured financing activities
That to me is a pretty good summary of FP&A.
I currently work at a F500 industry position (non-finance), and in my company FP&A currently is its own section with a VP who in turn reports to the CFO. The corporate controller has his own division (where he in turn reports to the CFO). However, this layout is not set in stone, and I imagine that even within the finance industry, it varies from firm to firm.
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