FP&A and accounting specialists play a very important and strategic role in the finance function. This involves more than just recording numbers – they do the heavy lifting of analysis, planning, forecasting, and guiding strategic decisions. Their functions are prime candidates for technology adoption, making them the drivers of finance digital transformation in organizations, and a key focus for CFOs.
While accountants focus on recording and analyzing past financial data, FP&A looks ahead—projecting future performance and trends. Accounting adheres to strict standards, such as GAAP or IFRS, whereas FP&A tailors reporting to meet the unique needs of the business. Accountants work primarily within the general ledger, while FP&A teams rely on forecasting and planning tools to model what’s next.
Although the roles are inherently different, they collaborate closely to help companies make informed capital allocation choices, ensure alignment across business functions and company financial goals, identify strategic flaws and suggest corrective measures, and implement effective reporting, planning, and forecasting tasks.
No wonder these teams are very important to the CFOs. They rely on them for balanced insights, honest analysis, informed decisions, and honest, ego-free disagreements. In short, they keep the CFO, the leader who is at the heart of the business grounded.
How to resolve the disconnect?
Accounting and FP&A seem like natural partners, but too often, they have their sights set on different goals and try to steer the same boat in opposite directions.
This poses a major problem today, as organizations are called to adapt, pivot, and course-correct on short notice, with unpredictability being the norm. Close and rich collaboration across business functions is essential for businesses to thrive in today’s business environment.
A survey from Stratify revealed that 43% of 150+ FP&A leaders stated they could improve business performance if they had more time for high-value actions.
By optimizing performance, FP&A teams can share improved analysis with stakeholders, enhance forecast and plan accuracy and frequency, and play a proactive role in successful strategic decision-making.
The greatest impediments to optimal performance included manual processes, lack of real-time data, and collaboration challenges. Finance digital transformation is the need of the hour, and it is only possible when the two crucial teams – accounting and FP&A, are on the same page.
Accountants often feel that FP&As have too many questions, especially during month-end closing or budgeting. As numbers are dissected, there are too many back-and-forths, misunderstandings on either end and delayed handovers.
But it need not be this way. So, how can the accounting and FP&A teams ensure a more harmonious relationship and richer collaboration?
1. Build a single source of truth
Accounting and finance teams handle a ton of data—but too often, it lives in silos. That means wasted time chasing numbers, manually compiling reports, and dealing with frustrating disconnects that slow down collaboration.
When you work with cloud-based accounting solutions, everyone works from the same real-time data. Instead of juggling spreadsheets, the accounting team can track cash flow daily, drilling into vendor activity or upcoming tax payments. FP&A can then use that same live data to create more accurate, timely forecasts—making the whole process faster, smarter, and more aligned.
2. Collaborate and show empathy
In this post, Kirk Kappelhoff, Director of Strategic Finance at Drivetrain, says that uncertainty is built into an FP&A team’s processes. It’s a shift in mindset, he further adds. When reviewing historical data, as in accounting, the focus is on reporting the most accurate numbers possible. In contrast, forward-looking FP&A prioritizes generating the most valuable and informed forecasts.
In FP&A, unlike accounting, cent-level accuracy isn’t expected or necessary. The emphasis is on delivering strategic insights that guide decision-making rather than achieving perfect numerical precision.
Now, it is evident that with an empathetic approach, many of the tussles usually seen between the two functions can be resolved amicably. If working with colleagues complicates someone’s daily tasks, they’re unlikely to make it a priority. To foster genuine collaboration, utilize tools and processes that not only encourage teamwork but also align with existing workflows.
3. Invest in future
Finance digital transformation may require a portion of your budget—but the expertise acquired in data, technology, and digital tools makes them well worth the investment. In today’s fast-moving business world, real-time insights often mean the difference between simply surviving and truly thriving.
Beyond crunching numbers, future-ready finance teams play a key role in shaping strategy—building models that protect your business during uncertainty and preparing you for what’s next.
Artificial intelligence (AI) and machine learning (ML) can be seen as powerful teammates, helping accounting and FP&A teams focus more on high-value, collaborative work.
Their impact typically falls into two main areas. First, they accelerate transaction processing by automating routine, time-consuming tasks—such as scanning and processing vendor invoices in procure-to-pay processes. Second, they provide strategic insights, using predictive capabilities to uncover and explain variances more effectively.
4. Encourage learning and re-learning
Encouraging and incentivizing learning and technology adoption will help FP&A and accounting teams to collaborate better and understand each other’s requirements and preferences more accurately, helping derive true ROI on finance digital transformation initiatives.
As Melissa Kullander, former VP of Finance at Workday, says in this article, “Because FP&A and accounting are already used to working together closely, when we roll out something new, both sides are eager to collaborate around testing and giving feedback on how to make the most of the new feature of functionality. ”
Consistent collaboration and improved teamwork are crucial undertakings that require constant and mindful effort. Openness to new technologies and reimagined workflows are key to this.
As business owners become immersed in running the business and daily operations, a well-oiled FP&A and accounting team can help them stay focused on strategy, providing the correct data and insights at the right time and revealing the bigger picture.
5. Prioritize data security
When multiple teams collaborate on sensitive data, such as budgets and forecasts, secure tools and solutions provide peace of mind through enterprise-grade security. Airtight, fully compliant data security is non-negotiable in any finance digital transformation.
We utilize AI and ML-powered solutions that provide detailed access controls, enabling you to assign specific permissions so that users only see and edit the data relevant to them. This is especially critical when we handle sensitive customer data, which is worked on by multiple teams.
Audit trails help monitor and track all changes, making it easy to review inputs and model updates. Additionally, in-built controls also protect against accidental changes and enable easy retrieval of historical information.
Ensuring data security frees teams from the stress of making unintentional mistakes and helps improve collaboration.
6. Report on shared KPIs
FP&A and accounting can jointly report on KPIs that truly drive strategic decision-making.
Capital efficiency is crucial for driving long-term, sustainable revenue growth, as it ensures that individual efforts align with broader financial objectives.
By sharing critical financial KPIs, finance and accounting teams can stay in sync and shape more informed, strategic decisions for the organization’s future, and empower finance digital transformation efforts. They can achieve this by working from the same datasets, utilizing collaborative tools, and aligning the definitions and timing of key KPIs.
7. Consider outsourcing
Outsourcing is no longer considered a job taker. It is, in fact, a partner in solving the staffing woes, as mentioned by a Forbes panel of top CPA honorees. For about 135,000 accounting jobs that open annually, there are only about 47,000 graduates to meet that demand.
Outsourcing frees accounting teams from manual, mundane tasks, allowing them to devote more time to strategic, value-adding activities. Younger talent is drawn to meaningful, engaging work—not stereotypical ‘boring’ accounting tasks. Offering stimulating challenges not only boosts retention but also helps attract high-quality professionals who want to make an impact.
Outsourced accounting service providers can also scale up with additional resources on demand during peak seasons, thereby avoiding reporting delays and errors and enabling efficient accounting and FP&A operations. These blended teams help finance departments function efficiently without incurring additional costs for hiring or training.
Conclusion
The boundaries between financial functions are increasingly dissolving as modern financial leadership demands greater interconnectivity and integration. To boost operational efficiency, FP&A and accounting teams must develop a strong understanding of each other’s roles and responsibilities.
While this transformation may require significant effort, both teams need to identify overlaps, streamline processes, and collaborate to enhance decision-making for key stakeholders. This convergence of FP&A and accounting is not just beneficial—it’s essential.
The path ahead lies in embracing technology and leveraging powerful blended team models to drive this alignment forward.
