2026 FP&A Market and Trends Update: Core Capabilities and Expectations by Seniority (Part 2/3)

Written by Tetsia Sweet

The adoption of FP&A roles is expanding in Japan. However, despite their proven utility, particularly in foreign-affiliated companies, successfully managing and evaluating these positions can still present challenges.

In this second installment of our series on the FP&A executive search market, we will take a closer look at the skills that are highly valued and the specific expectations tailored to each level of seniority. (Read Part 1 here)

Highly Evaluated Skills in FP&A

The skills required in current FP&A executive search can be broadly divided into four categories.

1. Ability to Execute Fundamental FP&A Tasks

First and foremost, practical experience in basic FP&A operations is required. Specifically, this includes:

• Budgeting
• Updating sales forecasts
• Budget vs. actual variance analysis
• Monthly management reporting
• P&L, balance sheet, and cash flow analysis
• Creating materials for executive management
• Supporting annual and mid-term planning

For an Analyst level, experience handling a portion of these tasks is valued. On the other hand, a Senior Analyst or Manager is expected to independently manage budgets, forecasts, and monthly analyses for their assigned departments and confidently explain them to business leaders.

2. Business Partnering Experience

Currently, business partnering is the biggest differentiator among candidates. Business partnering means not working in a finance silo, but collaborating with departments like Sales, Marketing, SCM, and IT to address business challenges using numbers.

For example, if sales fall below plan, instead of simply reporting the variance, a business partner checks the situation with the sales team and breaks down the causes by customer, product, and channel. Based on this, they outline the next viable options: price changes, reviewing promotional expenses, inventory adjustments, or delaying investments.

In interviews, it is increasingly common to be asked, “How did your analysis change the decision-making of the business unit?” rather than “What kind of reports did you create?”

3. System and Data Utilization Skills

While Excel remains crucial, the number of FP&A professionals who complete their work solely in Excel will likely decrease. Current job openings highly value experience with ERPs like SAP or Oracle, BI tools like Power BI or Tableau, and planning systems like Anaplan. Even for Senior FP&A Analyst roles, experience using ERPs and financial systems is required alongside advanced Excel skills.

However, simply listing tool names is not enough during the selection process. What data did you import, and what reports did you build? How much manual work did you eliminate? How did you improve the accuracy and speed of your analysis? Being able to explain these points significantly increases the persuasiveness of your system experience.

4. Ability to Explain Numbers in English

Foreign-affiliated companies continue to face a shortage of FP&A talent proficient in both Japanese and English. According to Morgan McKinley’s 2026 market analysis, the demand for professionals with both specialized skills and bilingual capabilities exceeds the supply.

However, a high TOEIC score is not the only thing evaluated. What truly matters is practical experience, such as:

• Participating in sales forecast meetings in English
• Explaining budget variances to an overseas manager
• Creating presentation materials for APAC or Global HQ
• Coordinating budgets with overseas stakeholders

Employers look at whether you have actually conducted finance work in English, rather than just your language proficiency.

Expectations Differ by Level

Even within the FP&A function, the roles expected by companies vary greatly between an Analyst and a Manager.

• FP&A Analyst: Expected to support data consolidation, report creation, variance analysis, and sales forecasting. Recently, they are also expected to investigate the drivers behind numerical fluctuations themselves and proactively check with other departments, rather than just compiling data. It is crucial to think about what the numbers mean, not just accurately create the requested materials.
• Senior Analyst / Assistant Manager: At this level, professionals are expected to handle a specific business unit or P&L and manage the full cycle of budgeting, forecasting, and monthly analysis. They may also handle regular meetings with business heads, management presentations, process improvements, and system implementations. Companies hiring them as future FP&A Managers also value experience in mentoring junior staff and leading projects.
• FP&A Manager: Beyond analytical skills, influence within the company becomes critical. Rather than simply aggregating budgets submitted by each department, a Manager’s role is to verify the validity of assumptions and request revisions when necessary. For the executive team, they must not only report actual results but also explain future risks and opportunities, presenting multiple options. Because the role includes team management, coordination with overseas HQs, and leading corporate strategy, Manager-class positions require both financial expertise and exceptional communication skills.

Is a Transition from Accounting to FP&A Possible?

Many professionals wish to transition from accounting to FP&A. Candidates with accounting backgrounds have a distinct advantage when moving to FP&A because of their understanding of financial statements, monthly and annual closings, accuracy, internal controls, and ERP experience.

However, having accounting experience does not automatically guarantee a successful transition. Companies look for the following experiences in your past roles:

• Creating or managing departmental budgets
• Analyzing costs and profitability
• Explaining the drivers behind actual performance fluctuations
• Forecasting future numbers
• Creating materials for executive management
• Coordinating with other departments regarding numbers

When aiming for FP&A from an accounting background, it is crucial not just to detail closing tasks, but to highlight experiences closer to management accounting and business support. For example, analyzing the causes of expense fluctuations after a monthly close, discussing costs with department heads, or forecasting cash flow can all serve as a bridge to an FP&A career.

[Coming up in Part 3: Will AI Replace FP&A?]

Now that the required skills and career paths are clear, we must address the most pressing topic: the rise of AI. As automation takes over data consolidation and reporting, what does the future hold for FP&A? In the final installment of this series, we explore how the latest AI tools are transforming FP&A operations and what it takes to be a finance professional who truly drives the business forward in this new era.