“Why did the latest actuals come in 10% below forecast on EBITDA?”
If your manager asks this question, how do you approach the answer?
If you jump straight into the numbers, you may quickly find that revenue declined in a specific customer or product category, procurement costs increased due to tariffs, or a cost line was not fully captured in the forecast—creating the variance.
But owning the P&L means more than identifying where the variance sits.
It means being able to explain it quickly, clearly, and precisely.
That level of ownership requires:
- A deep understanding of the business model and its value drivers
- Full visibility into the accounts impacted, at the right level of granularity
- Strong analytical skills to interpret results, not just report them
On average, it takes around two years of full-time exposure to truly immerse yourself in an industry. That learning does not come from reports alone. It comes from repetition, active self-study, continuous updating, and—most importantly—participating in conversations where decisions are made.
Staying current on industry news is essential. FP&A managers should constantly monitor the key forces that affect the P&L, such as price regulation, growth trends, innovation cycles, competitive dynamics, and raw material pricing. Frameworks like Porter’s Five Forces can be especially useful to structure this thinking.
Memorizing your figures also plays a critical role in P&L ownership. It sends a strong signal that you are on top of the business and that your stakeholders can rely on you. Speed and confidence matter when explaining performance.
Organizations cannot overstate the importance of strong FP&A leadership. Every business needs someone who fully owns the numbers and promotes a finance-driven culture. This increases accountability for results, enables data-driven decision-making, and is essential to mitigating risk while capturing opportunities.