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The WSP Blog

Guide to FP&A: Job Description and Responsibilities

Financial planning and analysis (FP&A) is a group that sits within a company’s finance organization and provides senior management with a forecast of the company’s profit and loss (income statement) and operating performance for the upcoming quarter and year.  These forecasts inform ... Read More

FP&A Career Path and Salary Guide: Analyst to Director

The FP&A career path starts at the analyst level and progresses to director of FP&A: FP&A Analyst Senior FP&A Analyst FP&A Manager Director/VP - FP&A The FP&A career path is less standard than that of investment bankers or consultants. However, if ... Read More

DCF Model Training: 6 Steps to Building a DCF Model in Excel

A discounted cash flow model ("DCF model") is a type of financial model that values a company by forecasting its' cash flows and discounting the cash flows to arrive at a current, present value. The DCF has the distinction of being ... Read More

Accounting for Capitalized Software Costs

With the growth in the number and size of software companies, we think it's important to shed some light on capitalized software costs. Capitalized software costs are costs such as programmer compensation, software testing and other direct and indirect overhead costs that are capitalized on ... Read More

Stock Based Compensation Accounting: Journal Entries

Under US GAAP, stock based compensation (SBC) is recognized as a non-cash expense on the income statement. Specifically, SBC expense is an operating expense (just like wages) and is allocated to the relevant operating line items: SBC issued to direct labor ... Read More

Budget to Actual Variance Analysis in FP&A

A key function for the FP&A professional is to perform a budget to actual variance analysis. A budget to actual variance analysis is a process by which a company's budget is compared to actual results and the reasons for the variance ... Read More

Rolling Forecast Best Practices: A Guide for FP&A Professionals

A rolling forecast is a management tool that enables organizations to continuously plan (i.e. forecast) over a set time horizon. For example, if your company produces a plan for calendar year 2018, a rolling forecast will re-forecast the next twelve ... Read More

WACC (Weighted Average Cost of Capital): WACC Formula and Real Examples

The weighted average cost of capital (WACC) is one of the key inputs in discounted cash flow (DCF) analysis and is frequently the topic of technical investment banking interviews. The WACC is the rate at which a company’s future cash flows need ... Read More

The Series 79 Exam: What Expect and How to Prepare

The Series 79 exam, also called the Investment Banking Representative Qualification Examination, is an exam administered by FINRA for investment banking professionals. As long as the investment banker is engaged exclusively in investment banking activities, this exam can be taken ... Read More

The Series 7 Exam: What to Expect and How to Prepare

The Series 7 exam, also called the General Securities Representative Exam, is a regulatory licensing exam administered by FINRA to assess the competency of entry-level finance professionals involved in the selling, trading or dealing of securities. The Series 7 is ... Read More

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The Wall Street Prep Quicklesson Series

7 Free Financial Modeling Lessons

Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts.