Skip to main content

5 Questions Every Startup Should Ask Before Hiring an FP&A Partner

Building a strong Financial Planning & Analysis (FP&A) function can make or break your company’s trajectory. For startups, the stakes are especially high: unpredictable cash flow, limited historical data, and the constant pressure to deliver investor-ready reporting all combine to create challenges that even seasoned finance leaders struggle with.

That’s why choosing the right FP&A consulting partner is critical. The firm you select will shape how your company builds its finance foundation, manages growth, and communicates with investors. To help you evaluate potential partners, here are five essential questions to ask any FP&A consulting firm before making a decision.

1. How will your FP&A expertise support our key business goals?

A great FP&A partner doesn’t just build models and reports, they tailor their work to your company’s most pressing objectives.

  • If you’re preparing for fundraising, they should be able to craft credible growth projections, investor-ready models, and compelling financial narratives that instill confidence.
  • If profitability is the priority, they should show you how they’ve identified cost drivers, optimized unit economics, and uncovered efficiency opportunities for other clients.
  • If resilience is the focus, they should demonstrate how they’ve guided companies through cost reduction without stifling growth.

Be sure to ask for examples of how the firm has supported similar business goals for companies like yours.

2. What steps do you take to ensure reporting accuracy?

Your financial reporting is only as good as the data behind it. Inaccurate inputs can derail forecasts, mislead investors, and hinder decision-making.

When speaking with a potential partner, ask how they:

  • Validate financial data for consistency and reliability.
  • Implement reconciliation processes to prevent small discrepancies from compounding.
  • Establish audit trails and controls to maintain long-term accuracy.

An experienced FP&A firm should bring proven data governance practices and be able to point to past results where their processes improved accuracy and investor confidence.

3. How do you define and prioritize KPIs for companies at our stage?

Not all metrics matter equally, and the wrong KPIs can waste time or distract leadership. The right FP&A partner will help you zero in on the handful of performance indicators that truly matter.

Ask potential partners how they approach KPI selection:

  • Do they tailor metrics based on company stage (seed, growth, pre-exit) and industry?
  • Can they share examples of defining KPIs for companies like yours (SaaS, e-commerce, healthcare, etc.)?
  • How do they balance short-term operational indicators with long-term strategic ones?

Their answers will reveal whether they can cut through the noise and deliver reporting that drives action, not just information.

4. How will you support board and investor reporting?

Investor and board communications are a critical test of your FP&A function. You need a partner who knows how to frame results, highlight opportunities, and address risks, all while tailoring the message to the audience.

When evaluating a firm, ask:

  • How have they prepared board packages and investor updates for other clients?
  • How do they adapt reporting for different types of investors (venture capital vs. private equity)?
  • What cadence do they recommend for board and investor reporting, and how do they keep it efficient?

The best partners will have concrete examples of reporting they’ve built and an understanding of how to present financials in a way that builds trust.

5. How do you right-size budgeting and forecasting for companies like ours?

Budgeting and forecasting can either be a growth enabler or a drain on resources. The right FP&A partner will tailor the level of sophistication to your stage, market conditions, and stakeholder needs.

Ask potential firms how they:

  • Design lightweight forecasting approaches for early-stage startups focused on cash runway.
  • Introduce more robust processes for growth-stage companies that need departmental budgets and rolling forecasts.
  • Adjust their methods as the business matures, ensuring visibility without unnecessary bureaucracy.

Look for a partner who can adapt — not apply a one-size-fits-all model — and who can clearly articulate how their approach has scaled with other companies’ growth.

Final Thoughts

Selecting an FP&A partner is one of the most important decisions a startup can make. By asking these five questions, you’ll quickly identify whether a consulting firm has the experience, flexibility, and strategic insight to support your growth.

At Kranz Consulting, we’ve spent over 30 years helping founders and entrepreneurs build FP&A functions that drive results. Our 300+ consultants nationwide have supported companies from seed stage to IPO, tailoring FP&A solutions to match each company’s goals, stage, and industry.

Learn more about our FP&A services.