Enterprise finance teams spend plenty of time collecting and analysing data from various sources, writing them down in the ledger and optimising the period-end close. These activities require hours of work and professional skills to understand the importance of financial planning. Many offices of the CFO implement financial performance management solutions, usually integrated with the existing systems, to stabilise the company’s financial health and improve the strategic planning within the department.
Now, we’ll see why such software benefits a company, sharing tips on choosing the right one.
What is Financial Performance Management Software?
Financial performance management (FPM) software helps in collecting, organising and analysing all the financial information within a company. It’s an advanced solution that may work as a standalone software or integrated within other financial systems. It provides deep insights into financial performance, enhancing the internal management, as well as the reporting and auditing processes.
With features like scenario planning, KPI tracking and accounting metrics and real-time accounting, FPM software enables companies to make data-driven decisions, improve profitability and adapt quickly to recent market conditions. It also empowers CFO teams to align strategies with business goals and maintain long-term financial stability.
It typically combines several key functions:
- Budgeting and forecasting
- Consolidation and reporting
- Financial analysis
- Scenario planning
- Compliance and audit support
Businesses use FPM software to make better strategies which help increase profitability, performance and reduce risk.
Why Do Enterprises Need Financial Performance Software?
Finance teams that use traditional (legacy) tools and approaches typically spend a lot of time on gathering, organising and analysing the data. This may result in errors because all work is done manually and teams don’t have much time to focus on making better strategies for important tasks. The need for automated software appears here, improving the performance while letting the team handle the ongoing challenges professionally.
Such software goes beyond basic accounting. It helps in:
- Manual Data Management: Using software creates a better environment to reduce the risk of possible mistakes when tasks are done manually. This improves efficiency and overall financial health.
- Improved Budgeting and Forecasting: Finance automated tools streamline the creation of budgets and financial forecasts, reducing manual errors. Businesses can quickly adjust projections in response to changing market conditions.
- Real-Time Monitoring: This software can track performance in real time while identifying risks earlier, before they become major problems. Also, the visibility helps in making new growth opportunities.
- Enhanced Compliance: Built-in controls and audit trails help ensure regulatory compliance and financial accuracy. This builds trust with stakeholders and investors.
Implementing financial software enhances financial management, accuracy, team collaboration and facilitates faster reporting cycles.
5 Best Financial Performance Management Software Solutions
There are many financial software options available on the market. Depending on your business’s needs, you should seek the right software to improve your performance, functionality and satisfy the customers. The best finance software solutions that contribute to efficient management are:
1. Aico
Aico is not a financial performance management (FPM) solution per se, but it focuses on enhancing collaboration and efficiency across teams rather than functioning as traditional software. Instead of replacing existing systems, Aico acts as a path that connects people, processes and data to streamline financial workflows - with one specific goal - an efficient period-end close.
What does Aico do to accomplish that?
- Automating repetitive tasks
- Enhancing data accuracy
- Facilitating real-time communication
This approach ensures that financial planning, analysis, reporting and financial close are not separate activities but integrated efforts that drive better decision-making and overall business performance.
As we said, Aico is not a broad financial management software, but integrates with SAP, Oracle NetSuite and/or Microsoft Dynamics to cover a wide range of management tasks like:
- General ledger reconciliation
- Accounts receivable/payable automation
- Budgeting and forecasting
- Asset management
Knowing this, Aico is a financial automation and close management solution. While it wasn't initially a financial management software, with the merger with Mercur and AARO, Aico extends the financial management coverage, integrating more functionalities for European enterprises.
2. Prophix One
A well-known finance performance management platform that automates budgeting, forecasting, reporting and consolidation. It is known for its smooth real-time data integration with ERP, CRM and HR systems, AI-driven insights and scenario planning tools that enhance decision-making. Its flexible interface and real-time dashboards make it easy for teams to monitor performance and adapt strategies quickly. Still, too many functionalities may become confusing for the teams that prefer simple and straightforward processes.
3. Anaplan
Anaplan is a cloud-based financial performance management solution designed for complex, enterprise-level planning and forecasting. It enables organisations to connect data, people and processes across finance, operations, sales and other functions in real time. With its advanced modelling capabilities, Anaplan allows businesses to simulate multiple scenarios and make faster, more confident decisions.
4. Vena
Vena combines the familiarity of Excel with the power of an integrated planning and reporting platform. It streamlines budgeting, forecasting and reporting processes while maintaining the flexibility finance teams value in spreadsheets. The platform’s automation and workflow management features help reduce errors and improve collaboration across departments.
5. Cube
Cube is a cloud-based finance management platform designed for teams that prefer working in Excel or Google Sheets while benefiting from real-time data and automation. It allows finance teams to perform budgeting, forecasting, and scenario modelling without leaving their preferred spreadsheet environment.
How to Choose The Right Financial Performance Management Software
Choosing the right financial performance management software requires considering the company's specific needs, scalability potential, ease of use, integration capabilities and customer support, which includes:
- Business Needs: When selecting, prioritise the company’s needs and focus on the must-have features. Consider whether the software is flexible for budgeting and forecasting, if it provides real-time dashboards, automated reports and so on.
- User Experience: Ensure the software is easy to use, has a user-friendly design and is accessible on various devices.
- Scalability: The software you choose must be scalable and can handle increased workloads or user demand. It should adapt to growth and updates, which will improve performance without risks.
- Value Over Cost: While cost is a factor, focus on finding a solution that delivers the most value in terms of efficiency, productivity, and strategic insights. A software that streamlines processes and enhances decision-making will ultimately provide a higher return on investment than one chosen only for its lower price.
Final Thoughts
Financial performance management software is a strategic solution for modern enterprises, enabling the finance team to move toward proactive, informed strategies. By integrating data, streamlining workflows and delivering powerful analytics, these solutions provide the clarity and agility needed to follow and adapt to the recent market changes.
From improving team collaboration to enhancing forecasting accuracy, FPM tools empower organisations to optimise resources, seize opportunities and sustain growth, all while keeping financial performance aligned with business objectives.
