Buyer’s guide:
Financial planning and analysis software Selecting the right cloud-based and intuitive FP&A solution
Applied Financial Intelligence
Introduction Robust financial planning and analytic capabilities are increasingly important for forward-looking organisations seeking to navigate today’s business challenges. Legacy systems and Excel-based approaches can no longer meet the intense modelling and data transparency needs of finance professionals.
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The search for a new or replacement financial planning system begins with a thorough understanding of your organisational needs, followed by input from users and other stakeholders. Rather than going it alone, Axiom has compiled guidance on the key technology, hosting, and vendor attributes that leaders should consider when exploring the expansive and complex enterprise performance management (EPM) solution market. Because vendors offer many different approaches to solve common challenges, this guide details the most important factors to consider when evaluating solutions and solution providers.
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Technology considerations Software solutions can help organisations modernise key planning and reporting processes. When considering vendors, look for a company with deep expertise in your industry, specialised products designed for the unique needs of the industry, and implementation that includes advice on best practice configurations. Look for these requirements:
Operational budgeting software
Dashboards software
Software allows for increased efficiency and financial accountability. It incorporates data input from source systems comprising all parts of your organisation as well as external data, as required, to enable informed decision-making.
Provide users with visually appealing charts and drill-down capability to enable analysis and data discovery, in addition to serving executive-level stakeholders.
Forecasting software
Software uses a scenario-based approach to create a set of forward-looking financial statements, including the balance sheet and statement of cash flows, to develop a financial plan that underpins the organisation’s strategic goals.
Gives the organisation the ability to update forecasts throughout the year and course correct when necessary. Financial reporting software Software creates highly formatted financial statements and analytic reports according to your unique needs and the appropriate report distribution mechanisms.
Capital planning software
Ad hoc reporting software
Purchasing a stand-alone solution to meet each of these needs, however, is costly and inefficient. An integrated suite of solutions that brings together these functions delivers a streamlined experience and maximises return on investment.
Is an intuitive feature that allows users to create reports and charts with little or no training.
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Long-range planning software
Software enables project prioritisation and budget tracking for capital expenditures at the company, division, and/or department level.
Insist on cloud-based technology A cloud-based solution offers many advantages, including low IT investment, fast deployment, and easy upgrades. But not all cloud solutions are the same. Here are the key characteristics to evaluate:
Characteristic
What to look for
Why it’s important
Automated data imports
Automatic and secure data import from general ledger (GL), human resources (HR), and other internal and external data sources
Allow time for more value-added analysis
Security
Third-party validation such as SOC 2 compliance, security integration with your existing protocols, and a permissions model managed by your finance team
Enterprise-level security, governance, and compliance standards encrypt and protect your data, both in transit and at rest, while enabling users to view only the data they need to see
Access options
A rich solution that extends cloud functionality outside the confines of a web browser
Moving beyond a simple data dump to a spreadsheet allows for deeper analysis
Scalability
Ability to manage planning processes with multiple users, inputs, and approval steps, including a sandbox environment to test new software versions
Ensure a system has adequate security and permissions-based access protocols regardless of the number of users
Reliability
Modern solutions take advantage of hyper-scale cloud infrastructure providers, such as Microsoft® Azure, with uptimes exceeding 99%
Homegrown systems have limited capabilities
Auditing
Ability to capture all activity, track changes to budget numbers, and make audit data easy to retrieve
Better decisions arise from understanding the source of budget numbers
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Software must align with business practices
Configurability Because every organisation is unique, they need configurable software solutions that adapt to individual planning processes yet also incorporate industry best practices. Planning approach tailored to your industry There is no one-size-fits-all planning approach, so simplistic or rigid planning models do not work. When organisations adopt software that fails to address their industry’s sophistication, team members often revert to using timeconsuming, offline, and stand-alone spreadsheets, rendering the software investment useless. Usability and reporting A flexible interface ensures users can balance ease and functional depth — infrequent users may prefer a simple browser-based interface, while finance users will likely prefer an Excel-based experience with the full set of features, including formulas and formatting. Usability extends well beyond simply capturing budget input. A modern solution should provide a variety of methods to deliver reports and analytics to users across the organisation. Some managers will prefer intuitive dashboards with responsive drill to detail, while others will need rich analytic reports to support monthly and quarterly variance analysis. The solution should provide report distribution capabilities to automate monthly or quarterly report packages. It should also support the creation of highly formatted financial statements and budget packages.
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Considerations in selecting your solution vendor Focus on true partnership Transforming performance management and improvement processes isn’t merely a question of technology — it requires teamwork from inside and outside your organisation to implement new tools and processes and overcome challenges. A vendor whose solutions are responsible for facilitating all elements of your financial processes should provide more than just technology. They should partner with you to drive success. Here’s how to identify a true vendor partner:
Task
Why it matters
Questions and considerations
Learn about vendor’s implementation process and methodology
Vendors invest in your success by recruiting and hiring implementation experts who can ask and answer questions from your perspective and make recommendations based on first-hand experience
Do implementation principals work for the vendor or for a third party? Are implementation professionals experts in leveraging industry best practices to transform planning processes and financial performance? Who is responsible if issues arise during/after the implementation?
Get references from existing clients that are similar in size to your organisation and in your industry
Read reference materials or ask to speak with existing clients to understand the partner experience. Peer organisations are invaluable resources in making an informed vendor selection
How was their implementation experience?
Look to outside sources for information on the vendor
Industry analysts can provide unbiased reviews of vendors based on standardised rating criteria
How do analysts in your industry rate the vendor?
Review information the vendor publishes
This will help you to determine whether a vendor stays current on information you depend on from a technology partner
Does the vendor regularly:
Is the support team responsive and knowledgeable? What post-implementation support and training are offered?
Can the vendor arrange a meeting between you and a current user?
Post resources and articles that are relevant and valuable to you? Offer perspectives on market trends? Share information about current events affecting your industry?
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Having the right technology is important, but having the right people behind the technology is critical.
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About Axiom Axiom provides performance management tools for finance teams and executives, optimising how you budget, forecast, plan, report, and much more. By using Axiom software, finance teams increase their agility and improve data analysis, to better understand the drivers that affect their organisation. Built on 30 years of expertise in planning, forecasting, profitability analytics and cost management, Axiom equips your decision makers for truly effective, data-driven decision making. According to Gartner Peer Reviews, the vast majority of our customers would recommend Axiom Software without reservation. These customers value our powerful forecasting capabilities, flexibility, ease of use and the ability to customise. A single, unified platform makes it easy to manage related processes.
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Experts in helping organisations improve financial performance
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