As finance leaders, we’re all too familiar with the challenges of using Excel for financial planning and analysis (FP&A). From siloed data to version control issues and the constant risk of human error, Excel’s limitations have become increasingly apparent in today’s fast-paced business environment.
However, the emergence of AI-driven FP&A software appears as the superior solution that addresses these challenges head-on. On the surface, these cloud-based solutions cater to mundane manual tasks with several key advantages, making them the champions in modern financial planning and reporting.
Easy Collaboration and Improved Forecasting
One of the biggest drawbacks of using Excel for FP&A is the lack of collaboration between departments. With data siloed in individual spreadsheets, getting a comprehensive view of the business is nearly impossible. This lack of visibility can lead to inaccurate forecasts and suboptimal decision-making.
Any modern FP&A software solves this problem by enabling seamless collaboration across departments. With a single source of truth for financial data, teams can work together in real-time to create more accurate forecasts and drive better business outcomes.
Streamlined Data Integration
Consistency is key when it comes to financial data. Unfortunately, Excel often falls short in this area, with data scattered across multiple systems like ERP and CRM. This lack of integration can lead to data inconsistencies and inaccuracies, which can have severe consequences for your business.
Modern FP&A integrates directly with your ERP and CRM systems, ensuring your financial data is always up-to-date and accurate. This streamlined approach to data management saves time, reduces errors, and provides a more reliable foundation for your financial planning and reporting.
Reduced Human Error
Speaking of errors, Excel is notoriously prone to them. Studies have shown that up to 90% of spreadsheets contain errors, and these mistakes can significantly impact your business. Excel’s manual nature makes it a risky choice for critical financial planning tasks, from incorrect formulas to version control issues.
Modern FP&A’s automation features reduce the risk of human error by automating many of the manual tasks associated with financial planning. From data consolidation to report generation, the software handles the heavy lifting, allowing your team to focus on strategic analysis and decision-making.
Built Specifically for Financial Planning
While Excel is a versatile tool, it was designed for something other than financial planning and reporting. Modern FP&A, on the other hand, was built from the ground up to meet the unique needs of finance professionals.
With features like driver-based planning, scenario modelling, and advanced analytics, modern FP&A provides a comprehensive suite of tools that are tailored to the needs of modern finance teams. This focus on financial planning ensures you have the right tools and functionality to drive better business outcomes.
Here we illustrate how powerful modern FP&A typically works with Workday Adaptive Planning as an example:
XYZ Corporation, a mid-sized manufacturing firm, had been using Excel for its FP&A needs for years. However, as the business grew, Excel’s limitations became increasingly apparent. Data was siloed across multiple departments, forecasts were inaccurate, and the finance team spent more time fixing errors than analysing data.
After evaluating several solutions, XYZ Corporation decided to implement Workday Adaptive Planning. The transition was smooth, thanks to the software’s intuitive interface and the support of the Workday team. Within just a few months, XYZ Corporation saw significant improvements in its financial planning and reporting processes:
– Improved collaboration between departments, leading to more accurate forecasts
– Streamlined data integration, reducing the risk of errors and inconsistencies
– Automated reporting and analysis, freeing up the finance team to focus on strategic initiatives
– Better visibility into key business drivers, enabling more informed decision-making
As a result of these improvements, XYZ Corporation was able to make more informed decisions, drive better business outcomes, and stay ahead of the competition.
Conclusion
While Excel has been a staple of financial planning and reporting for years, its limitations have become increasingly apparent in today’s fast-paced business environment. From siloed data to version control issues and the constant risk of human error, Excel is no longer the best choice for critical financial planning tasks.
Workday Adaptive Planning offers a superior solution that addresses these challenges head-on. With its focus on collaboration, data integration, automation, and financial planning-specific features, Workday Adaptive Planning provides a comprehensive suite of tools that are tailored to the needs of modern finance teams.
If you’re looking to take your financial planning and reporting to the next level, consider switching to Workday Adaptive Planning. With its proven track record of success and its commitment to innovation, Workday Adaptive Planning is the ideal choice for finance leaders who want to drive better business outcomes and stay ahead of the competition.
