How does EPM software differ from FP&A?
Enterprise planning and performance management (EPM) and Financial Planning and Analysis (FP&A) are very similar, but they focus on different aspects of an organisation’s financial planning and decision-making processes. Essentially, FP&A forms part of the EPM set of activities, but EPM also includes non-financial dimensions of performance management and strategic alignment.
FP&A software is primarily a finance tool that connects the finance function with other departments, helping translate business strategies into financial plans and analysing financial data to support decision-making with financial models, key performance indicators (KPIs), and scenario analysis to assess the financial impact of different strategies and other initiatives.
FP&A focuses specifically on the financial aspects of planning, analysis, and reporting within an organisation including budgeting, forecasting, financial modelling, variance analysis, management reporting, and financial decision support. It provides insights and guidance for financial management, including revenue projections, expense management, profitability analysis, and investment evaluations.
EPM solutions provide a comprehensive framework to align the organisation’s objectives, monitor performance against targets, and drive accountability across different levels and functions.
EPM typically includes strategic planning, budgeting, forecasting, financial consolidation, profitability analysis, risk management, and performance measurement. It considers both financial and operational aspects of the business, enabling organisations to holistically manage and optimise their performance.
