How to choose the best FP&A software: Advice from an FP&A expert

Choosing the right FP&A software is one of the most important decisions Finance leaders can make today. The right tool doesn’t just automate reports or speed up planning cycles; it can fundamentally change how Finance partners with the business, helping shift the role of FP&A from reactive number crunching to proactive, strategic decision-making. As VP of FP&A and Performance at Jedox with nearly a decade of experience in the field—as well as a deep understanding of the evolving role of Finance in driving business performance—I’ve seen this shift firsthand, and I’m happy to share some of the lessons I’ve learned along the way.

At the end of the day, FP&A connects all the dots. You’re close to every department, from commercial to strategy, helping translate cases into numbers and numbers into stories. It’s a bit of financial storytelling, offering early alarms if things are heading off track. Numbers are very true and honest—they don’t lie. You can always see how certain KPIs move and that basically tells the story behind it.

In German, FP&A is called Controlling. On the German keyboard, there’s a key that says “Strg” for “Steuerung”, which translates to “control” in English. I always like to think about FP&A as the navigator of a ship, helping the captain steer through troubled waters.

Traditionally, FP&A was all about manual work: gathering information, validating it, building reports—and repeating the cycle. But in today’s fast-paced world, especially with all the volatility, uncertainty, complexity, and ambiguity (VUCA) we face, that’s no longer enough. You can’t afford to spend days preparing data. You need to create value by analyzing it and delivering insights.

This is where automation, artificial intelligence (AI), and cloud-based FP&A solutions really make a difference. Without the right tools, poor planning can sneak up on you, which can lead to bad forecasts, clumsy budgeting, and missed opportunities. I’ve seen it happen. But with the right system in place, you can get ahead of it.

In this blog post, we’ll explore a framework that’s worked for me and might help you, too.

The top challenges in financial planning today

One of the biggest headaches for Finance teams is trying to forecast with incomplete, inconsistent, or outdated data. Nobody wants to be stuck in a meeting presenting numbers that are already two weeks old while everyone else is asking, “Yeah, but what happened last week?”

Data silos are another big problem. Too often, Finance ends up hoarding information like a dragon with gold. When that happens, it slows everything down. Modern FP&A tools help break down those silos so that data is accessible across the company. Everyone gets a clear view of where things stand and where the business is heading.

Speed is critical, too. With a good FP&A solution—especially one that leverages AI—you can build simulations, run different scenarios, and even predict outcomes far faster than you could before. It’s the stepping stone from traditional reporting to predictive and prescriptive analytics.

In today’s environment, agility is everything. You have to know your business inside and out, know which levers to pull and when, and having the right technology and real-time data at your fingertips is what makes that possible.

The risks of not investing in a modern FP&A solution

There are also financial and operational risks to consider if you don’t invest in a modern FP&A solution. One major issue is headcount. With modern FP&A software, you can work more efficiently, meaning you don’t need as many people just managing spreadsheets and reports. Your team can focus on creating real value for the business instead of getting buried in manual tasks.

Another big risk is missing out on the full potential of your data. When everything is connected and accessible, you can spot opportunities and issues much faster, whether it’s an underperforming product line or a shift in market dynamics. Good FP&A software acts almost like a digital twin of your business, giving you insights you wouldn’t catch otherwise.

Even the process of implementing a new tool can be valuable. It forces you to take a hard look at your current processes and often reveals outdated workflows that need fixing. Modern FP&A also helps with data consistency, pulling everyone together around common KPIs and definitions. I’ve seen companies where the same KPI had four different definitions depending on who you asked, and you can imagine the confusion that caused.

With modern software, everyone is finally working from the same numbers, aligned on the same goals, and able to move faster and smarter.

The role of collaboration in modern FP&A

Modern FP&A isn’t just about better numbers; it’s about better collaboration. When it comes to integrating and harmonizing financial and operational data across multiple systems, getting all stakeholders on board is essential. Everyone needs to be aligned, not just on decisions, but on the underlying processes as well.

Take Marketing and Sales, for example. You start with Marketing generating qualified leads, which are then handed over to Sales. Sales accepts them, and from there, it moves through the pipeline until revenue is actually recognized, and money hits the bank account. If everything is connected properly, you can trace every Euro spent all the way to the return it generates. That level of transparency is the goal.

But to achieve that, Finance professionals—especially those in FP&A—need strong soft skills. Their role is to connect departments, just like the FP&A software connects the entire business. It’s not just about crunching numbers; it’s about talking to people, understanding the business, the products, and the processes.

By breaking things down into smaller, understandable parts and seeing how they interconnect, you eliminate silos. It’s not about saying, “My job ends here, and yours starts there.” Instead, it’s about creating smooth handovers and a continuous flow of information throughout the company.

5 key features to look for in the best FP&A software

There are a few must-haves I always look for.

First is an Excel add-in. As someone who works in FP&A, Excel remains essential. It’s the standard tool for ad hoc analysis and any good FP&A solution should complement it, not replace it.

User experience (UX) and user interface (UI) are critical, too. If the tool isn’t intuitive, people won’t use it. It needs to feel natural, with workflows that make sense.

Modern tools should also offer AI capabilities. Things like predictive analytics, smart suggestions, or predefined content. I always check if the vendor has a clear AI roadmap and how those features are being integrated.

Scalability is another key point. You want a solution that can grow with you, that supports multiple users simultaneously and distinguishes between different types of users: power users, casual users, or simple contributors. Not everyone should need deep training to make the tool work.

A strong user community matters as well. It’s invaluable to have a place where peers can share best practices, ask questions, and learn from each other. That kind of ecosystem is invaluable, especially when you’re trying to make the most of the tool.

In the end, the tool has to be the right fit for your business model. A solution that works well for a SaaS company might not be ideal for a manufacturer, and vice versa. It’s also critical to see whether the vendor has experience solving problems for companies similar to yours.

Measuring the success of FP&A software post-implementation

One of the best signs of success is that people are actually using the tool, talking about it, and suggesting ways to improve it. Usage is key.

I remember one company that would track report usage. If a report wasn’t accessed, they’d remove it. Back in the Excel days, we’d sometimes send out files with intentional errors—if nobody reacted, we’d stop sending that report. Six months later, someone might say, “Wasn’t there a report on this?” And we’d say, “Yes, but nobody read it, so we canceled it.”

If your FP&A tool is driving business conversations, being referenced in QBRs and monthly meetings, and helping people drill into data easily, that’s when you know it’s delivering real value.

A structured evaluation framework for selecting FP&A software

Choosing FP&A software is a bit like buying a car. You wouldn’t just buy one based on price or looks alone. You’d want to walk around it, take a test drive, check under the hood, and make sure it’s the right fit. Same with software. Just because something looks good or sounds impressive doesn’t mean it’s going to meet your needs, you need to be more intentional.

• First, define your use cases. Know what problems you’re trying to solve. Is it purely for forecasting? For planning? How do your processes work—monthly forecasts, rolling forecasts, open forecasts? The tool needs to match how you operate.
• Next, consider the scale. Are you a single-entity company or a multi-entity group? Will you need consolidation features? How many users will be involved, and what type of users? The solution must suit your organization’s size, complexity, and growth plans. Scalability is key, especially if you’re a fast-growing business.
• Vendor evaluation is also critical. Do they have a roadmap that reflects their commitment to innovation? If a vendor can’t show you where the product is headed, that’s a red flag; you want a solution that evolves with your business, not one you outgrow in a few years.
• User experience matters, too. The demo should reflect your actual use cases, not just a generic sales pitch. It’s also critical to involve all stakeholders early so there are no surprises later, like key users rejecting the solution because it doesn’t meet their needs.
• Value for money is another big one. Don’t just buy the most expensive or feature-rich solution; buy what you actually need. There’s no point paying for 10,000 licenses if you only need 300.
• And don’t forget integration. Make sure the software can connect with your existing data stack—ERP, CRM, HR systems—using live data feeds. You don’t want to rely on outdated, manual processes like exporting and importing CSVs just to get your data in the system. That can be very painful.

It’s also important to remember that implementing a new tool is part of a broader change management process. You’re not just buying software; you’re changing how people work. That means managing stakeholders, setting expectations clearly, breaking down silos, and making sure the rollout is smooth and well-communicated. And if a six-month rollout with a three-month grace period still isn’t working after a year, it’s time to reassess. Even if it’s hard, sometimes you have to recognize when the sunk cost fallacy is holding you back and walk away.

Additionally, support should be accessible, knowledgeable, and genuinely helpful. It’s important that the vendor shows real passion and belief in their product. That confidence and commitment can make all the difference in a successful implementation.

Conclusion: Your next steps for choosing the right FP&A software

Selecting FP&A software isn’t about the flashiest platform; it’s about finding the right fit for your business needs. Ask yourself: Are you spending too much time on spreadsheets? Lacking real-time data? Struggling to align teams? The right software can solve these issues and position Finance as a true business partner.

My advice? Take a strategic approach. Evaluate your needs first and find the tool that will help you tell your company’s financial story—faster, smarter, and with more impact.

Ready to dive deeper? Book a demo to see the difference modern FP&A software like Jedox can make.