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Creating a high-impact finance function
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Updated: February 20, 2024 |
By
Jake Ballinger is an experienced SEO and content manager with deep expertise in FP&A and finance topics. He speaks 9 languages and lives in NYC.
This is the most complete FP&A software evaluation checklist on the planet.
By the end of this checklist, you'll be able to determine which FP&A software:
Let's get started.
FP&A Writer, Cube Software
Embarking on the journey to find the perfect FP&A solution requires clarity on your objectives.
In a recent survey conducted by Battery Ventures, it was revealed that 22% of FP&A software users expressed dissatisfaction due to the absence of automation features in their tools.
In light of this insight, let's delve into this section to precisely pinpoint your pain points.
To aid you in this process, we'll be sharing real-life examples of questions that our customers pondered during their quest for the ideal FP&A software. So, let the exploration begin!
You already know why you need an FP&A solution. But it helps to have it down in writing.
Make a list like this:
Whatever they are, take a few minutes and make a list of your biggest pain points and bottlenecks.
Just like how you write down the things getting in your way, it's also important to be clear on what a good FP&A solution looks like.
Write 3-5 benefits or 'nice-to-haves' that will make your work easier or faster.
We want to...
When you're done with that, it's time for the next step.
Protip: Our client Kristina at 1Rockwell says to ask the following: How do you want your life to be simpler?
In order to make the best decision, it helps to cast a wide net and then refine.
You already know how to search Google and ask your colleagues.
But you might be leaving some little-known, highly specific tools on the table, which is why it's important to conduct a small search.
Sometimes, word-of-mouth from the people you already know and trust is the best research.
Here are some places to start looking:
Cube has a Slack community of FP&A professionals who are happy to talk about their preferred FP&A tools and their experiences.
(You can also use our Top FP&A tools post as a starting point.)
The onboarding experience is critical.
After all, you don't want to pick the perfect solution...only to discover that you must wait 6 months before using it.
In this section, we're putting the spotlight on the onboarding process, evaluating just how crucial it is for a seamless transition into your chosen FP&A software.
After all, you're not just picking a tool; you're crafting a roadmap for success, and a stellar onboarding experience is your key to unlocking the full potential of your selected software evaluation checklist.
How long does this solution take to implement?
Here’s what you need to find out:
If you see find a tool with a large lead time, it's worth digging a little deeper.
Learn who's incentivized to make your project successful and how they're going to do it.
The best FP&A solutions will have that white glove, done-for-you implementation service, and low lead times.
Before committing, you need to know about the learning curve.
A product that takes 2 weeks to implement but 6 months to learn how to use? Not good.
Here are some questions to help you evaluate this:
The best FP&A software is flexible and nimble—not a black box that lacks transparency.
You want an FP&A solution to make your life easier.
So it's essential to know how it's going to change your day-to-day life.
In this section, you'll imagine how you're going to use each tool in your day-to-day life.
Month-end and year-end activities shouldn't be a burden after you're onboarded.
Here are a few ways to learn how this FP&A software will change your everyday work life:
If people say it's changed their lives, you're probably in the right place.
It might be a sign to reconsider if you're not hearing astounding things.
At some point, you will need to consult the documentation.
Either way, you're going to want whichever solution you choose to have robust documentation that quickly and easily helps you get onboarded or unlock a new feature.
Most companies will host this information on their website (look for a "knowledge base" or something similar) or on a separate platform, like Zendesk.
Here are some questions to help you evaluate the documentation:
But documentation is only half the question.
If you're buying an FP&A solution, you're also buying a customer success team.
So it's important to consider the quality of support you're buying.
We recommend asking these questions:
The best way to get the answers to these questions is to talk to an existing customer.
Don't know any? Make sure to ask when you speak with a sales representative.
Here are some things to consider when evaluating the quality of the customer success experience:
You want a knowledgeable, professional, and friendly Customer Success team as a customer. If they're actively invested in you and your team, your entire experience with the tool changes.
Finally, you need to know how this solution will grow with you and your business.
(This is a common theme in our success stories—many customers find that they came to Cube for one specific problem but that it actually solves their new problem.)
The following questions can help you gauge this:
Once you feel you have a solid grip on how this solution scales with you, it's time to move on to the next section.
How does this solution actually solve your pain points?
Is it powerful and nimble? Can you experiment with how you use it, or are you locked into a specific method?
This is more than just finding a solution—it's about crafting a tailored approach that checks all the boxes on your software evaluation checklist.
How close of a fit is it?
Here's what you're going to do to determine that:
Now you have a quick overview of which solutions solve your problems and which solutions might be lacking.
How will this software make your life easier?
Just like you added information to your list of pains and bottlenecks, you should also add information to your wish list.
Here's what we recommend:
This should narrow down your shortlist.
Integrations and connections are likely to be one of the more important factors as you evaluate different FP&A solutions.
That same Battery Ventures survey reports that 15% of respondents felt that a lack of integrations was their biggest issue with their current FP&A solution.
A tool with more integrations is more nimble and more future-proof.
In this section, you're going to get clear on how each tool's integrations affect your buying decision.
The more source systems a solution connects with, the better.
Why?
A few reasons:
You should take stock of your current tech stack and make sure that this tool connects to it.
And if your heart is set on a tool and it doesn't connect? There might still be hope:
In other words, is it easy to connect new systems to this FP&A solution?
Here's what you can ask your sales representative while on a demo call:
When checking for integrations, it's also important to check for security.
After all, security is important.
Here are some questions you can ask your sales representative:
Be relentless here: your organization's information is important and needs to be secure.
As you grow the Office of the CFO to be a strategic partner to the greater company, it helps to share tools with people in other departments or offices.
That said, finding an FP&A solution that the non-finance people in your company will adopt is a challenge.
In this section, you'll figure out how the non-finance stakeholders in your organization will use this tool.
Most other departments, when they use spreadsheets, use Google Sheets.
So having the ability to work and present in Google Sheets is going to be huge for interdepartmental collaboration.
These are the questions you need to answer:
Most FP&A solution providers will clearly list this information on their website.
And here's a tip:
When you research this information, keep in mind how you intend to grow.
Having an FP&A tool that integrates with Google Sheets is a quality-of-life improvement that many of our customers find invaluable because it makes inter-department communication easy.
Or, at the very least, is it friendly looking?
Imagine presenting a tool with a forbidding, technical interface to a non-technical person...
...chances are, they won't use it no matter how much you tell them.
So the UI (user interface) is incredibly important.
Here are some questions to help guide you:
Looking up the software's support documentation will give you plenty of screenshots, GIFs, and videos of how the tool works.
And if you still have questions, you can make a list to ask during your sales demo.
You can involve one of your non-finance coworkers in this stage of the software assessment checklist and ask them directly what they feel about each tool's UI and how you see your teams collaborating with it.
You covered this a bit when you learned about lead time, but it's worth a second glance.
Because being able to transfer your existing knowledge (especially hard-won knowledge, like Excel shortcuts and formulas) into a new tool makes it more likely members of your team will use the tool.
In this section, you'll take a closer look at what transferrable knowledge you can bring to this new tool and what you might have to learn or hire for if anything.
LAMBDA is Excel's new wrapper for their scripting language. You (and your team and potential new hires) probably already know Excel's scripting language and LAMBDA lets you write any program in Excel, regardless.
So first, you should get clear on whether or not this new FP&A solution requires you to learn a new language or whether it uses Excel or LAMBDA.
Here are some questions you can ask your sales representative:
Scripting and formulas are a large part of Excel's power. If you need to learn a new scripting language, you're going to have a considerably larger lead time, plus the potential to make more errors.
Furthermore, if this tool requires a special skill set, that should sound alarm bells.
Here are the 3 outcomes we've seen when FP&A teams adopt tools that require highly specific, niche skill sets:
Instead, we recommend picking a tool that enhances what you already know.
Finally, the pricing needs to be clear. The pricing page and sales representative should be clear about what you're paying for and receiving.
Before you sign on the dotted line, ensure you know what's included in this package.
Go through your wish list and bottlenecks and make sure each one gets covered by the offer.
Likewise, pricing can make a big difference. If the two tools have a large price difference and minimal value difference, the trade-off might be worth going with the cheaper one, especially if the perceived value is still high.
Be sure to get satisfactory answers to the following:
Your sales representative should be up-front and honest with you when you ask this question. If you can, ask some people who are already using that tool. This will give you a clear idea of hidden costs to factor into your final decision.
Introducing a new FP&A software involves more than just technology—it requires organizational alignment.
The success of this transition hinges on securing buy-in from key stakeholders across various departments. A strategic approach to FP&A software adoption involves showcasing the undeniable benefits that extend far beyond finance, creating a ripple effect of enthusiasm throughout the organization.
One pivotal strategy is to illuminate the Return on Investment (ROI) potential. By providing concrete examples of how the FP&A software can enhance efficiency, reduce costs, and elevate decision-making, stakeholders gain a clear understanding of the direct impact on the bottom line.
Whether through streamlined processes or data-driven insights, painting a vivid picture of the financial gains serves as a powerful catalyst for buy-in.
Furthermore, emphasizing the cross-functional advantages of the software strengthens the case for adoption. Highlight features that foster collaboration between finance and other departments, breaking down silos and promoting a unified approach to organizational success.
By addressing potential challenges proactively, the strategic approach ensures a smoother transition and widespread acceptance of a new FP&A software solution.
As you saw, this FP&A software evaluation checklist really works. If you found this checklist helpful, share this post on LinkedIn and tag us to keep the conversation going. Or send it to someone who you think will benefit from it.
Your journey to finding the perfect FP&A solution doesn't have to be daunting. In fact, there's a tool that aligns seamlessly with the insights shared in this guide—Cube Software.
Take a moment to explore Cube and see how it effortlessly integrates with the principles outlined in this checklist. Your financial journey deserves a partner that understands, and Cube might just be the missing piece.
