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When is the Best Time to Purchase FP&A Software?

February 13, 2024
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Timing is crucial when it comes to purchasing FP&A software. The decision to invest in such a tool can significantly impact the efficiency and accuracy of your financial processes. But when is the best time to make this important investment?

Here’s a quick guide to when purchasing FP&A software makes the most sense.

Benefits of purchasing financial planning software at least 6 months before creating annual budgets

Purchasing FP&A software well in advance of the budgeting cycle offers several advantages.

Iron out internal processes: With ample time before budget creation, you can identify and streamline internal processes, ensuring a smoother transition to the new software.

Improve accuracy: Rushing through budget creation leads to errors. By purchasing FP&A software early, you eliminate the need to rush, resulting in more accurate budgeting.

Ensure smooth implementation and training: Investing in FP&A software early provides sufficient time for implementation and training, ensuring that your team is up to speed on the new tool when the budgeting process begins.

Identify areas that can be improved: Early adoption allows you to identify areas for improvement within your financial processes and address them before they become critical issues.

Roll out to budget contributors: Early adoption enables you to roll out the software to contributors across the organization, ensuring that everyone understands their roles and responsibilities in the budgeting process.

Benefits of purchasing FP&A software during significant business growth changes like mergers and acquisitions

FP&A software can offer clear benefits for a business undergoing a period of significant growth or change, like a merger or acquisition.

A good budgeting software tool can consolidate multiple Charts of Accounts seamlessly, providing a unified view of financial data without the need for formalizing to a master accounting number format. FP&A software delivers insight into how each company within the merged entity is performing, facilitating better decision-making.

One of the most important uses of financial software for companies in a growth stage is the ability to easily consolidate financial reports, like multiple P&Ls, balance sheets, and cash flow statements.

Centralizing financial data and reporting in a dedicated FP&A software solution — rather than a series of unevenly distributed Excel spreadsheets — ensures data integrity and consistency, crucial for making informed strategic decisions during periods of growth or change.

Benefits of purchasing budgeting & planning software after an ERP change

After undergoing an ERP (Enterprise Resource Planning) change, investing in FP&A software can further enhance your financial processes. Internal processes and procedures are likely to be refined and formalized, making it an opportune time to introduce FP&A software.

With the new ERP system in place, the Chart of Accounts is typically cleaned up and standardized, allowing for better reporting and visibility. FP&A software lets you seamlessly integrate with the new ERP system, ensuring that actual data is formalized and accurately mapped to the Chart of Accounts.

The best time to purchase FP&A software depends on your organization's specific circumstances. Whether it's well in advance of budgeting cycles, during periods of significant business growth or change, or after an ERP change, investing in FP&A software can yield substantial benefits in terms of efficiency, accuracy, and strategic decision-making. 

By understanding the optimal timing for purchasing FP&A software, you can maximize the value it brings to your organization's financial processes.

Is the timing right for you? Schedule a call to learn about Centage’s FP&A software as you begin to prepare for next year’s budget process.

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