The accounting industry is digging deeper into financial planning and analysis. Although this FP&A strategy has long been important for accountants, in recent years, firms have begun placing far more emphasis on the financial forecasting aspect. However, many accountants and firms are running into a huge, but expected, software roadblock. Accurate and actionable financial forecasting is incredibly complex. While legacy accounting tools (specifically, Excel and QuickBooks) may still have a role to play in FP&A, their limitations ultimately lead to frustration and inefficiencies when forecasting.
As you expand further into FP&A and financial forecasting, we recommend you consider whether the tools you currently use are truly providing you with the competitive advantage you need to offer effective services to your clients.
Software is the name of the game in accounting. However, there are three major aspects to software that can make or break the quality of your product and your ability to scale:
- Availability of automation;
- Ease of use; and,
- Function over form.
While these don't encompass the entire breadth of consideration for FP&A software, they're a valuable starting point as you begin expanding outside of legacy tools that reduce your potential revenue.