The 7 Best Budgeting and Forecasting Software Tools for 2023
Navigating economic uncertainty requires agility, adapting to change and responding proactively to unique business challenges and opportunities. A successful budgeting and forecasting process can be the difference between your business thriving and meeting its key objectives versus missing important deadlines, falling short of objectives and constantly trailing the competition. Budgeting and forecasting are fundamental to FP&A. Planning your financial resources, estimating revenues and expenses, analyzing profitability—these are the foundations on which winning organizations achieve growth and sustainability. But without instant access to accurate, trustworthy data, or the ability to adjust your proposed budgets and forecasts—in seconds through automation—your finance team can’t enable your organizational leaders to make faster, data-driven decisions. Your team needs a platform that’s easy to use, feature-rich and enables collaboration. But no solutions are created equal. So what should you look for when evaluating the market’s best technologies? Read on for an overview of the market’s top seven budgeting and forecasting solutions. We’ll look at the pros and cons of each to help you choose the solution your team needs to plan for anything. What Is Budgeting and Forecasting? Budgeting is the process of planning your company’s revenue and expense figures for a specific period of time, usually your upcoming fiscal year. It involves identifying available cash flows and allocating financial resources for your company’s required spending. It usually takes between three to six months to complete an annual budget, which includes creating financial statements such as the balance sheet, income statement and cash flow statement. Forecasting is the process of analyzing historical trends in order to predict future business results based on your company’s most up-to-date actuals. This is performed regularly after financial statements are released, usually after every month-end cycle or every quarter-end cycle. Forecasts show summarized projections of revenues and expenses. How Is Budgeting and Forecasting Used? Every one of your business’s financial functions—including scenario planning, financial modeling, financial planning, workforce planning and cash flow planning—relies on your budgeting and forecasting process. Insights gained from your budgets and forecasts help you determine how you’ll fund the company’s day-to-day operations, use its assets efficiently and plan for the future. Your business partners and organizational leaders review your budgets and forecasts to analyze financial progress, update key performance metrics and assess business performance. That’s why the ability to automatically update your budgets and forecasts instantly—and have them at your stakeholders’ fingertips—is key to your FP&A. It’s the foundation on which your finance team’s functions are built, and is critical to strategic planning and accelerating data-driven decision making across the business. How Do You Do Financial Forecasting? Update your forecasts on a recurring basis. While some businesses perform financial forecasting after every quarter-end cycle—or even year-end cycle—it’s best to perform a financial forecast after each month-end. Some businesses even update their forecasts every week. Once your latest actuals are confirmed in the financial close, update your forecasts immediately. This gives your business partners a clearer, more accurate view of how your business is performing against your budgeted goals. Here’s how to generate reliable financial forecasts: Identify key metrics. Gather your latest actuals and automatically import them into your forecast template. Determine the timeframe for your forecast. Calculate trends based on your historical and year-to-date actuals. Apply those trend calculations to your real-time numbers to come up with forecasted results. How Can Budgeting and Forecasting Software Aid Finance Teams? Finance teams use budgeting and forecasting software to plan their financial resources. This software enables them to consolidate financial data across disparate departments across the company. Only after department managers submit their respective budgets can finance teams create company-wide budgets and forecasts. Budgeting and forecasting solutions automate the consolidation and updating of budgets and forecasts, enabling more than just confident managerial decisions. This software also saves finance teams from many hours of manual, tedious labor, ultimately letting them focus on what matters most: the analysis. That’s why top budgeting and forecasting solutions include advanced corporate performance management (CPM) features, such as financial modeling, scenario planning, business intelligence and data visualization capabilities. How To Choose the Best Budgeting and Forecasting Software Tools? To enable your organizational leaders to make confident, data-driven decisions and your finance team to spend more time on analysis, your budgeting and forecasting solution should have: Automated consolidation Pre-built budgeting and forecasting templates Intuitive workflow tools for task automation Inherent commenting and collaboration capabilities built into the templates Support for top-down, bottom-up driver-based budgeting and forecasting Capability to leverage historical/previous budgets or scenario data when entering data for variance analysis when creating budgets and forecasts Driver-based scenario modeling and what-if analysis Advanced security and company-wide budgeting tools Flexible integrations with ERP, GL, CRM, HRIS, etc. Strong integration with Microsoft productivity tools such as Excel, Power BI and PowerPoint Ability to import Excel, CSV, flat files Now let’s get to the pros and cons of the market’s seven best budgeting and forecasting solutions. The Best Budgeting and Forecasting Software 1. Vena Vena is a cloud-based complete planning platform that empowers finance, operations and business teams to grow their businesses by connecting people, processes and systems to streamline and scale. The platform automates budgeting and forecasting, variance analysis, identifies discrepancies, and builds ad-hoc reports for your business. With a familiar Excel interface and Power BI Embedded, Vena also analyzes your company’s financial health by slicing and dicing budgeting and forecasting data across different entities, departments, business units, etc. Key Functionality and What Vena Does Well: Vena Native Microsoft Excel User Interface Offers a native Excel experience, including all formatting and custom formulas ✅ Collaboration and Sharing Lets you collaborate, tag and comment directly in Excel ✅ Central Database Provides a unified solution that’s centrally architected and designed to support minimal system maintenance ✅ Integrations Offers native API integrations to industry standard systems (GL/ERP/CRM) as well as publicly available API integration to hundreds of additional source systems ✅ Process Management Includes flexible and visual workflows for all input, business rules, review and reporting tasks across any process ✅ Security and Compliance Provides a single, integrated security model with auditability ✅ Modeling Offers integrated and common data models for financial and operational forecasting, budgeting and reporting ✅ Embedded Leading BI Capabilities Has natively built reporting and insights with an industry-leading business intelligence tool ✅ Best For: Vena is suitable for companies that require a structured process and planning controls of pre-built budgeting and forecasting processes, or for companies that want to customize a pre-built solution for their unique requirements and needs Explore Vena in action with a free 7-day Vena Preview. 2. Planful Planful is a cloud-based enterprise performance management (EPM) platform designed for large budgeting and forecasting teams to help streamline planning, consolidation, reporting and analytics. Core features include automation, data analysis and planning process improvement. Key Functionality and What Planful Does Well: Performs data collection to help businesses budget more effectively Multiple report types provide point-in-time snapshots Forecasts comparisons; lets organizations compare financial statement reports Best For: Planful is an option for larger companies with FP&A teams that want to work more collaboratively within their business Planful’s Weaknesses: Collaboration can be complex as the individual models are not connected. Can be challenging to set up templates . Long loading times for data integration with large data sets. How Does Planful Compare With Vena: Planful Native Microsoft Excel User Interface Offers a native Excel experience, including all formatting and custom formulas ⚠️ Collaboration and Sharing Lets you collaborate, tag and comment directly in Excel ✅ Central Database Provides a unified solution that’s centrally architected and designed to support minimal system maintenance 🆇 Integrations Offers native API integrations to industry standard systems (GL/ERP/CRM) as well as publicly available API integration to hundreds of additional source systems ⚠️ Process Management Includes flexible and visual workflows for all input, business rules, review and reporting tasks across any process 🆇 Security and Compliance Provides a single, integrated security model with auditability ✅ Modeling Offers integrated and common data models for financial and operational forecasting, budgeting and reporting ⚠️ Embedded Leading BI Capabilities Has natively built reporting and insights with an industry-leading business intelligence tool 🆇 3. Anaplan Anaplan is an enterprise-class business modeling and planning solution which offers forecasting and scenario modeling capabilities with real-time access to data and collaboration. Key Functionality and What Anaplan Does Well: Web-based application Aggregates data into a single source of truth Enables real-time collaboration with your team Best For: Anaplan is an option for larger enterprises with an extensive IT team to help support implementation Anaplan’s Weaknesses: Difficult to build models if you don’t have experience in multidimensional modeling Large data volumes lead to long load times with syntax errors which can become difficult to maintain Limited customization or flexibility options How Does Anaplan Compare With Vena: Anaplan Native Microsoft Excel User Interface Offers a native Excel experience, including all formatting and custom formulas 🆇 Collaboration and Sharing Lets you collaborate, tag and comment directly in Excel ⚠️ Central Database Provides a unified solution that’s centrally architected and designed to support minimal system maintenance ⚠️ Integrations Offers native API integrations to industry standard systems (GL/ERP/CRM) as well as publicly available API integration to hundreds of additional source systems ✅ Process Management Includes flexible and visual workflows for all input, business rules, review and reporting tasks across any process 🆇 Security and Compliance Provides a single, integrated security model with auditability ✅ Modeling Offers integrated and common data models for financial and operational forecasting, budgeting and reporting ✅ Microsoft Power BI Embedded Has natively built reporting and insights with an industry-leading business intelligence tool ⚠️ 4. Prophix Prophix’s corporate performance management (CPM) software is designed mostly for finance teams at mid-market organizations. It improves profitability and minimizes risk by automating budgeting, forecasting and reporting for better decision making. Prophix is available in the cloud or on premise. Key Functionality and What Prophix Does Well: Allows resource forecasting based on defined user roles Flexible budgeting, scenario planning and reporting options Provides insights, reports, analytics and process improvements Best For: Prophix is a solution for companies looking for a single source database that will improve their budgeting process and require a highly structured budgeting and forecasting tool that is cloud based or on premise. Prophix’s Weaknesses: Implementation can be a complicated process Some lack of industry standard functionality The software can be slow and struggles with data integration How Does Prophix Compare With Vena: Prophix Native Microsoft Excel User Interface Offers a native Excel experience, including all formatting and custom formulas ⚠️ Collaboration and Sharing Lets you collaborate, tag and comment directly in Excel ⚠️ Central Database Provides a unified solution that’s centrally architected and designed to support minimal system maintenance ✅ Integrations Offers native API integrations to industry standard systems (GL/ERP/CRM) as well as publicly available API integration to hundreds of additional source systems ⚠️ Process Management Includes flexible and visual workflows for all input, business rules, review and reporting tasks across any process ⚠️ Security and Compliance Provides a single, integrated security model with auditability ✅ Modeling Offers integrated and common data models for financial and operational forecasting, budgeting and reporting ⚠️ Microsoft Power BI Embedded Has natively built reporting and insights with an industry-leading business intelligence tool 🆇 5. Workday Adaptive Planning Workday Adaptive Planning is an enterprise planning and analysis solution designed to empower collaboration, insights and agility. It offers budgeting and forecasting functionality for organizations of all sizes with customizable offerings for different use cases. Key Functionality and What Workday Adaptive Planning Does Well: Structured templates and reports Integrates with Workday HCM, Core Financials Strong brand recognition Best For: Workday Adaptive Planning is a solution for businesses already using Workday HCM and looking for a cloud budgeting and forecasting solution to be adopted across the organization. Workday Adaptive Planning’s Weaknesses: Workforce planning not fully integrated with financial model Doesn’t support financial consolidation Limited types of dashboards; difficult to modify How Does Workday Adaptive Planning Compare With Vena: Adaptive Native Microsoft Excel User Interface Offers a native Excel experience, including all formatting and custom formulas 🆇 Collaboration and Sharing Lets you collaborate, tag and comment directly in Excel ⚠️ Central Database Provides a unified solution that’s centrally architected and designed to support minimal system maintenance ⚠️ Integrations Offers native API integrations to industry standard systems (GL/ERP/CRM) as well as publicly available API integration to hundreds of additional source systems ⚠️ Process Management Includes flexible and visual workflows for all input, business rules, review and reporting tasks across any process ⚠️ Security and Compliance Provides a single, integrated security model with auditability ✅ Modeling Offers integrated and common data models for financial and operational forecasting, budgeting and reporting ⚠️ Microsoft Power BI Embedded Has natively built reporting and insights with an industry-leading business intelligence tool 🆇 6. Datarails Datarails is a financial planning and analysis platform that offers automation, visualization and consolidation capabilities. Finance teams can benefit from the spreadsheets and financial models of Excel while automating their financial reporting and planning. Key Functionality and What Datarails Does Well: Ease of use Support for Google Sheets Low subscription price Best For: Datarails is a solution for finance teams whose financial models are in Excel and want to maintain Excel’s familiarity and ease of use. Datarails’ Weaknesses: Doesn’t scale well Limited workflow and collaboration features No status tracking in audit trail How Does Datarails Compare With Vena: Datarails Native Microsoft Excel User Interface Offers a native Excel experience, including all formatting and custom formulas ✅ Collaboration and Sharing Lets you collaborate, tag and comment directly in Excel ⚠️ Central Database Provides a unified solution that’s centrally architected and designed to support minimal system maintenance ✅ Integrations Offers native API integrations to industry standard systems (GL/ERP/CRM) as well as publicly available API integration to hundreds of additional source systems 🆇 Process Management Includes flexible and visual workflows for all input, business rules, review and reporting tasks across any process 🆇 Security and Compliance Provides a single, integrated security model with auditability ⚠️ Modeling Offers integrated and common data models for financial and operational forecasting, budgeting and reporting ⚠️ Microsoft Power BI Embedded Has natively built reporting and insights with an industry-leading business intelligence tool 🆇 7. Cube Cube is a budgeting and forecasting platform that provides real-time financial and operational data access, enabling strategic planning, reporting and analysis within a spreadsheet environment with flexible use cases across functions. Key Functionality and What Cube Does Well: Integration “plugins” for Excel and Google Sheets Security and controls of a cloud-based enterprise software Deployment time (<14 days) with minimal resources required Best For: Cube is a solution for businesses that prioritize Google Sheets’ compatibility with data consolidation, flexible dashboards and reports. Cube’s Weaknesses: Doesn’t scale well or support month-end close Lacks predictive planning (static scenario modeling) Limited workflow and collaboration features How Does Cube Compare With Vena: Cube Native Microsoft Excel User Interface Offers a native Excel experience, including all formatting and custom formulas ✅ Collaboration and Sharing Lets you collaborate, tag and comment directly in Excel ✅ Central Database Provides a unified solution that’s centrally architected and designed to support minimal system maintenance ⚠️ Integrations Offers native API integrations to industry standard systems (GL/ERP/CRM) as well as publicly available API integration to hundreds of additional source systems ⚠️ Process Management Includes flexible and visual workflows for all input, business rules, review and reporting tasks across any process 🆇 Security and Compliance Provides a single, integrated security model with auditability ⚠️ Modeling Offers integrated and common data models for financial and operational forecasting, budgeting and reporting 🆇 Microsoft Power BI Embedded Has natively built reporting and insights with an industry-leading business intelligence tool 🆇 Conclusion Your strategic financial functions are charged with delivering insights that accelerate company-wide, data-driven decision making. To enable these FP&A processes—such as workforce planning, cash flow planning and scenario planning—your finance team needs a budgeting and forecasting process that provides that data instantly and accurately. Without budgets and forecasts—built from trusted data—at your stakeholders’ fingertips, your team can’t enable your organizational leaders to plan your company’s future. That’s why selecting a new platform is important to achieving company growth and sustainability. After evaluating each solution’s pros and cons, consult your team to determine which software your end users can quickly learn, collaborate within and will actually adopt—to build a winning budgeting and forecasting process. Better Budgeting and Forecasting With Vena Discover how Vena’s budgeting and forecasting software can take your planning cycle to the next level.
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