Since we are often asked about the topic of financial planning, we would like to provide as objective an overview as possible of existing financial planning software. As a basis for the analysis, we used the current websites of the selected providers. An up-to-date overview including the ratings of software providers can also be found on the OMR Review page Overview Financial Planning Software.

First of all, however, it is important to briefly clarify what finance and Cash flow planning are and what they have to do with corporate planning.

What is Enterprise Resource Planning (ERP)?

Corporate planning, often referred to as Enterprise Resource Planning or ERP for short, is software that helps companies plan and optimise the use of resources (employees, capital, raw materials, etc.). 

As a rule, ERP systems are used by large companies or groups to plan, monitor and optimise their complex processes. Above all, because the costs for ERP systems can quickly amount to several 10,000 per month and the introduction can usually take several months.

Corporate planning systems, or ERP systems for short, are among the most comprehensive software products for companies. All areas of a company are represented, but especially the following:

• Finance
• Distribution & Service
• Manufacturing
• Human Resources (HR, Personnel)
• Logistics (Supply Chain)
• Compliance (risk management)

Specifically, the three core functions (of large companies) are mapped in the finance area:

1. Accounting
2. Financial Planning & Analysis (FP&A, Planning & Controlling)
3. Treasury (planning, control and processing of cash flows)

Figure: The 3 core functions in finance

What is the difference between financial planning and Cash flow planning?

Finance and Cash flow planning represent sub-areas of the financial sector; the difference lies in the planning objectives.

The difference between the two plans is so great that the financial plan and Cash flow plan in larger companies 

• in different departments,
• with different qualifications of the employees and
• different tools

created and monitored.

A more detailed comparison between the finance plan and the liquidity plan can be found here. 

Is COMMITLY a financial planning software?

COMMITLY focuses exclusively on the area of Cash flow planning and supports companies in the short and long-term forecasting and monitoring of liquidity development. We offer our customers a simple and fast way of planning and monitoring cash flow development.

What is financial planning?

The financial plan of a company compares the expected revenues of a company with the expected expenses in a period and aims to determine the profit. The core of a financial plan is a planned profit and loss account or planned P&L for a specific period, usually a business year. The plan P&L is often accompanied by subsidiary calculations or detailed planning, such as turnover planning, an investment calculation, financing planning and personnel planning.

In larger companies, the finance plan is also divided into (business) areas or cost centres. In a more or less complex form, there may also be a subsidiary calculation for taxes on income. Actually, the budgeted balance sheet would also be part of a financial plan. In practice, however, it is often neglected and replaced by the above-mentioned subsidiary calculations.

The financial plan represents the accounting for a period. Accounting is therefore also the most important source of information. A financial plan without accounting is not possible.

Financial planning is therefore prepared in the Financial Planning & Analysis (FP&A) department. In controlling, i.e. the comparison of actual and planned figures, FP&A works together with the accounting department.

What is Cash flow planning?

Cash flow planning determines the future cash flows of a company and compares them in a systematic form.

The purpose of Cash flow plan is to show the future cash and cash equivalents available to a company, i.e. the liquidity position on a given day. 

Cash flow planning is prepared and monitored by the Treasury department. Treasury is responsible for the planning, management and processing of cash flows. Former employees from the banking sector are often deployed in the treasury department. The company's bank accounts are the source of information for Cash flow planning and monitoring.

Of course, Cash flow planning also incorporates financial planning assumptions. However, these must first be "translated" into cash flows. Keywords here: Incoming payments vs. revenues, periodicity, performance period. You can find out more here.

Which financial planning software providers are there?

List of providers and link to LinkedIn

Here is the list of the analysed companies. The ranking was done alphabetically - a little unusual but exciting for us is the respective link to the LinkedIn profile including the number of followers on LinkedIn.

Table: Provider financial planning software on LinkedIn (Followers: as of 05.09.2020)

Financial planning software provider and specialist areas offered

Table: Financial planning software providers and specialist areas offered

Provider Financial Planning Software and offered specialisation Finances

Table: Financial planning software provider and specialisation offered Finance

It is worth mentioning that LucaNet highlights the preparation of individual and consolidated financial statements as the only company. This has to do with the functional division of the financial area discussed above. Planning (software) is based on the actual figures from accounting. Therefore, all providers offer extensive interfaces into existing accounting systems.

Financial planning software provider and highlighted industries

Table: Financial planning software providers and highlighted industries

Brief portrait of the providers

Anaplan

Link to the provider: https://www.anaplan.com/de/

Anaplan is a global cloud-based planning software company headquartered in San Francisco, California.

This is what Anaplan says about itself:

"Agility and resilience - now more than ever - continuously optimise your organisation's performance using Anaplan Connected Planning: real-time planning, forecasting, scenario modelling and performance management."

Anaplan product demo: Budgeting and forecasting