Many new projects, startups, and businesses appear every day. And to withstand the competition, you must carefully monitor every aspect of your work and constantly improve. Yet, in a relatively new statistical study by the Association for Financial Professionals survey, 61% of finance directors said inadequate systems were the most significant factor holding back their financial planning and analysis actions. CPM software may be a solution to this problem.
Today we will talk about corporate performance management software. But first, let’s consider what it is, who should use this technology, compare it with the Excel program, and offer you a selection of the best systems.
So, let’s get started quickly.
What is corporate performance management (CPM) software?
Before delving into the advantages and disadvantages of this technology in detail, you should first understand what it is and how the system works. Thanks to modern CPM software, project managers and their teams receive much necessary and accurate information in real-time. Let’s discuss which areas of work CPM will contribute to the company’s development.
First, it will be forecasting, with the help of dissemination of information and key performance indicator (KPI) tracking reports, and drawing up an adequate budget. We all understand that enormous amounts of data are generated daily, and automated systems are necessary to collect them successfully.
Corporate performance management software performs this function. When choosing a CPM software package, consider whether it will integrate with the specialized software used by each department. After all, data collection is also possible in such aspects of the company as logistics, inventory management, sales, operations, compliance, and supply chain.
Separately, it is worth paying attention to the provision of detailed audit logs, which CPM also does. It saves a lot of time and resources for auditors because they can quickly check and track each record and the information they need. Thus, if an error occurs, they will be able to correct it in a short time and present a high-quality result. If you’re worried about protecting your company’s data, don’t be, as most CPM software is cloud-based.
This means that even if you have a specific system failure, all data will be saved, and you can access it. If you are interested in this software and are considering introducing it to your business, you should hire a software development company MLSDev. The technology is flexible and can be adjusted depending on the team’s needs and work strategy.
Pros and cons of accounting software in Excel
There isn’t a person who is not familiar with the Excel program, even at the primary level, because it is taught even in school. The software has been around for 37 years and ranks first among companies.
Let’s figure out why. Is it a timeless classic or outdated technology?
Advantages of accounting software in Excel
- Affordable price
A small business just starting its operation calculates the budget very carefully and tries to save on unnecessary expenses. MS Excel is part of the MS Office suite and does not require monthly or annual updates. In addition, it can work without the Internet.
- Formulae and Macros
With the help of numerous procedures, an accountant can analyze a relatively large amount of data in a short time. If we talk about macros, this is a program algorithm of actions written by the user. You can achieve the desired result in just one click to avoid repetitive steps.
- Convenience in Organizing Data
Excel allows you to structure information well. The software will enable you to use graphical images and pie charts to display stored data and accounting results.
Disadvantages of accounting software in Excel
- A large number of errors
The final results will be incorrect if the employee writes at least one bad sign in the table. For example, instead of 5, he will enter 50. There were many cases, even in large companies, when this led to numerous losses. And looking for these mistakes can take a lot of time from accountants, which they could use for other needs.
- It is hard to compare the data
Companies almost always receive data from different sources. Accordingly, collecting and tracking this data is necessary, and it is difficult and time-consuming to do this in Excel.
- It isn’t easy to cooperate
For example, when employees of different departments or partner companies have to exchange data and modify them, the tables are sent by mail, which is time-consuming and inconvenient.
Pros and cons of CPM
In contrast to Excel, let’s analyze the activity of corporate performance management software and its features.
Advantages of corporate performance management software
- Provides a broad understanding of the accounting process
Unlike Excel, which has limited capabilities. Real-time CPM offers centralized access to company financial data and information. Accordingly, it will help you track performance and set goals for improving company performance and overall strategy for the coming year.
- It saves time
Automating the data collection we discussed earlier ensures process optimization and seamless collaboration. This, in turn, frees the teams from the problems that could arise and the risk of daily manual tasks. Accordingly, specialists can focus on more important activities for the company.
Of course, as a business owner, you perfectly understand the team’s role in success, so choose only a dedicated development team – https://mlsdev.com/services/dedicated-development-team, and it will provide you with an incredible result.
- A large selection of software of this type
Because this technology is new, there is little choice. But no. Many people understand that this technology will only gain popularity, so they create Performance Management Software. Some of the best software is Namely, Lattice, Synergita, Paycor, Bamboo HR, PerformYard, Workday, and Engagedly. Each of them has its direction of work.
Disadvantages of corporate performance management software
If we compare it with Excel, then the cost of the software will be higher. But if you then estimate how many hours of work you will save, it will make up for the difference.
- It may be challenging to adapt
Initially, it will take a lot of work for the team to switch to other work methods. To facilitate this process, hold a joint meeting where you will detail how it will benefit the business.