Technology & Software Archives : Planergy Software

The Future of FP&A: How The Role Is Evolving With The Use Of Real-Time Data

Lyle Del Vecchio — Mon, 25 Dec 2023 16:17:12 +0000

Download a free copy of "Indirect Spend Guide", to learn:

Where the best opportunities for savings are in indirect spend.
How to gain visibility and control of your indirect spend.
How to report and analyze indirect spend to identify savings opportunities.
How strategic sourcing, cost management, and cost avoidance strategies can be applied to indirect spend.

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The Future of FP&A: How The Role Is Evolving With The Use Of Real-Time Data

Category

Finance

Written by Lyle Del Vecchio
17 min read

Tags

Financial Planning & Analysis (FP&A)Financial Reporting Technology & Software

Last edited

December 29, 2023

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KEY TAKEAWAYS

The FP&A function has always been vital to business success – and advancements in the field have made it easier for operations to grow without disruptions.
Gone are the days when you must rely on historical data and make reactive decisions. Thanks to AI and other tools, you can now make better decisions with real-time data.
Staying up-to-date with current industry trends will help you remain relevant and valuable as a team member, no matter your organization.

Financial Planning & Analysis (FP&A) is critical in every organization.

It is the driving force behind financial decision-making, providing essential insights that guide strategic planning and budgeting.

But what exactly is FP&A, and how is it evolving with the advent of real-time data? Let’s delve into the details.

Understanding FP&A

It’s a role within the finance department that involves budgeting, forecasting, and analyzing a company’s financial reports and metrics.

Often accounting ratios and formulas are used to measure performance of finance KPIs over time.

FP&A helps create a data-driven culture in a company. Research shows that data-driven organizations outperform their competitors.

FP&A professionals are responsible for understanding the financial implications of business decisions and providing strategic recommendations.

The role of FP&A includes:

Preparing Budgets and Forecasts
One of the primary responsibilities of FP&A professionals is preparing budgets and forecasts.
They work closely with various departments to understand their financial needs and project future expenses and revenue.
This process involves analyzing historical data, understanding market trends, and making informed assumptions about future performance.
Analyzing Financial Performance
FP&A analysts play a critical role in reviewing and interpreting financial results.
They scrutinize the company’s income statement, balance sheet, and cash flow statement to understand its financial health.
This analysis aids in identifying patterns, understanding variances between actual and projected figures, and highlighting areas of concern or opportunity.
Evaluating Business Performance
This includes tracking key performance indicators (KPIs), conducting variance analysis, and providing regular financial reports to management.
By doing so, FP&A professionals help ensure the company is on track to meet its financial objectives and can quickly identify and address any issues hindering progress.
Providing Actionable Insights
FP&A professionals don’t just crunch numbers; they provide actionable insights influencing strategic decision-making.
They use their understanding of finance and business operations to interpret complex data and make recommendations on cost savings, profitability improvement, and strategic investments.
Using finance business intelligence data, their insights can directly impact a company’s bottom line and drive its strategic direction.

So, is FP&A a good career?

Absolutely. It offers a unique blend of strategic thinking, data analysis, and communication skills.

While challenging, it offers immense job satisfaction and career growth.

Pros and Cons of FP&A

Benefits of Working in FP&A

High Demand for Skilled Professionals
One of the major advantages of pursuing a career in FP&A is the high demand for skilled professionals in this area.
According to the U.S. Bureau of Labor Statistics (BLS), the estimated growth in the field from 2021-2031 is 9%, which is faster than average.
As businesses increasingly recognize the importance of strategic financial planning and analysis, the need for knowledgeable FP&A practitioners continues to grow.
Flexibility and Autonomy
Working as an FP&A contractor or consultant can offer great flexibility and autonomy.
This can be an attractive prospect for those who value independence and prefer to have control over their work schedules and projects.
Growth and Learning Opportunities
FP&A roles provide ample opportunities for growth and learning.
Professionals in this field are constantly exposed to various aspects of the business, allowing them to broaden their understanding and hone their skills.
Stability
FP&A is one of the most stable job fields due to the constant need for financial planning and analysis, regardless of whether a business is struggling or thriving.

Challenges of Working in FP&A

Accessing Real-Time, Accurate Data
A significant challenge facing FP&A teams today is accessing real-time, accurate data.
Without this crucial information, finance teams may struggle to make informed decisions, leading to inefficiencies and missed opportunities.
Uncertainty
Working as an FP&A contractor or consultant can also come with a degree of uncertainty.
The nature of contract work can mean periods without assignments and a lack of job security.
You can counteract this uncertainty by aiming to work directly with a specific company as an employee rather than as a contractor.
However, doing so also means a potential loss of schedule flexibility.
Pressure and Stress
The FP&A role can be stressful, given the responsibility of forecasting and budgeting.
These tasks require dealing with multiple data sources, assumptions, scenarios, and stakeholders, all while facing tight deadlines, changing expectations, and market volatility.

How Working in FP&A Used to Be

Before technology made it possible to process massive amounts of data in minutes, FP&A required manual data processing, which was labor-intensive, time-consuming, and riddled with error potential.

Limited Software
As great as they are for many things, spreadsheets were the only thing finance teams had to track crucial financial data and performance over time.
Sure, adding, subtracting, multiplying, and performing fairly complex math equations was easy, but inputs could only be edited by one person at a time – and you never knew if you had access to the most up-to-date information.
Using the best business budgeting software and procure-to-pay software with powerful reporting and analytics functionality, like Planergy, gives FP&A the tools they need to give actionable insights.
If you were working with an older file version, your work could be wasted. Spreadsheets lack advanced capabilities to deliver critical insights for strategic and operational planning.
Reliance on Historical Data
Finance professionals had no choice but to rely on past data and performance to find trends and patterns on which to base the path forward.
While looking in the rearview was certainly better than having no data at all to support any decisions, that left many companies blindsided by sudden changes in the business landscape or industry trends.
Can you imagine trying to predict tomorrow’s weather based on what happened yesterday? That’s pretty much what it was like.
Siloed Decision-Making
Without the ability to share information in real-time, with a cloud-based platform like we have today, the planning process was often handled in isolation.
With minimal cross-functional collaboration across departments, finance leaders were stuck making decisions based on the information at hand, regardless of what other information may be available.
Imagine only having a few pieces of the puzzle but trying to make sense of the full picture.
Reactive Analysis
Making decisions based on past data meant companies couldn’t quickly adapt to changes and properly seize new opportunities. This meant companies were always one step behind.

The finance transformation is one of many industries affected by the advent of new technology.

The Digital Transformation of FP&A

Today FP&A, and finance more generally, is undergoing a significant transformation driven by digital technology and the availability of real-time data.

Traditionally, FP&A relied on historical data and manual processes.

However, the digital revolution has ushered in a new era where real-time data and advanced analytics tools are reshaping the field.

Real-time data allows FP&A professionals to monitor business performance in real-time, carry out trend analysis to identify trends early, and make proactive decisions.

For example, real-time spend analytics like those available in Planergy provides instant visibility into expenditure, enabling better spend control and strategic decision-making.

However, the digital transformation of FP&A is not without its challenges.

The need for accurate, real-time data for strategic decisions is paramount, but achieving this can be difficult given data silos, data quality issues, and the complexity of integrating various data sources.

The Future of FP&A

The future of FP&A lies in its ability to harness the power of technology and data.

As artificial intelligence and machine learning become more prevalent, they will further automate the FP&A process, allowing for even more precise and timely insights.

Automated Data Analysis
Imagine if FP&A teams could harness the power of automation to turbocharge their data analysis of big data.
No more tedious data collection and processing – just pure, high-quality insights and strategic recommendations.
This isn’t some far-off fantasy; it’s the future of FP&A. Utilizing big data in finance efficiently to draw good insights is possible and getting easier with improvements in technology.
Brace yourself for an efficiency-boosting, quality-enhancing automation revolution.
Leveraging AI and Advanced Software
Cutting-edge software solutions will power the FP&A of tomorrow.
These pioneering technologies promise a new era where FP&A teams can easily sift through massive datasets, spot patterns, and generate predictive analytics.
AI in Procurement, AI in Accounts Payable, automated spend analysis, and even spend forecasting are now becoming a reality for even smaller businesses.
We’re already witnessing the dawn of this transformation, with FP&A teams mastering tools like ChatGPT for Excel and Microsoft’s Copilot.
As these pros continue to exploit advanced software and AI, they’ll unlock unprecedented accuracy and detail in their analysis, arming organizations to make data-driven decisions with renewed confidence.
Real-Time Data Insights
In the fast-paced world of business, having up-to-the-minute information is crucial. That’s why the FP&A teams of the future will embrace real-time data insights.
This shift promises faster, better-informed decision-making. With a constant stream of real-time data, FP&A professionals can monitor performance and adjust forecasts on the fly.
The result? A nimbler, more proactive FP&A team that fuels strategic growth and sharpens competitive edges.
Collaboration Across Multiple Teams and Departments
The FP&A role of the future will pivot on collaboration and cross-functional teamwork.
By dismantling the silos that once hindered knowledge-sharing, FP&A teams can align strategies more effectively and ensure stakeholders have the critical intel they need.
This collaborative approach promises a more unified, agile organization, ready to seize opportunities and tackle challenges head-on.
With strong cross-functional team leadership the future is bright for FP&A.
Proactive and Strategic Planning
The future of FP&A is about shifting from reactive to proactive and strategic planning.
Armed with advanced tools, automation, and real-time data insights and dashboards, FP&A teams will be able to:
- Anticipate changes in the business landscape
- Identify opportunities
- Develop contingency plans
This forward-thinking approach will empower organizations to make strategic decisions, giving them the upper hand in a fiercely competitive market.

The Future of FP&A Has Already Started

The future of FP&A is here, and it’s nothing short of revolutionary.

Working with this FP&A transformation is a much different beast compared to what it was just a few years ago.

Automation and technology have opened up endless possibilities and potential for businesses.

Now, businesses can quickly process data, anticipate trends, and make informed decisions around finances that can ensure long-term security.

And, when combined with the skill sets of knowledgeable finance professionals and leaders, there are almost no limits to what can be accomplished today through FP&A.

For those looking to become experts in the field of FP&A or for those who already are critical members of financially thriving companies – the power of modern technology should not go understated as it has revolutionized an entire industry virtually overnight.

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1. Use Planergy to manage purchasing and accounts payable

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Read our case studies, client success stories, and testimonials.
Visit our Spend Analysis Software page to see how Planergy can empower you to get more value from your spend.
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The post The Future of FP&A: How The Role Is Evolving With The Use Of Real-Time Data appeared first on Planergy Software.

The Top 8 Business Travel Management Tools

Lyle Del Vecchio — Wed, 20 Sep 2023 10:11:16 +0000

Download a free copy of "Indirect Spend Guide", to learn:

Where the best opportunities for savings are in indirect spend.
How to gain visibility and control of your indirect spend.
How to report and analyze indirect spend to identify savings opportunities.
How strategic sourcing, cost management, and cost avoidance strategies can be applied to indirect spend.

Download Free Copy

The Top 8 Business Travel Management Tools

Category

Travel & Expense

Written by Lyle Del Vecchio
18 min read

Tags

Expense Management Expense Reporting Technology & Software

Last edited

April 16, 2024

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KEY TAKEAWAYS

Business travel management involves planning, booking, and managing all aspects of corporate travel, including flights, accommodations, ground transportation, and expenses.
Corporate travel management software streamlines business travel processes by automating tasks such as booking flights, tracking expenses, and providing insights into travel spending patterns.
Effective business travel management can lead to cost savings, increased employee satisfaction, and improved productivity.
The right travel management solution can help ensure compliance with company policies, provide valuable insights into travel spending, and streamline the entire travel process.

Business travel can be both exciting and exhausting. Between booking flights, finding accommodations, and managing expenses, it’s easy to feel overwhelmed. But fear not, weary traveler!

The right business travel management tools can save you time, money, and countless headaches.

In this article, we’ll explore the top 10 tools every business traveler should have in their arsenal and answer some common questions about business travel management.

What Is Business Travel Management?

Business travel management refers to planning, booking, and managing all aspects of corporate travel. This includes arranging flights, accommodations, ground transportation, and managing expenses related to business trips.

A well-managed business travel program ensures employees have a seamless travel experience while controlling costs.

How Do You Manage a Company’s Travel?

Managing company travel involves setting clear travel policies, selecting preferred vendors, implementing a centralized booking system, and using a robust expense management tool.

Regularly reviewing and analyzing travel data can also help identify areas for improvement and cost savings.

This brings us to the question, should you allow your employees to handle their own travel arrangements?

Allowing employees to handle their own corporate travel booking can have several advantages:

Flexibility and Autonomy
Allowing employees to book their own business travel gives them the flexibility and autonomy to choose travel arrangements that suit their preferences and needs. This can lead to higher employee satisfaction and a sense of ownership over their travel plans.
Time and Cost Efficiency
Employees may better understand their travel requirements and preferences, which can result in quicker decision-making and efficient bookings. Allowing employees to take charge of their travel arrangements reduces the burden on travel managers or administrative staff, freeing them up to focus on other important tasks.
Cost Control
When employees are responsible for booking their own travel, they tend to be more mindful of costs. They can search for the best deals, compare prices, and choose options aligned with budget guidelines. This level of cost-consciousness can contribute to overall travel cost savings for the company.
Empowerment and Trust
Allowing employees to book their own business travel demonstrates trust and empowers them to make decisions in line with company policies. It promotes a sense of responsibility and accountability, fostering a positive work environment.
Personalized Preferences
Employees may have specific preferences regarding travel arrangements, such as seat preferences, hotel amenities, or airline loyalty programs. Allowing them to book their own travel enables them to customize their travel experience and may contribute to their overall comfort and productivity during business trips.

However, it is essential to establish clear guidelines and policies to ensure travel policy compliance and manage potential risks.

Travel Policy
Have a well-defined travel and expense policy that outlines guidelines for bookings, preferred vendors, budget limits, and reimbursement procedures.
Communicate the policy clearly to employees to ensure they understand the expectations and limitations. It should clearly outline what expenses are reimbursable, whether or not they can use their personal credit card or will be required to use a company card, etc.
Approval Process
Implement an approval process to ensure that travel bookings meet company requirements and align with the travel policy.
This allows managers to review and authorize travel requests, ensuring consistency and control over travel arrangements.
Expense Reporting
Set up a standardized expense reporting process to ensure accurate and timely expense reimbursements.
Provide employees with clear instructions on submitting expense claims and the necessary supporting documentation. You should also consider introducing a dedicated app for travel and expense management to automate expense management.
Communication and Support
Maintain open lines of communication with employees to address any questions or concerns they may have about booking their own travel.
Offer support and assistance when needed, such as providing resources for finding the best deals or offering guidance on travel-related matters.

What Is Corporate Travel Management Software?

Corporate travel management software is designed to streamline and automate various aspects of business travel management.

These tools can help book flights and accommodations, track expenses, and provide insights into travel spending patterns.

They can also integrate with other systems, such as accounting or HR software, for seamless data transfer and workflow management.

What Is the Difference Between Business Travel and Leisure Travel?

Business travel refers to trips taken for work-related purposes, such as attending meetings, conferences, or visiting clients.

On the other hand, leisure travel is taken for personal enjoyment and relaxation.

While both types of travel involve similar activities (booking flights, accommodations, etc.), business travel typically has additional requirements, such as expense tracking and adherence to corporate travel program policies.

There is no one-size-fits-all approach to the best travel management software. Consider how often people travel, the types of travel, etc., when making your choice.

What Are the Benefits of Business Travel Management?

Effective business travel management can lead to cost savings, increased employee satisfaction, and improved productivity.

By streamlining the booking process, enforcing travel policies, and automating expense reporting, companies can reduce travel-related stress for employees and ensure they have a positive travel experience.

How Do You Find a Corporate Travel Management App?

When searching for a corporate travel management app, consider factors such as ease of use, integration capabilities, customization options, pricing, and customer support.

Researching online reviews and seeking recommendations from colleagues or industry peers can also help identify the best app for your needs.

Additionally, many corporate travel management apps offer free trials that can provide an opportunity to explore the features and determine if it is a good fit.

Once you’ve identified a travel management app, ensuring all stakeholders are on board with its implementation is important.

Create usage guidelines for employees and ensure everyone understands the policies for booking flights, hotels, etc.

This helps with risk management to ensure employees aren’t booking personal travel on your dime or spending excess on car rentals, meals, and entertainment.

How Do You Book Flights for Business Travel?

Booking flights for business travel can be done through a corporate travel management tool, which centralizes bookings and approvals while providing personalized recommendations based on traveler preferences.

Alternatively, flights can be booked directly through airlines or third-party platforms, though this may not offer the same level of control and oversight as a dedicated tool.

What Is a Corporate Travel App?

A mobile corporate travel app is designed to streamline and simplify booking and managing business travel.

These apps often provide features such as real-time flight alerts, itinerary organization, and expense tracking, making them an essential tool for busy professionals on the go.

The Top 8 Business Travel Management Tools: In-Depth

Planergy for Business Travel and Expense Management
Of course, this list wouldn’t be complete without us mentioning our own tool.
With our business travel and expense management software, you can easily track and manage employee travel, allowable expenses for reimbursement, create expense reports, and more.
Our travel and expense management system works hand-in-hand with our procurement software to give finance teams a comprehensive control and oversight on all spend management.
TripIt: Your Personal Itinerary Wizard
TripIt is a comprehensive itinerary organizer that consolidates all your travel plans in one place, making it easy to access and share with colleagues.
The app also sends real-time flight alerts to keep you informed about any changes to your flights.
Additionally, TripIt offers helpful features such as maps and directions, ensuring you can easily navigate your destination. With its user-friendly interface and seamless integration with your email, TripIt makes managing your travel plans a breeze.
TravelPerk: One-Stop-Shop for Travel Bookings and Approvals
TravelPerk is a comprehensive solution for booking and managing corporate travel. The platform centralizes bookings and approvals, streamlining the process and saving time.
With transparent pricing and flexible options, TravelPerk ensures you get the best value for your travel budget.
The robust reporting dashboard provides insights into travel spending patterns, enabling you to identify areas for improvement and cost savings.
TravelPerk’s user-friendly interface makes managing all aspects of your business travel easy.
Airbnb for Work: Unconventional Accommodations for Business Travelers
Airbnb for Work offers unique accommodations tailored for business travel, providing a more comfortable and personalized experience than traditional hotels.
The platform simplifies group bookings, making coordinating travel arrangements for your team easy.
Additionally, Airbnb for Work offers convenient workspaces and meeting rooms that can be booked on demand. The platform also features experiences and team-building activities, enhancing your trip and promoting team bonding.
PackPoint: Handy Tool To Ensure You Pack Everything You Need
Packpoint is a handy packing app that can simplify preparations for your business travel by ensuring you have all the items you need for your trip.
By avoiding forgetting essential items, devices, or documents you can avoid any last-minute panic, cost incurred, or time wasted trying to replace them during your trip before your presentation or meeting.
Not having to worry about missing items will avoid disruption to your schedule and ensure you can perform your tasks effectively.
Packpoint will even make suggestions based on your destination, the weather forecast, and the activities you have planned.
Egencia: Comprehensive Corporate Travel Management
Egencia is a complete corporate travel management platform that offers a user-friendly mobile app for booking and managing trips.
The tool provides 24/7 customer support and travel assistance, ensuring you have access to help whenever you need it.
With its robust features and comprehensive approach to travel management, Egencia makes it easy to stay organized and in control of your business travel.
SAP Concur: Integrated Travel, Expense, and Invoice Management
SAP Concur is a powerful platform that combines travel, expense, and invoice management in one centralized solution.
The tool allows for seamless data transfer and workflow management, ensuring all aspects of your travel process are integrated and efficient.
Customizable policy enforcement and approval workflows help ensure compliance with company policies, while detailed analytics and insights into travel spending enable you to make informed decisions about your travel program.
Google Travel: Plan and Track Trips Easily
Google Travel, previously known as Google Trips, helps you plan trips and will centralize all your travel information by linking it to your Google account.
By guiding you through the process and identifying the most useful information and best offers it simplifies the planning process and keeps everything in one place.
Not just for business travel, Google Travel is equally useful for leisure and family trips.

Frequently Asked Questions (FAQs)

What Are Business Travel Management Tools?

Business travel management tools are software applications and platforms that help organizations and individuals streamline and optimize their travel planning, booking, and expense management processes.

How Can Business Travel Management Tools Benefit My Organization?

These tools can save time, enhance productivity, improve cost control, and ensure compliance with travel policies. They provide a centralized platform for managing travel-related tasks, such as booking flights, tracking expenses, and creating itineraries.

Are These Tools Suitable for Small Businesses As Well?

Absolutely! Many of these tools cater to businesses of all sizes, including small and medium enterprises. They offer scalable solutions that can be tailored to your organization’s specific needs.

Can I Integrate These Tools With Our Existing Systems?

Most business travel management tools offer integration capabilities with popular travel booking platforms, accounting software, ERPs, and other relevant software. This ensures seamless data flow and minimizes manual effort.

Are These Tools Secure?

Reputable travel management tools employ robust security measures to protect your data. They utilize encryption, secure connections, and adhere to industry standards to safeguard sensitive information.

How Do I Choose the Right Tool for My Organization?

Consider your specific travel management needs, budget, scalability, integration capabilities, and user-friendliness. It’s also beneficial to read reviews, request demos, and evaluate multiple options before deciding.

Simplify Your Corporate Travel Expense Management With These Tools

Efficiently managing business travel is crucial for organizations of all sizes. From itinerary creation and business expense tracking to policy compliance and analytics, you have everything you need to stay on top of business travel.

By leveraging these tools, you can optimize your travel planning, save time, reduce costs, and ensure a seamless travel experience for your team.

Embrace the power of technology and make your business travel management a breeze with these innovative tools.

Download PDF

What’s your goal today?

1. Use Planergy to manage purchasing and accounts payable

Read our case studies, client success stories, and testimonials.
Visit our “Solutions” page to see the areas of your business we can help improve to see if we’re a good fit for each other.
Learn about us, and our long history of helping companies just like yours.

2. Download our “Indirect Spend Guide”

3. Learn best practices for purchasing, finance, and more

Browse hundreds of articles, containing an amazing number of useful tools, techniques, and best practices. Many readers tell us they would have paid consultants for the advice in these articles.

The post The Top 8 Business Travel Management Tools appeared first on Planergy Software.

P-Cards: What Are Corporate Purchasing Cards and How Do They Work

Keith Murphy — Fri, 14 Jul 2023 09:22:43 +0000

Download a free copy of "Indirect Spend Guide", to learn:

Where the best opportunities for savings are in indirect spend.
How to gain visibility and control of your indirect spend.
How to report and analyze indirect spend to identify savings opportunities.
How strategic sourcing, cost management, and cost avoidance strategies can be applied to indirect spend.

Download Free Copy

P-Cards: What Are Corporate Purchasing Cards and How Do They Work

Category

Spend Management

Written by Keith Murphy
18 min read

Tags

Expense Management Expense Reporting Technology & Software

Last edited

July 2, 2024

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What Are P-Cards?

P-cards, short for purchasing cards, are essentially credit cards for businesses.

They are designed to enable employees to make purchases using a single credit card instead of going through the traditional procurement process – submitting purchase requisitions, receiving a purchase order, and processing payments.

P-cards are an efficient way of managing small and routine purchases without the need for paperwork and lengthy purchase approval processes.

How Do P-Cards Work?

When your company signs up for a P-card program, you receive a credit card with a preset spending limit.

You’ll give the card to designated employees who can make purchases only up to the credit limit.

These cards work in-person and online, just like any other credit or debit card.

Depending on the bank you use, your cards may have the Visa or Mastercard logo.

You can order multiple cards to distribute to multiple employees if desired.

For example, you may wish to distribute cards to all department heads to keep with them at all times or have cards on hand to give employees while traveling for business.

Your procurement cards can be tied to a bank account or a credit card. The issuing bank sends payments to vendors within a few business days and invoices your company monthly.

P-Card transactions can be tracked in several ways:

By employee or P-Cardholder
By department
By merchant category

At the end of the billing cycle, the card provider bills your organization for all purchases made during that period.

Most programs also provide you with reports that help track spending and monitor fraud or misuse.

Your organization also controls where purchases can be made and how much can be spent in a single transaction.

It’s possible to set per-purchase limits as well as monthly spending caps.

Some providers also allow you to set spending restrictions on the types of allowable purchases, such as no travel, entertainment, or alcohol spending.

These are set using merchant category codes, so that card users cannot attempt to bypass restrictions.

Purchase Cards vs. Corporate Cards

With the availability of corporate cards, why would you even consider using procurement cards? Corporate cards, or C-Cards, are issued to senior executives or employees with higher responsibilities within the company.

C-Cards usually have a higher spending limit than P-Cards, but their usage is monitored more strictly. Moreover, C-Cards can be used for small and large purchases and often come with many other features, including reward programs.

P-Cards are not prepaid cards, and they are not a corporate card. Both P-Cards and corporate cards are a type of commercial card, but it’s important to understand the differences for your business.

Benefits of Using P-Cards

Cost Effective to Manage Small Purchases
When it comes to smaller expenditures like office supplies, going through the formal procurement and payment process could be time-consuming.
If your processes are not refined enough you can end up spending more in employee labor costs than you would when allowing your office manager to make purchases via the Amazon Business account, for example.
This cuts down on your overall procurement costs, allowing you to funnel the savings into other areas of your business.
Easy for Employees to Track Expenses
Using a purchase card makes it easier for your staff to purchase what they need while tracking their business expenses, especially while traveling for business. (You can give them a travel card, a restricted type of P-Card, if you want to limit spending capabilities.)
With easier expense tracking comes better employee compliance. And with more accurate records, you can get a clearer picture of your overall spending habits.
Savings and Rebates
Most P-Card programs offer savings and rebates. The bank you use will determine available offers. These savings and rebates are similar to a personal credit card reward program, where you get a percentage in cash back.
Your company may be able to earn anywhere from 1 to 3% cash back or savings from your purchases.
The exact amount you’ll earn depends on factors such as:
- Volume and amount of purchases
- Number of cards issued
- Payment speed
- Average transaction size
- Whether your company purchases certain expensive products

Drawbacks of P-Cards

Vulnerable to Fraud and Misuse
Because P-Cards are not subject to the same level of scrutiny as regular procurement processes, employees may be tempted to use them for personal gain. Therefore, you must have proper P-Card policies and procedures to mitigate such risks.
Work with your program manager to block purchases from certain merchants and set spending limits to prevent fraudulent charges.
Less Flexible than Corporate Cards
Because purchase cards are tied to specific budgets or departments, you can’t use them to make cross-departmental or strategic purchases.
Could Make Overspending Easier
With fewer purchases going through the formal procurement process, it is easy to lose track of spending.
Maverick spend, or rogue spend, where purchases from suppliers who are not your preferred vendor for purchasing specific items may increase. This can result in less on-contract spend and reduce realized cost savings from strategic sourcing initiatives.
You must be able to adhere to your budget requirements and regularly monitor the transactions.
Failure to do so could mean you spend more than you meant to. While you can bounce back from minor overspending relatively easily, major overspending over a long period of time could spell disaster for your company. Monitoring carefully is a must.

Best Practices for Your P-Card Program

Establish a Clear Usage Policy
Having a well-defined P-Card policy is the first step on the road to success. This policy should be a clear guide for all employees who are issued a P-Card.
It should outline the acceptable purchases, spending limits, documentation and receipt requirements, and the consequences of P-Card misuse.
Make sure that this policy is understood by all employees and enforced consistently.
- Define the roles and responsibilities of cardholders, including the authorized use of their card and the procurement process that applies to P-Card usage.
- Set spending limits, frequency, and card usage instructions, including: frequency of P-Card use, spending limits, types of expenses that can be charged, and card usage protocols.
- Outline account restrictions, ordering practices, and daily expenditure limits.
Foster a Culture of Accountability
Incorporating a culture of accountability within your organization can help prevent financial fraud, waste, and abuse.
Having employees willing to report suspicious activity or expenditure immediately is critical for maintaining a healthy P-Card program.
Ensure that employees understand their responsibilities and have procedures in place to report malfeasance – this can be through an anonymous telephone hotline, email, or other types of reporting mechanism.
Train Your Employees
Those with authority to make purchases with a P-Card should undergo P-Card training. While it might be self-explanatory to some, others can make costly mistakes that lead to problems.
Investing time into P-Card training shows a commitment to compliance and helps prevent unintentional spending.
Whether you do in-person or online training, include the basics of P-Card usage, reporting requirements, documentation and receipt requirements, and other relevant information in training sessions.
Also, keep track of those who attend the trainings and who missed them.
Create a Strong Approval Process
Having a strict approval process helps avoid fraudulent or wasteful expenditures. Ensure that at least two people (a requestor and approver) are involved in each P-Card transaction.
The approver should verify that the listed expense is reasonable and adds value to the business before approving the transaction.
Keep a log of approvals and requests, electronically or physically, depending on the size of your company, to maintain a solid audit trail.
Analyze and Review Your P-Card Usage Regularly
Periodically review your P-Card expense usage to determine whether purchasing adds value to your organization. Identify any outliers, such as excessive spending or transactions outside your P-Card policy’s acceptable purchases.
Having an appointed person or team to monitor P-Card spending regularly helps identify any red flags early and avoid any issues.

Implementing best practices for your P-Card program is essential for any business using P–cards.

Not only does it offer a straightforward and effective way to manage your purchasing program, but it also prevents fraud, waste, and abuse.

It’s better to set up a clear policy, establish accountability, enforce training, implement a strong approval process, and regularly analyze your P-Card usage to ensure your card program remains healthy.

A little effort now saves time, money, and many headaches down the road.

How to Get Purchase Cards for Your Company

Research Issuing Banks
Not all P-Card programs are created equally, so take some time to compare your options. Look at factors such as interest rates, fees, credit limits, and any available rewards or benefits.
Think about what types of purchases you’ll make with the card, and choose the one that fits your business’s specific needs.
Be sure to read the fine print carefully and ask the financial institution any questions you may have before deciding on which one to apply for.
Understand Policies and Restrictions
Familiarize yourself with the policies and restrictions that come with the P-Card provider you are choosing. Each issuing company sets specific rules that users must follow when making purchases.
It is essential to understand these guidelines to avoid unnecessary charges and penalties.
Review Eligibility Requirements
Most issuers require that you have a good credit history and a consistent track record of timely payments.
Additionally, you should be an authorized representative of your organization and have the ability to make financial decisions on behalf of your company.
Gather Necessary Documents
Gather your essential documents for the application process. These usually include your tax identification number, proof of your business’s legal existence, and a copy of your company’s financial statements.
Some issuers may also require additional information, so check with them beforehand.
Submit the Application
Submit your P-Card application. You can typically do this online by filling out an application form and submitting the necessary supporting documents. Depending on the issuer, you may also be required to undergo a credit check.
Finalize Application Processing
After submitting your application, following up with the issuer is essential to ensure your application is being processed.
Typically, it takes between 7 to 14 days for the issuer to review your application and send a response. If your application is approved, you will receive your P-Card information and instructions on how to use it.

P-Card FAQs

What Is a P-Card Used for?

It is used for small corporate purchases or business travel. It gives employees access to company money for buying items their company requires.

What Is the Difference Between a Corporate and P-Card?

Corporate cards are issued to people higher in the company that have more to do with overall purchasing and spending. They usually have higher spending limits and fewer purchasing restrictions.

What Does P-Card Stand for?

P-Card stands for purchase card, purchasing card, or procurement card. It’s a type of commercial card.

What Is the Credit Limit for a P-Card?

Your credit limit depends on various factors, such as your total business revenue, the types of purchases, and issuing bank policies. Your P-Card administrator will inform you of your credit limit and any actions you can take to increase the limit later.

With an effective purchasing card program, your organization can realize cost savings and increased efficiency. P-Cards streamline the payments process and reduce manual labor costs associated with generating and submitting purchase orders.

In addition, they increase accuracy while ensuring that payment is made quickly.

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1. Use Planergy to manage purchasing and accounts payable

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Visit our Purchase Order Software page to see how Planergy can digitize and automate your purchase order process saving you time and money.
Learn about us, and our long history of helping companies just like yours.

2. Download our “Indirect Spend Guide”

3. Learn best practices for purchasing, finance, and more

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Xero Features You Need To Know About

Rob Biedron — Mon, 27 Mar 2023 08:57:18 +0000

Download a free copy of "Preparing Your AP Department For The Future", to learn:

How to transition from paper and excel to eInvoicing.
How AP can improve relationships with your key suppliers.
How to capture early payment discounts and avoid late payment penalties.
How better management in AP can give you better flexibility for cash flow management.

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Xero Features You Need To Know About

Category

Finance

Written by Rob Biedron
15 min read

Tags

Accounting Technology & Software Xero

Last edited

December 15, 2023

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What Is Xero?

Xero, based in New Zealand, is a powerful cloud-based accounting software that has become increasingly popular recently.

Unlike many traditional accounting tools, it does not require you to manually enter your financial data, as it is connected directly to your business’s bank account and credit cards.

All bank transactions are automatically added to the system, reducing the time required to stay on top of your finances.

Xero also provides extensive reporting features, allowing you to keep track of income, expenses, and other key data.

It has a user-friendly interface and is known in the accounting software industry for its ease of use. It’s great for budgeting, expense tracking, and time tracking, and it comes with unlimited users.

Xero Pricing

Xero has three pricing plans to choose from, and you can move through the plans as your business scales. Every plan includes:

Bank connections
Inventory management functionality
Reporting
The ability to accept payments
Purchase orders
Files
Manage Xero contacts
Sales tax

Early

Priced at $12/month, this plan is great for new businesses, freelancers and other sole proprietors. You can send quotes and up to 20 invoices per month.

You’ll also be able to enter and pay five bills a month, reconcile your bank transactions, capture bills and receipts, and get an idea of your short-term cash flow.

Price is changing to $13/month as of November 14, 2022, at 4 PST and will bill at the new rate from that point forward.
Growing

Priced at $34/month, this plan is ideal for growing businesses. There’s no limit on the number of invoices and quotes you can send, or the bills you can enter.

As with the Early plan, you’ll be able to reconcile bank transactions, capture bills and receipts, and see reports for your cash flow.

Price is changing to $37/month as of November 14, 2022, at 4 PST and will bill at the new rate from that point forward.
Established

Priced at $65/month, this option is best for established businesses. In addition to the features of the Growing plan, businesses can also:
- Use multiple currencies
- Track projects
- Handle employee expense claims (capture costs, submit, approve, and reimburse spending)
- See more in-depth analytics
Price is changing to $70/month as of November 14, 2022, at 4 PST and will bill at the new rate from that point forward.

Each plan can add the Gusto Add-on, starting at $40/month, so businesses can easily take care of their payroll needs.

Xero Features

Here are the top 11 Xero features you need to know about.

Automatic Bank Feeds
Gone are the days of manually entering transactions into your accounting software.
With Xero’s automatic bank feeds, all your transactions are pulled directly from your bank or credit card statements and entered into your account—saving you hours of data entry every month on bank statement reconciliation.
Invoicing and Billing
Xero makes it easy to create and send invoices and bills to get paid faster.
With customizable templates and online payments, your customers can pay you in just a few clicks—without ever having to leave their desks.
Plus, automated payment reminders take the hassle out of chasing late payments.
- Quick Quotes
  Once you’ve quoted someone for the cost of a job, you can easily convert it into an invoice in a click or two to save time.
  Once the quote has been sent to the customer, the status gets updated in Xero as either accepted or rejected. You’ll also be able to see client comments so you know how to follow up.
- Invoice Templates
  Every account starts with the default invoice template, but you can change it as needed.
  Navigate to Settings > General Settings > Invoice Settings. You’ll see the invoice template feature “Branding Themes.”
  You can add a logo to your invoice with the Standard Branding Themes. Click Options > Upload logo. You can also use Options > Edit to change some of the text.
  If your business requires more invoice customization, you’ll use a Custom Branding Theme. A Custom Branding Theme uses template files when printing invoices, quotes, purchase orders, and credit notes.
  You can add backgrounds, tables, lines, images, and text to create a cohesive, professional look across all your documents.
- Faster Invoices with Saved Items
  If you’re often entering the same line items (same prices, item descriptions, etc.), you can save time with “Items.”
  In the Item column, look for the dropdown box. You can use it to create a new item or select an item you’ve used before. It’s also possible to search for items with the search box.
  It’s also possible to show or hide the item code and name on invoices (printed or emailed) with Invoice Branding Themes.
  That way, if you raise your prices, you can adjust them from Accounts > Inventory and have them updated on any future invoices you create without affecting approved invoices.
Reporting and Analytics
Xero’s reporting and analytics tools give you real-time insights into your business so you can make informed decisions about where to invest your time and money.
With over 80 built-in reports, you can track everything from revenue and expenses to inventory levels and employee performance.
You can even create custom reports to suit your business needs. And with the Xero Dashboard, you’ll get a quick overview of everything happening in the business so you can focus efforts where you need to.
Mobile App
Xero’s mobile app allows you to stay on top of your finances even when you’re on the go. With the app, you can send invoices, reconcile transactions, approve bills, and more from your smartphone or tablet.
So whether you’re at the office or out on the job site, you can rest assured that your finances are always under control.
The Xero mobile app is available for Android and iOS devices.
Account Watchlist
With this feature, you can choose the accounts you want to keep a closer eye on. You’ll see the balance for the month and the financial year to date. This is helpful for things such as:
- Monitoring your tax debts
- Watching sales grow over time
- Watching expense accounts to prevent overspending
You can use it with the Profit First Framework to ensure you’re putting in enough money to pay your taxes.
To add or remove accounts from your Account Watchlist:
1. Navigate to Settings > General Settings > Chart of Accounts
2. Click the name of the account you wish to add or remove from the watchlist.
3. Click the checkbox next to the “Show on Watchlist Dashboard” and then click Save.
Xero is a highly versatile software that can be adapted to suit the needs of any industry.
HubDoc
Xero HubDoc is a software platform that makes managing and organizing financial documents easier.
With simple tools for scanning and uploading documents and powerful search features to help you find exactly what you need, Xero HubDoc ensures that your financial data remains organized and easily accessible at all times.
Whether you’re a small business owner or a team of accountants, Xero HubDoc provides the tools you need to improve your workflow and stay on top of your financial data.
You’ll never have to worry about losing track of a receipt again.
Xero added the HubDoc feature to all plans for free in March 2020.
File Attachments
How many times have you sent an email that says, “I’ve attached,” only to send it without actually adding the attachment?
Since sending file attachments with quotes is common, you can easily attach files to your quotes from nearly any Xero quoting screen.
You can attach a PDF to a quote, an invoice, or even a journal entry, so information is there whenever and wherever you need it.
Integrations
Xero integrates with a wide range of third-party apps to help streamline your workflow and save you time. From payroll and CRM to eCommerce and point of sale, there’s an integration for almost every business need.
It integrates with popular payment gateways like Stripe and Square. Xero integrates with Planergy also. So if you need AP automation software or procure-to-pay software that is compatible with Xero, you know where to come.
So whether you’re looking for a way to automate repetitive tasks or want to work more efficiently, Xero has you covered.
Securely Share Data with Financial Managers
Whether you work with an internal bookkeeper or an outsourced financial manager, you can allow the system to share all the relevant data with them.
The data is secure, and updates in real-time, so they can easily do their jobs.
Credit Limits
Credit limits are common in purchasing and allow you to extend customers a certain amount of credit based on their financial stability and history with your company.
This feature is easy to overlook but can be found in the financial details screen for any customer.
Xero Email Templates
You can email a lot of things directly from Xero, including quotes, invoices, purchase orders, statements, credit notes, receipts and remittances. The defaults work quote well, but you can also customize them.
And instead of having to change each email, you can create and use your own email templates. It’s a great way to send invoice reminders, so you’re always paid on time.

If you’re not using Xero for your accounting needs, you’re missing out on some serious time-saving features—like automatic bank feeds, online invoicing and billing, reporting and analytics tools, mobile app access, and integrations with popular business apps.

Switching to Xero is easy—and once you see how much time it saves you each month, you’ll quickly see why so many people consider it the best accounting software available.

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What’s your goal today?

1. Use Planergy to manage purchasing and accounts payable

Read our case studies, client success stories, and testimonials.
Visit our Integrations page to see how Planergy integrates with Xero to make bookkeeping and accounting easier.
Learn about us, and our long history of helping companies just like yours.

2. Download our guide “Preparing Your AP Department For The Future”

Download a free copy of our guide to future proofing your accounts payable department. You’ll also be subscribed to our and notified about new articles or if have something interesting to share.

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Common Excel Problems For Finance and Accounting

Mary Girsch-Bock — Tue, 18 Oct 2022 14:20:25 +0000

Download a free copy of "Preparing Your AP Department For The Future", to learn:

How to transition from paper and excel to eInvoicing.
How AP can improve relationships with your key suppliers.
How to capture early payment discounts and avoid late payment penalties.
How better management in AP can give you better flexibility for cash flow management.

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Common Excel Problems For Finance and Accounting

Category

Finance

Written by Mary Girsch-Bock
19 min read

Tags

Excel Financial Planning & Analysis (FP&A)Technology & Software

Last edited

July 2, 2024

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Benefits of Using Excel

Yes, there are a ton of benefits derived from using Excel, as long as it’s used for the purposes intended.

For example, using Excel to perform calculations and create analytic spreadsheets is great; using it as an accounting application is not.

Here are a few of the benefits of using Excel in your business.

Easy To Share Data
Nearly everyone uses Excel, making it easy to share data with colleagues and others outside your business. And because many software applications allow you to download data to an Excel workbook you can easily share that information with others.
And to protect data, you can utilize other Excel tools such as data validation to specify what type of entry is acceptable for that cell.
It’s Easy To Get Started
Yes, Excel can be complicated, but most can learn the basics quickly. To use advanced features like pivot tables, you’ll need to learn more, but just about anyone can create a simple spreadsheet with formulas.
Excel also includes numerous shortcuts that can be used to do everything from opening a workbook to hiding selected columns or rows.
You Can Create Charts in Minutes
Excel makes it easy to create charts for your data, even providing you with an option to access recommended charts based on your data structure. Just browse available charts and click on an option to view how the chart would look.
And if you don’t like the results, it’s easy to create a different chart that may work better.
It Helps You Become More Organized
While there’s an app for just about anything these days, Excel remains one of the best resources around for entering and organizing data in a way that you choose.
Can Store a Lot of Data
Excel lets you store up to 1,048,576 rows of data, along with up to 16,384 columns. Chances are that you’ll never need to use it all, but it’s nice to know that it’s an option.

What Is the Best Way To Learn Excel?

For new users, one of the best things to do is spend some time just exploring the application. Click on the menu options on the toolbar and take a look at what’s in each section.

This makes it easier to find the feature or function that you’re searching for.

Once you’re comfortable with the interface, consider taking some of the free Excel classes offered by Microsoft, which will teach you fundamentals as well as advanced skills.

You can also search the web and find some free classes and tutorials on YouTube, or sign up for an online class.

While you’re learning, make sure that you spend a lot of time with the application, learning basics such as how to calculate numbers, how to properly enter Excel formulas, and how to use the AutoSum feature for quick calculations.

The following are a few of the basic features in Excel that everyone should be able to master:

How To Sort Data Properly

Even if you’re a beginner, you will need to know how to sort your data properly. For example, if you’re using Excel to track customers, you’ll need to know how to sort data, whether by city, state, or even zip code.
Import and Format Spreadsheets

Excel can import data from numerous applications. Once you get the data in an Excel file, you can format it the way you like.
Eliminate Duplicates

When you’re entering data from multiple resources, you’ll probably end up with duplicate entries. Excel allows you to search for and remove any duplicates that are in your spreadsheet.
How To Calculate Data

Excel can save you a lot of time by calculating large amounts of data. But first, you need to know how to do that. Excel can perform addition, subtraction, multiplication, and division, but to use them, you’ll need to know and understand the basic formulas.
How To Freeze Panes

When you’re using a lot of columns, you’ll want to know how to freeze panes. This allows you to see your headers even as you scroll through to additional columns.

For example, if you have twelve months of data in columns, you can freeze panes to view the column headings as you scroll down, even if you have 100 rows of data.
How To Expand Column Width

Excel’s default column width is 8.43. But if you commonly use Excel to record longer numbers, you’ll need to expand the default column width so that all your data is displayed properly.

What Are the Downsides of Using Excel?

Even the best applications have their downsides, and Excel is no exception. These are just a few of the downsides you can encounter when using Excel.

Becomes Slower As More Data Is Added
One of the advantages of using Excel is how much data it can handle. Unfortunately, the more data you add, the slower the application becomes. The bottom line is that while Excel may be able to handle a million lines of data, it may not be a good idea to do so.
Steep Learning Curve

Learning to do the basics in Excel is fairly easy. But if you need to create complex worksheets, data comparisons, and pivot tables, the learning curve can be pretty steep.
Collaborative Efforts Can be Difficult

Short of combining multiple spreadsheets into a single document, which itself presents some difficulty, sharing a spreadsheet among collaborators can be tricky, especially since there are no real safeguards in place if multiple collaborators can add data to the spreadsheet. Issues may also arise if you and your collaborators are using different versions of Excel.
Not a Good Fit With Agile Business Practices

Agile business practices are all about efficiency and automation, while a lot of manual data entry is required to create Excel spreadsheets.
Propensity for Errors

Information in a spreadsheet is only as reliable and accurate as the information that is entered. Human error is a real concern with Excel, with both data entry errors and formula errors a significant issue.

Close to 90% of spreadsheets contain errors in 1% or more of all formula cells with an average cell error rate of nearly 4%.

What Are the Most Common Problems With Excel?

Research by Ray Panko indicates that nearly 90% of spreadsheets on average contain errors in 1% or more of all formula cells.

With an average cell error rate of nearly 4% this makes the probability of calculation errors very high.

All errors you encounter in Excel will begin with #, with the following the most common.

Error	How to Fix
####	This error message appears when a column is not wide enough. Simply increasing the column width will fix this error.
#REF!	This error appears when Excel is trying to reference a cell that has been deleted. This will happen when you change data and forget to update the formula. Fix the error by updating the formula, or if the cell was erroneously erased, use the ‘undo’ command to place the cell information back into the spreadsheet.
#NAME?	This error will appear when parts of your formula are incorrect. The fix for this is to check your formula for inconsistencies. If the formula is correct, check the cells to see if any have incorrect information in them.
#VALUE!	This is another common error that occurs when there is an error in a cell that the formula is trying to reference. For example, if you’re attempting to calculate a column, but if you have a word or letters in that cell instead, this error will appear. The fix is simply getting rid of the letters in the cell.
#DIV/0!	This error can appear when you are attempting to divide a set of cells and the formula is trying to divide by zero. This can happen if the formula references the wrong cell to divide by or is written wrong. The quick fix is to correct the formula or the cell that the formula is referencing.

These aren’t the only errors that you’re likely to encounter in Excel, but they are probably the ones that you’ll see most often.

If you regularly use Excel, you’ll also have to keep an eye out for errors that don’t have a message. These are formula errors. Research

For example, you’ve created a spreadsheet with departmental expenses, with a formula at the bottom of the spreadsheet that calculates the totals automatically.

Yesterday, your departmental expenses totaled $1450. Today, your assistant entered $1,000 in expenses but forgot to update the formula. That means that your total is still displayed at $1,450, even though the actual total is $2,450.

Another common error in Excel is simple human error. Let’s go back to your assistant today.

She was tasked to enter $1,000 worth of expenses, but because of a data entry error, she entered $10,000 worth of expenses for today, bringing your expense total to $11,450.

While that error will likely stand out, a transposed number or one even off by a few dollars can easily escape the notice of reviewers.

How Do I Locate Errors in Excel?

Excel includes automated error troubleshooting, displaying the appropriate error message for you to correct.

The problem with finding human errors is more complex and time-consuming.

For example, a common problem resulting in errors is not highlighting the correct number of cells for a calculation. But don’t feel bad, even respected Harvard economists can make this type of error.

But there are a few things you can do to help you spot a typo or missing formula.

Know what the result of your calculations should look like. If you know your expenses should be around $5,000, a $750 total should be a red flag.
Add the totals manually. While this process defeats the purpose of using Excel’s formulas for calculating, if you’re unsure whether the results in your spreadsheet are correct, adding them using a calculator can provide some reassurance.
Check formulas for the correct cells. This is particularly important if the spreadsheet is regularly updated. The formula may not be updated properly or may be accidentally erased. Clicking on the cell to make sure the formula is still there and that it includes all the appropriate cells only takes a few moments, but can help to reduce these common errors.

What Is the Most Difficult Thing in Excel?

If you’re unfamiliar with Excel, just about anything can be difficult, but even those familiar with the application can find these challenging.

Macros and VBAs

Macros are computer programs written in Visual Basic that complete a specific action once they’re activated. However, before you can write a macro, you need to be skilled in Visual Basic. By far the most difficult task in Excel to master, writing macros can help automate properties in pivot tables and can help format data quickly.
Pivot Tables

Pivot tables are used to create reports that feature large sets of data. Pivot charts can be used in a variety of ways and they can be a useful function to master, particularly if you need to manage large data sets.
VLOOKUP

VLOOKUP stands for vertical lookup and is used when you need to retrieve data in a table vertically. VLOOKUP helps merge multiple sets of information into a single report.
SUMIF

SUMIF is used to calculate values that meet certain criteria. For example, if you have data from four employees, but only want to calculate data from one employee, you can create a SUMIF formula to do that.

Being prepared to deal with the downsides of Excel is essential.

While using Excel can be a valuable resource for your business, understanding common errors will help reduce frustration levels and better prepare you to deal with issues that may arise.

Download PDF

What’s your goal today?

1. Use Planergy to manage purchasing and accounts payable

Read our case studies, client success stories, and testimonials.
Visit our Accounts Payable Automation Software page to see how Planergy can automate your Finance processes reducing you the hours of manual processing, stoping erroneous payments, and driving value across your organization.
Learn about us, and our long history of helping companies just like yours.

2. Download our guide “Preparing Your AP Department For The Future”

Download a free copy of our guide to future proofing your accounts payable department. You’ll also be subscribed to our and notified about new articles or if have something interesting to share.

3. Learn best practices for purchasing, finance, and more

Browse hundreds of articles, containing an amazing number of useful tools, techniques, and best practices. Many readers tell us they would have paid consultants for the advice in these articles.

The post Common Excel Problems For Finance and Accounting appeared first on Planergy Software.

What Is DeFi? How Will Decentralized Finance Impact Your Industry

Rob Biedron — Thu, 04 Aug 2022 15:19:17 +0000

Download a free copy of "Preparing Your AP Department For The Future", to learn:

How to transition from paper and excel to eInvoicing.
How AP can improve relationships with your key suppliers.
How to capture early payment discounts and avoid late payment penalties.
How better management in AP can give you better flexibility for cash flow management.

Download Free Copy

What Is DeFi? How Will Decentralized Finance Impact Your Industry

Category

Finance

Written by Rob Biedron
17 min read

Tags

Blockchain Technology & Software

Last edited

June 24, 2024

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Decentralized Finance is a financial system powered by a decentralized network of computers as opposed to a single server. DeFi is an emerging digital financial infrastructure that aims to eliminate the need for central government agencies or banks to approve transactions.

Many consider DeFi as an umbrella term for the new wave of financial services Innovation since it is intertwined with the blockchain.

The blockchain is a decentralized public ledger. Most commonly associated with cryptocurrencies such as Bitcoin and Ethereum, the blockchain can be used for a variety of technological purposes.

The blockchain allows all computers on a network to maintain a copy of historical transactions. This prevents any single entity from having control over or being able to alter the transaction ledger.

Today’s Centralized Finance

Currently, nearly every aspect of banking, lending, and trading money are managed by a centralized system operated by Gatekeepers and governmental bodies.

Consumers have to deal with a ton of financial middlemen to access everything from mortgages and car loans to trading stocks and bonds.

In the United States, regulatory bodies such as the Federal Reserve and Securities and Exchange Commission set the rules for centralized financial institutions. Congress changes the rules over time.

Because of this, consumers have very few options to access financial services and capital directly. They cannot bypass the banks, exchanges, and lenders who earn a commission on every transaction as profit.

How Decentralized Finance Changes the Game

Decentralized Finance aims to disrupt the balance of power taking it away from the centralized governing bodies and middlemen and passing it to everyday people through peer-to-peer exchanges.

DeFi takes key elements of work done by financial institutions such as lending, borrowing, and trading funds, and puts them in the hands of the consumers.

Though it’s still early in the game and we have to speculate about how this could play out, here’s an example:

Right now, you’re putting money into an online savings account and earning 0.50% interest on the funds. The bank lends that money to another customer at 3% interest and keeps the remaining 2.5% as profit.

With the DeFi model, You’ll end your savings directly to another person so that you can earn the full 3% return on your money.

If you’re thinking you already do this when you send money to friends and family via cash app, PayPal, Venmo, or another service, you’re not quite right.

You still have to have a bank account linked to these apps or a debit card to send funds so your peer-to-peer payment still relies on centralized finance and intermediaries to work.

DeFi and the Blockchain

Blockchain technology and crypto are the main drivers that make decentralized finance possible.

When you make a transaction through your checking account, it’s recorded in a private Ledger. Your banking transaction history is owned and managed by a large financial institution.

Blockchain on the other hand provides a decentralized distributed public ledger where all financial transactions get recorded in computer code.

By distributed, we mean all parties that use a defy application have an identical copy of the public ledger that records every transaction with encrypted code.

That keeps the system secure by giving users anonymity and verifies payments with a record of asset ownership that’s almost impossible to alter with fraudulent activity.

When we say the blockchain is decentralized, that means there are no gatekeepers or middlemen managing the system.

Transactions are recorded and verified by the parties to use the same black chain with a process of solving complex math problems and adding new blocks to the chain.

Advocates maintain that the decentralized blockchain makes financial transactions more transparent and secure than the private systems that centralized finance uses.

DeFi is a long way from becoming the norm, but it is becoming more mainstream as people look for ways to keep more control over their finances.

How We Use DeFi Now

DeFi may be in its early stages, but it’s certainly making an impact on both simple and complex financial transactions.

It’s currently powered by decentralized apps, or DeFI applications, known as dapps and other programs known as protocols.

Dapps and protocols take care of transactions in two main cryptocurrencies Bitcoin (BTC) and Ethereum (ETH).

Bitcoin is the more popular cryptocurrency but Ethereum is more adaptable for a wider variety of uses. That means much of the protocol and dap landscape rely on Ethereum base code.

Traditional Finance Transactions

This involves the financial transactions you’re already familiar with – anything from trading securities and insurance to lending and borrowing money, and making payments.

Anyone with an internet connection can use it without approval, and funds can be transferred within a matter of minutes – sometimes seconds. It eliminates fees that many banks charge for accessing their services.

E-Wallets

Developers are working to create digital wallets that operate independently from cryptocurrency exchanges to give investors access to everything from blockchain-based games to cryptocurrency.

Decentralized Exchanges (DEXs)

Currently, many cryptocurrency investors use centralized exchanges such as Gemini or Coinbase. DEXs, however, facilitate these peer-to-peer financial transactions while allowing users to retain control over their finances.

Yield Farming or Harvesting

With DeFi, it’s possible for speculative investors to lend cryptocurrency and possibly reap large rewards when proprietary coins DeFi borrowing platforms pay them for agreeing to the loan.

Stable Coins

Cryptocurrency is known for its volatility. Stable coins, on the other hand. attempt to stabilize their value by tying them to non-crypto currencies such as the US dollar.

Flash Loans

Flash loans are cryptocurrency loans that borrow and repay funds in the same transaction. Though it may sound counter-intuitive it works like this:Borrowers have the potential to make money by going under contract on the Ethereum blockchain. The smart contract borrows funds, executes the transaction, and repays the loan instantly.

If the transaction isn’t able to be executed, or it will be at a loss, the funds automatically go back to the person who loaned them. If you do make a profit, you can keep it in your pocket minus any fees or interest charges.

Non-Fungible Tokens

Non-fungible tokens, or NFTs, create digital assets out of things that aren’t traditionally tradable, such as videos or the first social media post on a social network. What was previously uncommodifiable can now become a commodity thanks to NFTs. A lot of people are using NFTs to create collectibles.

The DeFi market gauges adoption by measuring “locked value”. This calculates how much money is currently working across DeFi protocols. Now, the total locked value (TLV) is worth nearly $43 billion.

DeFi adoption is powered by the blockchain’s nature. The same moment a dapp is encoded on the blockchain, it becomes available globally.

The majority of centralized financial products and technologies become available slowly over time, governed by a variety of regulations across regional economies.

Apps exist outside of the rules which increases the potential reward but also leads to increased risk.

DeFi Risks

As an emerging technology, defy comes with many risks. Since it is such a recent Innovation, we haven’t been able to test it with long-term or widespread use.

As national governments are taking a closer look at the systems DeFi is putting in place an attempt to regulate it, what we know it to be now may not be how it is used as we move toward the development and execution of Web3.

Lacks Consumer Protection

DeFi continues to be successful despite the fact that there are no governing rules and regulations in place. While this can be seen as a good thing, the lack of governance also means consumers don’t have any protection in the event that a transaction goes wrong or someone falls victim to a scam.

Though unlikely, if and when a bank fails, the Federal Deposit Insurance Corp (FDIC) reimburses deposit account holders up to $250,000 each. Legally, banks are required to hold a certain amount of their capital in reserve to maintain stability and provide you the liquidity to cash out your account anytime you need it.

There are no similar protections with decentralized finance.

Private Key Requirements

In DeFi and cryptocurrencies, you have to secure the wallets you used to store your crypto assets. These wallets are secured with private keys. Private keys are unique, long code known only to the wallet’s owner.

if you lose the private key for your crypto wallet, you lose access to your funds with no way to recover it.

Collateralization

Collateral is something of value used to secure a loan. When you get a mortgage, the home itself is the collateral. When you get an auto loan, the vehicle you’re buying serves as collateral.

Most DeFi lending transactions require collateral equal to at least 100% of the value of the loan, if not more.

The requirements greatly restrict eligibility for many types of these loans. While traditional banks may require some form of collateral for high-risk borrowers, many consumers can get low-interest rates on unsecured loans.

Threats of Hackers

Though the blockchain is nearly impossible to change, other parts of DeFi are susceptible to hacking, which can lead to theft and loss of funds. All the decentralized finance infrastructure’s potential use cases rely on systems that are particularly vulnerable to hackers.

How DeFi May Impact Business in the Future

Though there are still many unknowns and quite sometime before decentralized Finance becomes the norm, applying the decentralized peer-to-peer model to all types of financial transactions on a global basis, has a significant impact on the existing global financial system and its intermediaries.

Because defy empowers individuals and gives them more control over their assets, along with the financial freedom to choose how to invest their assets without relying on an intermediary such as a brokerage, what we know today won’t be what we see in the future.

Individuals will still need financial guidance and traditional financial institutions may not necessarily become obsolete, but the way institutions and individuals interact with one another within the financial system and make financial decisions has the potential to look vastly different.

DeFi will also impact B2B transactions.

As more institutions join the blockchain ecosystem and tokenize financial assets like Securities and derivatives, there is potential for smart contract-based decentralized applications to act as intermediaries between institutions.

As real-world assets become tokenized on public black chains, this unlocks liquidy for firms by allowing assets that once were illiquid, such as commercial real estate, to be represented by fractionalized tokens on the public blockchain that are tradable.

The tokens could be posted as collateral or included in investment pools on DeFi protocols.

This approach also applies to existing supply chains, allowing for more open smart contract-driven marketplaces. Entities can make transactions with privacy-preserving technology on a public blockchain while prices are dictated by market conditions.

Since DeFi is in its infancy, institutions still have a prominent role in its development.

There are plenty of financial opportunities, including the development of new products and services, as well as the chance to improve operational efficiency by leveraging existing DeFi infrastructure.

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The post What Is DeFi? How Will Decentralized Finance Impact Your Industry appeared first on Planergy Software.

What is Web3?

Keith Murphy — Thu, 14 Jul 2022 16:15:38 +0000

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What is Web3?

Category

Technology & IT

Written by Keith Murphy
17 min read

Tags

Blockchain Technology & Software

Last edited

June 24, 2024

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Centralization has brought billions of people to the world wide web and created the infrastructure it lives on. The technology belongs to a small group of centralized entities that ultimately decide what should and should not be allowed on the world wide web.

Web3 aims to decentralize the WWW and break up the monopoly of large technology companies behind the internet as we know it today.

Web3 is about posting decentralized apps that run on blockchain technology.

Blockchain technology is what powers cryptocurrencies like Bitcoin, Ethereum, and Litecoin.

Web3 advocates say that it is about democracy, ownership, and freedom. Though Web3 is still in development and a few years away from being usable, it could be a massive departure from how we engage with the web and one another.

It may also be another overhyped platform for decentralized finance like cryptocurrency and trading non-fungible tokens (NFTs).

We don’t really know what web 3 will look like for a few years but we can take a look at the driving principles behind its development to put together an understanding of what it might look like. Before we Dive In, let’s take a look at how we got here.

The History of the Web as We Know It

Most of us think of the web as part of Modern Life. It was invented and has existed ever since. But, the web we use today is vastly different from its original intention.

Web 1.0: Read Only – 1990 – 2004

We owe the web as we know it to Tim Berners-Lee, a computer scientist who was working at CERN in Geneva, Switzerland. He is credited with inventing the WWW in 1989.

He developed the protocols that would become the World Wide Web by creating a series of open decentralized protocols that would allow people to share information from anywhere on the Earth.

The first version of his creation, now known as web 1.0, occurred between 1990 and 2004. It was mainly a series of static webpages and sites companies owned with little interaction between users.

People seldomly produce content which caused it to be known as the “read-only” web.

Web 2.0: Read-Write – 2004 – Present

Web 2.0 or the internet as we currently know it, started in 2004 with the dawn of social media channels. It morphed from a read-only platform into something we call read right.

Instead of companies providing content to web users, they also began to provide platforms that allowed users to share their own content and engage with one another.

As more people started to use the internet, A small collection of top companies began to control a disproportionate amount of traffic end value generated online. It’s because of Web 2.0 that we also have the advertising-driven revenue model that so many websites use today.

Users can create content, but often don’t own it or benefit from its monetization. Facebook and Instagram are prime examples of this model.

Web 3.0 – Read-Write-Own – TBD

The idea of web 3.0 shortened to Web3 was coined by Gavin Wood, co-founder of Ethereum cryptocurrency.

Gavin found the words for a solution for a problem that many early crypto adopters felt was an issue – simply put the web required too much trust.

Most of the web that we use today relies on trusting a handful of private companies to behave with the public’s best interests in mind.

Though the term was first coined in 2014, it hasn’t become mainstream until the last year or so, thanks to Packy McCormick, an investor with venture capital firm Not Boring Capital.

He worked to popularize the term by describing it as “the internet owned by the builders and users, orchestrated with tokens.

Proponents say it could take many forms, from decentralized social networks to play-to-earn video games that reward players with crypto tokens.

The enthusiasts say it will transform the internet as we know it, while critics believe it is nothing more than a rebranding effort for crypto.

What is Web3?

Web3, as we know it right now, is a catch-all term for the vision of a better internet.

It’s built on the foundation of blockchains, NFTs, and cryptocurrencies to place the power back in the hands of users for ownership.

Web3 aims to take the internet back from the hands of big tech giants like Elon Musk and Jack Dorsey, and put in the hands of the users.

Core Principles of Web3

It’s difficult to provide a strict definition of what web 3 is since the technology continues to evolve, but we know a few guiding principles are behind its creation.

Decentralized

Instead of having large portions of the internet owned and controlled by centralized big tech companies like Microsoft Amazon, and Metaverse acting as gatekeepers, ownership will be distributed amongst its users and builders.

Trustless

Web3 operates with incentives and economic mechanisms instead of relying on a group of trusted third parties.

Permissionless

Under Web3, everyone will have equal access to participation with no exclusions.

Native Payments

Web3 uses cryptocurrency to send money and spend it online instead of relying on Bank infrastructure and payment processors.

What Makes Web3 So Important?

The key features behind Web3 aren’t isolated and don’t fit into dedicated categories but we’ve tried to separate them to keep things simple and make them easier to understand.

Ownership

Web3 provides ownership of digital Assets in an unprecedented way. If for instance you’re playing a web 2 game and you purchase an in-game item, it’s tied directly to your account.

If the game two creators choose to delete your account you lose those items.

Or, if you decide to stop playing the game, you lose the value that you’ve invested in your in-game items.

With Web3, you’ll have direct ownership of your items through NFC. No one, not even the game creator has the ability to remove your ownership.

And if you stop playing, you have the option to trade-in or sell your game items on the open market to recoup your investment.

Identity

Under the current model, you create an account for each platform you use. Many users, for instance, have a Twitter account, a Reddit account, a YouTube account, and a Facebook account.

If you want to change your display name or profile picture, you have to do it across every account.

There is the option to use social sign-ins in some cases, but this presents a censorship issue.

With one click, these platforms can lock you out of your entire online life, and even worse, many of them require you to trust them with your personal data to create the account in the first place.

Web3 aims to solve these problems by giving you control of your digital identity with an Ethereum address and an EMS profile.

With your Ethereum address, You have a single login across platforms that is censorship resistant, anonymous, and most importantly, secure.

Resistance to Censorship

There is a massive power imbalance between platforms and the content creator who use them.

OnlyFans for example is a user-generated content adult site with more than 1 million content creators. Many of these creators rely on the platform as their primary source of income.

In August of 2021, OnlyFans announced plans to ban sexually explicit content which sparked rage throughout the community because users felt they were getting robbed of an income on a platform they helped to build. The backlash resulted in the decision being reversed.

Even though the creators won the battle, it brings attention to a problem for content creators. You lose your reputation and following that you’ve built if you choose to leave a platform.

With Web3, data is on the blockchain so when you decide to leave a platform, you can take everything with you and plug it into another interface that aligns better with your values.

Creating content on Web 2.0 requires creators to trust the platform to not change the rules. Censorship resistance is built into the web3 platforms to prevent this issue.

Decentralized Autonomous Organizations (DAOs)

Beyond owning your data, you can also own the platform as a collective using tokens that behave like shares in a company. Allow you to coordinate decentralized ownership of a platform and make decisions about how it behaves in the future.

DAOs are technically defined as agreed-upon smart contracts to automate all of the decentralized decision-making over a pool of tokens. Users with tokens vote on how resources are spent and the code automatically performs the voting outcome.

However, people define many of the Web3 communities as DAOs. The communities have varying levels of decentralization and automation with code. We expect these to continue to evolve in the future.

Native Payments

With the current structure of Web2, we rely on banks and payment processors, which alienates people without bank accounts or residents of certain countries.

Web3 removes this barrier with the use of tokens to send and receive money directly via browser without the need of a trusted third party.

Limitations of Web3

Even though web 3 offers a variety of benefits and its current iteration, there are still several limitations of the ecosystem that need to be handled for it to be successful.

Accessibility

Critical features like sign-in with Ethereum are already available for anyone to use for free. That said, the relative cost of transactions is still prohibited for many.

When 3 is not as likely to be used in developing nations because of the tie transaction fee. On Ethereum, the challenges are being addressed with network upgrades and layer 2 scaling solutions.

Though the technology is ready, we must have a higher level of adoption before we can make Web3 accessible to everyone.

Education

With the new paradigms that it introduces, web 3 requires learning different mental models than the one we are currently using. A similar drive for Education happened as web 1.0 was becoming popular in the late 90s.

Advocates of using the World Wide Web used a variety of educational techniques to educate the public such as metaphors like the information Highway and surfing the web to television broadcasts.

Though Web3 isn’t difficult, it is different and educational initiatives informing users about web3 paradigms are essential for it to be successful.

User Experience

At this time, the barrier to entry to using web3 is too high. Users have to understand the security concerns, comprehend complex technical documentation, and navigate user interfaces that are not particularly intuitive.

Wallet providers are among those at the forefront of working to address this issue, but a great deal of progress must be made before Web3 is widely adopted.

Centralized Infrastructure

Because the Web3 ecosystem is so young and continues to evolve quickly, it depends heavily on a centralized infrastructure with tools like Twitter, Discord, and GitHub.

There are a number of Web3 companies rushing to close these gaps, but building quality, reliable infrastructure takes time.

Without the technology to support it, we’ll never get to the next generation decentralized internet that Web3 promises.

Web3 has great potential, but, it is still a young ecosystem that will undergo significant Evolution before it becomes the new normal.

Though the term Web3 was coined in 2014, only a few of these ideas have recently become reality.

Over the course of the last year, we’ve seen a significant increase in the interest in cryptocurrency, experimentation with new forms of government, and revolutions and technology that make the future of the internet and Web3 look promising.

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What’s your goal today?

1. Use Planergy to manage purchasing and accounts payable

Read our case studies, client success stories, and testimonials.
Visit our “Solutions” page to see the areas of your business we can help improve to see if we’re a good fit for each other.
Learn about us, and our long history of helping companies just like yours.

2. Download our guide “Preparing Your AP Department For The Future”

Download a free copy of our guide to future proofing your accounts payable department. You’ll also be subscribed to our and notified about new articles or if have something interesting to share.

3. Learn best practices for purchasing, finance, and more

Browse hundreds of articles, containing an amazing number of useful tools, techniques, and best practices. Many readers tell us they would have paid consultants for the advice in these articles.

The post What is Web3? appeared first on Planergy Software.

The 8 Best Financial Management Tools

Lyle Del Vecchio — Thu, 30 Jun 2022 15:35:35 +0000

Download a free copy of "Preparing Your AP Department For The Future", to learn:

How to transition from paper and excel to eInvoicing.
How AP can improve relationships with your key suppliers.
How to capture early payment discounts and avoid late payment penalties.
How better management in AP can give you better flexibility for cash flow management.

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The 8 Best Financial Management Tools

Category

Finance

Written by Lyle Del Vecchio
15 min read

Tags

Accounting Financial Reporting Technology & Software

Last edited

June 24, 2024

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Recently on the blog, we talked about financial planning and analysis (FP&A) software.

We’re going to continue that discussion today with a closer look at the eight best financial management tools to help your business run smoothly. After all, it’s financial management that often separates successful companies from those that struggle.

What is Financial Management?

Financial management refers to activities related to planning, organizing, directing, and controlling an organization’s financial activities, including procurement, investment decisions, budgeting, financial planning, billing and payments, and more.

The goal of proper financial management is to ensure the company has enough money to take care of operations at all times, to ensure that all stakeholders receive adequate returns, maintain optimal funds utilization, keep investments safe, and plan a solid capital structure.

Financial management estimates capital requirements, determines the capital composition, chooses the sources of funds, chooses how to invest funds, determines how to dispose of surplus, manages cash, and establishes financial controls to keep the entire system in check.

Considerations for Financial Management Tools

As you choose the business tools to use within your organization, you must first consider a few things.

Your Budget: How much are you willing to allocate to these tools? How much can you really afford to allocate to them? Depending on the size of your company and its operations, you may need more integrated tools and platforms, meaning costs could vary widely.
Security: As you move from paper recordkeeping to an online system, your financial information must be kept safe. The more granular the access control, the better.
Making the Switch to the Cloud: On-premise systems are expensive to maintain, and less than ideal for many companies. A cloud-based approach gives you the freedom and flexibility to keep records and workflows accessible anytime, anywhere, as long as an internet connection is available.
Scalability: The tools you use have to evolve with your business as it grows. If you have to spend money converting to new, more appropriate systems later, then the hassle and expense of using something else aren’t worth it.
Efficiency with Automation: Moving to cloud-based financial tools saves time and money. Working with companies like Planergy for easy requisition and ordering helps to modernize your financial processes while making your approval workflows and hierarchies more efficient as your business grows.

The right tools with the right features save you time and money, allowing you to focus efforts on more value-added activities.

Build Your Financial Planning Framework with Certinia

All CFOs need solid tools to support them, and while automatic and integrated tools can help make operations more efficient, sometimes, companies need a broader solution.

Certinia is an enterprise resource planning (ERP) software designed to track spending, profitability, resource availability, and more.

It’s a cloud-based solution designed to help you streamline your opportunity to cash process, so you can make more money faster and put your financial data to use. Get access to your company’s financial health in real-time.

Handle Accounting with Xero

Any collection of business tools you’re considering will include an accounting tool.

Using Xero, you’ll be able to access everything from mobile devices and integrate with a variety of third-party apps, including integrating Xero with Planergy’s spend manage software.

Xero’s features include automated recordkeeping, expense calculation, invoicing, and report generation.

You can also manage sales orders and inventory with this platform, so you don’t have to worry about manual data entry and the error potential that comes with it.

Plans start at $20/month. While it is great for small to medium businesses, the starter version does limit your monthly transaction volume.

It is missing advanced features that advanced financial teams may require.

Bill Customers Easily with FreshBooks

Customers expect nothing short of perfection when it comes to online billing processes.

FreshBooks can help make your billing process smooth and seamless. Basic online billing solutions are good enough for most businesses, but additional features with flexible pricing are all the better for everyone.

Since Freshbooks is a cloud-based billing system, you can be sure that your company is following best practices, for a value-added experience that helps to boost customer satisfaction and foster customer loyalty.

Designed for small business, FreshBooks automates various important accounting tasks.

It’s easy to create and manage entries and export them into your other systems. It’s easy to set up and comes with automatic reminders for late payments.

The highly flexible API makes it easy to integrate with a variety of third-party services so you can design the tech stack and workflow that’s best for your company.

Track Expenses and Improve Expense Management with Expensify

Maintaining accurate expense records is a tedious undertaking, but with the right tools, you won’t have to worry about keeping track of and storing paper copies of receipts.

Monitoring these expenses is often part of accounting tools, so it’s a good idea to look for a platform that integrates with your accounting software if this feature isn’t already part of it.

Expensify is an expense tracking tool that allows employees to scan receipts and upload cash expenses directly from their mobile devices.

Everything goes to a central repository for fast and easy expense accounting, reimbursement, and rebilling. It generates user reports, so you can easily keep an eye on who is spending how much.

Expensify integrates with a variety of third-party tools, such as Quickbooks. The Smart Scanning feature automatically categorizes certain entries to save your team time.

It includes extra features, such as GPS milage tracking. That said, the user interface isn’t all that intuitive and some users report that the receipt scanning feature is a bit slow.

Tiered pricing is available for individuals and business users.

Tackle Budgeting, Spend Management, and Inventory Tracking with Planergy

Planergy is a procure-to-pay process management tool that takes care of several business processes to help with better financial management.

It integrates with various accounting tools like Quickbooks and Xero.

With the purchase requisition and purchase order features, you can ensure your employees are only ordering products and services from approved vendors to eliminate maverick spending.

Procurement leaders can store contracts in a central repository, for easier compliance management.

With automated approval routing and workflows, you can be sure no purchase orders are left to sit in a pile on someone’s desk for weeks while they’re out on leave.

With budgeting tools, you can set realistic budgets on a departmental, project, or user level. It will prevent one person or department from making purchases above a certain threshold, at the transaction level, and at the total budget level.

Granular user permissions prevent employees from being able to access data they don’t need. Reports give you an idea of your spending habits, so you can find your most valuable vendors, where you’re wasting capital, and so on.

Inventory management features ensure that you always have what you need on hand. Three-way matching automation ensures you never pay for items you did not order or receive.

Audit trails keep track of every action taken on a vendor, purchase requisition, purchase order, and invoice so that all employees remain accountable for their actions.

Designed to help mid-size to enterprise businesses help reach their financial goals, pricing is based on each user license. A demo is available so you can see its ease of use before implementing it within your company.

Get Better Payroll Management with BrightPay

Managing wage distribution, holiday pay, sick leave, and other benefits can be challenging for companies that rely on the standard Excel spreadsheet to manage payroll.

BrightPay is a tool that makes taking care of all of this easy. It’s a cloud-based platform that your employees enroll in and can manage, giving them better visibility over their pay no matter what device they dece to use.

It’s easy to use and comes with a free trial, so you can make sure it’s right for you before committing to using it over the long term.

Prepare Taxes with Gusto

For proper financial management and to ensure adequate financial health, you need a system that helps you automate tax deductions.

Investing in tax preparation software and tools can help simplify various financial aspects of your business.

With Gusto, you can import data from a variety of sources, including inventory management, point-of-sale (POS) modules, and employee compensation systems.

Gusto is a payroll automation tool that handles the majority of the time-consuming work for you. It includes support for filing taxes at the federal and state levels along with healthcare compliance.

While there is support for automated forms and taxes, there’s no mobile app or support outside of the United States.

Conduct Cash Flow Analysis with Float

Float is a cash flow forecasting and scenario planning tool that helps you get real-time information about what’s going on with your money management.

Business owners can use this tool to make more confident decisions based on data.

It integrates with your accounting platform (Xero, Quickbooks, and FreeAgents are available as native integrations) to pull in the financial information you need.

You can use it to see how adding new employees to the mix will affect cash flow, or what happens if you lose a client, make a payment on a big bill, or receive late payments.

This helps you to better prepare for any number of situations you could find yourself in.

Running a Business is About More than the Money

Successfully running a business, whether it’s a startup or an enterprise-level business, is about the money, of course.

Without the cash to support operations, you’d close in no time.

But what matters just as much as the cash itself, is the tools you use to support your business.

If you have the right financial management software to support you, you gain access to a world of data that can help you make better decisions with your money, and grow your net worth.

Download PDF

What’s your goal today?

1. Use Planergy to manage purchasing and accounts payable

Read our case studies, client success stories, and testimonials.
Visit our “Solutions” page to see the areas of your business we can help improve to see if we’re a good fit for each other.
Learn about us, and our long history of helping companies just like yours.

2. Download our guide “Preparing Your AP Department For The Future”

Download a free copy of our guide to future proofing your accounts payable department. You’ll also be subscribed to our and notified about new articles or if have something interesting to share.

3. Learn best practices for purchasing, finance, and more

Browse hundreds of articles, containing an amazing number of useful tools, techniques, and best practices. Many readers tell us they would have paid consultants for the advice in these articles.

The post The 8 Best Financial Management Tools appeared first on Planergy Software.

The 8 Best FP&A Software Tools

Keith Murphy — Tue, 28 Jun 2022 15:16:30 +0000

Download a free copy of "Preparing Your AP Department For The Future", to learn:

How to transition from paper and excel to eInvoicing.
How AP can improve relationships with your key suppliers.
How to capture early payment discounts and avoid late payment penalties.
How better management in AP can give you better flexibility for cash flow management.

Download Free Copy

The 8 Best FP&A Software Tools

Category

Finance

Written by Keith Murphy
17 min read

Tags

Financial Planning & Analysis (FP&A)Financial Reporting Technology & Software

Last edited

June 24, 2024

Download PDF

Financial planning and analysis, or FP&A encompasses budgeting, financial forecasting and analysis, and the decision-making that supports every company’s financial strategy and influences its financial health.

The FP&A team is responsible for strategic and annual planning as well as cash flow forecasting, monthly forecasting, financial modeling and reporting, and so on.

The FP&A team has to understand how well the company performs financially – not just in the present, but historically, as well.

They must use this information to forecast future performance, and make adjustments accordingly. using narrative and context to what is happening in the business and why it’s happening, they use the financial information available to help them find new opportunities and anticipate unexpected changes in circumstances that could harm the company’s current position.

The FP&A is a strategic center for any organization, as Business Leaders throughout the company looked to them to provide crucial information and recommendations about how to navigate.

Conducting Financial Planning and Analysis

FP&A must coordinate and collaborate with department heads throughout the entire company to ensure they collect and maintain an accurate picture of the financial and operational data at hand.

They analyze financial performance, run models of potential plans to influence decisions, create financial reports periodically, and provide strategic recommendations.

The team is completely responsible for the organization’s financial health and its financial decisions.

Generally speaking, the FP&A department has two major roles. They manage the periodic financial close and consolidation along with financial planning, forecasting, and analysis. To make this happen, they:

Work across the company to collect, aggregate, comprehend and analyze financial data.
Collaborate with department heads and other executives to develop budgets, plans, forecasts, etc. They must also explain any variances that may arise.
Analyze corporate activity and performance to develop financial reports and communicate the company’s overall financial health to executives and investors.
Provide financial performance analysis and guidance to support decisions for leaders, the board of directors, investors, etc.
Project future business performance with forecasts and plans for various scenarios
Analyze and guide asset allocations to achieve corporate financial goals and objectives

To accomplish these goals, the FP&A department uses a variety of software tools.

What is FP&A Software?

Traditionally, FP&A was largely executed with a series of complex and connected spreadsheets.

Microsoft Excel has long been the standard for FP&A, and while many finance professionals find it to be great for calculations and its support for any financial model – it’s not without issues.

It works well for small businesses, but it is riddled with flaws at scale.

Excel is incredibly difficult to automate, lacks controls, and leaves room for error when it comes to sharing and collaborating with others.

To capitalize on what makes Excel great while also alleviating these major flaws, various software providers have built new solutions to help FP&A teams work more effectively and efficiently.

Today’s market is full of robust and capable Solutions for all businesses ranging from a small start-ups to established enterprise organizations.

However, each solution focuses on different market segments and uses a different approach to how they help FP&A teams.

Some solutions are better for larger companies with relatively large IT budgets, while others are suited for smaller organizations.

Some are targeted at a software provider’s existing customers, and others provide flexibility around a software strategy.

Costs

Software costs vary depending on the complexity of the offering, the size of your company, and the plan you choose from the provider.

Expect to spend anywhere from a few hundred dollars to thousands a month, depending on your needs. Each company provides a free quote customized to your organization.

Automation

Many of the software tools on this list make automation easy. By connecting the other tools you use, you can pull in the financial data from various sources across your company to streamline operations and planning processes.

Using a series of triggers, you can move data from one source to another, and complete tasks with relatively little effort.

Doing so allows your team to focus on more value-added activities and removes monotony to increase overall productivity.

Let’s look at the 8 best FP&A software tools organizations can use to empower their data and processes.

Quality FP&A software solutions make for easier financial management and business planning to improve profitability.

Planful Continuous Planning Platform

The Planful FP&A software platform is focused on continuous planning. It includes everything you need for planning, budgeting, and forecasting.

You can handle financial reporting, financial consolidation, financial close management, workforce planning, and scenario analysis.

The integration features make it possible to integrate any source of information, so you can keep your data accessible and ensure everyone is informed.

Pricing information isn’t listed on their official website, but a full demo is available so you can see what it looks like before you contact the company for a quote.

Cube

Cube is a cloud-based FP&A platform that makes it easier for financial teams to collaborate across an organization, with automation and real-time data insights. You can use it to connect with any data source or spreadsheet, so you don’t have to give up using the tools you love.

It’s an ideal solution for mid-market companies looking for something easy to use, without needing to rely on an extensive IT budget.

Pricing is broken down into multiple tiers, with discounts of up to 70% available for companies with fewer than 50 employees.

Anaplan

Anaplan is another planning tool focused on enterprise-level companies. It is ideal for highly complex scenario planning, forecasting, and more.

In terms of finance, you can use the platform to connect multiple sources of data and team members so you have a single source of truth across the organization for better planning and outcomes.

Anaplan can handle budgeting, forecasting, planning, specialty financial planning, operation planning, and more. It includes automation tools to help with cost management, which makes for easier and faster decision making.

Anaplan offers multiple packages to choose from, but pricing information is not publicly listed on the website.

Anaplan requires more IT support than other solutions on the market like Planful, so if you have a limited IT budget or department, it may not be the best option for you.

Workday Adaptive Planning

Formerly known as Adaptive Insights, Workday Adaptive Planning is an enterprise resource planning (ERP) software that makes it easy for companies to improve their modeling, budgeting, planning, and forecasting.

The solution covers workforce, sales, and financial planning while promoting collaboration across an organization without relying on manual spreadsheets.

Finance features include flexible, scalable Financial Planning and analytics, modeling for any size business, real-time reporting, and financial consolidation. It integrates with other cloud-based software as well as on-premise and file-based applications.

Though pricing is not listed on the website, there are multiple packages available to choose from based on company size, seat types, and features.

Vena

Vena is a complete planning platform and analysis software that prides itself on being the only native Excel platform.

It uses the Excel interface with OLAP cube technology to provide everything users love about Excel spreadsheets, with the flexibility and control of a cloud-based solution that unifies everything on a single platform. Features include:

Budgeting and forecasting
Strategic planning and rolling forecasts
Financial reporting
What-if scenario analysis
Cash flow planning
Workforce planning
Capital expense and revenue planning
Sales and operational planning
Financial consolidation and close
Account reconciliation
Incentive compensation management
Tax provisioning
And more…

It’s worth noting that whole creating in-house reports is flexible, templates are slow to load and there isn’t an option to run reports as PDF.

If you plan on having more than 200 users, auditing user security is a bit difficult.

Prophix

Prophix is a Corporate Performance Management (CPM) solution designed to help companies make better decisions as they scale and budgeting becomes more complex.

Using pre-built functionality, users can pre-populate data sets to make forecasting simpler. It’s easy to handle budgeting and planning, reporting and analytics, workflow and automation, and consolidation and close.

Prophix also has a virtual financial analyst that uses AI to help you, that works with both voice and text.

While Prophix does have pros, the platform comes with a bit of a learning curve. It takes longer to implement and learn than similar platforms.

Some of the visual data representations are lacking, and it’s impossible to test out various features without risking compromising your data.

Pricing information is not publicly available.

Netsuite Planning and Budgeting

With NetSuite Planning and Budgeting, organizations of all sizes can take advantage of planning and budgeting features to improve operational efficiency.

This platform automates planning and budgeting processes while putting all of your organization’s financial and operational data in a central location for a single source of truth. Finance teams can produce budgets and reports fast without hassle.

Features include:

What-if scenario analysis
Reporting
Company-wide and departmental budgeting
Templates and prebuilt reports

A standard and premium edition are available.

The premium edition is geared toward a few specific industries, including agencies, service providers, software companies, and nonprofit organizations.

Pricing information is not publicly available.

Oracle Essbase

Oracle Essbase provides organizations with the ability to quickly generate insights from multi-dimensional datasets. It is a what-if analysis and data visualization tool.

It provides business analytics solutions for analyzing data, reporting, and collaborating across departments within an organization. You can use Essbase through a web or Microsoft Office interface.

For finance, Oracle Essbase compliments other FP&A tools. It is not focused on finance.

You can use it with other Oracle tools like Hyperion Planning, and Oracle Planning and Budgeting Cloud Service (Oracle PBCS) to round out your tool set.

Bonus: Planergy Procure-to-Pay Software

Planergy is a cloud-based spend management software tool that helps your organization manage each part of the procure-to-pay process. From setting controls on the vendors your employees can use to spending limits at a departmental level, to automating purchase requisition approval and purchase order payment, it has everything you need to set up your financials for success.

While not specifically an FP&A software, adding this to your FP&A process will make things easier for everyone.

Aimed at mid-sized organizations, Planergy can be adapted to address the needs of any organization in any industry. From recurring budgets to project-based budgets, to multiple approvers, you can customize your workflow and automation based on what your business needs.

Three-way matching ensures what you receive is what you ordered and what you pay for. Integrations help to automate the process, so human intervention is only required when something doesn’t match up in the system.

Budgeting ensures that no one person or department can spend more than they should from month to month. It can be controlled at the item and vendor level, as well. Approval workflows ensure that no purchase orders get lost in the shuffle.

Pricing is based on the number of user licenses required. User permissions control what each person can and cannot do within the platform. Budget limits prevent overspending, and vendor management prevents maverick spending for greater control over who spends what and where.

A centralized repository makes it easy for procurement professionals to manage contracts and ensure compliance not just from employees, but from vendors, too.

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Technology & Software Archives : Planergy Software

The Future of FP&A: How The Role Is Evolving With The Use Of Real-Time Data

What's Planergy?

Cristian Maradiaga

King Ocean

Download a free copy of "Indirect Spend Guide", to learn:

The Future of FP&A: How The Role Is Evolving With The Use Of Real-Time Data

KEY TAKEAWAYS

Understanding FP&A

Preparing Budgets and Forecasts

Analyzing Financial Performance

Evaluating Business Performance

Providing Actionable Insights

Pros and Cons of FP&A

Benefits of Working in FP&A

High Demand for Skilled Professionals

Flexibility and Autonomy

Growth and Learning Opportunities

Stability

Challenges of Working in FP&A

Accessing Real-Time, Accurate Data

Uncertainty

Pressure and Stress

How Working in FP&A Used to Be

Limited Software

Reliance on Historical Data

Siloed Decision-Making

Reactive Analysis

The Digital Transformation of FP&A

The Future of FP&A

Automated Data Analysis

Leveraging AI and Advanced Software

Real-Time Data Insights

Collaboration Across Multiple Teams and Departments

Proactive and Strategic Planning

The Future of FP&A Has Already Started

What’s your goal today?

1. Use Planergy to manage purchasing and accounts payable

2. Download our “Indirect Spend Guide”

3. Learn best practices for purchasing, finance, and more

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The Top 8 Business Travel Management Tools

What's Planergy?

Cristian Maradiaga

King Ocean

Download a free copy of "Indirect Spend Guide", to learn:

The Top 8 Business Travel Management Tools

KEY TAKEAWAYS

What Is Business Travel Management?

How Do You Manage a Company’s Travel?

Flexibility and Autonomy

Time and Cost Efficiency

Cost Control

Empowerment and Trust

Personalized Preferences

Travel Policy

Approval Process

Expense Reporting

Communication and Support

What Is Corporate Travel Management Software?

What Is the Difference Between Business Travel and Leisure Travel?

What Are the Benefits of Business Travel Management?

How Do You Find a Corporate Travel Management App?

How Do You Book Flights for Business Travel?

What Is a Corporate Travel App?

The Top 8 Business Travel Management Tools: In-Depth

Planergy for Business Travel and Expense Management

TripIt: Your Personal Itinerary Wizard

TravelPerk: One-Stop-Shop for Travel Bookings and Approvals

Airbnb for Work: Unconventional Accommodations for Business Travelers

PackPoint: Handy Tool To Ensure You Pack Everything You Need

Egencia: Comprehensive Corporate Travel Management

SAP Concur: Integrated Travel, Expense, and Invoice Management

Google Travel: Plan and Track Trips Easily

Frequently Asked Questions (FAQs)

What Are Business Travel Management Tools?

How Can Business Travel Management Tools Benefit My Organization?

Are These Tools Suitable for Small Businesses As Well?

Can I Integrate These Tools With Our Existing Systems?

Are These Tools Secure?