The terms Corporate Performance Management (CPM) and Enterprise Performance Management (EPM) are often used interchangeably. These two forms of performance management software help businesses manage their resources and stay on track with their financial goals. Many argue that when you’re running a large organization, you need both EPM and CPM. Some solutions like Solver and Anaplan, combines functionality from both categories into a single solution.

There are two important differences between CPM and EPM:

  • CPM focuses specifically on providing a corporate-wide application of performance management, primarily for the organization’s finance department.
  • EPM focuses more broadly on the performance of the entire enterprise, extending beyond the finance departments to sales, marketing, supply chain and more.

If you’re comparing CPM vs. EPM, the choice may seem arbitrary given the similarities. While there is crossover between the functions of CPM and EPM software, CPM takes more of a financial focus, whereas EPM focuses more holistically on the performance factors of the entire organization.

What Is CPM Software?

CPM covers the following basic business processes:

  • Consolidation: Close management and consolidation of an organization’s finances.
  • Planning: Major areas of financial planning, including budgeting and forecasting.
  • Analytics and reporting: Gathering and reporting data from all applicable areas in an organization.

CPM software’s ultimate goal is to help organizations strategize and execute informed plans to reach their financial goals. In this way, EPM software and CPM software are alike. The primary distinguishing factor is that CPM offers advanced applications designed to drive the organization’s goal of increasing profits for itself and its shareholders.

With CPM’s more financially focused approach to managing a business’s performance, organizations can more efficiently track financial progress and perform tasks related to strategic financial planning. CPM enables business leaders to make more informed, data-based decisions to reach their organization’s financial goals and objectives.

Uses of CPM Software

CPM software is best used for performance management in the following scenarios:

  • Specialized performance management processes: With CPM software, you can apply more specialized performance management tactics to your financial planning strategies. CPM software is designed to focus specifically on driving a business’s financial goals and increasing shareholders’ profits.
  • Financial performance data management: CPM software tracks key performance indicators (KPIs) like an organization’s operational costs and other expenditures, revenue, return on investment (ROI) and other applicable data sources. With CPM software, accessing and analyzing an organization’s financial performance is easier than ever.
  • In-depth analytics: CPM software allows business leaders and financial departments to accurately analyze past and current data to make more informed decisions about the direction of their organization. Detailed analytic information is key in financial strategy and planning, and CPM software consolidates financial data into one easily accessible place.
  • Convenient and efficient financial management: With all of your financial data in a central location, managing your business’s financial performance can be done with extreme precision and efficiency with CPM software.

What Is EPM Software?

EPM software performs many of the same functions as CPM software. The primary difference is that while CPM hones in on a business’s financial data and management, EPM takes a broader look at multiple line-of-business operations and analyzes KPIs from each.

Many organizations prefer EPM’s more holistic approach to performance management across the enterprise compared to CPM. For many businesses, all departments play an equally important role in determining the organization’s financial outcomes. While CPM focuses on one area of the entire enterprise (namely finance), EPM considers every applicable department in the processes of consolidation, planning, reporting and analytics.

Uses of EPM Software

Many companies use EPM and CPM software interchangeably. Focusing on EPM’s unique advantages for your organization alongside a CPM system can be a worthwhile investment, especially if you have a particularly large organization.

EPM software is best used for the following processes:

  • A broad look at enterprise performance: EPM software’s purpose is to manage all performance factors across an enterprise, not just the finance department. EPM is a useful tool to provide business leaders with a clear picture of how different parts of the enterprise are performing individually and working together.
  • A bird’s eye view of business analytics: EPM software looks at analytics from virtually every part of an enterprise and tracks the KPIs of multiple departments at once. With EPM, you get a summary of your entire company’s performance due to advanced analytics technology.
  • Large-scale planning: With EPM, budgeting, forecasting and related planning activities are much more efficient and scalable. Creating annual operating plans is easy with the right EPM software on your side.
  • Versatile applications: While CPM software caters to the structure of corporate organizations, EPM software can be used for a wide range of non-corporate organizations as well. EPM can easily accommodate the performance management and planning needs of organizations in the government, education, non-profit and other sectors.
  • Saved time and energy: As with CPM, EPM software saves organizations time, energy and money when properly applied to business processes. With the ability to capture company data automatically from multiple departments at once and consolidate it into a central hub, employees no longer need to spend hours performing these processes manually.

EPM software’s broad organizational focus includes monitoring financial performance, but it does not focus exclusively on finance, as does CPM software. Individual software systems vary in the benefits they offer, and organizations should weigh their options carefully before committing to an EPM or CPM system.

Learn More About Solver Corporate Performance Management Software

EPM and CPM software offer many advantages to executives and financial managers looking to maximize decision-making capabilities in a competitive marketplace. Solver is an easy-to-use and innovative CPM solution that is built for the ever-changing demands of growth-focused companies. Using a single, cloud-based solution, Solver automates reporting, consolidations, forecasting and budgeting processes for complete insight into your business.

At Solver, we can help you decide what your business needs based on your current metrics and financial goals. Submit a sales inquiry or request a demo, and a member of our expert team will reach out to you shortly.

While mid-market and enterprise resource planning (ERP) vendors offer native financial consolidation software, their limitations often leave users still in search of a solution that can produce.

Here are a few reasons why it has been difficult for ERP vendors to deliver the financial consolidation functionality inside the ERPs itself.

Common Limitations in Current Financial Consolidation ERPs

  • Problematic to consolidate across subsidiaries with different ERPs
  • Clunky consolidation process with too many steps
  • Manual consolidation adjustments, which can be tedious to post
  • Inability to handle different chart of accounts
  • Weak auto-elimination functionality
  • Limited currency conversion functionality
  • Weak financial report writer to produce the consolidated reports
  • Lack of dynamic pro-forma consolidations
  • Inability to consolidate across subsidiaries with different fiscal calendars

Overall, consolidating within your ERP system remains a clunky process with too many steps. As a result, an organization’s finance team ends up carrying out the process in Excel, where they are likely comfortable using formulas.

Your ERP’s Current Consolidation Solution

Even with many popular ERP systems such as Microsoft’s Dynamics 365 Finance and Operations (D365 FO), SAP, Oracle or Workday, customers with significant consolidations and related financial reporting needs often end up depending on Excel, especially in the final steps of the process.

While ERP systems typically contain many consolidation features, and might even have a native Management Reporter that is an above-the-average report writer, it is increasingly normal that customers add on a “best-of-breed” corporate performance management (CPM) solution to simplify their financial consolidation and reporting software.

Modern cloud-based CPM solutions

Solver is an example of a CPM solution that comes with several added advantages, especially for Microsoft customers.

Advantages of Solver CPM for Financial Consolidation

  • Solution is cloud-based Azure
  • It’s configurable to general ledgers as well as sub-ledgers
  • It has a pre-built connector to Power BI for visualization

PowerBI_Dashboard_01

 

Some cloud-based CPM vendors like Solver now also offer an Excel add-in to give power users more flexible and familiar report design.  Additionally, in some CPM solutions, end users can still run the same reports in the cloud using their web browsers. They could do the same using their local Excel on the desktop connected to the CPM database in the cloud.

Additionally, modern cloud-based CPM solutions typically house advanced budgeting and workflow capabilities. This allows for a single solution and a single report/form designer for financial reporting, consolidations and budgeting.

Upgrade Your ERP System With Solver

To learn more about how modern CPM solutions integrate with popular ERP systems like D365 F&O and Business Central, Sage Intacct, SAP and Accumatica, click here.

LOS ANGELES, CA. – February 18, 2020 – Solver, a global leader in cloud and web-based Corporate Performance Management (CPM) for mid-market ERP systems, today announced the launch of its new Hybrid Cloud Connector for the Microsoft Dynamics GP ERP system.  Solver’s Hybrid Cloud Connector is a unique cloud-based solution which enables Dynamics GP users to run real-time financial reports in Solver’s cloud by directly connecting to their hosted or on-premise GP database.  With no intermediate loading and storing of data like the majority of cloud-based reporting solutions, Solver’s Hybrid Cloud Connector offers a flexible solution to Microsoft Dynamics GP users.

Solver’s Hybrid Cloud Connector consists of two unique technologies:

  • A pre-built integration to both general ledger (GL) and sub-ledger data with friendly field names users are familiar with from within Dynamics GP — instead of technical SQL table names.
  • A Gateway that securely connects reports run from the Solver Cloud Portal directly to the on-premise or hosted Dynamics GP database.

Solver is also excited to launch the Hybrid Cloud Connector for Dynamics GP in part because very few cloud-based reporting solutions today are capable of doing real-time reporting for an on-premise ERP system.  Beyond reporting, the Solver Hybrid Cloud Connector is also ideal for organizations looking for a General Ledger (GL) budgeting and forecasting solution which can save budget and forecast updates directly into Dynamics GP. With this new connector, Solver adds more flexibility and functionality to its CPM solution.

“In some ways, for customers using Dynamics GP, this is what almost all accountants want, which is a modern reporting solution with real-time connection to their GL and sub-ledger data” says Nils Rasmussen, CEO at Solver. He continues “And because the Solver solution is cloud-based, there is no software installation required for the end-user, just a web browser. This means that users can now run their GP reports from any web browser and drill down to detail from anywhere at anytime without VPN, Terminal Server or Excel add-ins. Anyone tired of Management Reporter/FRx, Excel add-ins or other on-premise report writers now has a modern cloud option without losing their real-time access to GP data.”

In the near future Solver will also release this real-time cloud-to-on-premise integration technology for other ERPs, including Dynamics NAV/D365 BC, Dynamics SL, and several SQL-server-based ERPs from Sage and SAP.  In the meantime, Solver expects its Hybrid Cloud Connector to further enable Microsoft Dynamics GP users to make better, faster decisions in their financial reporting.

 

About Solver

With a quickly growing community of thousands of global customers and hundreds of partners worldwide, Solver provides a leading cloud Corporate Performance Management suite for Microsoft Dynamics 365 Finance and Operations and Business Central, Acumatica, SAP Business One, SAP ByDesign, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, NetSuite and other ERPs. Solver is ranked in the leader quadrant in the Corporate Performance Management (CPM) Software Grid on G2, and as a Microsoft Gold ISV Partner, Solver has won countless awards, including the Microsoft BI Partner of Year Award, recognition on the Gartner Group CPM Magic Quadrant, and Best Places to Work for a workplace culture that celebrates customer service, integrity, and innovation. Solver is sold through its 12 global offices and a worldwide network of partners. For any questions, visit www.solverglobal.com or contact Solver at info@solverglobal.com.

Los Angeles, CA – February 24, 2020 – Solver, a global leader in cloud Corporate Performance Management (CPM) solutions, has recently hired Terry Ginley as Vice President of Partnership Development. Ginley, who is based in Cleveland, Ohio, has had a long-standing relationship with Solver in his previous roles in the technology and Corporate Performance Management industry.

Ginley, a CPA, moved from the accounting industry to the accounting software industry in 1993. After a series of company and product acquisitions, he became the Vice President of Services for FRx Software, a subsidiary of Microsoft Corporation in 2001. Since that time, he has served as the Senior Director of Microsoft Customer Service and the Business Intelligence (BI) Global Practice Manager for Microsoft. For the past 9 years Terry has been a member of the leadership team of Velosio, a Top 10 Microsoft Dynamics Partner and focused his efforts on BI and CPM as well as Strategic Partnerships and Acquisitions. While at Velosio, Solver’s Partner of the Year in 2018 and 2019, Terry developed and lead a team that delivered Solver Solutions to over 150 clients. This allowed these clients to replace solutions such as FRx, Management Reporter, Forecaster and a host of legacy and Excel based solutions.

“I am excited to be adding someone with Terry’s experience to the Solver team,” said Tad Remington, Chief Commercial Officer. “The knowledge he brings of both developing strong partnerships and about our industry will be a true asset as he guides our partner growth initiatives.”

Initially, Ginley will be responsible for developing partnerships globally with leading Microsoft Dynamics, Sage/Intacct, SAP, and Acumatica Channel Partners. Solver is committed to the growth and success of our customers and Partners with a strong focus and commitment through Partner sales and services strategy.

 

About Solver
With a quickly growing community of thousands of global customers and hundreds of partners worldwide, Solver provides the leading cloud Corporate Performance Management suite for Microsoft Dynamics 365 Finance and Operations and Business Central, Acumatica, SAP Business One, SAP ByDesign, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, NetSuite and other ERPs. Solver is ranked in the leader quadrant in the Corporate Performance Management (CPM) Software Grid on G2, and as a Microsoft Gold ISV Partner, Solver has won countless awards, including the Microsoft BI Partner of Year Award, recognition on the Gartner Group CPM Magic Quadrant, and Best Places to Work for a workplace culture that celebrates customer service, integrity, and innovation. Solver is sold through its 12 global offices and a worldwide network of partners. For any questions, visit www.solverglobal.com or contact Solver at info@solverglobal.com.

financial planning analysis blog

The rapid growth of Microsoft’s Dynamics 365 Business Central (D365 BC) cloud ERP system comes with investments in add-on app solutions by independent software vendors (ISVs)For example, Progressus is a company as described above and has a project solution for D365 BC. With Progressus, small and mid-sized companies receive easy-to-configure and advanced project accounting functionality in the cloud. 

However, as all project-centric business managers know, good transactional systems also need proper financial planning and analysis tools. In today’s highly competitive market, this can be the difference between success and failure.  As successful project-based companies invest in new cloud-based ERP systems like D365 BC and add advanced project apps like Progressus, a natural next step after the implementation is to look for an integrated and flexible reporting and planning solutionA reporting and planning software like Solver can operate down to the detailed field and dimension level in the Progressus tables inside the ERP system.  

Project Reports for D365 and the Progressus App

Lately, most companies prefer pre-integrated solutions. Due to this, Solver partnered with Progressus and now the corporate performance management solution delivers an out-of-the box integration to both Dynamics 365 Business Central and Progressus. Solver not only provides D365 BC customers with a strong financial reporting and budgeting software for general ledger and sub-ledger data, but it also now extends this functionality into all the project detail provided by Progressus. 

Customer Benefits:

  • Pre-built integration to Dynamics 365 and Progressus tables
  • Pre-built Progressus Project reports
  • Full report writer with Excel design
  • Optional Budgeting module
  • Multi-tenant Azure Cloud Platform
  • Pre-built Power BI integration for interactive Dashboards

However, as with any reporting solution, pre-built report templates speed up deployment when can be used as a starting point. 

Solver offers a number of project-focused reports for Progressus including:  

  • Benchmarking
  • Project Manager Benchmarking
  • Project Capacity by
    • Customer Group and Resource
    • Department and Resource
    • Customer Group and Resource
  • Project Detail by Customer
  • Project List
  • Resource Detail
  • Actual vs Budget Variance

 

project capacity

project 2

Both solutions are independently integrated to Microsoft Dynamics 365 Business Central. After the partnership between the two companies, they decided to configure a joint integration. With the rapid growth in popularity of cloud ERP software like D365 BC, one of the next big cloud drivers is that ISVs, such as Progressus and Solver, work together to give customers elegant integrations across both standard ERP data as well as transactions originating from ISV add-ins to the ERP systems. This eliminates many of the custom integrations that are configured in the old on-premise platforms.

Technology is driving major industry changes into the next decade. Project managers and executives will need and demand complete insight to their data to drive faster and better decisions. Cloud-based ERP vendors and ISVs are making good strides to make this happen!

LOS ANGELES, CA. – February 11, 2020 – Solver, ranked among the highest rated companies in cloud-based Corporate Performance Management (CPM) for customer satisfaction by G2, announced its partnership with Sana, the maker of the Sana Commerce app for Microsoft’s Dynamics 365 Business Central and other ERP systems.  Solver and Sana have partnered to integrate Solver’s reporting and budgeting solution with Sana’s e-commerce solution to offer customers advanced cloud-based reporting. With this integration, Dynamics 365 customers using Sana Commerce can now create advanced reports for their e-commerce data as well as their Dynamics Business Central financial data using a single cloud-based CPM solution. The integration comes with a number of pre-defined reports including: Web order customer detail, e-commerce KPI report, outstanding quotes, sales by customer, returns analysis and multi-month sales trend.

By partnering together for this integration, Solver and Sana are focusing on delivering rapid time-to-value for Dynamics 365 customers looking for professional reports with drill-down that will provide their managers with better and faster decisions related to their e-commerce sales data. It will also allow them to view the related impact on their financial statements.

“With this integration as well as the pre-built and user-definable reports, managers can view their e-commerce business data in virtually any imaginable format to get important insights,” said Nils Rasmussen, CEO at Solver. He continued, “Our joint customers can also use the Sana Commerce data as part of Solver budget input forms for sales forecasting.”

“For Sana giving our customers insights into their KPIs is important. Tools like Solver allow businesses to get the most out of their Sana web store by using data. We are very happy to be working with Solver to help give our customers an overview of their online performance,” said Arno Ham, Chief Product Officer at Sana Commerce.

 

 

About Solver

With a quickly growing community of thousands of global customers and hundreds of partners worldwide, Solver provides the leading cloud Corporate Performance Management suite for Microsoft Dynamics 365, Acumatica, SAP Business One, SAP ByDesign, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, NetSuite and other ERPs. Solver is ranked in the leader quadrant in the Corporate Performance Management (CPM) Software Grid on G2, and as a Microsoft Gold ISV Partner, Solver has won countless awards, including the Microsoft BI Partner of Year Award, recognition on the Gartner Group CPM Magic Quadrant, and Best Places to Work for a workplace culture that celebrates customer service, integrity, and innovation. Solver is sold through its 12 global offices and a worldwide network of partners. For any questions, visit www.solverglobal.com or contact Solver at info@solverglobal.com.

 

About Sana Commerce

Sana helps businesses all over the world reach their full potential. We offer the shortcut to e-commerce. How? Through 100% seamless integration with SAP and Microsoft Dynamics.  Our e-commerce solution leverages existing business logic and data in powerful and user-friendly web stores. This lets our clients focus on improving customer experience, streamlining sales processes, and increasing sales volume and frequency.
Sana Commerce is a certified partner of Microsoft Dynamics and SAP. Our innovative approach and strong partner network make Sana the driving force behind over 1,500 web stores worldwide. Because of our experience and expertise, we can go all the way, offering not only a product but also supporting services such as online marketing, Search Engine Optimization (SEO) advice, hosting, design and online payment providers.

A cancellation or postponement of an enrollment in a regional classroom training may be made with no penalty 15 or more days prior to the start of the first day of the scheduled training. A cancellation or postponement of a scheduled regional classroom training made within 7 to 14 days of the first day of training will result in an assessment equal to 50% of the list price of the scheduled classroom training.  If the cancellation or postponement occurs between 0 to 6 days of the start of the first day of the scheduled training then the charge will be 100% of the list price of the schedule classroom training.

Training Event Schedules

Class schedules are subject to change without notice based upon minimum attendance requirements. Please check class schedules frequently at www.solvertraining.com.  Solver may cancel scheduled classes up to fourteen (14) days prior to the start of the class for instructor-led classroom training class or three (3) days prior to an online instructor-led virtual training class. In most cases a minimum of five (5) students per class is required for a class to be held.

Customer Travel Costs

Solver will not be responsible for reimbursing prepaid travel costs. It is recommended that students who elect to incur travel costs for an instructor-led classroom training class, schedule and purchase airfare and accommodations with this in mind.

Refund Policy

Except for the cancellation and postponement policy described above, all payments and fees are nonrefundable. It is expected that students will assess the appropriateness of training by reviewing the course descriptions and schedules in advance of purchase or registration.

Please direct any questions to Training@SolverGlobal.com.

 

 

When you’re managing a large hotel or resort, your day-to-day job requires you to juggle countless moving pieces. From tracking KPIs to producing financial reports, running a sizeable hotel or resort is practically impossible today without the help of advanced hotel performance management software. Fortunately, there are many solutions on the market designed to accommodate the unique needs of the hospitality industry.

When you’re dealing with guests, hotel staff, changing rates, renovations and countless other challenges, it’s crucial that you have a CPM system in place with all of the features you need to keep business thriving. Learn more about the ins and outs of resort financial management software below.

Challenges Hotels and Resorts Face Using CPM Software

Finding the right CPM software for your hotel or resort is essential to managing your business performance processes with efficiency. Because hotels and resorts need to do their budgeting and forecasting from a seasonal standpoint, it’s important that they have the tools to keep up with an ever-changing market.

Common challenges hospitality businesses face can include:

An Unpredictable Local Market

Keeping up with local competition is critical for successful hotel management. When other hotels open, close, change their rates or rebrand, the local economy shifts and forces other hotels to shift with it. You need a reliable method for gleaning economic data as well as data from your own hotel or resort’s performance in order to keep up with ever-changing economic factors.

Keeping Track of Reports

When you run a hotel, you need to have a solid report generation structure in place due to the sheer volume of data you need to document from multiple sources. Financial and operational reports require a substantial amount of upkeep that becomes difficult without CPM automation software.

Flexing With Change

Hotels need to keep track of many different revenue variables at once. Anything from a hotel opening next door to a handful of bad reviews could affect revenue in both short-term and long-term scopes. When this happens, hotels need the ability to bounce back from changes they can’t control and manage factors they have power over.

Keeping Up With Data Sources

Today, hotels and resorts need to keep up with metrics from a wide range of sources in order to properly adjust and plan their business strategies. Keeping up with local economic data and their own performance data — and having an efficient data storage solution — can be challenging tasks for hospitality managers.

Advantages of Implementing CPM Software for Hotels and Resorts

The right CPM software can make a world of difference for a hotel or resort. CPM software can help hotel and resort managers better manage data, create financial reports, analyze metrics from multiple sources, accurately track performance and much more.

Implementing CPM software in the hospitality industry can positively affect hotels and resorts in the following ways. You can:

  • Track hotel performance by monitoring metrics from room revenue, food and beverage revenue, conference room rentals, spa services and other applicable factors
  • Produce financial and operational reports with more accuracy and efficiency for multiple business units
  • Integrate your CPM software with existing booking systems and enterprise resource planning (ERP) software to consolidate hotel data for easy access
  • Perform budgeting and forecasting tasks with ease thanks to automation features
  • Perform tasks related to seasonal performance prediction to stay on top of the market and plan accordingly
  • Consolidate hotel metrics automatically and access them in one place
  • Create benchmarks for your hotel or resort and monitor them consistently
  • Automate time-consuming tasks so you can be free to work on higher-level duties

When you implement CPM software into your hotel or resort’s existing systems, the difference can be night and day. Surprisingly, even many major hotel chains are lagging behind other industries in their utilization of CPM software solutions. But the benefits of incorporating CPM software into hotel and resort management processes are too invaluable to overlook.

CPM software can help improve your hotel performance and streamline financial planning processes exponentially — in both the short and long term.

Long-Term Benefits of CPM Software for Hotels and Resorts

A brand new CPM software solution may seem intimidating at first, but once you get over the learning curve, you’ll start to see the benefits of implementing CPM into your hotel or resort almost immediately. The hospitality industry benefits from CPM software integration in a variety of ways — and many long term benefits come from this integration.

Resort reporting and budgeting software helps hotel managers and operators view their hotel or resort’s performance in detail and from multiple angles. It can also help automate processes that would otherwise take valuable time away from management while providing comprehensive analytic information and data organization services.

When a hotel or resort implements CPM software, the long-term benefits typically include:

  • Having a better handle on hotel performance and local economic factors
  • Increased revenue due to better revenue and expenditure tracking capabilities
  • An improved ability to predict market trends and hotel performance
  • An improved ability to adapt to internal and external change
  • Streamlined financial reporting processes and automated financial and operational reporting
  • Increased ability to manage hotel performance driven by seasonal demand and other economic factors
  • Improved return on investment (ROI) thanks to increased efficiency and better operational tactics
  • Access to more precise metrics, all in one central hub

Implementing resort financial management software into your hotel’s existing system fosters significant ROI for years to come if utilized optimally.

Contact Solver Global to Learn How CPM Software Can Improve Your Hotel or Resort

Solver is an international leader in providing businesses in all industries with state-of-the-art CPM solutions. To find out more about how we can help increase your hotel or resort’s ROI, contact our friendly team of experts today. With cutting-edge, cloud-based CPM technology, we can help you rise above the competition and generate long term results.

Budget Variance Analysis

Budgets can be difficult. While properly analyzing trends and patterns in your financial history and projections is an essential part of budgeting and forecasting, it requires long hours of tedious work if done manually. In fact, many businesses hire FP & A personnel specifically to perform tasks related to variance and analysis.

Whether you’re a small business or an established corporation, you know that few things require more attention and analysis than your budget. So many factors go into creating and adjusting budgets that it’s hard to keep track of every variable and the potential outcome. However, this is where a special process known as budget variance comes into play.

What Is a Budget Variance Analysis?

Budget variance analysis refers to the process of helping a business achieve its goals by analyzing several components:

  • Budget projections
  • Actual budget results
  • Variances within the budget
  • Disparities between budget projections and results

Performing a standard budget variance analysis requires management to compare their budget projections to the actual results and assess the disparities between the two. Budget variance analysis helps business management track favorable and negative budget variances and determine how to adjust the budget to better serve the business’s goals.

By studying a business’s budget variance, management can spot unexpected changes in performance — for good or bad. This helps business leaders set realistic future expectations and design a path that leads to future success. Getting from where you are now to your eventual goals is hardly a linear path, and understanding budget variance is key to making steady progress while avoiding financial pitfalls.

When performing financial variance analysis reports, some smaller companies prefer to delegate the task to experts with more extensive experience with budget variance analysis tools and reporting. Within larger companies, budget variance analysis is typically performed by a team built specifically for FP & A variance analysis tasks. Whatever the case may be with your business, it’s important to master budget variance analysis as early as possible.

The Two Types of Budget Variance

In the budget variance analysis process, the results are most often categorized into two types — “favorable” variance and “negative” variance. The main difference between the two is fairly self-explanatory. Whereas favorable budget variance refers to a positive difference between projected and actual budget outcomes, such as higher profits, a negative variance literally indicates a negative outcome, such as net loss.

You can learn more about each type of budget variance below.

Favorable

Favorable variance is an indicator that a company is doing better than expected in a certain area. Many people think of favorable variance as a “pleasant surprise” — for example, a product sees more sales revenue than expected or the cost of implementing a new product or system is lower than expected. There are many factors that can influence favorable variance in budget analysis.

Negative

Like favorable variance, negative variance is what it sounds like. Negative variances typically signal a loss in revenue. Perhaps a certain product didn’t sell as well as projected, or maybe one of the business’s suppliers hiked the price of certain goods or materials. Whatever the case may be, negative variance needs to be taken very seriously.

Luckily for businesses with good budget variance analysis practices, negative variances will spur a positive adjustment in business strategy to adapt to future challenges.

Best Practices for Budget Variance Reporting & Analysis

Budget variance analysis is an essential part of every business’s financial management process. However, you can only benefit from budget variance analysis if you’re doing it correctly.

Many business management professionals who are unfamiliar with how to do a budget variance analysis tend to overlook important budget factors or even put off the variance reporting and analysis. This can lead to missed opportunities to improve company performance. Thankfully, with the right tools and strategies, budget variance analysis doesn’t need to be a dreaded task.

Here are a few best practices to implement in your budget variance analysis process:

  • Schedule specific times to perform budget variance analysis tasks throughout the year. Regular variance analysis is key in improving a business’s performance.
  • Take corrective action as soon as you discover negative — or positive — variance to prevent an existing problem from getting worse or to capitalize on a golden opportunity in the market.
  • Keep a close eye on the economic conditions surrounding your business.
  • Automate wherever you can. Have budget variance analysis software take a chunk of the leg work out for you!

Steps to Complete a Budget Variance Analysis

The steps to completing a budget variance analysis are simple, but they’re made even simpler by implementing software automation. Your FP & A personnel or management will complete these steps in variance analysis:

  1. Analyze differences in actual results versus budget: If significant disparities are discovered, typically 10% or more, then these variances must be analyzed to find out why they occurred in the first place. While manual budget variance analysis can take hours of spreadsheet hopping, an automated solution will take only minutes to do the same task.
  2. Figure out why the difference occurred: Whether the difference is positive or negative, you always need to pinpoint its underlying cause so you can learn from the occurrence. The time this takes will vary depending on the variances in question.
  3. Put together a report: This report should document the budget and variance analysis and the reasons for any variance. Automated software can do this for you.
  4. Brainstorming with management and financial analysts: After completing the analysis, you’ll want to consider how to move forward based on the results.

The basic steps of performing a budget variance analysis may seem simple, but they can happen much faster and with more accuracy when using software than when doing the entire process manually.

Choose Solver’s cloud-based CPM solution for Your Software Needs

In order to perform your business budget variance analysis in under 30 minutes, contact Solver Global today to learn how you can take your company to the next level with variance analysis software. We offer comprehensive corporate performance management solutions for businesses in virtually every industry. Let us help you automate your business’s processes and save you time, money and energy!

LOS ANGELES, CA. – February 03, 2020 – Solver, the global leader in cloud and web-based Corporate Performance Management (CPM) for mid-market ERP systems, today announced the launch of its new North American Data Center located in Canada, to host its cloud platform.  This new data center serves Solver’s growing presence in Canada by meeting the demands of delivering cloud CPM software to more partners and customers.  Solver considers the opening of the data center and launch of the cloud service another milestone in its increasing global presence and commitment to offering an optimal and secure experience to all Solver users.

Solver’s Canadian cloud service is a part of Microsoft Azure’s global data center network and comes in addition to Solver’s existing U.S., European and Asian data centers.  This new data center further capitalizes on the cloud platform’s overall growth and Solver’s dedication to delivering its leading SOC 2 certified CPM software to its North American partners and customers.  With the flexibility and security web-based applications allow, Solver envisions that this data center will encourage both current and future Solver users to choose the cloud-deployment of Solver.

“We are thrilled to now also offer Solver’s CPM cloud solution on Microsoft’s Canadian Azure infrastructure.” says Mike Applegate, CTO at Solver. “This enables Solver’s Canadian business unit to offer a local cloud platform to its customers and partners,” he continues.

Prith Naidoo, managing director of Solver Canada, says, “Canadian companies continue to embrace digital transformation projects, and we’re excited to launch our Canadian Azure data centre to help meet the needs of the Canadian market. This launch is part of Solver’s continued commitment to provide the knowledge, expertise, and innovative solutions needed by our Canadian customers and partners.”  He continues, “Our partnership with Microsoft allows us to leverage the significant investments they are making with the Canadian Azure data centres. Our customers feel reassured that their data is safely stored right here in Canada.”

Solver’s data center in Canada addresses both the growing international user base and number of cloud users.  Opening another international data center marks an important step in Solver’s journey to make Solver the definitive leading CPM solution.

 

About Solver

With a quickly growing community of thousands of global customers and hundreds of partners worldwide, Solver provides the leading cloud Corporate Performance Management suite for Microsoft Dynamics 365 Finance and Operations and Business Central, Acumatica, SAP Business One, SAP ByDesign, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, NetSuite and other ERPs. Solver is ranked in the leader quadrant in the Corporate Performance Management (CPM) Software Grid on G2, and as a Microsoft Gold ISV Partner, Solver has won countless awards, including the Microsoft BI Partner of Year Award, recognition on the Gartner Group CPM Magic Quadrant, and Best Places to Work for a workplace culture that celebrates customer service, integrity, and innovation. Solver is sold through its 12 global offices and a worldwide network of partners. For any questions, visit www.solverglobal.com or contact Solver at info@solverglobal.com.