Enterprise performance management, or EPM, technology specializes in forecasting and financial management. It provides analytics, reporting, and forecast modeling so organizations can analyze, understand, and plan strategically for the business. Modern finance solutions combine EPM capabilities into a comprehensive financial planning and analytics (FP&A) solution that allow you to analyze, plan, budget, forecast, and predict in one tool.
ERP is a company’s system of record that contains and links all transactions that happen in the moment whether it is sales, expenses, costs, and other balance sheet related items (for example, purchases of assets). EPM solutions give a real-time view of the ERP data in a consumable manner to compare against budgets and plans, but also to help predict future outcomes.
Although traditionally EPM systems were deployed on premise, today most applications are deployed to the cloud. A software-as-a-service (SaaS) approach helps smaller and mid-sized businesses accommodate a more moderate operation, and can scale easily with growth.
EPM relies on financial and operational data from many sources, such as ERP, front-office and back-office applications, data warehouses, and external data sources. The technology integrates easily with existing systems such as those used for financial consolidation, financial close, planning, tax reporting, profitability and cost, account reconciliation, and other systems.
EPM software monitors transactions, user access, and master data – important oversight in managing compliance with industry regulations and requirements. These capabilities mitigate risk relative to fraud, payments, data breaches, inefficient business activities, and other risk areas.
EPM automates workflows to ensure processes are repeatable and compliant with regulatory requirements. New regulations can be easily integrated into existing workflows for up-to-date oversight.