How much does FP&A software cost in 2024? A complete guide
Are you confident that you're getting the best price for FP&A software?
If you are in the market for FP&A software, it can be hard to find pricing information online.
Often, vendors will say that pricing is dependent on too many factors to explain without speaking to their Sales team, which can make the initial selection process difficult. If you’re looking for an explanation of what factors influence FP&A software pricing and how to choose the best FP&A software vendor – look no further!
In this article, we’ll outline:
- What is FP&A software?
- FP&A pricing models
- FP&A software prices: what makes some more expensive?
- FP&A software price ranges
- How do I get a discount on FP&A software?
- FP&A software price vs. other factors
- FP&A software prices – how Prophix fits in the picture
- Why finance leaders choose Prophix
At the end of this article, you will understand the factors that influence FP&A software pricing, how to negotiate your subscription contract, and how to choose the best FP&A software solution for your business.
What is FP&A software?
FP&A software is for CFOs, finance leaders, and decision-makers to manage reporting, budgeting, forecasting, planning, consolidation, and intercompany management, and track the financial health of their business.
FP&A software can go by many names, including Corporate Performance Management software, Enterprise Performance Management software, Business Performance Management software, and Financial Performance Management software.
With FP&A software, you can:
- Streamline your budget management
- Automate repetitive processes
- Integrate your data directly from your source systems (e.g., ERP, General ledger, CRM, etc.)
- Access real-time data to investigate variances
- Create comprehensive, insightful forecasts
- Conduct comprehensive data analysis
FP&A software pricing models
Most FP&A software is sold on a subscription basis, with most contracts ranging from 1-5 years. Subscription fees are generally paid upfront on an annual basis, although some smaller, less established vendors have monthly subscription costs.
There are several factors that can influence the price of your FP&A software subscription, including:
- The length of your contract
- The number of users
- The number and complexity of your data integrations
- Value-add services
As we mentioned above, FP&A software contracts range from 1-5 years. Usually, shorter 1-year contracts are riskier propositions for vendors and have less discounts associated to them; whereas vendors often offer a discount for signing longer-term contract, which can result in more savings for your business.
Most FP&A software has three user types, including:
- Administrators (also referred to as power users, finance users, etc.) – Traditionally, these users are part of the Office of the CFO and are responsible for implementing, maintaining, and updating the software. Administrator users are often the most expensive user license type, and companies generally purchase between 1-5 seats.
- Contributors (departmental users) – Contributors are usually the bulk of a company’s users. Contributors are considered high-value users, as they are actively involved in processes such as budgeting, planning, and reporting.
- Read/view-only – Read/view-only users only need to view metrics or reports in the software, they do not actively contribute to any processes.
FP&A software prices generally increase as you add more users. Many companies use pricing bands for users. For instance, the pricing tiers can be categorized based on the number of users:
- the lowest cost applies to 10 users or less
- a moderate price is set for between 10 to 50 users
- the highest price is charged for more than 50 users
Typically, mid-market companies acquire licenses for 15-35 users, with annual costs per user varying from $250 - $2500. The pricing range is determined by the user's role, with Administrators costing more due to their higher level of access and functionality, while Read-only users are less expensive because they have limited capabilities.
FP&A software integrates with a wide range of other software solutions, like your ERP, general ledger, HRIS, CRM, flat files, and other source systems. Most companies need to integrate their FP&A software with two or more data sources (your financial data and your personnel data being the most common integrations).
Flat files are considered the simplest integration type, and so, many vendors offer a set number of flat file integrations as part of your subscription contract. However, depending on the number of direct integrations you need, this can increase both the value you receive and the price of your FP&A software.
Many FP&A software vendors offer additional value-add services as part of your implementation and ongoing relationship, including:
- Extended customer support – an addition to your contract that usually involves direct access to customer support, additional consulting hours, and training opportunities.
- Self-serve implementation – Some vendors offer a self-serve implementation process that includes step-by-step guidance on how to setup the software.
- Continuous learning – access to a library of courses on the software, and how to get continued value from your investment.
While value-add services may increase the cost of your subscription, it’s important to consider whether they will save you money in the long-run. Extended customer support ensures you have the resources you need to solve issues quickly, without the stress of trying to contact a helpline.
FP&A software prices: what makes some more expensive?
You may be evaluating multiple FP&A software vendors and find that one is significantly more expensive than the other – leaving you to wonder, “what makes some FP&A software more expensive?”
What you’ll often find is that the more expensive vendor offers additional capabilities or services that you may need to look a little deeper to see. Below we explore some of the key factors that influence FP&A software pricing, and why these matter for you and your business.
In the technology and software industry, there are many new vendors. They may be new to your industry or new to FP&A software in general, which may mean they don’t have the knowledge and expertise to support your financial transformation journey.
You should prioritize choosing a vendor with a long tenure in the FP&A software space, as they are better equipped to support your needs and evolve with you as you grow.
When it comes to financial data, security is one of the most important factors in choosing FP&A software. While vendors with robust security may be slightly more expensive, this is often considered an insurance policy worth investing in. It’s difficult to put a price on peace of mind, especially when it comes to sensitive and proprietary data, as the cost of a data breach can be immeasurable.
When it comes to implementing your FP&A software, you should consider whether your team would benefit from a self-serve approach, which includes step-by-step guidance on how to set up the software. A self-led approach can be significantly less expensive than one led by consultants, leading to a quick time to value.
It's also crucial to determine whether the vendor you select carries out the software implementation themselves, or if they rely on third-party partners to handle the implementation process. For many companies, it’s preferrable to work with in-house experts who are most familiar with the product and how it can be customized to suit your needs.
A lot of vendors in the FP&A software space only offer functionality for financial planning and analysis. And while this functionality may meet your short-term needs, you should prioritize choosing software that can scale with your business. More robust software will offer a platform with a broad suite of solutions for the Office of Finance incorporating not just capabilities for FP&A, like Budgeting and Planning, and Reporting and Analytics, but also solutions to help with Financial Consolidation and Intercompany Management.
Depth and quality of functionality
When you compare FP&A software vendor pricing, you may find that the lower priced solution lacks some or all the following:
- Automated data integration with either scheduled or real-time updates to ensure data accuracy and consistency.
- Ability to plan at detailed level for large expense items such as personnel and capital expenditures.
- Robust planning and modeling tools that help with strategic planning and what-if scenario analysis.
- Functionality to analyze the profitability by business segment, product, or customer.
- Workflow automation and process management that eliminates repetitive tasks and reduces manual input.
- Top-tier data security and regulatory compliance with security controls based on user, role, or group.
- Comprehensive audit logs that capture all data additions and changes in a central location.
- Built-in data analysis functionality so you can see the story behind your numbers.
- Self-serve ad-hoc analysis allows users to create reports at any time.
- Machine learning and predictive analytics to provide deeper insights, improve forecasting accuracy, and identify trends and anomalies.
More ‘high-end’ FP&A software will have this functionality included or available as an option.
Less expensive solutions may not be able to handle the complexity of your financial processes, both now and in the future as your business scales, unlike more expensive solutions, which can grow with you.
FP&A software price ranges
Now that you understand what factors can influence the price of FP&A software, including the number of users, data integrations, and the addition of value-add services, you can better understand what goes into the overall price of your subscription. For mid-market companies, FP&A software subscriptions can range from $15,000 to over $100,000.
How do I get a discount on FP&A software?
When it comes to getting a discount on FP&A software, it's important to remember that different vendors value different things. Many appreciate word of mouth recommendations, customer case studies, testimonials, references, and even speaking opportunities. Sharing your brand with the vendor for co-marketing opportunities can also be beneficial.
Approach the negotiation as a partnership where both parties come out winning. The fewer adjustments you make to the standard contract terms, the easier it is for the vendor to work with you, which could potentially lead to greater flexibility on pricing. Your payment terms can also play a significant role in this.
FP&A software price vs. other factors
Now that we've reached the end of this discussion, you should have a clear idea about how FP&A software works and how it is priced. You should also understand why two pieces of software that look similar can have different prices.
The price of FP&A software isn't always straightforward. There are many factors involved, like implementation approach, user types, data integrations, and more.
When you're choosing the right software for your business, remember that the lower priced option might not be the best in the long run. Sometimes, if software is cheaper, it's because the company is trying to attract customers with a lower price, since they may struggle to compete on the quality or advanced features of their software.
FP&A software prices – how Prophix fits in the picture
With thousands of customers trusting Prophix, we are one of the most popular FP&A software solutions in the market. However, we are not the cheapest. Based on the completeness of our solution, our tenure in the FP&A space, and our best-in-class security, our solutions are in the mid-to-high range compared to the most competitive FP&A software.
Your use case, the size of your business, and other factors will influence your pricing, so please get in touch to discuss your needs, and what would work for your business.
Why finance leaders choose Prophix
Why do finance leaders choose Prophix over less expensive options?
Prophix has a long history of innovation in the FP&A software space, with over 30 years of experience iterating and improving on our capabilities. We recognize the unique challenges and needs of finance leaders, which is why we've built a suite of features that sets us apart from other vendors.
Our integration capabilities and strategic partnerships with ERP vendors provide a seamless data flow between systems. This smooth integration reduces the time spent on manual data entry and reconciliation, allowing finance leaders to focus on strategic decision-making.
Customer service is another reason finance leaders choose Prophix. With an industry-leading Net Promoter Score (NPS), we demonstrate our commitment to ensuring maximum return on your investment.
Our user-friendly Ad Hoc Analysis tool eliminates the need for external tools like spreadsheets, providing a more efficient, error-free environment for financial analysis. This allows finance leaders to quickly access and analyze data, leading to faster, more informed decision-making.
Prophix's automation tools, such as Data Integration Studio and Workflow, not only simplify complex processes but also eliminate the need for coding or formulas. This empowers finance teams to automate routine tasks, freeing up time for strategic analysis and planning.
At Prophix, we also adhere to industry-leading compliance standards and take a security-first approach to protect your sensitive financial data.
Finally, our Financial Performance Platform was designed with finance professionals in mind. It offers centralized data, streamlined processes, visual analytics, and AI-driven insights. This combination of features enables finance leaders to gain a holistic view of their organization's financial performance, identify trends and opportunities, and make data-driven decisions that drive business success.
In a nutshell, finance leaders choose Prophix for our commitment to customer service, our advanced, user-friendly features, and our understanding of the unique needs and challenges of finance teams. We're here to empower you to achieve more and drive business success.
For forward-thinking finance leaders, like our customers, Prophix is the best solution:
“Prophix gives us an easy-to-administer product that the finance team can control. This allows us to avoid consuming IT resources, and we can resolve issues faster and move quicker when we want to make updates or enhancements to our model or processes.” – Justin Parks, Corporate Controller, Technimark
“We utilize Prophix as our 'Source of Truth' for all core financial information, including monthly actuals and plans (Budget & Forecast). This has allowed us to migrate away from multiple versions of data within disparate spreadsheets that may or may not be the most current information, and instead move towards having more confidence in the information we are looking at.” – Jeffrey DiOrio, Director of Financial Planning and Analysis, Echelon Supply and Service
“We use Prophix to help our Clinical program with their productivity reports. Prior to using Prophix, they were using very cumbersome process using Excel. They also had very limited functionality for the reports that they were using. Now they can see details and the data in graphical format, which is appealing to everyone!” - Emily Anauo, FP&A Systems Development, Barber National Institute