When do you need a CPM?

author Edgar de Wit

What is CPM software?

If you are working with multiple entities and currencies, you probably also have several reporting layers and independent strategic goals. Managing finances for your business means that you’re constantly reporting on what has happened but also need to look ahead to make timely adjustments if required. And with global decisions changing on a daily, what’s happening tomorrow could be completely different from today’s standards. Thus, getting a grip on your numbers is seriously more important than ever. That is exactly where Corporate Performance Management software (or CPM) comes in.

CPM software helps organizations translate their numbers into strategy and actively manage, monitor and use those numbers. It provides one integrated environment where you can:

Create budgets and forecasts
Build up-to-date reports and dashboards
Perform financial consolidation across entities, currencies and periods
Translate strategic goals into measurable KPIs and insights

The goal of CPM is to make better decisions based on reliable, consistent and current data. Instead of reacting to what has already happened, CPM enables proactive control.

CPM software makes it possible to combine data from multiple sources, streamline processes and make financial insights accessible to everyone involved: from controller to CFO and from team lead to board member.

Not a CPM tool

To clearly understand what CPM does offer, it is helpful to define what a CPM is not:

Not an ERP system

ERP focuses on registering transactions, such as sales, purchasing, HR or inventory. CPM focuses on the analysis, interpretation and planning around those figures. Where ERP looks back, CPM helps you to look ahead.

Not a BI tool

Business Intelligence tools are great at visualizing historical data but rarely support scenario modelling, workflows or planning processes. CPM adds structure, logic and planning capabilities to data insights.

Not an Excel replacement

CPM software does not necessarily replace Excel but complements it. Many solutions integrate with Excel or use a similar interface. The key difference lies in central control, versioning, validation and collaboration.

When do you need CPM software?

You might need CPM software if you recognize one or more of these situations:

Working with multiple versions of the same report
Reports are often delayed or incomplete
Forecasts are disconnected from budgets or actuals
Managing multiple entities, currencies or cost centres
Needing control over margins, cash flows or strategic goals
Wanting to integrate planning and reporting in a single environment
Requiring structure, workflow and data management

In these cases, CPM software is a logical step to future-proof your financial processes. What are typical functions in CPM software?

Modern CPM solutions include features such as:

Driver-based or zero-based budgeting

Rather than simply copying historical figures, you base your budget on underlying assumptions (drivers) or start from zero. This results in better-substantiated budgets. In XLReporting, you can set up budget models based on volumes, rates or parameters you define yourself.

Rolling forecasts and scenario planning

Instead of one annual estimate, you regularly update forecasts based on actual results and trends. XLReporting supports multiple scenarios side by side, including copy, version and simulation functions.

Multi-entity consolidation with currency conversion

Organizations with subsidiaries or international activities need to consolidate data. In XLReporting, you can consolidate across departments, entities and currencies with automatic conversion using your own exchange rate tables.

Intercompany elimination

Transactions between group companies must be eliminated to avoid double counting. XLReporting allows you to identify and automatically eliminate intercompany flows during consolidation.

KPI dashboards with drill-down analysis

Visualize performance with dashboards and charts and drill down to transaction level. XLReporting provides interactive dashboards with filters, drill-downs and role-based access.

Workflow management, validation and comments

Budgeting is often a team effort. XLReporting supports workflows with status steps and comment fields and checks for completeness and consistency.

Version control of budget plans and forecasts

Store and compare different versions of your plans. In XLReporting, you can assign rights per version, compare against actuals and revert to previous versions.

ESG and non-financial reporting

Non-financial data is becoming more important. XLReporting allows you to create your own data models and reports for ESG, risks or operational KPIs.

These functions ensure reliable data, structured processes and faster insights, enabling organizations to make better decisions with confidence.

Enterprise CPM versus Lean CPM

The difference between traditional (enterprise) CPM and Lean CPM is mainly about different reasons.

Enterprise CPM targets large, often international, organizations with very deep requirements and processes. These solutions offer special functionality and customization but also come with disadvantages, such as long implementation times and high consultancy costs, complex administration and heavy IT dependency or often inaccessible for smaller teams within the organization. Enterprise CPM has limited flexibility for changes without external support.

Lean CPM is designed for organizations that need control and insight without enterprise overhead. Key traits of lean CPM include:

Fast and incremental implementation
Self-configurable models and templates
Scalable in usage and cost
Accessible to both small and mid-sized finance teams

Lean CPM strikes a practical balance between functionality and simplicity. It enables organizations to quickly extract value from planning and reporting without long IT projects or high costs.

Aspect	Lean CPM Solutions	Enterprise CPM Solutions	XLReporting Platform
Target Audience	SMEs, scale-ups, decentralized teams	Corporates, multinationals, regulated sectors	Sector-independent
Implementation Time	1–4 weeks	3–9 months	1–3 weeks
Total Cost of Ownership (TCO)	€2K–€20K/year	€50K–€500K+/year	€3K–€15K/year
License Model	Per user or model	Named users, modules and add-ons	Unlimited users; limited by tenant size (reports, models)
Ease of Use	Spreadsheet-like, intuitive	Standardized UX, steeper learning curve	Spreadsheet interface with point-and-click
Data Model Flexibility	Free structures	Governed, configurable models	Models and flexible data structure
Workflow Support	Simple, status-based	Complex workflows with approvals	Status-based with version control
Integrations	Basic API, manual imports	Real-time APIs, native ERP/CRM connectors	40+ integrations incl. Exact, Twinfield, Xero, QBO, databases, files
Forecasting Capabilities	Rolling, scenario-based	Driver-based, AI/ML, scenario versions	Rolling, scenario-based, formulas, driver-based
Budget Versions	Unlimited, freely named	Version-controlled with audit trail	Versioning per model & entity
Data Input	Free tables, direct input	Structured forms, validation rules	Free-form spreadsheets, forms, rules
Consolidation	Mapping-based	Multi-entity with currency and eliminations	Multi-entity, currency conversion, intercompany (manual & automated)
Reporting	Basic dashboards, Excel-like	Advanced, for CxO/Board-level	Powerful tables and dashboards
Dashboards	Flexible, limited visuals	KPI-driven, drill-down, highly visual	Charts, KPIs, widgets
Security & Roles	Basic: owner, editor, viewer	Granular: per entity/module/field	Permissions by model, action, data level (e.g. cost center)

XLReporting: Lean CPM without the complexity

XLReporting is built for organizations that value simplicity, control and scalability. The platform is designed and developed based on our hands-on experience in finance and IT. XLReporting offers an integrated solution for reporting, budgeting, forecasting and consolidation without the complexity of traditional enterprise platforms.

You can start quickly, expand step by step and manage configurations yourself. You also get support from a team that understands finance and works with you to tailor the platform to your needs.

Want to know if CPM software is right for your organization? Contact us, schedule a free demo or read more on our website.

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