The 12 best financial consolidation software tools for FP&A teams in 2024

Financial consolidation is the process by which a parent entity reports on the financial health of the organization and all subsidiary entities combined. A streamlined, consistent process across all channels is essential for both efficiency and accuracy when reporting.

Housing your data in an accounting tool is a great place to start, but their capabilities stop where consolidation software starts. In this article, we’ll outline why consolidation software is important, and how to pick the right tool for your team.

O que é software de consolidação financeira?

Financial consolidation software gives an organization high-level visibility of financial status across combined entities. More specifically, it helps you manage new mergers or acquisitions, foreign currencies, and meet compliance standards. Financial consolidation can be broken down into three types, each made easier by consolidation software:

• Full Consolidation: This is often the assumed type when referring to financial consolidation in general. It refers to fully combining the financial statements of a parent company and subsidiaries, usually because the parent company owns at least 51% of the subsidiary.
  

• Proportionate Consolidation: This method was used to include a venture’s share of the expenses, income, liabilities, and assets in the reporting, but was abolished in 2013 for the equity method.

• Equity Consolidation: Equity consolidation is like full consolidation in that it reports on the combined finances of multiple companies, but the parent company in this method has only influence over the subsidiary and not complete control.

Benefícios do software de consolidação financeira

Manual consolidation might be an option your team is considering or currently using. Using software, however, will dramatically boost accuracy and efficiency in your business. Here’s how.

• Amplified decision-making: Accurate visibility into the financial reporting of combined entities will allow teams to identify action items and conduct strategic planning with clarity and precision.
  

• Increased trust with investors: Being able to easily provide data on the overall financial health of all combined entities will increase investor confidence in your organization.
  

• Time savings and reduced risk: Streamlining processes and ensuring data extraction and reporting are the same across the board will help reduce security vulnerabilities and save valuable reporting time.

The 12 best financial consolidation software tools for FP&A teams

Now that we understand the basics of financial consolidation, and why software is key, let’s look at the 12 best financial consolidation software tools on the market.

1. Prophix One™

Prophix One enables organizations from any industry to integrate and automate their reporting, planning, forecasting, and budgeting. This all-in-one financial performance platform is a powerful consolidation tool.

Best for: Finance leaders in any industry looking for comprehensive training, endless resources, and an easy-to-use tool.

Features: Prophix One features include but are not limited to reporting, automation, collaboration, visual analytics, forecasting, disclosure management, planning, and more.

Pros: Prophix One is customizable, is quickly implemented, and is user-friendly consolidation software. Also, it has many additional financial software tools, like Financial Planning & Analysis or Account Reconciliation, your team could utilize for all your business needs in one place.

Cons: Prophix is a robust tool that supports many use cases. It may seem overwhelming at first, but connecting with the support team offers a smooth implementation process.

Integrations: Prophix One offers data integration. It’s quick and easy to connect to ERP, HRIS, and CRM tools without the need for third-party integration.

Pricing: Because there are so many use cases, Prophix is happy to have an expert speak to your team directly.

2. Domo

Domo is a platform that consolidates data into accessible apps and customizable dashboards. Domo makes data actionable and is made to amplify business processes and scale with your organization.

Best for: Enterprise organizations looking for key data at a glance.

Features: Domo offers features such as data cleansing, forecasting, goal management, trend analysis, real-time analytics, and more.

Pros: Highly customizable and visually appealing, Domo performs fast and makes things easy to digest for all stakeholders.

Cons: Domo does require some SQL knowledge, and it doesn’t have a large community for users to take part in.

Integrations: Domo offers an integration studio with over 1000 pre-built connectors.

Pricing: Domo offers a free trial, and paid subscriptions start at USD 300/month.

Domo vs. Prophix: Prophix is suited for organizations of all sizes, and they have support and resources for non-technical users, whereas Domo will require expert knowledge and is best suited for larger organizations.

3. Workday Adaptive Planning

Adaptive Planning is a popular enterprise planning software that helps with modeling, planning, and budgeting for all business sizes.

Best for: FP&A and finance teams looking for a better alternative to spreadsheet reporting and forecasting.

Features: AI, built-in analytics, automation, reporting, importing/exporting, dashboards, and more.

Pros: Adaptive Planning offers deep reporting options and fast performance.

Cons: Users report limited sheet capabilities (you can’t customize the sheet or lock columns for example) and the integration capabilities are limited.

Integrations: There are a few ways to integrate Adaptive Planning with different connectors. You can either use their embedded integration platform, use a third-party integration, or their team will provide resources for manual integrations.

Pricing: Adaptive Planning does not offer a free plan or free trial, but you can contact them for a quote.

Adaptive Planning by Workday vs. Prophix: Prophix has more options for customization and integration, whereas Adaptive Planning by Workday is a more rigid out-of-the-box solution.

4. Anaplan

Anaplan is a popular connected planning tool. Aside from consolidation offerings, Anaplan offers growth strategies and ways for businesses to scale in their respective markets.

Best for: Organizations small and large, looking to scale quickly.

Features: Anaplan offers KPI monitoring, dashboard software, forecasting, scorecards, and strategic planning.

Pros: Anaplan’s software is easy to use, and highly adaptable for clients with niche needs.

Cons: Users cite that the data and reporting isn’t as granular as it could be.

Integrations: Anaplan offers different ways for users to integrate including CloudWorks for import and export capabilities, pre-built integrations with Anaplan Connect, and Anaplan API for custom integrations.

Pricing: There’s no free version of Anaplan, but you can get in contact with their team for a quote.

Anaplan vs. Prophix: Anaplan is another software that offers a niche platform. In this case, it’s connected planning and growth. Prophix’s consolidation software offering is more comprehensive. 

5. Vena Solutions

Vena is a planning software that allows businesses to streamline operational, financial, and analysis processes. Vena consolidates data into a user-friendly Excel format to save time on reporting and increase productivity.

Best for: Vena is best for big teams specifically looking for Excel-based software. They offer both a cloud-based and on-premise version of their platform.

Features: Audit trails, data integration, forecasting, multi-currency, and version control are just some of the features Vena offers.

Pros: Vena is highly customizable and enables teams to take away clear action items from the data.

Cons: Pricing isn’t very small-business friendly, as the tool is best for larger teams and organizations. The implementation process for Vena is also lengthy.

Integrations: Vena offers a handful of native and partner-built connectors such as Quickbooks, Salesforce, and Dropbox.

Pricing: Vena does not offer a free trial or a free version. Users can contact their team and request a quote.

Vena Solutions vs. Prophix: Prophix plans cover teams of any size, in any industry, and implementation is painless, whereas Vena is a little more implementation-heavy and structured for larger teams.

6. Maestro de planejamento do Centage

Another planning software, Centage makes forecasting and budgeting accessible for users with its Planning Maestro platform.

Best for: Centage is best suited for enterprise-sized organizations with complex consolidation needs.

Features: Customizable reports, data integration, income and balance sheets, and payroll management.

Pros: Planning Maestro allows businesses to integrate their current accounting software, making data migration easy. The reporting templates are also digestible for non-technical users.

Cons: Users cite slowness with Centage’s performance and a steep learning curve for teams during setup.

Integrations: Centage offers a handful of popular integrations such as Sage, Quickbooks, and Netsuite.

Pricing: Users can request a quote from Centage, as there’s no free trial or free plan.

Centage Planning Maestro vs. Prophix: Prophix runs more smoothly and quickly for teams of all sizes. Prophix also offers top-notch support and endless resources to ensure a more seamless learning period for users.

7. SAP Business Planning and Consolidation (BPC)

SAP BPC is compliance-specific software by SAP. SAP BPC can be deployed on-cloud or on-premise for enterprise-sized organizations.

Best for: SAP BPC is best for large enterprise organizations, especially if the organization is already utilizing tools in the SAP ecosystem.

Features: Built-in financial intelligence, budgeting, forecasting, and Microsoft Office reporting.

Pros: SAP is a well-known tool with a large community presence. SAP BPC also offers free online courses as a resource for new users.

Cons: SAP BPC will be sunsetting mainstream service within the next decade. This makes the tool a less-than-ideal choice for your team in the long-term unless they intend to migrate to the cloud version.

Integrations: SAP BPC integrates with SAP Analytics Cloud and SAP S/4HANA.

Pricing: You can get in touch with the SAP team for a quote, as they do not offer a free trial or plan.

SAP Business Planning and Consolidation vs. Prophix: SAP is sunsetting service in the coming decade, making Prophix an easy choice for your team long-term.

8. Board

Board is an Intelligent Planning Platform for multinational organizations. Board creates actionable insights from streamlined reports for future-proof planning.

Best for: Board is best for multinational organizations looking for easy planning and consolidation.

Features: Some of Board’s features include asset lifecycle management, demand forecasting, milestone tracking, quota planning, and more.

Pros: Board works as a great catch-all tool for consolidation, planning, forecasting, and more.

Cons: The learning curve for users after implementation is steep, and users cite a lack of resources and documentation.

Integrations: Board connects with tools like Microsoft SQL, Oracle, and DB2.

Pricing: There’s no free trial or free plan with Board, but you can contact their team for a quote.

Board vs. Prophix: Both Board and Prophix cover many business use cases, but Prophix has an abundance of resources to make the onboarding process and support much easier for users. 

9. Workiva

Workiva unites risk, audit, ESG, and financial reporting into one customizable platform. They use AI and automation to keep up with emerging technologies, all with security you can trust.

Best for: Large multinational corporations, looking for consolidation and business planning.

Features: Audit management, board reporting, policy management, IPO, and transfer pricing.

Pros: Workiva has a beautiful UI and allows users to take away clear action items from the reporting data.

Cons: Workiva will require implementation subject matter experts on your team for successful onboarding.

Integrations: Workiva has a marketplace for templates and offers a handful of native integrations with tools like Oracle and Domo.

Pricing: You can request a demo with the Workiva team, as Workiva does not offer a free trial or free plan.

Workiva vs. Prophix: Both tools offer robust consolidation software, but Prophix has the support and resources to make onboarding a breeze for your team. 

10. OneStream

OneStream is an intelligence finance platform that leverages AI for many of its consolidation services. Their goal is to reduce the complexity of reporting with customization and user-friendly features.

Best for: OneStream is best for mid-market and enterprise organizations looking to make consolidation easier.

Features: Activity tracking, dashboard creation, forecasting, journal entry creation, and more.

Pros: OneStream offers a really easy import and export function. The main dashboards are also easy to navigate and customize.

Cons: The learning curve for OneStream is steep, and users cite a lack of professional implementation options.

Integrations: OneStream offers integrations for a lot of popular connectors like Oracle, Hyperion, and SAP.

Pricing: You can book a demo with OneStream to learn about pricing, as there is no trial or free plan option.

OneStream vs. Prophix: Prophix is more hands-on with implementation, and will provide new users with the resources they need to adjust to the software. 

11. Rephop

Rephop is a financial solution for multiple business use cases such as consolidation, planning, budgeting, and more.

Best for: Rephop is best for companies in all industries with 150 subsidiaries at most.

Features: Rephop offers audit trails, customizable reports, financial reporting, and transaction management.

Pros: The software is straightforward and easy to use. The currency conversion is a stand-out for users.

Cons: Rephop isn’t available globally, so some multinationals might have to turn to a different tool to consolidate all subsidiaries.

Integrations: You can contact the Rephop team for a list of integration options.

Preços: Pricing starts at USD 299/month for two users. There are no free plan options, but there is a 30-day free trial.

Rephop vs. Prophix: Rephop is limited in the size of the multinational it can serve, as well as the country the organization operates from. Prophix can support a wider range of organizations in terms of size and location.

12. Planful

Planful is a financial software platform that streamlines business reporting, consolidations, analytics, and more. Planful aims to accelerate cycle types and boost efficiency.

Best for: Planful is best for organizations looking for a suite of financial tools to suit multiple business use cases.

Features: Planful features include forecasting, data integration, journaling, KPI monitoring, version control, and more.

Pros: Integrations at Planful are simple and effective. There are also no data volume limits like there are with other tools.

Cons: Users are required to partner with a consultant for implementation, and users cite not having enough resources to properly onboard.

Integrations: Planful supports over 1,400 pre-built connectors and supports custom connections via API as well.

Pricing: For more information on pricing, you can contact Planful for a demo and a quote.

Planful vs. Prophix: Both tools offer similar services, but Prophix offers a smoother onboarding and a library of resources with free training to assist users in setup.

How to choose the best financial consolidation software for you

When it comes to picking the right option, it’s tough to know where to start. Consider the following criteria for ensuring the software scales with your organization.

• Integration capabilities: Can the financial consolidation software integrate with all the platforms your organizations use? Does the software connect to everything, covering any tools you may use in the future? Missing out on connecting to key data is going to leave gaps in your processes.
  

• Strong support and resources: How labor-intensive is the implementation going to be across the businesses? A steep learning curve and a lack of training wastes time and money for everyone.
  

• Software to fit any industry and size: Is the software your team is considering well-suited for your organization’s size?
  

• Going beyond consolidation: Does the software do more than just consolidation? If you streamline your tech stack by choosing a financial performance platform, it will save your team time and money.

FAQs about financial consolidation software

If you’re looking for further research on consolidation software, here are some frequently asked questions.

What is the 20-consolidation rule?

The 20 consolidation rule acts as the tipping point for whether an organization proceeds with the cost consolidation method or the equity consolidation method. If a parent company owns more than 20% majority stake of the subsidiary (but less than 51%) they must use the equity consolidation method.

What should be avoided in consolidation?

Financial consolidation is an involved process and there are many ways to make errors or run into bottlenecks. Three common challenges organizations face include:

1. Failing to keep up with regulation changes: Compliance standards are constantly evolving. Staying ahead of the curve with solidified processes across your companies is key.
2. Failing to convert currencies: Organizations are responsible for meeting reporting standards within their jurisdiction. If a parent company or subsidiary engages in foreign transactions, proper currency conversion needs to take place for accurate reporting.
   
3. Security vulnerabilities: Performing a consolidation within a simple spreadsheet can lead to security issues like data manipulation. It’s important to seek out secure software that tracks a history of data changes for the most accurate reporting.

What's the best financial consolidation software?

The best financial consolidation software is the platform that goes above and beyond to cover your team’s needs. Software that integrates with all applicable tools, is built for your industry size, and offers services beyond consolidation is the best long-term choice.

Choose the best financial consolidation software

After comparing the 12 best financial consolidation tools, you have likely identified must-have features and integrations for your ideal software platform. Now you’re one step closer to finding the consolidation solution for your team.

Reach out to the team at Prophix to go a step further and see what you can do with Prophix One Financial Consolidation. You’ll learn how this platform suits your organization and makes consolidation painless and set you up for success now, and in the future.