Creating an annual operating plan is a big job – one that involves a lot of data, time, and effort. When planning season arrives, many SaaS CFOs find themselves knee-deep in financial forecasting. At the same time, they're working with leadership to determine realistic targets for the coming year and catching up with different departments to align multiple budgets to achieve them.
The right annual planning software can make the process easier in several ways by integrating data from multiple source systems, automating workflows, enabling more reliable forecasting and better budgeting, and facilitating collaboration with all the stakeholders in the process.
However, the overwhelming number of software tools that support different aspects of annual operational planning, such as budgeting software, financial forecasting tools, and a host of other applications, can make finding the right tool difficult and time-consuming.
This guide will make that easier, with an in-depth comparison of the top 6 tools for annual planning to give you a solid head start on finding the best solution for your business.
The 6 best annual planning software tools compared
Finding an annual planning solution that comprehensively meets all your annual planning needs can be difficult because they all have some of the same features in common yet differ in some important ways.
Here, we’ll explore 6 different tools that offer robust planning capabilities along with other features that can help you create more accurate planning in a fraction of the time required when working with spreadsheets.
| Software/ Platform | Drivetrain | Pigment | Cube | Mosaic | Workday Adaptive Planning | Anaplan |
|---|---|---|---|---|---|---|
| Price | $$ | $$-$$$ | $$ | $$ | $$$ | $$$ |
| Best for | SMB to Mid-Market | Mid-Market to Enterprise | SMB to Mid-Market | SMB to Mid-Market | Enterprise | Enterprise |
| Scalability | High | High | Moderate | Moderate | Scalable but requires continual adjustments | Scalable with upgrades |
| Type of FP&A solution | 3rd Generation | 3rd Generation | 3rd Generation | 3rd Generation | 2nd Generation | 2nd Generation |
| Native Integrations | 200+ OOTB integrations | 18 OOTB integrations | 13 OOTB integrations | 30 OOTB integrations | 7 OOTB integrations | 10 OOTB integrations |
| Predictive forecasting | ||||||
| Flexible budgeting | ||||||
| Variance analysis | ||||||
| Multi-dimensional modeling | ||||||
| Multiple scenario planning & what-if analysis | ||||||
| Ease of use | ||||||
| Collaboration with access control | ||||||
| Time to implementation | 3-6 weeks | 2-4 months | 1-3 months | 1-2 months | > 6 months | > 4 months |
Drivetrain
$$
Small and Mid-market
Connected planning
Advanced collaboration capabilities
200+ popular integrations with ERP, CRM, HRIS, Billing, and other business applications
Real-time financial reports
Seamless implementation
Pre-built reporting templates
Highly intuitive UI
Heavily focused on B2B and SaaS businesses
Forecasting capabilities
Multi-dimensional modeling capabilities
Customizable dashboards
Variance analyses
Driver-based and zero-based budgeting
Scenario planning and what-if analysis
Collaboration capabilities with granular access control
Drivetrain is a comprehensive financial planning and analysis (FP&A) platform. As such, it facilitates connected planning, helping finance teams collaborate seamlessly with other departments and bring the right people into the annual planning process.
The platform provides a comprehensive and robust set of features for financial forecasting, budgeting, and scenario planning. Drivetrain also allows finance teams to create adaptable, multi-dimensional models. This is particularly important in the annual operational planning process, where agility and flexibility are incredibly important.
With more than 200 integrations and the ability to create custom integrations, Drivetrain will seamlessly connect with any source system you need to pull data from, including your CRM, ERP, and HRIS. These integrations enable the flow of your data into the platform in real time, ensuring the data you’re using to create your annual plan is always up to date and reliable.
Drivetrain offers a clean, intuitive interface that allows multiple stakeholders to navigate easily and contribute their insights with granular role-based access controls to make it easier for CFOs and finance teams to navigate the complexities inherent in collaborating with different teams to build an annual plan. Dynamic dashboards make it simple to generate detailed reports, visualize trends, and analyze performance against KPIs.
Purpose built for Saas companies, Drivetrain not only prioritizes user-friendly functionality but also adheres to the highest standards of security and compliance. This ensures that sensitive financial data remains protected while providing the insights businesses need to thrive.
Next on our list is Pigment, which bills itself as “a planning platform built for agility and scale.” Finance teams can use it to build, modify, and update models as new data becomes available. The platform offers integrations with key systems but has limited capabilities when it comes to more complex reporting and formatting options.
$$-$$$
Mid-market to Enterprise
Comprehensive data integration from various tools
Time-efficient and flexible financial modeling
Strong security and compliance
Limited customization and formatting options in reports
Steep learning curve for new users
Clunky user experience in board and chart design
Limited integration with Excel and Google Sheets.
Scenario analysis
Automated data imports
Customizable dashboards
Collaboration with access control
Cube is a cloud-based platform that aims to automate financial processes without overhauling their existing systems. It integrates seamlessly with familiar tools like Excel and Google Sheets, which makes annual planning easier for finance teams that want to retain spreadsheets as part of their planning process. However, if your goal is to minimize or eliminate your dependence on spreadsheets to scale up and significantly streamline your planning process, Cube may not be the right choice.
$$
Small to Mid-market
Bi-directional compatibility with Excel and Google Sheets
Flexible and easy to use
Fast implementation (for smaller teams)
Limited drill-down capabilities
Not scalable for growing companies
Cumbersome data transfer between dimensions
Multiple scenario analysis
Financial modeling and forecasting
Automated data consolidation
Centralized formulas and KPIs
Mosaic is another FP&A software. With 30 different integrations, it consolidates important and useful data from different sources to help streamline the process of annual planning. Mosaic offers several features needed for robust planning, including good overall visibility into expenses and powerful reporting capabilities. However, some users have reported a steep learning curve, and many say it lacks features they need, such as the ability to track changes in their models.
$$
SMB to Mid-market
Customizable dashboards
Data consolidation
Powerful reporting capabilities
Steep learning curve
Integrations require manual retries or support intervention
Inflexible modeling templates
Slow load times after updates
Financial modeling and forecasting
Headcount and expense tracking
Version control and permissions
Built-in dashboards
Workday Adaptive Planning is a cloud-based FP&A solution. It excels in budgeting and forecasting for the annual planning process. The platform is ideal for enterprise businesses and midsize companies, especially those already using other Workday solutions.
$$$
Mid-market to Enterprise
Generates customized reports quickly
Allows teams to create tailored financial models and forecasts
Managing formulas and calculations is challenging
Dashboards are not as intuitive and require manual updates
Requires consultants and training for setup and troubleshooting
Budgeting & Forecasting
Scenario and What-if analysis
Dynamic reporting
Anaplan is a well-established platform for cloud-based business planning, forecasting, and performance management and is specifically designed for finance and FP&A teams. It’s best suited to large, complex organizations looking for enterprise-level planning, forecasting, and performance management solutions. Anaplan is for you if you have dedicated resources for training and potential consulting assistance, given its complexity and steep learning curve.
$$$
Enterprise
Multi-device support
Automated data collection from different systems
Strong data security measures
Time-consuming setup
Auditing feature is difficult to use
Performance issues with granular data
Requires internal SMEs for ongoing maintenance and model building
Scenario planning
Machine learning and AI features
Multi-dimensional financial modeling
Drivetrain: A solution that delivers more
When it comes to creating the annual operating plan, Drivetrain stands out as a robust and comprehensive, scalable solution. Its powerful features and user-friendly design empower finance teams to streamline their workflows, enhance decision-making, and achieve strategic impact faster than ever before. Here’s just a few of the reasons we can make that claim:
- Connected planning: When creating your annual plan, you need to see how one thing impacts the other. With Drivetrain, if you make adjustments in one area, such as budget allocation, those changes are instantly reflected in related plans. Connected planning ensures that all teams are aligned with a single source of truth.
- Automated data consolidation: Drivetrain seamlessly integrates with various data sources. Automated data collection ensures no errors as with manual data entry, and your team can create robust annual plans based on accurate and real-time data.
- Real-time monitoring: With Drivetrain, finance teams can track performance against their annual plans and make informed adjustments. This capability is essential for companies looking to adapt their annual plans to evolving business needs.
- Advanced analysis capabilities: Drivetrain equips you with powerful analytical tools, allowing you to manipulate and analyze data without relying on IT support. This independence enables finance pros to generate insights quickly, enhancing the quality of decision-making.
- User-friendly interface: The intuitive design of Drivetrain means that even those who are not finance experts can navigate the platform effortlessly. Plain-English formulas and a spreadsheet-inspired interface make it easy for teams to engage with complex financial models.
- Scalable multi-dimensional modeling: Drivetrain’s scalable architecture supports sophisticated multi-dimensional modeling. Even if you’re growing and have huge data sets, you can build complex scenarios efficiently.
- Data ingestion and transformation: Unlike many competing tools that struggle with data handling and integration, Drivetrain excels at importing data from any system or format. This capability ensures that stakeholders can easily access and manipulate data, leading to faster insights and decision-making.
Drivetrain is a powerful, yet simple annual planning software solution, giving you the best of both worlds.
Streamline your annual operational planning with Drivetrain
How to choose the right annual planning software for your business
With a sea of planning tools available, selecting the best annual planning software for your business requires careful consideration. Let’s take a closer look at what annual planning software is, how it helps you create your annual operational plan including the benefits it can provide, and the features you should look for when selecting a tool for your business.
What is annual planning software?
An annual planning software is a tool that helps companies create, manage, and adjust their yearly plans. This software helps in the annual planning process by tracking historical performance, establishing goals and timelines, creating budgets, and tracking key metrics. By centralizing planning activities and providing collaborative features, annual planning software enhances coordination, accountability, and strategic alignment within an organization.
7 big benefits that annual planning tools and software can have for your business
An annual planning software provides a range of business benefits that help FP&A teams streamline their planning process. Here are the key benefits:
1. More reliable inputs to planning through centralized data management
Annual planning software consolidates financial and operational data from various sources into a single platform. This centralization reduces data inconsistencies and improves accuracy. FP&A teams work with up-to-date, accurate data and information, enabling more reliable planning.
2. Forecasting and predictive analytics
By leveraging historical data, the best annual planning tools help you identify trends and patterns and generate more accurate projections. This data-driven approach to forecasting reduces reliance on guesswork. The resulting insights lead to more reliable financial plans and budgets.
3. Enhanced collaboration across departments
Annual planning requires inputs from various departments, including finance, HR, operations, and sales. A robust financial planning software allows team members to collaborate in real time using the same data, breaking down departmental silos and enhancing communication. When all stakeholders can share their insights simultaneously, your annual plans become more comprehensive, ultimately accelerating the planning cycle and driving better organizational alignment.
4. Better scenario planning
While creating your annual operating plan, the software allows for quick modeling of different what-if scenarios, helping assess the potential impacts of various decisions. This enables you to adapt to market changes and prepare for different outcomes. Scenario planning also helps you to make informed strategic decisions and develop contingency plans in response to shifts in the business environment.
5. Optimized resource allocation
Annual planning software enables data-driven resource allocation (e.g., people, budget, and equipment) across departments and projects. The software allows finance teams to gain a comprehensive view of financial and operational data and identify areas of over- or under-investment. This enables them to allocate resources and do capacity planning most efficiently.
6. Strategic decision-making
The software reduces manual data entry and standardizes planning processes, leaving room for FP&A teams to spend time on important tasks. They can analyze trends, assess risks, and make well-informed strategic decisions that align with business goals.
7. Enhanced compliance and auditability
Annual planning software incorporates built-in audit trails that ensure adherence to various regulations such as SOX GDPR, etc. The software maintains transparent documentation of all changes, approvals, and decision-making processes throughout the planning cycle. This comprehensive record-keeping significantly reduces the risk of non-compliance penalties and improves the accuracy of financial reporting.
The evolution of annual planning: From spreadsheets to modern platforms
Annual planning is a core function of SaaS finance teams, and the methods used to create annual operating plans have evolved significantly. Traditionally, many companies relied heavily on spreadsheets for this process, and many still do.
The widespread use of spreadsheets stems from their flexibility and familiarity. However, as SaaS companies scale, the shortcomings of spreadsheet-based planning become increasingly apparent. The manual nature of data entry and formulas in spreadsheets introduces a high risk of errors, potentially leading to flawed financial projections. Moreover, the siloed approach often resulting from different departments using their own spreadsheets can create a fragmented planning process, making it challenging to achieve a cohesive, company-wide financial strategy.
In response to these challenges, modern annual planning platforms have emerged as a more robust alternative. These specialized software are designed to address the unique needs of annual planning. They offer centralized data management, reducing the risk of inconsistencies across departments.
The choice between using spreadsheets and either building an integrated tech stack with a number of different financial management tools and software or adopting a modern FP&A solution often depends on a SaaS company's stage of growth, complexity of operations, and specific planning needs.
While smaller startups might find spreadsheets sufficient, they’re just not enough for rapidly scaling companies. While there are some benefits to be had in building an integrated tech stack for planning, not all tools play well together which can leave you with a planning process that still involves a lot of manual work. When it comes to annual planning, growing businesses typically benefit from the advanced features, such as scenario analysis, multi-dimensional modeling, combined with the scalability of dedicated FP&A software.
The table below will give you a better sense of the maturity in terms of their FP&A features of each software tool in this guide and how far each has evolved from spreadsheets.
| Software/ Platform | Drivetrain | Pigment | Cube | Mosaic | Workday Adaptive Planning | Anaplan |
|---|---|---|---|---|---|---|
| Web application that replaces spreadsheets | ||||||
| Web application that integrates with spreadsheets | ||||||
| Application uses a spreadsheet for calculations | ||||||
| Add-in for spreadsheet applications |
Drivetrain has very flexible forecasting models that allowed us to build our entire forecast, from top-line, expenses, balance sheet & cash and all be interconnected with each other & our other systems. The formula writing is intuitive and has a short learning curve when transitioning from excel. – G2 review
Real-world use cases for annual planning software like Drivetrain
Effective annual planning bridges the organization's resources to strategic direction. Many companies struggle with fragmented data and time-consuming manual processes when creating their yearly plans. This was the case for LambdaTest, a fast-growing software testing infrastructure platform before they discovered Drivetrain.
LambdaTest was grappling with the complexities of annual planning using a combination of Zoho CRM, and Google Sheets. Kushank Poddar, LambdaTest's head of Sales Strategy, found it increasingly difficult to get a comprehensive view of the sales funnel and prepare the company's annual plan efficiently. They needed an annual planning software that could consolidate data, streamline planning processes, and provide real-time insights.
Drivetrain proved to be a game-changer for LambdaTest's annual planning process. The software enabled the company to create its annual plan in a fraction of the time it previously took. More importantly, it provided ongoing value by allowing teams to track performance against the plan throughout the year.
The impact of Drivetrain extended beyond just the finance team. Now, more than 30 people across various departments use the platform, each leveraging it in different ways to meet their specific needs. For example, sales leaders can quickly assess business health, product teams can analyze performance metrics, and channel leaders can track progress towards targets.
LambdaTest's transition from relying on founder-driven intuition to data-centric decision-making was made possible by the comprehensive visibility Drivetrain provided. The software not only simplified the annual planning process but also enabled the company to adapt its strategies quickly based on real-time data.
By addressing the key challenges in annual planning, Drivetrain is helping SaaS companies improve their financial forecasting, align teams around common goals, and ultimately drive better business outcomes.
A more detailed look at the features to look for in annual planning software
When selecting annual planning software for your organization, it's important to carefully evaluate the platform’s features. The right set of functionalities can enhance your planning process, improve collaboration, and drive better planning outcomes. Look for the below features before selecting your annual planning software.
1. Predictive forecasting
Annual planning requires finance teams to anticipate changes in the market and prepare for potential challenges or opportunities by forecasting sales, expenses, and growth based on previous patterns.
The tool you choose for annual planning should offer predictive forecasting capabilities. You should look for features like machine learning algorithms that can analyze historical trends, identify patterns, and generate accurate forecasts. The ability to adjust these forecasts based on various scenarios is also important for comprehensive planning.
| Software/ Platform | Drivetrain | Pigment | Cube | Mosaic | Workday Adaptive Planning | Anaplan |
|---|---|---|---|---|---|---|
| Historical data analysis | ||||||
| Customizable forecasting models | ||||||
| Real-time data updates |
2. Budgeting
The process of annual planning involves allocating financial resources across departments, projects, and goals. The ideal planning software should allow you to create detailed, multi-dimensional budgets to create rolling forecasts to keep your financial plan relevant and responsive to changes.
| Software/ Platform | Drivetrain | Pigment | Cube | Mosaic | Workday Adaptive Planning | Anaplan |
|---|---|---|---|---|---|---|
| Departmental budget allocation | ||||||
| Top-down and bottom-up budgeting | ||||||
| Rolling forecasts | ||||||
| Flexibility in budgeting |
3. Multi-dimensional modeling
Multi-dimensional modeling is another feature to look for in annual planning software. This feature allows finance leaders to create and analyze complex financial models. A cutting edge financial modeling tool can help simultaneously view and manipulate data across various dimensions such as time periods, departments, product lines, geographical regions, and scenarios. This approach enables more nuanced and comprehensive annual planning as it allows finance teams to understand how different aspects of the business interact and impact overall performance.
| Software/ Platform | Drivetrain | Pigment | Cube | Mosaic | Workday Adaptive Planning | Anaplan |
|---|---|---|---|---|---|---|
| Support for multiple dimensions | ||||||
| Cross-dimensional analytics | ||||||
| Scenario comparisons across dimensions |
4. Multiple scenarios & what-if analysis
Effective annual planning requires the ability to anticipate and prepare for various potential future outcomes. The software you choose to support your AOP process should enable users to create and compare multiple scenarios, allowing them to model different business conditions and strategic decisions.
| Software/ Platform | Drivetrain | Pigment | Cube | Mosaic | Workday Adaptive Planning | Anaplan |
|---|---|---|---|---|---|---|
| Scenario creation tools | ||||||
| Adjustable assumptions | ||||||
| Side-by-side comparisons |
5. Variance analysis
Variance analysis allows finance pros to compare actual results against budgeted or forecasted figures, helping you identify discrepancies quickly. Look for specific features such as automatic calculation of variances in absolute numbers and percentages, with the ability to drill down into specific variances to understand their root causes. Your chosen platform should allow for customizable variance thresholds to highlight significant deviations, and provide visual representations of variances through charts or color-coding.
| Software/ Platform | Drivetrain | Pigment | Cube | Mosaic | Workday Adaptive Planning | Anaplan |
|---|---|---|---|---|---|---|
| Real-time variance tracking | ||||||
| Drill-down capabilities | ||||||
| Automated alerts | ||||||
| Trend analysis |
6. Collaboration with access control
Annual planning requires input and coordination from various teams across the organization. A robust collaboration feature with granular access controls allows finance teams to streamline this complex process while maintaining data security and integrity.
| Software/ Platform | Drivetrain | Pigment | Cube | Mosaic | Workday Adaptive Planning | Anaplan |
|---|---|---|---|---|---|---|
| Role-based access | ||||||
| Data-masking | ||||||
| Document sharing and version control |
7. Automated reporting
Automated reporting allows finance teams and other stakeholders to generate accurate, up-to-date reports quickly and consistently. They don't need to manually compile or format data for creating custom reports. This feature is particularly important in the annual planning process where stakeholders need to drill down into specific data points, toggle between different time periods, or switch between various levels of detail.
| Software/ Platform | Drivetrain | Pigment | Cube | Mosaic | Workday Adaptive Planning | Anaplan |
|---|---|---|---|---|---|---|
| Scheduled reporting | ||||||
| Customizable report templates | ||||||
| Visualization options |
8. Dynamic dashboards
Dynamic dashboards offer real-time visual representations of your company's financial health and performance. The customization in these dashboards allows users to select and arrange key metrics, charts, and graphs according to their specific needs and preferences. These dashboards in an annual planning software facilitate more agile decision-making, improve transparency, and help keep all stakeholders aligned with the company's financial goals and performance.
| Software/ Platform | Drivetrain | Pigment | Cube | Mosaic | Workday Adaptive Planning | Anaplan |
|---|---|---|---|---|---|---|
| Real-time KPI tracking | ||||||
| Customizable dashboards | ||||||
| Drill-down functionality | ||||||
| Cross-functional views |
9. Security & compliance
Security and compliance as a feature is a must when hunting your annual planning software. Given the sensitive nature of financial data and the increasing regulatory requirements across industries, robust security measures and compliance capabilities are non-negotiable.
| Software/ Platform | Drivetrain | Pigment | Cube | Mosaic | Workday Adaptive Planning | Anaplan |
|---|---|---|---|---|---|---|
| Data encryption | ||||||
| Audit trails | ||||||
| Role-based access controls | ||||||
| Compliance certifications |
9. Onboarding, training, and customer success
Lastly, it's crucial to consider the level of support and guidance provided by the vendor when selecting annual planning software. A comprehensive onboarding, training, and customer success program can significantly impact the successful implementation and ongoing use of the software within your organization.
| Software/ Platform | Drivetrain | Pigment | Cube | Mosaic | Workday Adaptive Planning | Anaplan |
|---|---|---|---|---|---|---|
| Dedicated customer success managers | ||||||
| Ease of adoption | ||||||
| Timeline for implementation | 3-6 weeks | 2-4 months | 1-3 months | 1-2 months | >6 months | >4 months |
FAQ
1. Can non-finance teams use an annual planning software?
Yes, non-finance teams can use an annual planning software to include other planning areas, such as sales, operations, marketing, and workforce planning.
2. How easy is it to integrate annual planning software with ERP, CRM, HRIS and other tools
The ease of integration depends on the software. Solutions with robust integration capabilities like Drivetrain seamlessly connect with various systems like ERP, CRM, and HRIS. In contrast, tools with limited integration options may require manual processes, reducing efficiency and increasing the risk of errors.
3. Who uses annual planning software?
A diverse group of stakeholders across an organization use annual planning software. The most regular users include CEOs and executive leadership for setting strategic goals, CFOs and finance leaders for overseeing the planning process, and FP&A teams for detailed financial modeling. Departmental heads, budget managers, project managers, HR leaders, and sales executives also utilize the software for their specific planning needs.
Related annual planning software guides
We have even more information on annual planning related software and tools. Check them out.
