What is XP&A?

Traditional FP&A focuses mainly on budgeting, forecasting, and financial performance management. While effective, this approach often limits the finance function to backward-looking reports or plans that don’t fully account for operational realities. In contrast, XP&A incorporates data from across the business, creating an integrated approach that spans workforce planning, sales team strategies, the supply chain, plus more.

With XP&A, businesses can move beyond static spreadsheets or fragmented analysis solutions. Instead, they can leverage all data (ERP + any other source) as it is pulled together into one centralized platform. Allowing them to work from a single source of truth. This ensures that all teams—whether in finance, operations, or sales—are working toward shared goals using the same accurate, up-to-date information.

XP&A thrives on modern technology, particularly tools that support automation, advanced analytics, and dynamic dashboards. By integrating with ERP systems and utilizing machine learning, XP&A streamlines data management and enables finance departments to focus on strategic initiatives rather than manual processes.

The planning tools used in XP&A allow for real-time updates and adjustments, making it easier to adapt to changing circumstances. This capability is especially valuable for industries like manufacturing, retail, and wholesale distribution, where market conditions and operational needs can shift rapidly.

One of the core benefits of XP&A is its ability to break down data silos and foster business partnering across departments. In traditional setups, financial plans and operational planning are often developed in isolation, leading to misalignment and inefficiencies.

XP&A promotes integrated business planning by connecting financial and operational data. For example, a sales team can align its revenue targets with the company’s overall strategic planning goals, while the supply chain ensures inventory levels match demand forecasts. This holistic approach enables businesses to achieve company-wide alignment and maximize their profitability.

For CFOs, financial controllers, and other decision-makers, XP&A delivers clear benefits:

• Improved agility: With real-time access to data and dashboards, businesses can pivot quickly in response to market changes.
• Improved collaboration: XP&A facilitates real-time communication where assignment, submission and approval processes improve alignment between business functions, from finance to operations.
• Greater accuracy: By combining financial planning with operational insights, XP&A enhances the precision of forecasting and budgeting.
• Better re-forecasting: Up-to-date actuals can be compared to budgeted performance, making it easy to adjust forecasts to align with changing needs.
• Increased efficiency: Automation reduces reliance on manual spreadsheets, freeing up time for high-value analysis solutions.
• Stronger insights: Leveraging advanced analytics, XP&A provides a more comprehensive view of metrics and performance management.

At Phocas, we understand the importance of modern planning processes like XP&A. Our platform is designed to empower finance teams and business leaders by providing a single source of truth for all your data. Whether you’re building budgets, analyzing performance metrics, or creating dynamic financial reports, Phocas brings together operational data and financial insights to support company-wide planning and improve your bottom line.

With Phocas, you can break free from outdated tools like Excel and fragmented systems. Our analysis solutions and self-serve tools simplify forecasting, enable continuous planning, and provide actionable insights for your enterprise planning needs. From the finance department to the sales team, our software ensures that every team has the data they need to drive better decisions and add business value.

Gartner has identified XP&A as a key trend in the evolution of business planning. This shift reflects the growing need for businesses to adopt integrated business planning approaches that connect finance with other business functions. For companies in manufacturing, retail, and distribution, XP&A offers a pathway to enhanced agility, efficiency, and profitability.

By embracing XP&A, businesses can overcome the challenges of traditional FP&A, such as reliance on spreadsheets or limited cross-department collaboration. Instead, they gain a dynamic, enterprise-wide planning framework that delivers actionable insights and supports better decision-making at every level.