Most finance teams don’t struggle with building a Profit & Loss statement.
They struggle with how long it takes to get to one they actually trust.
One system has the actuals, another has the headcount, and the forecast lives in a spreadsheet. And the insight you need, the “why” behind that important change, is buried three layers deep. By the time you’re done collecting actuals, categorizing spend, reconciling inconsistencies, and formatting for presentation, the month is already over.
And everyone else has moved on.
Financial reporting software changes that.
What good financial reporting software actually does
Good financial reporting software does three things well:
- It keeps the numbers fresh. The report updates itself. Actuals come in automatically from the systems that already know them: your ERP, CRM, payroll, ad platforms, and more.
- It makes the numbers clear. Not just for finance, but for everyone. Dashboards show how the business is doing without needing an explanation.
- It ties the numbers to decisions. The report doesn’t just say what happened. It helps you figure out what to do next.
What to look for (and what to avoid)
Most tools focus on features. But the best ones focus on flow, which is how work actually happens.
Here’s what matters:
- Native integrations The tool should connect cleanly to the systems your team already uses. NetSuite, QuickBooks, Gusto, Salesforce, HubSpot — the list doesn’t need to be long, but it needs to work.
- Real-time updates If you're still exporting CSVs and pasting them in, it’s not real-time. A good P&L tool pulls data in continuously.
- Customizable logic Every business categorizes things differently. Your P&L should adapt to how you think, not the other way around.
- Collaboration, with guardrails Teams should be able to see and use the numbers they’re responsible for. Finance should control the structure and logic.
- Scenario planning The best tools let you go from “What happened?” to “What if we changed it?” And show you the impact instantly.
How the tools stack up
QuickBooks
- A reliable starting point for small businesses.
- It gives you built-in templates, and makes it easy to generate financial reports.
- Fast, simple, and built for clarity — but not built for collaboration or scenario modeling.
Xero
- Similar to QuickBooks, but with a more flexible reporting layer.
- Well-suited for companies that want to get the basics right quickly.
Planful
- Built for large orgs with complex needs.
- Offers deep customization, machine learning features, and layered approval workflows.
- But the tradeoff is complexity — and often, the need for dedicated admin resources.
- Workflow approval steps can be rigid, causing bottlenecks during budget cycles.
Vena
- Good for compliance-heavy environments.
- Strong workflows and audit trails. Good controls.
- But again, not designed for speed or iteration.
Runway
Runway treats the financial report as a living part of your financial model.
- Actuals flow in from 750+ systems.
- Dashboards update in real time, and are interactive.
- You can adjust assumptions and see the effects on margins, cash flow, and runway instantly.
- Teams can see the metrics they own, and collaborate without stepping on each other’s work.
- However, Runway requires at least one model owner to simulate the cause-and-effect relationships between different parts of the business.
For most modern finance teams, that combination of clarity, collaboration, and modeling is what unlocks better decisions.
How to choose what’s right for you
Start with identifying the gaps in your current process.
- If you're spending hours each month building the P&L by hand, look for tools that help automate actuals.
- If you’re getting the numbers out but struggling to explain them, focus on clarity and visualization.
- If your board asks “What if we cut burn by 20%?” and your answer takes a week, you need scenario planning.
Think about where your business is now—and where you want to go. Are you focused on speed and flexibility, or do you need advanced options? Early-stage companies value ease of use. Established teams often need more control and deep custom features.
Next, estimate your current costs. If your team spends 20 hours a month at $50 an hour preparing P&L reports, that’s $1,000 a month saved when you automate. Add in fewer errors and quicker insights for an even bigger return.
- Test migrations before committing. Switching from spreadsheets or legacy systems can be tricky. Some vendors offer full migration support and training.
- Check the vendor’s support and onboarding. Great interfaces and collaborative onboarding give you better results long term.
- Plan for the future, not just the present. Scenario planning, departmental budgets, and forecasting may not matter today, but they’ll matter when you grow.
Push the numbers forward
Your financial reports shouldn’t just be a reflection of the past.
They should be a starting point for what’s next.
That’s what modern software unlocks: not just faster reporting, but a better way to work with the numbers that actually matter.