TL;DR:

• EPM = Strategic, cross-functional performance management
• FPM = Financial-specific planning, reporting, and control
• Planful delivers both, in one seamless platform.

EPM vs FPM Overview

Organizations need more than just financial reports and annual budgets in today’s data-driven environment. They need strategic insights, cross-functional alignment, and a clear path to growth. That’s where Enterprise Performance Management (EPM) and Financial Performance Management (FPM) come into play. While often used interchangeably, these two concepts serve distinct roles within modern businesses. Understanding their differences is key when evaluating enterprise performance management software or optimizing your company’s financial planning processes.

EPM vs FPM FAQs

What is the difference between Financial Performance Management (FPM) and Enterprise Performance Management (EPM)?

At a high level, FPM is a core component of EPM. Think of Financial Performance Management as the finance department’s command center, focusing on budgeting, forecasting, financial consolidation, and reporting. Meanwhile, Enterprise Performance Management extends this vision across the entire organization, integrating strategy, operations, and finance.

What is Enterprise Performance Management (EPM)?

Enterprise Performance Management (EPM) is a comprehensive framework that helps organizations align business strategy with execution. The enterprise performance management process includes strategic planning, financial planning, operational modeling, and performance analytics. EPM empowers decision-makers with data-driven insights that stretch beyond finance, across sales, marketing, HR, and supply chain.

Enterprise Performance Management is about connecting financial and operational planning across the organization to drive confident, agile decisions.

Key benefits of enterprise performance management include:

• Real-time visibility across departments
• Agile scenario planning and forecasting
• Rapid, Informed decision-making
• Strategic alignment and accountability

 

Click here to get an EPM overview from Gartner.

What is EPM vs ERP (Enterprise Resource Planning)?

• EPM and ERP often get confused, but they serve different purposes. ERP systems focus on recording and managing day-to-day business transactions such as payroll, procurement, journal entries and inventory. In contrast, EPM software provides the analytics, planning, and forecasting capabilities needed to interpret that data and guide the business forward.
• ERP is transactional, while EPM is transformational. Learn more about how EPM vs ERP can work together.
• EPM systems complement ERP by turning raw transactional data into strategic insights—bridging the gap between operational execution and long-term planning.

Dive deeper into Enterprise Performance Management vs. Enterprise Resource Planning.

What is Financial Performance Management (FPM)?

Financial Performance Management (FPM) is centered on financial accuracy and control. It involves tools and processes for:

• Budgeting and forecasting
• Financial reporting and analysis
• Profitability modeling
• Compliance and audit readiness

FPM ensures the integrity of your financial data and improves visibility into past and future financial performance. While EPM looks at enterprise-wide alignment, FPM software zeroes in on financial metrics and risk management.

Top-rated FPM solutions enable finance teams to “plan smarter, close faster, and report accurately.” Read about the latest G2 and TrustRadius reviews of FPM software.

Key Differences between EPM and FPM

Though they overlap, EPM and FPM differ in scope, stakeholders, and objectives. FPM is finance-specific; EPM includes finance—but also operations, strategy, and execution.

EPM vs FPM Comparison Chart

Feature	Enterprise Performance Management (EPM)	Financial Performance Management (FPM)
Scope	Enterprise-wide (finance + operations)	Finance-specific
Purpose	Strategic alignment & performance	Financial accuracy & compliance
Users	Finance, Operations, HR, Sales, Executives	CFO, Controllers, Finance Team
Processes	Operational planning, IBP, Enterprise wide strategic planning	Budgeting, forecasting, reporting
Tools	EPM platforms with cross-functional analytics	FPM tools for financial processes
Example Use Case	Aligning sales forecasts with hiring plans	Annual Financial Budgeting

 

EPM vs FPM Summary

To put it simply: EPM is the big picture; FPM is the financial lens. While both disciplines use data to guide decisions, EPM connects the dots between departments to ensure the whole business moves in sync. FPM hones in on finance-specific tasks, supporting strong governance and predictable performance.

Both are essential—but they serve different masters.

Does Planful Offer EPM and FPM Solutions?

Absolutely. Planful is a recognized leader in both enterprise performance management software and financial performance management tools. Planful’s financial performance management platform is designed to help organizations bring together finance and operations in a single, user-friendly experience. Whether you’re looking for the best enterprise performance management software to support long-term strategy, or robust financial performance management software to streamline close and reporting, Planful has you covered.

Explore an interactive demo to see how Planful’s integrated enterprise performance management solutions can support smarter, faster business decisions.

Does Planful Offer a Budgeting and Forecasting Solution?

Finance teams are often challenged with inefficient, manual processes when it comes to budgeting, planning and forecasting. Planful addresses these challenges and pain points with a streamlined solution that enhances your strategic capabilities.

Empower your financial performance management and plan at any level with Planful. Our platform is tailored to fit your business needs, offering:

• Pre-built templates
• Customization and flexibility
• Collaboration features

Learn how Planful can help Finance drive peak financial performance. Schedule an interactive demo to see Planful in action.