A few days ago, I came across the 2025 FP&A Benchmarking Survey Report by Association for Financial Professionals, and it confirmed something I’ve been seeing for a while:
The real bottleneck in FP&A isn’t a lack of tools. It’s data complexity, system fragmentation, and a widening skill gap in financial analysis.
And while AI and automation continue to dominate the conversation, the most immediate challenges facing FP&A teams aren’t futuristic—they’re fundamental.
Let’s break down the findings and what they really mean for senior FP&A professionals.
1. The Data Problem is Worse Than We Admit
The report highlights that 61% of FP&A teams struggle with unreliable or inaccessible data.
That number doesn’t surprise me—but what’s more revealing is why this issue persists despite the influx of automation tools.
Key challenges in data management:
- Siloed systems: Data is scattered across ERPs, CRMs, financial platforms, and spreadsheets, creating inconsistencies in reporting.
- Excessive data manipulation: Analysts spend more time fixing data than analyzing it, leading to decision-making delays.
- Lack of a single source of truth: Different versions of reports circulate among leadership, causing confusion over which numbers are accurate.
- Inconsistent data definitions: Finance, sales, and operations often have conflicting metrics for revenue, profitability, and growth, leading to misaligned planning.
Takeaway: Before chasing AI-driven forecasting, senior FP&A leaders need to audit their data processes. The priority should be building a unified data strategy that ensures accuracy, accessibility, and consistency across departments. For tips on how to leverage PowerBI for your Financial Analysis: Introduction to PowerBI for Financial Analysis
2. Excel is Indispensable—But Also a Liability
Despite advancements in FP&A software, 99% of FP&A teams still use Excel for planning, and 100% use it for reporting.
But here’s the real problem: Excel is being used for things it was never designed for.
Why finance teams still rely on Excel:
- Flexibility: No other tool allows for rapid ad-hoc analysis like Excel.
- Familiarity: Most finance professionals are highly skilled in Excel but lack proficiency in advanced FP&A platforms.
- Lack of system integration: Many companies have sophisticated financial systems but still extract data into Excel for final reporting.
- Cost considerations: Enterprise-level FP&A solutions require significant investment in both technology and training.
But here’s where Excel becomes a liability:
- Manual processes limit scalability—rebuilding reports every month slows down strategic decision-making.
- Version control issues lead to misalignment—multiple copies of the same file create confusion and errors.
- It lacks real-time collaboration—especially for distributed teams that need instant access to dynamic reports.
Takeaway: Excel isn’t going anywhere, but it needs to be supplemented. FP&A leaders should be looking at hybrid approaches—where Excel remains for quick analysis but integrates with platforms like Power BI, Anaplan, or Workday Adaptive Planning for enterprise-wide forecasting. If you are looking to take your Excel to the next level refer to our webinar: From Excel to Excellence: Discover Vena’s Financial Planning Revolution
3. AI in FP&A: More Promise Than Execution
The hype around AI is justified—but adoption is still slow. According to the report:
- Only 23% of FP&A teams actively use AI today.
- 40% plan to implement AI-driven processes in the next 12 months.
Why the hesitation?
- Lack of trust in AI-driven forecasts. Senior finance leaders want transparency in decision-making, and AI models often operate as black boxes.
- Data readiness isn’t there yet. AI thrives on clean, structured data, which many FP&A teams simply don’t have.
- Skill gaps in finance teams. AI adoption requires analysts who understand machine learning, automation, and predictive modeling—skills that aren’t yet mainstream in FP&A.
Where AI is actually making an impact:
- Variance analysis: AI can detect anomalies in financial statements much faster than manual review.
- Scenario modeling: AI-driven forecasting allows FP&A teams to model multiple business conditions dynamically.
- Automation of repetitive tasks: AI is best used to handle manual reconciliation, report generation, and data cleansing.
Takeaway: AI adoption in FP&A won’t happen overnight. Instead of waiting for a perfect implementation, teams should start small experimenting with AI in one or two specific areas (such as variance analysis or anomaly detection) before expanding.
4. The New FP&A Skillset: Less Reporting, More Strategy
The role of FP&A is shifting from historical reporting to forward-looking strategy. But most teams are still structured around traditional processes—which means they’re spending too much time building reports instead of driving strategic conversations.
Skills that will define FP&A in 2025:
- Data storytelling: FP&A professionals need to communicate insights, not just numbers.
- Automation fluency: Understanding how to integrate Power BI, Python, and automation tools into workflows.
- Cross-functional collaboration: Finance teams can no longer operate in isolation alignment with operations, sales, and marketing is essential.
Takeaway: Senior FP&A leaders should focus on reskilling their teams, shifting them from pure data processing to strategic advisory roles. The FP&A professional of the future is more of a business strategist than a number cruncher.
Final Thought: The Future of FP&A Isn’t Technology—It’s How We Use It
The biggest lesson from the report?
FP&A doesn’t need more tools—it needs better systems, better data, and better decision-making frameworks.
If you want to build an FP&A function that’s ready for the future: ✔ Fix your data strategy first. ✔ Supplement Excel with scalable FP&A platforms. ✔ Adopt AI in phases, starting with automation. ✔ Upskill your team to move beyond reporting into strategy.
The companies that embrace this shift will turn FP&A into a true business driver—one that doesn’t just report the numbers but shapes the future.
What’s your biggest takeaway from these trends? I’ll wait for your comments.
Tejas Parikh FP&A Transformation Specialist
