Today, finance departments play more of a strategic role in managing the performance of their company than ever before. Beyond executing traditional finance functions, they are pivotal in defining their company's key performance indicators, formulating strategic plans and forecasts, handling performance reporting, and increasing finance operational efficiency and execution company-wide. The sum total of these expanded capabilities is known as Financial Performance Management.

Ventana Research defines Financial Performance Management (FPM) as structuring financial systems and processes to promote more efficient, accurate and timely execution of finance/accounting functions, which can provide an organization with more reliable information and analysis to enhance its performance.