Spotlight Reporting vs. Fathom: Which Reporting Software is Right for You?
At Northern Accountants when it comes to financial reporting software we are big fans of Spotlight Reporting in conjunction with Xero. We have been using it for almost 5 years now. We have found it to be easy to create fantastic bespoke board-level management reports that make it easy for our teams to explain the numbers to our clients. In addition, it is brilliant at enabling us to generate detailed forecasts that can be quickly updated for actual figures and rolled forward.
Occasionally we get asked why we use Spotlight rather than one of the other main reporting tools. Therefore, so we thought it would be useful to compare the pros and cons of Spotlight with one of the other big reporting tools, Fathom.
Spotlight Reporting and Fathom are both designed to help you make sense of your numbers and create impressive reports, but they cater to slightly different needs.
Spotlight Reporting: The Pros and Cons
Pros
- Customisable and Professional Reports
Spotlight Reporting is a go-to if want sleek, professional-looking reports. The templates are polished and easy to customise for board presentations or shareholder updates. By creating different templates (or utilising the built in industry templates) you can have different style of reports to suit the user without spending time updating the information - Comprehensive Dashboards
From cash flow forecasting to multi-entity reporting, Spotlight’s dashboards are designed for deep analysis. If you manage multiple businesses or divisions and want to compare their performance on a regular basis consolidating data is really easy. - Integration-Friendly
Spotlight Reporting integrates smoothly with Xero (our accounting software of choice), QuickBooks Online, MYOB or even excel. It’s perfect for pulling in data automatically without spending hours on manual imports. This is a huge bonus for forecasting which enables you to update actual results and not have to worry about making sure the balance sheet balances (who has spent hours trying to make this work in an excel spreadsheet?) - Forecasting Features
Spotlight stands out with its robust forecasting tools. The use of Drivers and Dynamic rules and multiple tasks allow you to model and compare a wide range of scenarios. If your focus is on future-proofing your business with detailed projections, Spotlight has you covered. - Tailored for Accountants
Spotlight Reporting’s advanced features, like benchmarking and KPI tracking, are ideal for accountants and advisors working with multiple clients.
Cons
- Pricey for Smaller Businesses
This isn’t an issue for Northern Accountants as we use the package across our portfolio. However, it can feel expensive for smaller businesses or those with simpler needs on a one-off basis. - Steeper Learning Curve
Getting the most out of Spotlight takes some time. The advanced features are great, but they’re not always intuitive for first-time users although the support is great. - Limited Visuals
While the reports are professional, the visuals and charts lack the creative flair some users prefer for client presentations. It is also a bit frustrating that the reports from the different modules (Reporting, Forecasting and Dashboard) can’t be combined or utilised across modules.
Fathom: The Pros and Cons
Pros
- Stunning Visual Reports
Fathoms graphs, charts, and visual KPI tracking are excellent
- Easy to Use
Fathom’s interface is user-friendly and intuitive, making it easier to hit the ground running without the steep learning curve.
- KPI Customization
Fathom allows you to track KPIs tailored to your business. Whether it’s financial or non-financial metrics, you can display what matters most.
- Scenario Planning Made Simple
Fathom’s scenario planning tool is perfect for exploring “what-if” scenarios, helping you make data-driven decisions about growth, expenses, or investments.
- Multi-Entity Reporting
Like Spotlight, Fathom handles consolidation for businesses managing multiple entities, but its visuals give it a slight edge in this department.
Cons
- Limited Forecasting
While the visuals and analysis are great, its forecasting features aren’t as detailed as Spotlight’s.
- Fewer Integrations
Fathom integrates with major accounting software like Xero and QuickBooks Online, but it doesn’t have as many integration options as Spotlight.
- Not as Advanced for Accountants
Accountants may find it less robust for advanced needs like benchmarking or detailed financial breakdowns.
Which One Should You Choose?
Choose Spotlight Reporting if:
- You’re an accountant or advisor managing multiple clients.
- Forecasting and financial consolidation are your top priorities.
- You need advanced features like benchmarking or cash flow projections.
Choose Fathom if:
- You want visually stunning reports to impress clients or stakeholders.
- Simplicity and ease of use are important to you.
- You’re more focused on KPIs and “what-if” scenario planning than detailed forecasting.
Final Thoughts
At Northern Accountants we use Spotlight Reporting as it provides us with the widest possible range of features that we demand of our reporting software to meet the needs of our client portfolio. Spotlight may not be the right choice for you if you are using it on a standalone basis and do not have time to learn how to get the most out of the software and don’t have us on hand to create and develop the reporting. In that situation, Fathom could be a good option for you.
