A reliable accounting foundation is vital to growing your company. Financial management software, also known as accounting software, offers many possibilities and opportunities to your business so that you can grow exponentially. The software is fundamental to the management of funds within a company.
Financial management software can not only help you lower human errors and mistakes in your calculations, but it will help you gain valuable insights into your business that are hard to see in paper form — like generating sales forecasts for the next quarter, identifying your least profitable service and determining which items are overstocked.
Let’s analyze in detail the different uses of financial management software, as well as the different challenges the software can help you overcome.
What is Financial Management Software ?
We can say that financial management software makes it possible to manage all the financial aspects of your company. These aspects range from cash flows – outflows and inflows – to profitability, taxation, and budgeting. So, we can say that this type of software streamlines the finance aspects of your business, and this is the quantifiable part.
In addition, it is important that you know and understand the challenges that this type of software can help your business overcome.
Uses and Benefits of Financial Management Software
Financial management software helps keep your businesses on track toward growth and success. We know that using financial management software for your business is essential. It is also vital to understand the various benefits of this software. Financial management software will allow you to manage the following:
Business accounting or financial management software makes daily routines much faster and simpler. Also, note that fewer manual processes and mistakes imply that finance departments can make decisions and also act faster. Financial management software is excellent, as it will allow you to maintain reliable accounting journals and reports. It also ensures compliance with accounting models, such as FIFO and LIFO, and compliance with current legislation and laws.
Keep in mind that the software will facilitate higher productivity for one person or a team. This is because they will find the resources necessary to manage the accounts of your company with pre-filled models, including VAT, pay, and taxation, etc.
There is no doubt that financial processes are very diverse and different from one another, and each one requires a different approach. Financial management software is also valuable, as it will allow you to automate specific processes in your company. More businesses around the world are now moving toward solutions that consolidate all financial processes, as this helps streamline business operations by automating them.
From accounting balance sheets, and profit and loss statements to provisional results, and general accounts and taxation, you will be able to automate everything with the best financial management software. The software can pre-fill invoices or quotes as well. Isn’t that great!
Given the benefits offered by automation and higher productivity, you will be able to anticipate both your outgoing and incoming cash flows in the short, medium and long term.
Because of automated and intelligent management models, you will be able to meet all of your payment deadlines in advance and have complete control over your accounting in the future. By paying your suppliers in advance, you can get discounts.
More Accessible and Accurate Financial Information
Financial information and data often reside in various disparate databases. And these databases are scattered across multiple remote locations throughout a business. There is no denying that it can make it more challenging to obtain a complete and comprehensive view of your company’s financial status and to monitor or manage related activities.
Companies can easily centralize all financial information with financial management software solutions, and make it easily accessible to end-users across different departments, branch offices, and business units. This boosts information accuracy, as well as consistency.
Flexibility / Mobility
Financial management software will also keep your mobile as you can manage everything online. By synchronizing your data, you can access your company’s accounts remotely. This will also allow your employees to work remotely, which is great.
Simplifies Regulatory Compliance
Financial processes are definitely very complex, and this is why it is crucial that you scrutinize them to the highest degree. However, keep in mind that human error is a very important factor in most business functions, especially when it comes to auditing, accounting, and forecasting.
Financial management software is great in this regard, as it enables you to keep track of all loose ends that you can easily overlook during both the auditing and reporting processes. Many software solutions also include useful add-ons and features that facilitate compliance, like detailed VAT reports.
You can rely on financial management software to protect your sensitive data. With features, such as daily data backups, you will always be able to mitigate the risk of data loss and data theft, which are increasing on a regular basis.
In addition, these software solutions come with advanced encryption, making it almost impossible for anyone to compromise the integrity and security of your data.
These benefits once again demonstrate how useful this type of software is for your business, and can help you overcome so many challenges and issues. Providing you with benefits like more productivity, flexibility, and security, you will quickly be able to improve efficiency and take your business to new heights of success.
The Functions of Financial Management Software
Possessing numerous functionalities, financial management software will allow you to complete a number of tasks, discussed in the next section.
Manage Your Accounting Journals
With the best financial management software, you will be able to keep your accounting journals in good shape. These journals cover everything from cash and purchases to sales made by your business.
With financial management software, you can streamline your collections process and make it more organized and efficient. With reminders and strategies, you will be able to tackle many crucial issues.
Management of Employee Expenses
Of course, financial management software will allow you to analyze various cash flows, and will also help you organize the various expenses incurred by employees. Some of them include travel expenses and a packed lunch, etc.
You will be able to automate this process with accounting software while having complete control over it. This can generate substantial time savings across your company, which is a bonus.
Accounting Data Management
With the best financial management software, you can manage your accounting data and encrypt it as well. This will include everything, such as balance sheet, your accounting balances, and third party accounts.
Focused on financial management, the software will help minimize the risk of fraud in your company, even possible theft in your company.
Some Popular Financial Management Software
In today’s market, three major financial management software programs stand out because of many reasons. Acomba is one of the safest bets in Canada. In other countries, businesses prefer other solutions, such as QuickBooks and Dynamics 365.
Acomba is one of the best solutions in Canada, and it allows more than 40,000 SMEs in Canada to manage their account thanks to its powerful and engaging features. The simple interface of the software is easy to master, making it one of the most appealing solutions, especially for SMEs. This is because it provides the perfect balance of simplicity and efficiency for its users.
When it comes to simplicity, no other solution can do better than QuickBooks, which is particularly suitable for individual entrepreneurs and students. Cheaper than its competitors, the software is particularly ideal for small businesses. It is a perfect financial management solution for very small businesses.
QuickBooks is used by companies and businesses of all sizes and shapes and is, without any doubt, one of the most effective and popular platforms, especially among small business owners. The software has both accounts receivable as well as accounts payable features, and it can also track projects and inventory, which makes it an excellent choice for almost every type of business. It also offers a range of service tiers. Also, it is scalable, so it can quickly grow with your business.
Lastly, we will say that Microsoft Dynamics 365 stands out as one of the most innovative CRM and ERP solutions on the market. The great thing about this financial management software is that Dynamics 365 offers solutions to businesses that are both simple and cutting edge.
Financial management software is ideal for your business, as it will meet your business needs and expectations. Unique features in this software make them a real asset, whether you are self-employed, run a very small business, or own an SME.
The main thing to consider when choosing a solution for your business is to go with one that suits your accounting needs.Need help with your ERP software implementation? Discuss your project with a ERP expert.