Financial Management Software in 2021
Features of Financial Management Software
Modern business has become complex due to rapid globalization. But digital technologies have come to their rescue. The best financial management software can help a company with various transactions. It automates complex activities through accurate, multi-faceted processing. The organization gets empowered as a result. Let us look at various features of such software.
The company’s financial operations are digital, computerized, and connected. The software handles a/c payable, a/c receivable, and general ledgers. It also assists with purchases, payroll, taxation, and cash flow operations. The manual error that comes with speed and redundancy gets eliminated due to automation.
● International Flexibility
Small and large companies have multiple departments. They also operate on a global scale with multiple currencies. The best software suite has all the required tools and technologies. It can handle country-specific laws, multinational transactions, and currency conversions with ease.
● Financial Tracking
Financial tasks are complex as funds move through various departments. With a software package, these activities become streamlined. You can track all the finances irrespective of location, division, or business unit. The software provides real-time visualization of cash flows, budget, allocations, and enterprise-level operations.
● Planning And Forecasting
Managers and senior staff require data for planning and forecasting. Automation provides accurate data at the right time for informed decision-making ability. They can use historical information to predict trends and patterns. They can efficiently look at income, revenue, market potential, mergers, and acquisitions.
● Advanced Metrics and Analysis
Balance sheets, profit and loss statements, and budget reports are vital. The best financial management software can handle complex analysis and generate business insights. It is possible to customize, integrate, and upload the data to the web for efficient access.
● Top Financial Management Software Vendor Comparison By Company Size
According to a study by TrustRadius, 43% of the companies that look for financial management software are mid-sized companies. The global market for this genre will reach $11.8 billion by the end of 2028. There are numerous players in the market, and the top vendors to choose are
● SAP BPC
● Oracle NetSuite ERP
● Unit4 Financials
Things To Consider Before Buying Financial Management System
Financial automation involves rich features and functionality. But business requirements are not uniform across the table. So, you have to choose a system that best fits in with your specific needs. The choices range between a complete ERP solution to a smartphone app. Consider these important factors while selecting software.
● Business Awareness
First, introspect and look at your business organization and workflows. Analyze the financial operations and come to an objective conclusion. Focus on the areas that need improvement with automation and factor in the features and functionalities in the short and long terms. Use free and trial versions to get a better idea. Choose software that fits into your company’s work culture, ethics, and vision. Opt for a scalable, flexible solution if you have plans to expand the business.
The software should be easy to learn and convenient to use. Its user interfaces and workflows should be intuitive. If the training curve is steep, then business continuity can get affected. So, choose a user-friendly system that ensures financial efficiency. The employees should accept it without too many complaints. Software with dashboards, click, and forward features are more desirable. It should also generate eye-catchy reports on inventory, cash flows, invoices, etc.
● Data Security
Nowadays, you can opt for cloud-based and web financial services also. Financial data is sensitive and confidential. So, the software should have security features for authorized access, authentication, data encryption, etc. Even on-premise solutions should have a backup, password, access management, and other data security features.
● Customer Support
Finally, financial software is a specialized tool for professionals. You can also check the best accounting software which will be very beneficial for your business. It brings together bookkeeping, management, and technical activities. Unfortunately, not everyone is capable of all these aspects. So, select a software vendor who offers maintenance support. Their customer services should include technical and troubleshooting options also. And you should be able to easily contact them using phone, email, online forms, chatbots, etc.
Latest Market Trends In Financial Management Software
Modern financial software is specialized, feature-rich, and secure. More than 3000 buyers across the industry verticals endorsed the following trends.
● Unique, Sophisticated Features
Customers aspire for specialized software that suits their business climate. They seek tech-intensive and optimized accounting solutions.
● Financial Reports
In a survey, 30% of buyers demanded financial reporting features in the software. The other preferences were billing, forecasting, and expense management.
● AI-driven Solution
AI – driven financial management software is in demand by large enterprises. Currently, AI processes help in the data collection and analysis process. However, the demand for RPA in financial decision making, asset management, and other areas is increasing.
● Cloud Solutions
An overwhelming 82% of respondents in a survey wanted a cloud-based solution. Work from home and mobile phone ubiquity has a significant role in these choices.