Software that helps with financial management empowers the organization to effectively manage the multi-faceted and complex financial transactions and procedures it’s faced with because of globalization, changing markets, and much more.
Using financial management software, an organization can get full compliance with strict financial data management and make guidelines line Sarbanes-Oxley and BASEL II.
So the question is, how will the financial management software system handle all this stuff and persuasively make worldwide finance operations? It is possible with multiple best features of Financial Management Software. You can ask your financial software development partner to add these features in their finance software.
In this article, we will understand the top features of Financial Management software. Let’s dive in.
8 Best Features of Financial Management Software
Here’s the list of top Financial Management Software features that help in easy management of financial transactions and processes:
1# Cash Flow Tracking and Management
It is essential to monitor income and track how money is spent in various locations and divisions. Tracking cash flow across different locations is made easier if the financial software has this feature in it.
You can get the records easily and in an accurate manner with different financial management software. One can also streamline allocations, consolidations, budgets, etc. tasks of the whole organization by leveraging this feature.
Ultimately, the money tracking and management feature of financial management software provides an unhindered, and real-time graph of cash flow and other related transactions.
2# Workflow Automation
One of the essential features that your financial software must include is the workflow automation function. It provides accuracy and speeds up different functions like planning and establishing a particular budget, managing expenses, billing and invoices, reporting, etc.
Automation processes can also be used to build workflows. These systems will assign tasks, route documents, send messages, and also send alerts in an automated manner. This feature not only helps streamline the process but also minimizes the manual mistakes that might occur.
With the automation of repetitive tasks, you will require less time to execute daily operations and free yourself to concentrate on business expansion and strategic planning.
3# Multiple currency management feature
This helps you transact casually in different currencies without any additional manual calculations of converting your currency into another currency. For instance, the owner can manage selling and purchasing in foreign currencies.
If you own a company that operates globally, and has clients from different countries, you should have this feature in your financial management system. It will help you manage and track multiple currencies flowing in and out of your system.
Moreover, you can calculate currency exchange rates, create reports showing financial data, provide real-time conversions in different currencies, etc. It makes it easier for you to monitor how well your company is performing in different markets and manage effectively your international finances.
4# Modern Analysis and Reporting
The majority of financial software development companies provide the feature of advanced analysis and reporting. With modern analytic tools, one can change the way of execution of your business.
You can manage the balance sheet, income statements, cash flow, and financial ratios and also provide in-depth analysis of your business’s financial status.
Using the financial data of your company, you can monitor trends, evaluate financial performance, search for potential dangers like expenditure or income risks, and also make investments that can bring profit.
For example, banks analyze transactional data in real-time to spot anomalies that might be a fraud.
The software should provide detailed reports of finance with efficient speed, accuracy, and reliability. This feature helps in automating various report packages, cutting days off from your manual process of generating timely reports.
In case you want to examine particular components like profits, expected and current sales, assets, and much more, you should have a custom dashboard to provide you with an understandable financial picture.
By choosing the necessary categories, one can show data in charts, tables, or graphs to check performance and assess weak parts of the system.
5# Tax Management
Using Tax Management features becomes essential as it speeds up the process of tax computing. As the tax laws are changing constantly, it can become challenging to know what are current tax slabs and laws of each country are.
Moreover, for small businesses, they do not integrate this feature, and outsource a tax manager, but that becomes expensive sometimes.
So, to cut down on this expense, you can effectively integrate and manage taxes and keep away from legal issues by using tax management features in your financial management software.
This feature helps you to fill tax returns, manage tax payments, track liabilities, provide reporting and audits, and collect system taxation to guarantee consistent sales tax and VAT collection. With better tax management, you can calculate tax obligations and update the changes in tax laws regularly.
6# Accounts Payable and Receivable
Finance management software services which include accounts payable & receivable can be a better choice for businesses. This function combines the expense information with the purchasing system of your software. It helps you to ultimately manage the cash flow of your business.
In the account payable module, you get a streamlined way to manage the payments of suppliers and clients. You can automate the process of confirming the accuracy, entering invoices, and organizing the payments by different money management policies.
While in the receivable module, one can observe all the money that the clients have to pay you. Automating the processes of invoice creation, reminding clients to clear their due payments, sending the account reports, etc., is possible here.
Ultimately this feature helps you increase financial productivity by ensuring that the payments are cleared on time, and unreliable debts are avoided.
7# Prediction and Planning
In financial management systems, one should have the feature of prediction and planning. It offers you the capacity to analyze, plan, and make a business financial strategy that is based on different financial parameters like balance sheet, cash flows, and profit and loss.
One can analyze the whole historical financial data, sources of funds, and predict financial requirements, and then plan a budget.
By proper forecast or prediction of your budget, one can see promising chances to increase your organization and identify potential risks, to avoid credit and investment risks.
For instance, you can make a systematic approach to allocate financial resources to different business investments and activities. It ensures that every resource is used efficiently.
8# Ledger strengthening
This process includes the identification and reconciliation of information differences between different platforms. It also ensures that different transactions are classified accurately and then recorded.
In the ledger strengthening feature, you get financial data from different accounts or ledgers in one place. So, if your organization deals with different business units, and then maintains their financial data, it is necessary to choose financial software development which provides the development of ledger consolidation features in your system.
From various angles, you can monitor assets, money, liabilities, revenue, accounts, etc. Having access to this financial data in one report helps you to channel the transactions quickly in your business, and also identify fraudulent tasks quickly.
In the end, the best features that we discussed in the article make the whole financial management software robust and reliable. These features represent an important cornerstone for the latest business operations.
They help in managing the accounting process by providing insightful analysis, making detailed financial decisions, and managing a robust financial footing.
The features like automatic reporting, budgeting, cash flow management, etc., organizations can improve resource efficiency, reduce risks, and drive sustainable growth.
Moreover, integrating these features and making user-friendly interfaces in the software. Hence, we would like to suggest to you that you can invest in such strong and reliable financial management software. It will be one of the important steps for ensuring futuristic financial success and health. Happy Reading!