Financial management software (FMS) helps businesses manage their finances more efficiently. It includes a range of tools and features allowing companies to make more informed decisions, including the ability to automate tasks.
FMS can improve accuracy and efficiency, making your business better equipped to manage financial resources and identify areas for growth. It also significantly reduces running costs and enhances employee happiness.
Now, let’s discuss four key functions of the software and how they’ll benefit your organisation.
Table of Contents
Budgeting And Forecasting
High-quality financial planner software will include budgeting templates and intelligent forecasting tools to help you better understand your business’s spending and prepare for the future.
Using an FMS platform, you’ll be able to:
- Build and manage budgets from scratch or using pre-existing templates,
- Access historical data with ease,
- Set role-based permissions,
- Compare estimates with actual figures,
- Manage budgets for multiple departments from a single pane,
- Integrate with other accounting tools such as QuickBooks and Xero,
- Estimate future expenses and revenues across business entities.
Budgeting and forecasting in this way allows businesses to develop overarching company budgets, defining how to allocate funds between departments. The software will also unlock intelligent insights based on real data, including past performance and customer behaviour patterns.
Accounting And Bookkeeping
With FMS, accounting and bookkeeping are no longer tedious tasks. The software simplifies tax compliance, financial reporting, and record-keeping tasks, amplifying efficiency and reducing errors.
The automated nature of FMS allows businesses to always stay up to date with the latest accounting regulations and standards. It will always generate statements and reports in a compliant format, so there’s no room for error.
Automation also opens up more time for staff to focus on higher-value work, such as innovation, marketing, and planning.
Financial Reporting And Analysis
There’s no longer a need to spend hours collating data and typing up financial reports—FMS does it all automatically.
Chiefly, the software can automate data entry (i.e., entering bank transactions, invoices, and bills), significantly reducing the risk of errors. In the financial world, one mistype can cost a company thousands, so automation is critical.
FMS can also generate reports such as profit and loss statements, cash flow statements, and balance sheets, providing tools to analyse the data within. This way, you’ll be able to identify trends and risks, making informed decisions on how to move forward.
API Integration
One major benefit of modern FMS is its ability to integrate with other platforms. If you’ve previously used software such as Excel to manage your financial resources, you’ll be able to transfer the data over to your FMS automatically.
You’ll also be able to connect your FMS with other tools such as eCommerce platforms, content management systems, and enterprise planning software, making data exchange seamless.
Conclusion
Financial planning software takes the struggle out of menial, repetitive tasks, allowing staff to focus on higher-value, human-centric work. With tools and features such as automated forecasting, analysis, and API integration, FPS can reduce costs and significantly improve productivity and performance within your organisation.