Why use a financial management software?
Financial management is at the heart of a company’s strategy. It includes the organization, strategic planning, and control of a company's cash flow. Financial management solutions enable the financial and budgetary aspect of business to be controlled. They simplify the accounting data processing through automation.
06 September 2022
What is financial management?
Financial management is the control of cash receipts, disbursements, investments, and all others financial transactions of a company. Financial management is essential to ensure the durability of a business. To carry out its control, the company’s financial manager has to carry the best tools.
The term “financial management” includes components such as: accounting, capitalization, budgeting, internal control, flow of funds, financial reporting including auditing arrangements for borrowers and recipients to receive, allocate, record and report on the use of funds.
Financial management software streamlines often-time consuming accounting processes. Financial management tools also enable information to be shared with investors and banks and provide a global view of the company’s activities. The control of financial management allows companies to secure data in order to comply with regulatory requirements.
Automate your accounting and fixed assets
Before starting the accounting automation process, it is recommended to centralise your company’s information in a single environment. The different departments of a company can thus have access to all the information.
Using financial management software also means avoiding manual processes by automating the data. The automation process also applies to the entry of invoices, balance sheets and payroll entries etc. You can also allow your customers to make a postponed payment.
Choosing financial management software dedicated to fixed asset management such as Sage management software allows companies to control their asset management and depreciation process in order to benefit from a detailed financial monitoring.
Manage cash flow forecasts with financial management software
Optimising cash flow forecasting with finance ERP software enables finance teams, corporate treasurers, and CFOs to make informed investment decisions and improve the operational productivity of their risk management operations.
With the cash-flow and treasury functions of a finance ERP module, you can efficiently stimulate, analyse and plan your cash flows according to your needs: cash flow analysis, payroll analysis, bank credit limits, purchase/sale logistics portfolio (company commitments), liquidity account statement etc.
Using an ERP finance system also allow you to have a global view on cash shortages or surpluses. You can also compare actual amounts with planned cash amounts.
Improve your financial reporting thanks to Business Intelligence
Business Intelligence covers a variety of tools and applications for sorting and analysing that the volumes of data in a company (finance, accounting, marketing etc.) It is possible to improve its financial management through the reporting functionality built into business intelligence tools. You can thus control your expenses and improve your internal processes.
Reporting and Business Intelligence play a major role in the finance functions. They are designed to simplify the communication of progress monitoring or figures. As both an actor and a privileged partner of the general management, the financial department supports the other departments of the company with more efficient management. This is why, it must use adapted tools that allow it to exploit the informational potential of accounting.
The business challenges have requirements on certain key financial indicators: working capital requirements, operating costs, cash flows etc. Financial management software packages include functions for monitoring and analysing key accounting data in a company.
Financial management software provides a complete view of your company's performance metrics. A dashboard allows you to monitor key third parties, customers and suppliers, and payment deadlines in order to define an action plan adapted to the company's needs. BI solutions coupled with financial management software allow you to collect data and monitor a company's KPIs. Then, you will be able to make the best decisions to contribute to the growth of your business.