FinTech is among the fastest-growing industries globally with the potential to reach 5.8 billion users of digital payments in 2027. If you’re looking to grow your fintech business using financial management software, it can be a game changer for companies of any size.
It assists you in managing the financial transactions, budgets accounts payable and receivable, invoicing tax, invoices, and much other things.
If you are considering the purchase of a software for managing finances for your company it is important to be aware of the essential features that will take your financial strategy from being outdated to top-of-the-line in a matter of minutes. The 10 most important features of financial management software we’ll be discussing include the following:
Let’s look at these features while searching for a financial outsourcing software for management.
1. Advanced Reporting and Analytics
In all the possible advantages of software for financial management this is possibly the most important. Advanced analytical tools will alter how you manage your company. It is possible to monitor balance sheets, income statements financial ratios, cash flow statements. They can also provide an insightful analysis of your business’s financial condition.
With this information to monitor the trends in financial performance, evaluate your the performance of your finances, determine possible risks, such as risk to your expenditure or income and invest in profitable ways. For instance, banks are able to examine transactional data in real time to identify patterns and irregularities which could be a sign of fraud.
The software should produce detailed financial reports with high accuracy speed, reliability, and speed. This tool helps automate multiple report packages, slicing the days of daily manual report processing.
If you’re looking to examine particular financial aspects including the expected and current revenues, profits and assets and assets. It is possible to create custom dashboards that give you more accurate financial information. When you select the right categories, you can present information in charts, tables or graphs to evaluate the effectiveness of the system and pinpoint areas that need improvement.
2. Ledger Consolidation
Ledger consolidation consolidates financial information from multiple ledgers or accounts to create one financial statement. Therefore, if your business has several business units that have the financial data of each, it’s essential to choose a platform that can simplify the management of finances throughout all.
The procedure involves the identification and reconciliation of data gaps between the different platforms, making sure that all transactions are correctly documented and classified regardless of whether you are working with multiple currencies. The various things you should be monitoring are the assets, liabilities capital accounts as well as expenses, revenue etc. The ability to keep all your financial information in one place will allow you to easily track the transactions in your business units and detect any suspicious or fraudulent activity.
3. Workflow Automation
One of the key attributes that the software for managing your finances should include is automation of workflow. It’s designed at speeding up the process and increase the efficiency of a variety of tasks including creating a budget, plan the invoicing process as well as managing expenses and the reporting.
It is also possible to create workflows by using automation systems to assign tasks and send messages, route documents, and issue alerts on a regular basis if required. This does not just streamline the process but also lowers the risk of making mistakes manually.
Automating repetitive tasks, you will be able to reduce the amount of amount of time you spend on routine tasks and allow your time to focus on the strategic plan of action and expanding your business.
4. Tax Management
With tax laws that are constantly changing and regulations, it is difficult to remember all taxes that are required and not overlook the submission of declarations keeping in mind the tax laws for each country. Small businesses also typically do not have a tax professional in-house. They typically outsource their tax administration, which can be costly.
Therefore, the best solution to efficiently manage your taxes and avoid legal disputes with tax authorities is to find software for financial management that includes tax management capabilities. Tax management tools aid in completing tax returns, monitor taxes, monitor liabilities in addition to providing audits and reporting and save taxation settings to ensure consistent tax collection of sales tax and VAT. If you have a good tax management system tools, you’ll be capable of calculating tax obligations in a precise manner and keep up-to-date on any changes in tax laws.
5. Cashflow Tracking
The tracking of cash flow can aid in balancing your expenditures and income set budgets, make them more manageable, and track cashflow in real-time. This is a helpful tool that will help you discover the source of the habits of your spenders, spot areas where you’re spending too much and take action to improve the financial performance of your company. Also, you are able to examine your financials, ensure that your expenses meet your financial objectives and to ensure that you’re profitable.
For instance profit tracker software can give you an overall view of your company’s financial health overall and boosts resource efficiency. Through monitoring your income, you are able to discover additional revenue sources, and determine the ROI on investment for each purchase.
6. Multi-Currency Management
If you are a global business or have clients in multiple countries, it is essential to pick a software solution that allows multi-currency management. This will allow you to manage financial transactions across multiple currencies without having to do manually calculating and converting. For instance, you can automate the purchase and sale of foreign currency.
In addition, you’ll be able calculate rates of exchange, provide real-time currency conversions and generate reports that present financial information in the currency you prefer. This allows you to assess how your companies perform on different markets and to effectively control international operations in finance.
7. Forecasting and Planning
Software for financial planning assists managers by allowing them to analyze, plan, and formulate a financial strategy for your company based on various financial indicators that include profits and losses, balance sheet and cash flow. The software can assist you to analyse financial information from the past in order to forecast financial requirements and funding sources and also create an annual budget.
When you plan your budget properly and identifying promising opportunities to increase your business, and also identify possible problems, in order to minimize credit or investment risk. As an example, you could develop a system for the allocation of financial resources for various businesses and investments to make sure that resources are used effectively.
8. Accounts Receivable and Payable
It is worth looking into the financial management software that comes with receivables and accounts payable functions. The accounts payable and receivable feature that integrates your expense data with your purchase system can help you control your money flow.
- The mode for accounts payable offers you a method to organize the payment process for suppliers and clients. It can make it easier for yourself to automate registering invoices, verifying the accuracy of invoices, as well as organizing payments through a central system. To ensure that your staff is adhering to the guidelines for managing money The software can let you establish payments that are approved.
- By using the mode of accounts receivable You can keep track of the total amount that customers owe you. You can automate processes including making invoices, contacting clients to pay and then sending them statements of their accounts. You can boost your financial performance by making sure that your payments are paid punctually, which reduces the chance of unreliable credit card debts.
9. General Accounting Management
Are you looking for a user-friendly system that can display all financial operations all in one area? Find software for managing your finances that can simplify the accounting process and assist you to adhere to the regulations. A list of accounting software features comprises:
- overseeing all daily accounting processes;
- managing compliance and audit obligations;
- creating financial statements;
- Providing revenue and cost management;
- Bank reconciliation; and more.
Choose a customized Accounting software to meet the needs of your company. If you have your business as a small one it is likely that you only need basic functions, like billing and tracking expenses. If you are a large company it is possible to design advanced features like a comprehensive account chart to provide an accurate picture of a business’s financial health in general by delineating the income, expenses assets, liabilities, and expenses.
For instance An online e-filing software allows users to manage their finances, invoices as well as payroll and report and track rental properties also calculate, and then file HST (Harmonized Sales Tax) online.
10. Fixed Asset Management
In addition the financial management software will handle the management of fixed assets. This feature can help you manage your company’s tangible assets like vehicles, equipment furniture and so on. as well as intangible assets like trademarks, patents and copyrights.
A complete system to manage fixed assets must include periodic audits and assessments to ensure that the assets are documented and used efficiently. It is possible to track the value of your assets as well as calculate depreciation and monitor their state of health or condition in order to make sure they remain profitable for the business.
You could, for instance, create a budget plan that includes monitoring the depreciation of your assets, or delaying tax obligations on things that you’ve removed from your company.
Conclusion
You should seek an option that can provide the complete view of your company’s financial health, allowing you to make educated business decisions and pinpoint potential areas to improve. A customized fintech solution will assist in enhancing your management of everyday financial operations, decrease human error and help reduce inefficiencies. As an outsourcing development partner HQSoftware provides high-quality solutions to assist you in creating top-quality financial management software that can ensure your business is secure and profitable. With extensive experience in the development of financial software, HQSoftware can develop a array of solutions according to your individual needs, and within your budget.
