Financial software is a program that automatically processes, analyzes, manages and stores financial transactions of an enterprise. It helps in recording and processing information related to the finances of a business or an individual. Built on the principle of financial information management, these software offerings can appear as part of an information management system or as a stand-alone software. Financial software can be classified as either a business or personal financial software. They can be integrated with other business information systems and hence, providing services like bookkeeping and accounting. Common financial software has the ability to account and budget as well. This allows one to just feed the data in and the system does the necessary arithmetic and arranges the data in a simple and comprehendible manner. This means that it can be used by non-professionals in the financial field since you just need to do the data entry. Therefore, a financial system can help both large and small companies manage their finances which are a vital aspect in making profit.
Common features of financial software
Financial software helps a company or an organization manage complex transactions comprehensively and effectively. The complexity of transactions the company faces on a daily basis is often due to globalization, diversification, business expansions, and changes in market conditions. Therefore if a company is to be able to manage its growing finances and avoid losses, it has to have efficient financial managing software with the following powerful and effective features like the following.
Automation and Management of General Accounting Procedures
Accounting procedures when not done properly can make one’s company run at a loss. Good financial software runs accounting procedures from start to finish. That is, it processes account payables and receivables, general ledger, cash flow management, purchasing and payroll.
Support Universal Financial Processes
If one has financial software, they have all the tools and technology needed for to determine currency conversion rates. It also has access to different languages and laws specific to a certain country. This facilitates improvement of financial transactions and management globally.
Planning and forecasting feature
Companies with financial software are able to access historical financial information. This helps them in forecasting and planning future trends in incomes, profits, and expenditures. Also financial software helps businesses to know how scenarios such as acquisitions and expansion can affect their financial status. This is vital in successful strategic planning.
Tracking and Managing Cash Flow
Tracking income from various departments and business units and knowing how different locations and divisions spend their funds is easily monitored by the use of financial software.
Reporting and Analyzing
Most popular financial software has the ability to come up with reports in form of balance sheets, profit and loss account and budget allocation accurately. They also provide in-depth analysis of finances and hence managers can just make a report.
Popular Financial Management Software
There are many financial management software options in the world we live today designed for small, medium and large enterprises. Some of them are as follows;
Sage Live
This software is for both small and medium enterprises. Its features include multi-lingual, multi-currency and multi-legislation. It can be used to make invoices and payments as well as paying bills. Also, it can record sales and receipts as well as accepting payments.
SAP ERP Core Finance
It can be used by any company of any size across the world. It manages one’s finances and risk analysis as well as compliance. Also, it performs accounting and reporting, management of account receivables, and shared services.
Adaptive Insight
This software was founded in 2003. It is suitable for all small, large and medium companies. It is web-based software for budgeting reporting and forecasting among others.
Net Suite
This is software that is horizontally designed for all companies. It incorporates a customer relation management, and an enterprise resource planning in one platform. Its functions include financial analysis, reporting and billing among others.
Cougar Mountain DENALI
This software offers accounting for manufacturing, public services and nonprofit firms. It manages inventory, ledgers and order entry.