Financial management software(FMS) connects, produces, reports on, and maintains numerous cash flow transactions throughout the firm.
The basic function of any firm’s financial management software is to track the money in circulation inside the corporation and link vendors and consumers. It assists treasurers and financial managers in managing the transfer of resources. As a result, businesses of all sizes require a basic accounting solution in order to report credit and debit transactions.
What Is the Purpose of Financial Management Software?
For many years, businesses assumed that a complete financial management solution was only available to large corporations and international corporations. However, the thought process has shifted because many software as a service (SaaS) vendors provide sophisticated on-premise or in-the-cloud FMS subscriptions at a low cost in order to attract organisations. SMBs are increasingly opting for scalable FMSs for the following reasons:
#1. An online or offline FMS solution may assist you in eliminating financial problems such as tax overpayment or underpayment, payroll errors, overpayment to vendors, and so on. In this manner, your company may stop wasting money and instead spend it on operations.
#2. Standard FMS solutions have a sophisticated reporting and analytics system. With a few clicks, the leadership team can develop actionable reports on business revenue to demonstrate to investors historical, current, and prospective growth trends across products and markets.
#3. SMBs should invest in financial management software to improve financial and data transparency across all departments. Otherwise, the firm’s leadership would be forced to rely on guessing and would lose control over the money pouring out of the organisation.
#4. FMS providers are always updating their capabilities as accounting rules and tax regulations change across the world. As a result, you don’t need to hire a staff of accountants to manually incorporate the most recent tax changes or accounting standards into your book.
Features of Essential Financial Management Software
You can’t just go online and get any FMS tool. The tool must have typical features and functions in order to provide value for money. The following are the characteristics of an excellent FMS tool:
#1. The General Accounting Module, includes accounts payable (AP), payroll, accounts receivable (AR), general ledger, and other functions.
#2. A specific tool for managing cash, revenue, and treasury should be included in an FMS.
#3. Your FMS platform will also need budgeting, planning, and forecasting capabilities.
#4. Governance, risk, and compliance features in an FMS are required to guarantee your company complies with all local and international regulations.
The following is a comprehensive list of the top financial management tools for small and medium-sized enterprises (SMBs).
1. Sage Intacct
Since 1999, Sage Intacct has been the leading provider of specialised cloud-based FMS technologies for small and medium-sized organisations. Furthermore, it was the first to combine finance and accounting with cloud technology, putting the FMS tools online and accessible from anywhere.
Furthermore, it has been the AICPA’s (American Institute of Certified Public Accountants’) chosen supplier for sophisticated financial applications.
Sage purchased Intacct in 2017 and rebranded the financial management software as Sage Intacct. It has become an essential component of the Sage Business Cloud. To meet the demands of worldwide SMBs, the new FMS includes different programme components such as Core Financials, Advanced Functionality, Dashboards & Reporting, and Billing.
Causal is a basic spreadsheet programme that works similarly to Excel but without the intricacies of Excel. This application may be used by your accounting and finance team to execute complicated company finance calculations such as scenario planning, data forecasting, and data modelling. Furthermore, the tool supports easy and interactive data visualisation in freeform text, tables, and charts.
Causal may also be integrated with business data sources like accounting software, ERP systems, and hosted databases. This enables your teams to access data from different sources and includes live or historical data in business reports.
As a result, the software is suitable for startups, non-profit organisations, bitcoin enterprises, and finance and marketing teams.
Workday is a well-known brand for business software. Its money management system is one of its most popular solutions. SMBs use this technology to concentrate on financial transaction analysis and planning rather than transaction processing. Workday also upgrades its tools and features more often, ensuring that your company remains competitive in the market.
Furthermore, for financial transaction anomaly detection, the Workday FMS tool leverages cutting-edge data processing technologies like machine learning, object data modelling, and in-memory computing. Based on your company’s process and finances, the tool may also make intelligent and useful recommendations.
As a result, with the Workday financial system, you will spend less time managing the routing of transactions and procedures. You may use the time saved to boost revenue collection in areas such as marketing and sales.
Kissflow is more than simply another financial management application. It is a single tool that allows your finance staff to perform everything that an ERP technology cannot. As an example,
- Approve projects and purchases that adhere to internal and external financial rules. This rule-based framework allows
- You will never delay any valid procurement, but you will always eliminate waste and wasteful acquisitions.
- With role-based and need-to-know tool access, you can protect critical company data from employees.
- Get all of your financial and operational data in one place to make better decisions.
- Furthermore, Kissflow’s graphical user interface (GUI) and aesthetic aspects enable SMBs to easily personalise the app based on the products and services they provide.
Xero is sophisticated accounting software that allows small and medium-sized businesses to record bills, send quotations to clients, invoice customers, scan receipts using Hubdoc, bulk reconcile transactions, and so on.
You may, however, subscribe to their add-ons like Claim costs, Analytics, and Track projects to convert the accounting tool into a powerful FMS. Furthermore, it has built-in features such as project financial tracking, contact management, secure information storage, inventory management, and so on.
Xero includes all of the accounting and financial functionality that SMBs need to run their businesses efficiently and profitably. The Xero dashboard, with its more than 20 features, will put you in command of your company’s money.
The dashboard consolidates cash flow figures, account balances, bank reconciliations, outstanding bills, and specialised business goods so you can monitor the health of your firm.
AccountsIQ is a cloud-based accounting solution that makes financial data processing, collection, and reporting easier and more accurate. It provides easy yet complex solutions for budgeting, consolidation automation, submitting digital VAT forms, auditing, and cash flow management.
The AccountsIQ development team created the application with the needs of businesses with several departments operating in silos in mind. Working in silos may be financially negative for small and medium-sized organisations.
As a result, using this FMS technology, your company’s numerous business entities such as HR, payroll, accounts receivable, accounts payable, procurement, service delivery, and inventory will be grouped together.
AccountsIQ comes with 250 report templates, dashboards, management reporting packs, Power BI connections, and Excel Add-Ins. The programme also has a customised 6-dimension BI coding system and a 3-tier General Ledger. Finally, you may utilise the FMS tool for performance benchmarking and comprehensive reporting across all business sectors.
Another well-known brand for corporate financial management, planning, and analysis is FinancialForce. Its FMS ERP was built on the Salesforce development platform, which is hosted in the cloud.
Due to clever software development, the FinancialForce ERP is able to provide a comprehensive and customer-centric state of the business. Furthermore, as a unified FMS ERP, it unifies the front-end and back-end into a consolidated place, eliminating workflow confusion among employees.
As a result, the leadership team has access to combined data for critical decision-making while front-line staff may carry out their responsibilities effectively. Furthermore, the FinancialForce product brings not only an FMS but a slew of business tools with it, including:
- PSA stands for professional services automation.
- Inventory management programmes
- Systems for billing and invoicing
- Accounting and financial management applications
As a result, your accounting, finance, and leadership teams will always have access to real-time data on operations and customers.
8. NetSuite Financial Management
NetSuite Financial Management is an FMS application that will seamlessly connect your company’s sales, back-office, and service activities. Its established and extensive financial management capabilities go beyond traditional accounting tools.
NetSuite financial software assists you in the following areas:
- Financial records and ledgers are closed more quickly and without errors.
- Strong expenditure management capabilities
- Revenue management that is auditable and simplified
- A real-time and holistic assessment of the company’s financial health
The application is cloud-based, allowing employees and company managers to access the necessary data from remote places. There is no need to install any additional software, and all tasks may be completed using a lightweight web interface.
Accounting, billing, budgeting, planning, financial reporting, revenue reporting, and other functions are all included.
Financial management software is essential for your company’s overall enterprise resource planning (ERP) system. Like an ERP, an FMS combines financial and operational data into a central software system that company stakeholders and management can use to make decisions.
You may begin managing your business finances with any of the tools suggested above. Furthermore, these technologies assist you in transforming your firm into a digital one for better financial data management while adhering to worldwide standards.