Financial management tasks are at the heart of every business. Despite the increasing adoption of technology in so many aspects of a company's daily life, many businesses are still a step behind when it comes to up-to-date integrated financial management software.
That's because many business owners equate financial management with accounting. Accounting is about logging financial facts and reporting the flow of assets and funds in a business. Financial management is about using and controlling the company's resources to the highest possible level.
An integrated financial management system is software that's designed to optimize financial decisions. Financial software can include many accounting functions, which is why there's some confusion between accounting and financial systems. Financial management software can do everything from accounts payable and receivable to budgeting, from cash management to general ledger.
But accounting functionality is just the tip of the iceberg for financial management systems software. The software's goal is to use accounting data to provide actionable insights. For example, by better understanding the spending management reports the software delivers, managers can better understand how to cut costs.
So what other benefits can a finance system provide?
How To Have a More Efficient Financial Process?
The main goal of business technology is to reduce the time we spend doing routine tasks. By simplifying or automating the tasks involved in financial analysis and planning, companies are able to reduce the hours and wages it takes to conduct thorough financial management. The time it takes to resolve reconciliations, for example, can be greatly diminished.
By streamlining your financial process, your management team and financial department can focus on increasing revenue and driving customer engagement. Reduced time spent on recurring financial tasks also means your financial staff can focus on projects they haven't been able to complete and continue to drive innovation.
As increased efficiency improves employee performance, it can also have a dramatic effect on employee satisfaction.
What about Accurate Information Aids Decision-Making?
Another component of an efficient financial system is a reduction in errors. By automating and streamlining as many tasks as possible, financial management systems give more accurate information. More accurate financial information allows the management team to make decisions that are based on hard data. Accounting financial software can also collate and organize the massive amount of data many leaders are faced with every day.
Financial software systems also deliver that data in real time, so a company's leadership will always make decisions based on the most current, accurate information that's available. More realistic plans allow for more achievable outcomes, and that is the goal of financial management software.
Greater Visibility Into Financial Operations
Having access to the most current information is important because so many companies find themselves constantly reacting. A finance system will help your business be more proactive by increasing visibility into the true financial situation of your business.
Understanding the weaknesses of your organization will also help you be agile and adaptive. Accounting financial management software will help you draft a strategy, but it will also give you the insights to adjust when the inevitable change of plans occurs.
Financial management software can also integrate with most (ERP) enterprise software, allowing you more connectivity and enhanced visibility across the whole organization. That's even more important if your team or your company is spread across many locations.
Eases Compliance Issues
Regulatory and tax requirements can take up a valuable chunk of the time you and your staff need to run your business. Financial management system software can track your revenue and expenses on an ongoing basis so there's no big crunch when it comes time to fill out your returns.
Because regulations and restrictions are constantly changing, updated financial software will also make sure your business is in line with the current environment. A compliance violation can be quite costly for your business.
A main reason why many companies find themselves in hot water is due to outdated accounting procedures that still use too much paper or too much copying and pasting. A streamlined financial system highly mitigates those risks.
It can also reduce the risk of fraud and criminal activity that can arise both inside and outside of your company. Accounting financial software can alert you to suspicious activity when it happens, so you can take fast action.
How Financial Management Software Benefits You?
Financial management system software eliminates routine accounting tasks and reduces errors. That means you'll have a much more productive finance staff that's able to be proactive and work toward your company's goals instead of dealing with financial fires.
More accurate financial information means you'll understand what's working and what isn't in your business. Having access to accurate, up-to-the-minute data means you'll be able to make better decisions and pivot when plans go awry.
An optimized accounting financial system also means that tax time will be a much more simplified process and that you'll lower the risks of a compliance violation.
If your accounting financial management system is behind the times or your ERP isn't giving you the support you need to run your organization, contact us now. Multiview Financial Software's cutting-edge accounting financial management software can streamline and maximize your financial operations.