Automation and technology have transformed financial management to such an extent that the roles of financial manager and accountant are no longer the same. This means the automation of many processes.financial managerthey are now better able to take on more analytical and strategic tasks within their companies or for their clients.
There are hundreds, if not thousands, of accounting software options, each offering great ways to simplify and automate different aspects of the job, and it can be overwhelming. With that in mind, we've put together this guide to help you understand what financial management software is, what it can do for your business, and some of the best software options available for your needs.
What is financial management software?
Financial management software or accounting software has become a key component of any company's financial activities. Financial management solutions give team members the power to manage and monitor all financial aspects of their organization. This includes cash flow, invoicing, money management, budgeting, financial data monitoring, financial planning and much more.
The main benefits
Here are some of the top reasons why you should consider investing in financial management software:
- automation -This is the game changer that changed the industry. Thanks to the offered automation software solutions, financial managers and accountants spend less time on tasks such as balance sheet accounting or financial reporting. Instead, they can now focus on more strategic tasks that will help their business or clients reach their financial goals more efficiently.
- Productivity -Automation streamlines and simplifies many tasks and therefore makes finance managers much more productive.
- Cloud-based flexibility -With many solutions now moving to the cloud, this means your data is synced across platforms and can be accessed remotely by teams in different departments and offices in different locations.
- Better data -Financial managers have access to more accurate financial data and reports, greatly reducing human error. Data is extracted much faster and with smarter insights.
- More compatible financial processes- Financial management software allows companies to simplify their reporting processes and comply with the strict legal or regulatory frameworks to which they are subject.
- data security -Your confidential data is better protected when you use accounting software. Many solutions allow for regular backups and include encryption to protect against data breaches.
Should you invest in financial management software?
While the benefits are undeniable, financial automation software can be quite expensive. It is therefore important to think of it as an investment and first determine whether or not such an investment is necessary.flow of kisses, one of the many SaaS services available, suggests looking at five indicators to help you make this decision:
- waste of time -when you and your employees spend a lot of time on simple financial processes that could easily be automated
- Complex processes -Are you facing increasingly complex financial processes and high levels of employee engagement?
- High volume of tasks- Your finance team's to-do list is getting bigger
- Less visibility -You get the feeling that you don't have a clear enough view of your financial processes.
If this reflects your company's situation, read on and we can help you decide which financial management software solutions are best for you.
Choosing the right solution for you
There is a myriad of accounting software solutions for your business or small business, with different features and significantly different price points. With that in mind, we decided to take a look at some of the top features to look out for and some of the best solutions they offer.
basic financial services
There are a number of basic financial services that can be automated and enhanced with the right software. This includes managing financial accounts, accounts payable and receivable, cash register and order management, general ledger, purchasing, and order management.
intact sageThe core functionality of financial services is second to none. It has an open API framework that allows integration with other business applications including CRM and payroll. Your basic financial skills are just the tip of the iceberg of all the features Sage has to offer.
Prices top out at $5,000 a year. Sage Intacct may be better suited for large financial institutions or companies with stronger needs.
The Core Financials solution fromInformationIt offers customizable and automated functionality focusing on areas such as revenue management, expense management, liquidity and accounting management, project costing and billing.
The Core Financials solution is part of Infor's ERP & Financials solution, and the company adjusts its pricing for each customer.
With expense tracking, you can manage and monitor all your business expenses. This includes everything from meals, transportation and, of course,Travel expenses professionally. This feature allows you to analyze your cash flows and incurred expenses, improving your cash management. You get real-time control and more transparency into your company's spending.
Here are some financial management software solutions with excellent expense tracking functionality:
the good thing about itTo spendis that your employees can scan receipts, add expenses and upload them in real-time via their mobile devices. This streamlines the expense approval, billing, and reimbursement process.
Prices start at $5 per month.
PayThe expense management solution is best suited for small and medium-sized businesses. It automates every aspect of your company's spending process, from real-time notifications when a company card runs out to transaction reporting and analytics. It gives you complete and flexible control over spending, including setting spending limits, card management, and easy direct-to-bank reimbursement for one-time charges.
The Divvy platform is free with the option of paid plugins.
Yokoyis an AI-based expense management system that aims to save time for employees and financial managers. Leverage its technology for smoother submissions, instant review, validation and export. This saves time for finance managers who therefore have to review flagged transactions rather than each individual payment.
Yokoy's prices are tailored to your business on a case-by-case basis.
Travel expenses can easily make up a large portion of your business expenses and are typically one of the hardest to track. TravelPerk is a complete travel platform that allows you to book, manage and report all of your company's business travel from one easy-to-use interface. travelersExpense management featuresmakes expense tracking and invoicing extremely easy. Our platform also allows with a single clickIntegrationwith some of the best finance and expense management apps. Plus, you get 24/7 access to a dedicated human support team within 15 seconds, anywhere in the world.
TravelPerk offers its customers a free account with various upgrade options depending on their needs.
The budget feature is extremely useful and can be found in many of the top financial management software solutions. Here are some budget-oriented solutions you might want to try:
to cryit's about helping your business create budgets and stick to them with financial forecasts and review processes designed to improve your financial decisions. It lets you import information from other financial management systems like Quickbooks or Xero, it offers more than 20 types of forecasting methods, and you can plan better with continuous forecasts.
Pricing starts at $75 per month.
A service offered by Oracle,NetSuiteautomates the budgeting process and centralizes your company's financial and operational data, enabling both budgeting and forecasting. You can model what-if scenarios and generate reports with a single solution.
NetSuite Budgeting and Planning is part of its ERP system solution, and the company tends to tailor its pricing to each customer.
Payroll is a monthly process that often takes hours. Payroll software automates many of these processes and manages all of your employees' financial records, from salaries, taxes, bonuses, etc. Here are two solutions that handle this very well:
EnthusiasmIt was developed especially for your team. It offers an employee onboarding service to help you complete all the initial paperwork. Automatically file and pay payroll taxes, process employee benefits, and perform all necessary compliance checks.
Prices start at $6 per month per person.
If you're in the finance industry, you've probably heard of it.QuickBooks. Another multifunctional tool that helps with bank reconciliation, invoicing, expense tracking and, of course, payroll. It's great for scheduling direct deposits, offers automated tax filings and payments, and has built-in time tracking and timesheets.
Quickbooks has several plans starting at just over $10 a month.
Inventory tracking or management lets you keep track of your inventory, knowing what's in stock and what's selling, as well as managing your invoices and orders.
Another all-in-one solutionXeroIt has a great stock tracking feature, looks neat and is very easy to use. You can use it to track up to 4,000 items, create inventory management reports, and add items to preloaded invoices.
The Xero Startup plan starts at $20 per month.
top shelfby Scout is an inventory management solution that you can access across multiple platforms. It's great for managing inventory in different warehouses in different locations, and it provides real-time updates to notify you of any issues ASAP.
Pricing starts at $90 per user per month.
Start saving money on business travel for your company today!
The 50/30/20 rule is a budgeting technique that involves dividing your money into three primary categories based on your after-tax income (i.e., your take-home pay): 50% to needs, 30% to wants and 20% to savings and debt payments.Can you tell me which software you recommend to perform financial analysis? ›
Many finance professionals use this industry-standard spreadsheet app for financial modeling. Excel allows users to create Excel models using integrated data. It's also helpful for performing subroutines, array functions, and user-defined VBA functions.
- Best free spreadsheet for anyone: Google Sheets.
- Best overall free smartphone app: Mint.
- Best free smartphone app for beginners: Goodbudget.
- Best free smartphone app for investors: Personal Capital.
- Best free desktop software for small business owners: GnuCash.
- Xero: Best for multiple users.
- QuickBooks: Best overall.
- NetSuite: Best for scaling.
- Sage: Best for businesses with international customers.
- Neat: Best for organizing receipts and expenses.
- Kashoo: Best for easy setup.
- Wave Accounting: Best for free accounting software.
It goes like this: 40% of income should go towards necessities (such as rent/mortgage, utilities, and groceries) 30% should go towards discretionary spending (such as dining out, entertainment, and shopping) - Hubble Spending Money Account is just for this. 20% should go towards savings or paying off debt.What is the 50 15 5 rule? ›
50 - Consider allocating no more than 50 percent of take-home pay to essential expenses. 15 - Try to save 15 percent of pretax income (including employer contributions) for retirement. 5 - Save for the unexpected by keeping 5 percent of take-home pay in short-term savings for unplanned expenses.What is the most powerful tool of financial analysis? ›
The best financial analysis tool is ratio analysis. It calculates ratios from the income statement and balance sheet. Also, it is the most common method of financial analysis.What is one of the most powerful tool of financial analysis? ›
1) Trend analysis
This is one of the special tools of financial analysis as it can be used to predict the impact of a range of external factors on a stock.
Investors can use Excel to run technical calculations or produce fundamental accounting ratios. Corporations may use Excel to run a capital budgeting analysis, risk analysis or discount cash flows. Options traders often use Excel to run Black-Scholes pricing.Is there a program like QuickBooks for personal use? ›
QuickBooks is primarily for businesses, while Quicken is for individuals and families.
Yes. Free accounting software does not charge any monthly fees. However, some companies may offer paid plans that include additional features, such as invoicing or time tracking.How to get Quicken for free? ›
Is Quicken available without a subscription? Sadly, no. Like so many other software packages and apps, Quicken is now only available as a subscription. As a result, you must pay for Quicken every year.Does Apple have a personal finance program? ›
Money Pro® is the one place for bill planning, budgeting, and keeping track of your accounts. Money Pro works great for home budgeting and even for business use. Easy sync with iPhone/iPad version. Money Pro is the next generation of Money app (over 2 million downloads worldwide).What is the best accounting system available today? ›
- Best Overall: QuickBooks Online.
- Best for Micro-Business Owners: Xero.
- Best for Service-Based Businesses: FreshBooks.
- Best for Part-Time Freelancers: QuickBooks Self-Employed.
- Best Free Software: Wave.
What ERP System Does Amazon Use? Amazon has been using SAP as its ERP system for its business processes. While the detailed SAP modules implemented by Amazon can't be predicted, some of the modules that have been implemented by Amazon include; SAP Basis / NetWeaver Administration.Can you live off $1,000 a month after bills? ›
Bottom Line. Living on $1,000 per month is a challenge. From the high costs of housing, transportation and food, plus trying to keep your bills to a minimum, it would be difficult for anyone living alone to make this work. But with some creativity, roommates and strategy, you might be able to pull it off.What is the 70% rule to plan your budget? ›
The 70-20-10 rule holds that: 70 percent of your after-tax income should go toward basic monthly expenses like housing, utilities, food, transportation, and personal living expenses; 20 percent should be saved or put into investments, leaving 10 percent for debt repayment.How much savings should I have at 50? ›
By age 50, you would be considered on track if you have three to six times your preretirement gross income saved. And by age 60, you should have 5.5 to 11 times your salary saved in order to be considered on track for retirement.What is the 5x spending rule? ›
It's Fidelity's simple rule of thumb for saving and spending: Aim to allocate no more than 50% of take-home pay to essential expenses, save 15% of pretax income for retirement savings, and keep 5% of take-home pay for short-term savings.How to do the 50 30 20 rule weekly? ›
The idea is to divide your income into three categories, spending 50% on needs, 30% on wants, and 20% on savings. Learn more about the 50/30/20 budget rule and if it's right for you.
In investment, the five percent rule is a philosophy that says an investor should not allocate more than five percent of their portfolio funds into one security or investment. The rule also referred to as FINRA 5% policy, applies to transactions like riskless transactions and proceed sales.What are three of the most common tools of financial? ›
The income statement, balance sheet, and statement of cash flows are required financial statements. These three statements are informative tools that traders can use to analyze a company's financial strength and provide a quick picture of a company's financial health and underlying value.What are the most popular finance tools? ›
- QuickBooks. ...
- Mint. ...
- Bit.ai. ...
- Xero. ...
- GnuCash. ...
- Wave. ...
- Expensify. ...
The three major tools for financial statement analyses are horizontal analysis, vertical analysis, and ratios analysis.What are the 12 types of financial analysis? ›
The most common types of financial analysis are vertical analysis, horizontal analysis, leverage analysis, growth rates, profitability analysis, liquidity analysis, efficiency analysis, cash flow, rates of return, valuation analysis, scenario and sensitivity analysis, and variance analysis.What is the best financial performance measure? ›
A company's bottom line profit margin is the best single indicator of its financial health and long-term viability.What is the best measure of financial strength? ›
Typically, financial strength is measured by cash flow ratios. The overall cash flow of any business tells whether that business is generating what it needs to sustain, grow and return capital to owners.Why does finance still use Excel? ›
It handles multiple datasets simultaneously. That comes in handy, for example, when a user wants to conduct a trend analysis for current inventory and inventory onboarded each month. “Excel can help you align historical and current data to design an accurate analysis,” Williams said.What should a financial analyst know in Excel? ›
- Spreadsheet Accessibility: General and Number Formatting. ...
- VLOOKUP and HLOOKUP. ...
- Making use of pivot tables. ...
- Auditing formulas. ...
- Data Validation. ...
- What If analysis. ...
- Making use of templates. ...
- Using Proper Cell Referencing.
Key Takeaways. Microsoft Excel is a spreadsheet application used to manipulate stored data. Finance and accounting professionals choose Excel for its complex analytical and computing features.
Answer: Intuit has significantly increased the prices for QB Premier 2021. The wholesale pricing has nearly doubled, and we don't expect the prices to go down. The guess is that Intuit would like to make QB Premier a subscription service like they did with QB Enterprise a few years ago.Can I do bookkeeping without QuickBooks? ›
QuickBooks is a market leader in accounting software, but it's not the only option for your small business. There are plenty of competing accounting software programs that are user-friendly and integrate with payroll. Xero and Sage, among other accounting software solutions, serve as alternatives to QuickBooks.Can I use Excel instead of QuickBooks? ›
The formulas in Excel are much more powerful than those in Quickbooks, which means you can also use Excel to perform complex calculations. It is difficult or impossible with QuickBooks because it lacks the ability to perform advanced functions such as statistical analysis and pivot tables.Do I need a CPA if I use QuickBooks? ›
Yes, you do need a bookkeeper even if you have Quickbooks. We understand that you're a small business owner, and you want to save money where you can. But relying on software alone may cost you more in the long run. Accountants and bookkeepers can offer so much more than Quickbooks.Is QuickBooks Desktop being phased out in 2023? ›
The long answer: Intuit are sunsetting some versions of QuickBooks Desktop (QBD), and it might be possible for some users to keep accessing it —though it is not recommended. From May 31st, 2023, Intuit will stop supporting these QuickBooks Desktop 2020 versions: QuickBooks Desktop Pro 2020.Do I have to pay for QuickBooks desktop every year? ›
QuickBooks Desktop products are offered on an annual subscription basis. Unlike QuickBooks Online plans, which each come with a set number of users, QuickBooks Desktop plans come with one user license. Business owners must pay extra for each additional license, regardless of plan.Does the 50 30 20 rule work? ›
Is the 50/30/20 budget rule right for you? The 50/30/20 rule can be a good budgeting method for some, but whether the system is right for you will be determined by your unique circumstances. Depending on your income and where you live, 50% may not be enough to cover your needs.What is the 50 30 20 rule and give an example? ›
The 50-30-20 rule is a common way to allocate the spending categories in your personal or household budget. The rule targets 50% of your after-tax income toward necessities, 30% toward things you don't need—but make life a little nicer—and the final 20% toward paying down debt and/or adding to your savings.Why is the 50 30 20 rule good? ›
By following the 50-20-30 rule, individuals have a plan with how they should manage their after-tax income. If they find that their expenditures on wants are more than 30%, they can find ways to reduce those expenses that will help direct funds to more important areas such as emergency money and retirement.What is the 50 30 20 rule biweekly? ›
The basic rule of thumb is 50% for needs, 30% for wants, and 20% for savings or paying off debt. From here you can adjust your spending habits to be smarter and put money in the right places!