The Complete Guide to Choosing the Right Financial Management Tools
December 7th, 2018 • Finance
As a business owner, you’re responsible for the financial health of your organization. It’s crucial to plan, organize, control, and monitor all the money that’s coming in and going out. You need to maximize profits and cut down on costs while maintaining a steady cash-flow.
There are purchase orders that need to be sent, invoices that need to be followed up, budgets that need to be approved, and reports that need to be run. Does it already feel like you’re juggling dozens of balls in the air? Fortunately, there are plenty of financial management tools to help you with these finance processes. But which one is best for you?
What Are Financial Management Tools?
Financial management tools let you manage the day-to-day and quarter-to-quarter financial planning for your organization. These tools will let to manage your accounts, create financial reports, process payments, handle payroll, and manage budgets. Finance management tools are an all-in-one solution to the financial needs of a business.
When Do You Need a Finance Management Tool?
A manual system with spreadsheets has no place in a fast-growing environment; it can slow you down with incomplete information, repetitive tasks, and limited accessibility. Usually, there’s a bunch of common information shared between multiple teams that can help you make faster, smarter decisions. For example, when creating an invoice, you may need to pull information from a CRM and finance accounting tool. Then, you may need to get the invoice manually approved by others.
When you’re using spreadsheets or siloed software to manage different financial processes, you’ll have manually enter the same data over and over. This results in an incredible waste of time and is often prone to errors, which could lead to non-compliance when the taxman comes knocking. Connecting all these systems is vital to ensure everything runs smoothly and efficiently.
If you’re looking to improve efficiency and eliminate errors, then you start exploring finance management tools.
What to Look For in a Financial Management Tool
A finance management tool should ideally help you keep track of all expenses, assets, sales, and purchases. It should also give you clarity and visibility into the company’s finance business processes with insightful reports that can help you solve current and future problems.
Here are a few things your financial management tool should be able to handle:
- Purchase Order
- Invoice Processing
- Asset Management
- Budget Approvals
- Expense Management
- Advanced Reporting
- Tax Law Compliance
Things to Consider Before Choosing a Financial Management Tool
Now that you’ve decided you need software to manage your finance process improvements, the good news is that there are a ton of options out there. The bad news is that there are a ton of options out there.
Evaluating all financial management tools and finding the one that fits you best requires considerable resources and time, which you’d rather spend on other productive tasks.
Here are a few things you should consider before you zero in on a financial management tool to whittle down that huge list.
You’ll have to figure out how much you are willing to spend on a financial management tool. The budget should also take into account the cost of setting up the software, training costs for employees, support and maintenance fees and upgrades.
You don’t want sensitive financial information doing rounds in the office cafeteria, do you? Likewise, the problem with giving everyone unrestricted access is that there is every chance that your financial data is under risk. Limiting access too much could make it hard for your employees to do their tasks efficiently. You need a financial management tool with granular roles so you can control who gets access to what.
You need a financial management tool that grows with your business, accommodating all your needs as you grow. When you outgrow your software, bottlenecks form which directly impact your efficiency. Once you invest time and money in a financial management software, it will be difficult to migrate data into another system.
Cloud vs. On-Premise
You need to consider if an on-premise application or a cloud application would suit you best. Both these systems have their own advantages. A cloud based system gives you access from anywhere, anytime. Upfront costs are lower and your data is always backed with a cloud solution. On the other hand, on-premise systems are relatively expensive but your data is locally hosted, so you have complete control over it.
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Here’s a List of Top Six Finance Management Tools for Your Business:
Zoho Finance Plus
Zoho’s finance suite breaks down departmental silos and offers an end-to-end integrated platform for all your back office operations: accounting, invoicing, inventory, payroll, expense management, and tax compliance. The suite delivers flexible, scalable, and secure applications to manage your entire finance process.
KiSSFLOW [ Try for free now ]
While not exactly a finance management tool, KiSSFLOW is designed to help you develop a system of approval workflows for finance processes. There are pre-built apps for purchase orders, invoices, expense reimbursements or you can create your own, depending on your requirements with zero coding. With standardized approval flows and fairly automated processes, you can make financial process automation a complete breeze.
QuickBooks is a standard comprehensive financial management tool geared towards small and medium businesses and accountants. It helps you with bank reconciliation, invoices, tracking expenses, payroll, and advanced reporting. There are both cloud and on-premise solutions.
Sage Intacct’s applications are suitable for small and midsize companies helping them manage the general ledger, accounts payable, accounts receivable, cash management and order management. With an open API structure, you can integrate with other business applications like CRM, payroll, or POS systems.
Oracle Financials Cloud
Oracle Financials Cloud is an ERP system that’s completely based on the cloud. It’s a scalable, comprehensive, and integrated ecosystem of finance tools. While heavy on the expensive side, it might be a good choice for enterprises that look for more control and scalability.
Xero is a finance management tool that lets you create professional recurring invoices, reconcile bank and credit card statements. It also helps businesses with purchase and sales orders, contact management, payroll and inventory management.
Automation Increases the Overall Efficiency
Managing an organization’s finance process improvements is hardly a walk through the park because of the sheer amount of manual work that comes with it. It becomes necessary to have automated processes wherever you can to run a more efficient business. Options like KiSSFLOW can help you with that.
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