The Importance of Financial Management Software
Financial management software is the backbone of any company that manages and provides insight into the most important areas of the business. It’s important to understand what financial management software is and what it can do for your business.
Implementing the right software is a great way for organizations to scale their operations, manage finances and improve workflows. Software for small and medium companies can help with everything from sales and marketing to accounting, billing, and employee payroll management. Companies not wanting to spend all their time on accounting need a solution that’s as high-tech as the services they offer. Having software that tracks all the transactions that take place in your company is a must if you want to grow.
A software solution for financial management, especially one that supports powerful automation, solves the most mundane and meaningless tasks such as transferring documents between departments. Selecting the right software solution lets finance managers and accountants spend less time on tasks such as balance sheets or financial statements, instead, focusing on more strategic activities that will enable their company or client to achieve their financial goals more effectively – this can save an inordinate amount of time and energy that’s typically wasted on repetitive work, freeing up company and employee time for more important tasks.
Why Microsoft Dynamics 365 Finance
A scalable accounting software platform that can grow as your business grows is an increasingly important asset. If your accounting software can’t grow alongside your business, sooner or later you will need to switch to a new system to avoid the costly hassle of moving to a new system when your current software can no longer manage.
With today’s technological advancements, today’s small and medium-sized CXOs must carefully select a financial management and accounting system that gives them a clear view of the company’s finances and allows them to easily tackle current problems and future challenges. Products like Microsoft Dynamics 365 Finance are designed to provide businesses of any size a complete set of accounting tools that can handle credit and debit, bank reconciliation, project management, and more.
The latest versions of Dynamics 365 include new finance-focused features and make the best use of AI to provide predictive information to help you make strategic financial decisions. Modern financial management capabilities include helping CFOs monitor performance in real-time, predict future results, and make data-driven decisions that help drive business growth and performance.
Some of the stand-out capabilities of Dynamics 365 Finance when it comes to financial management include;
Expense Management
Included expense management functionality lets businesses create integrated workflows where you’re able to safely store payment information, import transactions, and track expenses in full detail. On top of this, you can easily automate reimbursements and set up expense policies.
GL and Financial Reporting
Create and maintain financial statements, and manage all of your organization’s financial records, including all registered debit and credit transactions on your general ledger, which can be classified by a chart of accounts.
Cash and Bank Management
Cash and Bank Management is used to manage legal entity bank accounts and any associated financial instruments, including things like promissory notes, receipts, bills of exchange, and checks, and reconcile bank statements and generate bank details in a standard report. Additionally, D365 offers support for multilingual and multi-currency transactions, letting you operate in different countries in full compliance.
Cost Management
Cost management in Dynamics 365 Finance allows you to define, manage, report, and estimate costs for raw materials, semi-finished goods, finished goods and work in progress. You can customize accounting policies for inventory and production accounting, including predefined costs, overhead cost accounting, and integration with ledgers.
Budgeting
Budget control allows organizations to plan their spending reliably and ensure they always have enough budget to buy the important things and the things they need to run their business effectively. Whether long-term or annually, fully supported budget planning can be directly integrated with Microsoft’s Office line of products, like Excel, which lets you access external data sources and utilize Pivot tables, graphs, and more.
Final Thoughts
While having a well-organized accounting system is vital to business operations, it’s more important to establish control over your financial management to succeed. a financial management system like Microsoft Dynamics 365 Finance provides the structure and tools necessary to scale business operations.
Financial management software can not only help you reduce human and calculation errors, but also gain valuable information about your business which is difficult to see on paper, such as generating sales forecasts for the next quarter, identifying the least profitable services, and determining which positions are in abundance. All of these (and many more) benefits together to make financial management software a valuable tool for any business.
The most advanced financial management systems to date will help you with this by incorporating artificial intelligence and machine learning to gain insight into future cash flows, predict when bills will be paid, and transform unexpected shortages into predictable events that can be planned.
