The Financial Management System is a powerful business solution which helps the small and large enterprises alike, with the competitive accounting functions.
The complete suite of accounting functions helps in tracking daily financial operations and generating annual and quarterly financial statements. With that, it also provides budgeting, analysis, reporting, and planning.
The three main types of the financial management system are managerial accounting, financial accounting, and corporate finance.
How Financial Management System helps an organization?
An improved financial management system helps eliminate accounting errors, ensures compliance with the accounting and tax regulations, offers flexibility and expandability for accommodating growth and change, quantifies budget planning, minimizes record redundancy, and improves performance with streamlined bill and invoice collection.
The benefits which the Financial Management System provides are:
1. Single version of truth: One can gain accurate, and real-time visibility into the activities and performance with personalized dashboards and financial reports. The dashboards can access the centralized database, which is a single version of truth for the organization.
2. Migrating the legacy data: There is a facility which helps the users in migrating the Accounts Receivable and Accounts Payable historical data from the system to the ERP. This includes the original dates, amounts, and open balances.
3. Managing multiple entities: The financial management systems integrate financials across many business entities. This includes cash management, automated reporting, and consolidation payments.
4. Streamlining operations: It can accurately handle the month-end financial activities with minimal errors. The system saves time and streamlines the workflow.
5. Working internationally and locally: The solution can help in reaching international markets with multi-language, multi-currency capabilities. It also offers localized functionality.
The Financial management software has different applications such as in currency management, recurring revenue management, deferred revenue accounting, fixed assets, mobile ERP applications, payroll management, human resources management, general ledger, accounts receivable software, and intercompany accounting.
Some of the Financial Management System software are:
1) SAG Project Finance
2) SAP Billing
4) Invest Plus
5) Lawson S3
6) LOGIC Account
7) PeopleSoft Billing
8) Workday Financial Management