Financial Management Software might solve the problem

3 Jun

For the past two years my main concern was to find what I am going to do after I finish my studies. Nowadays it is really hard to find a nice position in the desired field because the competition between the highly qualified professionals is really intense.

Thanks to my parents I am lucky to study in prestigious educational institution, which would contribute to my future career. I was also recently appointed as a technical consultant in a project development company, which to a great extent enabled me to see how one international organisation functions. What I derived as a conclusion was the fact that in order to develop a reliable company’s strategy for the future, you need to have up-to-date financial information that you can rely on. Constantly being aware of the financial strengths and abilities of your company would help you maintain steady economic growth. Motivated by this idea I want to tell you a little more about how companies can better manage their finances by using Financial Management Software.

 

In order to illustrate to you why companies should actually use such kind of software, I want to present one comic book style video from Lawson software. This interesting video represents the challenging life of the Chief Financial Officer of a company and how, by the introduction of new enterprise financial management system, he is able to “safe the day”.

We live in a very dynamic and unpredictable world. That is especially true for the business world as nowadays more and more companies fall victims of the global economic downturn that national economies experience. It is clear that when the company is not performing well, managers should first look at company’s finances, whether there are any possibilities to increase the profit.

How Ken Pride says in his post “Financial Management Software Secrets” even in period of recession, using good financial software, can not only help make sure that the business would survive but also enhance its profitability. He also mentions that Financial Management Software is not just accounting software that only simplifies the job of the accountant, but a powerful tool for providing information for important strategy choices. It is especially important for the planning process because it provides accurate and up-do-date information, on which plans can be based, and managers can decide where savings can be made, to optimize the work of the company, which would lead to increase in profits. There are six key features that I find very relevant to choosing the right financial management software, which are: Reliability, Robust, Flexibility, Simplicity, Integration, and Expandability.

 

I found one very interesting post by Michael Camp called “3 Steps to Growth Using Financial Management Software”, where in the beginning, the author presents what is the satisfaction when the financial metrics are produced manually. He writes that financial departments spend 50 percent of their time on transactional activities, and nearly 60 percent are not satisfied with their financial forecasting and analytical capability. Choosing the right software is really important, but we need to be aware of the fact that this software would not control our organization by itself. According to Michael Camp and others in the field of finance, in addition to the Financial Management Software, three ongoing activities must be put in place, and these are:

1. Performance Monitoring

2. Data Analysis

3. Future Planning

By repeatedly performing these three core activities when using Financial Management Software, managers can develop an efficient plan for the future of the company and as a result increase the company’s profit.

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