Financial management systems (FMS) help you better manage your expenses, create auditable reports, and provide real-time data on the business’s finances. Some companies use a whole ERP suite which includes FMS and Human Capital Management (HCM). FMS boosted ERP sales by about 7%, and 23% of the time, the finance department influenced investment in ERP.
A cloud based financial management system can help you get rid of repetitive processes, remove the need for manual entries, and comply with local and international regulations. An FMS has many features, but these are the top six you need to know about.
Supports Scaling Businesses
You should invest in a cloud-based FMS even if your business accounting can be done manually. It is easier to implement when minor and is easily scalable to meet your company’s growing needs.
Over time, you will focus on scaling your project, and waiting until then to get an FMS can leave you spending more time importing data when you could use it to make strategic business decisions.
Helps Maintain Consistency
The more past data you have to enter, the more complex it can be due to inconsistencies in manual reports. Therefore, implementing an FMS from day one can help you maintain even reporting across the entire financial department. This creates transparency and helps provide auditable reports in any format at any time.
Without a system to record and maintain all your financial transactions, you will have multiple employees working on only book-keeping. This could be error-prone, inefficient and a waste of your resources. Besides, even a single mistake can spell a disaster for the business.
Going for a cloud-based FMS is cheaper, for small and medium businesses, than installing an in-house system. You simply pay and use the service. With an in-house system, you will need a place to install the servers that connect the entire system; months of manpower will be required to install and update the system before you can begin to use it.
You will also need a dedicated place where the system will function and a dedicated team to maintain the system. All these eat away at your bottom line.
A cloud-based system will be upgraded by the service provider automatically as they roll in. You will not have any responsibility for upgrading and maintaining the software. You only reap the benefits of the latest upgrades and tools that it offers.
If you have already been using other software, such as an inventory management system or a human capital management system, you can integrate the existing system with the FMS. This integration allows you to generate dynamic business reports that facilitate strategic decision-making.
You can generate customized reports that offer meaningful insights into your business and help you become more profitable. Integration also eliminates the need for double entries as the systems share information.
FMS comes with a robust security protocol that protects your data. The service provider maintains the system’s security responsibly, and you only enjoy the benefits it provides.
The service provider will install security software patches that keep the security updated. Also, since the service provider handles data from many clients, they will have their in-house security experts who will ensure that there are no vulnerabilities in the system.
No matter how large or small your business, your focus should be on taking it to new heights rather than accounts. This particular financial management system helps you achieve additional advantages which include better enterprise mobility, no server management, and low monthly expenses.
All these benefits allow you to focus on scaling your business. You should implement a financial management system today to get the benefits tomorrow.