25 Best Financial Management Software in India 2021

A financial management system is a blend of the methodologies and tools that allow businesses to keep a record of their income, expenses, and other assets. This record is crucial to maximizing the profits and for the sustainability of the business.

There are a number of things that are taken care of by an efficient management system. It aims at improving the business performance both in the short and long-term by streamlining the invoices and bill collection, minimizing the redundancy, removing accounting errors, helping with budget planning, and offering the flexibility for accommodating change and growth.

There is no doubt that financial management is the topmost challenge that every business faces. Whether it is a newly established business or a successful one, it needs to deal with many financial complexities. Without financial management software, you will not be able to track how much profit the company has earned or how much it had to pay for as a loss. As the business management authority has many other core tasks to focus on, they find difficulty in keeping a record of their finances. And as it is a confidential task too, they hesitate to give it to a person unless he/she is a trusted one.

This difficulty faced by business organizations has given rise to the use of financial management systems. If you wondering what such a system is all about, here is all that you need to know about the financial management system.

1. Complete Management of Accounting Procedures

Financial management software streamlines all the financial processes of the organization from start to finish. It includes the management of accounts receivable, accounts payable, payroll, cash flow, small and big purchases, and all other procedures related to finance.

2. Prediction of Future Trends And Relevant Planning

A financial management system allows business organizations to use their historical data for predicting future trends and patterns in expenses, income, and revenues. It also lets businesses to understand the market conditions, which in turn allows them to do accurate planning for the future.

3. Worldwide Financial Support

Financial management software provides businesses with the tools and technologies they need to coordinate activities among multiple departments and manage their financial tasks all over the world. The support for languages, multiple currencies along with their conversion, laws, and guidelines specific to each country are the things that are well supported by financial management software.

4. User friendly

If a software solution is not user-friendly and is difficult to understand, the user will feel discouraged as it will be a time consuming and complicated task for him. Since every individual does not necessarily have the technical knowledge, it is important that the interface of finance management software should be user friendly. For this reason, being user friendly is probably one of the most important features of any software.

5. Automatic update

A good business financial management system should automatically update itself. This helps the client to take advantage of all the new features that are added to the software from time to time.  A client would like to invest in software that saves his time and is completely automatic and not one that needs to be updated from time to time. If the software is not automatically updated, it will also affect the reports and records inside it.

6. Scalable

A business is meant to grow. So a business that is small today can grow to be big tomorrow and bigger later. Good software is one that grows with the growing needs of a business. It is not just expensive but also an unwise decision to change the software with the growing needs of a business. So it is important that the financial software used by the business updates and upgrades itself with the growing size of business.

7. Security

Financial software means one that has all the financial data of a business and there is nothing more important than keeping that data safe and secure. One of the basic features to look for in any financial software is the level of safety it offers. Make it a priority while choosing one for your organization

1. Financial management software will cost you less than hiring a specialized CFO (Chief Financial Officer).

2. You can use the software when you need it.

3. Good software provides you with ad-hoc capabilities to do an advanced analysis of your finances.

4. A good financial management software lets you know the strengths and weaknesses of your business as you can easily visualize how your business was, how it is, and how it can be.

5. Best financial management software comes as a breather, especially for large business enterprises. The incorporation of finance software helps to streamline all the financial and accounting processes and there is a direct positive impact on the efficiency of the business as well.

6. Besides streamlining the financial processes, financial software also helps an organization to centralize all its financial information. Doing so also makes all the information readily available to the users in different departments, units, and branches of the business. This makes the information both accurate and consistent.

7. The use of financial management system software helps the financial executives of the business to analyze, plan, and frame better strategies. With such software by their side, they are in a better position to tap into better business opportunities as well.

8. Financial management solutions also facilitate the task of regulatory compliance for businesses. Since there is a solid compliance framework, business organizations are also able to minimize their risks.

Open source financial management software can be of great assistance to help you manage your finances. It brings to you a wide array of options to assist you and make your financial management easy and quick. Right from tracking your personal bank accounts to managing your small business, this software can help you manage and track your finances very well. There is numerous financial management software available on the internet which are open source and can be utilized depending upon your needs. The impressive highlights of open source financial management software are

1. Helps in carrying out financial calculations

2. Schedules transactions

3. Transaction matching

4. Representation of reports and graphs

5. Meets small business accounting needs

6. Double-entry accounting, etc

The best thing about this software is, it can be customized according to the needs of the clients. It helps you take your business to the next level when you are able to control the way it is processed. You can share what your needs are and it can be customized according to your needs. The software also comes with several extensions, which can be installed to enhance the efficiency and growth of your business.

To search and utilize the best financial management software, you must conduct thorough market research. When you are looking for open source software, you must keep in mind what your present needs and future requirements are. You can also go on reviewing websites to know the efficiency and performance of the software.

Issues with offline and/or online financial management tools have been mostly generational so when it comes to the challenges faced by finance software, they are mostly related to this generation being digital. 

Here are some of the major issues with Finance Software:

1. Cybercrime

With the rise in the use of technology, there have also been augmented cases in cybercrimes too.  According to statistics, data breaches involving the finances have increased manifold within a year. If we want to keep the financial data secure, your online financial management tool must be secure and reliable enough.

2. Use of big data

There is an immense quantity of unstructured data that goes into the usage of financial software. While the mammoth amount of data serves as an asset, it also becomes an obstacle in different ways. Finding useful information from such enormously sized unstructured data is no child’s play. Thanks to the data analytics solutions, things are looking into better directions.

3. Reluctance to use modern technology

It might sound surprising but the facts prove that a very thin percentage of financial companies prefer to use modern methods such as cloud-based technology. A large percentage of people prefer to use the traditional form of banking and are reluctant to use technologies and software.

4. Changing Regulatory Compliance

The regulatory compliance in the finance industry change constantly this becomes challenging for finance software as well. However, several companies are emerging with solutions to resolve compliance issues and help the finance industry. 

There are three types of buyers basically. The first category consists of small business buyers and others are best-of-breed buyers and enterprise buyers. The financial requirements of all these buyers are quite different from each other. The small business buyers would look for other things than the two other types of buyers. Therefore, when you are looking for opensource software, keep in mind your business needs and then search for the one that best suits your needs. When you purchase software in line with the needs and size of your business, it is definitely going to enhance the efficiency and performance of your business.

Finance is undoubtedly the lifeline of any business. It is a crucial part of any business and needs to be handled and managed with care. Failing to manage your finances can make you face losses and troubles. Hence, it makes sense to take good care of your finances so that you are able to keep a finger on the heart of your business. When everything is managed and well-taken care of, then chances are there that it will take your business to the pinnacles of success. The open source financial management software can be of great help to manage your finances so that you can concentrate on other core areas of work.

Financial Software can be broadly classified into two categories — Financial management system software or money management software and Tax management software. 

While top financial management software helps in managing investments, planning, banking, and income flow, tax management software aids in the preparation of tax forms, and e-filing of taxes. Here is the list of software and services related to finance management software

1. Accounting Software

Accounting software takes care of all the financial transactions of an organization and also automates them. The different elements of accounting software are general ledger, billing, accounts payable, accounts receivable, and payroll.

2. Budgeting Software

Budgeting software helps an organization to maintain an equation between its financial resources and expenditures. All the operations related to budget management and distribution.

3. Financial Risk Management Software

Financial Risk Management Software examines and evaluates credit and market risk intended for financial institutions.

4. Billing and invoicing software

Billing and invoicing software automate the procedure of generating invoices and sending them to the customers. It also automates receiving payments. This category is also counted as the best personal financial software category because most of the individuals need this functionality only.

5. Financial Reporting Software

As the name suggests, financial reporting software automates the job of reporting the financial results, transactions, and financial status of an organization.

6. Fund Accounting Software

Fund accounting software is used by non-profit organizations, government agencies, private foundations, private bankers, alternative asset managers, etc. It helps in the automation of accounting functions and the management of portfolios.

7. Revenue Management Software

The basic functioning of revenue management software involves optimizing prices based on different factors, such as, offers by competitive businesses, demand, and seasonality. This optimization of prices helps the businesses to attract more customers and thus, generates more revenues.

8. Financial Services Software

Financial services software is used to take care of everyday operations of the organizations that offer financial services to the general public or other businesses. These include banks, credit unions, or other similar organizations

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