Financial Data Management Software       

Financial data management systems allow business owners and accountants to manage the collection and maintenance of financial data. These tools can help you store, organize, analyze and manage your finances, so that the information useful to the business is always available.

In this guide, we review the aspects of Financial Data Management Software, What is financial data management, What is the best software for financial management, and software for finance students.

Financial Data Management Software

A financial data management system is an application that helps accountants and other financial professionals organize operational data. These systems can be used by small businesses and organizations as well, especially if they operate on thin margins or have limited resources. Here are some of the most popular types of financial data management systems in use today:

Data Management Software for Finance & Accounting

Financial data management software is a type of enterprise resource planning (ERP) software that is designed to help businesses manage the flow and storage of financial data.

The benefits of using this kind of software include:

  • Improved efficiency – The streamlined workflows allow users to automate mundane tasks, which leads to faster processing times and fewer errors.
  • Better accuracy – Because the system uses rules-based logic, it can detect errors before they become issues. This means you can be sure that you’re getting accurate reports every time without having to check each entry manually first. The reduction in human error also ensures that your financial reports are more reliable than ever before—and no longer subject to human bias or judgment calls about how or when things should be done! Because these programs perform calculations automatically, there’s no chance for mistakes when interpreting large amounts of data from different sources–which makes them ideal for accounting firms who need accurate results quickly!

Finance & Accounting Solutions for CFOs

Financial data management systems are used by accountants and other financial professionals to organize operational data, such as payment information and invoices. These solutions can also be used by small businesses and organizations, allowing them to manage payroll, invoicing and other financial tasks related to their business.

Financial data management systems allow users to create folders for each client or project they’re working on, making it easy for you to see where your finances are at any given time. The software provides an overview of all your accounts in one place so you don’t have to waste time looking through multiple documents. You can also schedule recurring payments automatically with this type of software; this will help reduce the amount of stress involved in managing your finances on a daily basis!

Financial Audit Software

Financial Audit Software

Financial Audit Software enables companies to organize and manage financial data, helping them improve the accuracy of their records. This software can also help you find and fix errors, as well as save time by automating tasks such as reconciling your accounts payable and receivable. And finally, it helps you stay on top of your finances so that there are no surprises when it comes time for year-end reports.

Personal Finance Reporting Software

Personal finance reporting software is a type of accounting software that’s specifically designed to help you keep track of your personal finances.

What do personal finance reporting tools offer?

Personal finance reporting tools make it easy for you to organize and analyze your spending data, so that you can better manage your money and make the most out of every dollar. The best ones have built-in features that allow you to create reports using templates or charts. This makes it easy for them to get an overview of their finances, including:

  • How much money they have left after paying taxes, bills and living expenses;
  • What their monthly income looks like;
  • Where their money goes each month (expenses);

Purchase Orders Software

A purchase order is a document that’s used to request goods and services. They can be used to track inventory, expenses, sales and vendor contracts. Purchasing managers use the tool to ensure they’re getting the best prices from vendors. It also helps prevent overspending by letting employees know exactly how much money is available in their budget for purchasing items.

Supply Chain Finance Software

Supply chain finance is a way for businesses to manage their cash flow by reducing the amount of money they have tied up in inventory and products. It allows them to sell goods and services on credit terms, which means that rather than receiving payment immediately for their goods or services, they receive payment at a later date after delivery. This enables businesses to continue operating without having all of their funds tied up in accounts receivable (AR).

Tax Accounting Software

Tax accounting software is used to manage and report on tax compliance. Tax accounting software can help you to manage your taxes, and make sure you are compliant with tax laws.

The use of tax accounting software is available to businesses of all sizes and industries.

Financial data management systems are used by accountants and other financial professionals to organize operational data. They can also be used by small businesses and organizations to manage payroll, invoicing and other.

Financial data management systems are used by accountants and other financial professionals to organize operational data. They can also be used by small businesses and organizations to manage payroll, invoicing and other.

Financial data management software is designed to help firms or individuals who want to track their financial transactions in one central place. It provides a way for you to review, analyze and understand the flow of money through your business or organization.

The software allows users to track cash flow and expenses without having to manually enter every transaction into a spreadsheet or database program like Excel. Instead, you simply use an interface that’s specifically designed with these functions in mind—so it’s easy enough even if this isn’t part of your regular job duties!

What is financial data management

Gartner defines “financial data management” as “a set of processes and policies — usually assisted by specialized software — that enable an organization to consolidate its financial information, maintain compliance with accounting rules and laws, and produce detailed financial reports. Financial data management maintains a logic-driven data structure (such as a chart of accounts) to provide different snapshots of financial data.”

Broken down into more simple terms: financial data management (FDM) provides stakeholders access to a single source of financial truth that is continuously updated and accurate (nothing stale, missing, or incorrect — and all compliant). This paradigm results in greater accuracy, real-time insights, and more actionable outcomes.

The need for financial data management solutions in this digital world is obvious: the volumes and forms of financial data are growing so exponentially and unwieldy that rigid ERP systems can’t keep up by themselves. In other words, ERPs can’t handle the demands of today’s finance operation alone. Managing today’s finance operations with yesteryear’s approach doesn’t work — there is just too much data, too many disparate, siloed applications, and too much complexity boggling finance teams down.

And that’s why financial data management is now a hot topic. So, how does it work?

Centralize your financial data into one single source of truth

Financial data management consolidates data from your existing financial systems to centralize into one single source of truth. FDMs have pre-built APIs that pinpoint and pull data from specific financial accounting endpoints, drastically reducing finance reliance on engineering teams.

Turn your financial data into a transaction story you can trust

Connected financial data serve as the foundation for better insights, faster results, and more actionable outcomes. But to connect financial data, you must normalize your various data models.

FDMs enable that by providing a consistent graph data model which allows separate data sets to be combined and normalized. The benefits of normalization are immeasurable when it comes to making sense of data extracted from different financial systems.

Think of “normalization” as each financial system speaking a unique “data language”: French, German, Chinese. A financial data management solution is fluent in all of these languages, and can adapt to learn more. Each financial system tells a different part of the story of a transaction – from invoicing to payment – so FDMs can piece together the entire story of your transaction without missing any parts.

A graph data model creates and tracks the entire journey of a financial transaction. To properly tell the story of a financial transaction, CFOs need to understand the financial data and the underlying business events. A graph data model tells the whole story of a financial transaction without any gaps.

According to Gartner, by 2025, data stories will be the most widespread way of consuming analytics. Augmented analytics techniques will automatically generate 75% of those stories. But, for your data to tell you a trusted story, it all needs to speak the same language – that’s where FDM’s normalization capabilities shine.

Powerful financial accounting rule engine and reporting

Every FDM solution has an embedded financial accounting rule engine in which you can apply accounting policies in pre-built templates to generate transaction-level journal entries. Solutions must have the capability of decomposing transaction scenarios into a series of journal entries and provide rules at the event level. In addition, FDM solutions must have the capability of re-ordering the rules dynamically, depending on the transaction scenario.

Ultimately, a FDMs are designed to enable timely and accurate reporting. Summarized journal entries can be posted to your ERP on a daily basis. Your resulting cleaned financial data is accessible to your ERP, BI tool, and data warehouse.

Proof points for next-generation financial data management

More companies are realizing that a next-generation financial data management solution makes all the difference in the digital world.

The live event ticket platform company SeatGeek recently selected a financial data management solution because it was the only one with a revenue subledger supported with a layer of business logic and intelligence. This offered the company the ability to track the entire journey of a transaction. The ability to capture transaction data with a graph data model that continuously monitored the various business events associated with the transaction itself was a game changer to supplement the rigid relational data models of ERP systems.

Canva, an online visual communication and collaboration tool company, also chose a next-generation FDM. The company needed easy access to a single source of truth for revenue data with pre-built integrations with Apple, Google, and payment providers. With a custom API integration with Canva’s internal billing system, the team can proactively address problems before month-end at any time, any day.

Next-generation financial data management solutions turn data into a strategic resource by eliminating data silos and unifying information from all areas of a company’s business activities. Next-generation FDMs enable economies of scale in a digital world. They meet the challenge of today’s scaling data volume and variety and manage it with veracity. The future of financial data management is here — now.

What is the best software for financial management

A financial management software (FMS) connects, creates, reports, and stores various transactions related to cash flow throughout the business. 

The primary purpose of any financial software for businesses is to count the money in circulation within the organization, affiliated vendors, and customers. It helps the treasurers and finance managers manage the to and fro movement of resources. Thus, businesses of any size need a basic accounting solution to report credit and debit transactions.

Why Do You Need a Financial Management Software?

For many years, businesses thought a comprehensive financial management solution was only for enterprises and multinational companies. However, the thought process changed since many software as a service (SaaS) providers offer robust on-premise or on-the-cloud FMS subscriptions at an affordable price to attract businesses.

These days, SMBs are also going for a scalable FMS for the following reasons:

#1. An online or offline FMS tool can help you eradicate financial errors like overpayment or underpayment of tax, payroll errors, overpayment to vendors, etc. This way, your business can stop leaking money as waste and invest that in operations instead.

#2. Standard FMS solutions come with an advanced reporting and analytics system. The leadership team can generate actionable reports on business revenue with a few clicks to show the investors past, present, and future growth trends across products and markets.

#3. SMBs need to get financial management software for enhanced financial and data transparency across all the departments. Else, the leadership will have to rely on guesswork and lose control over money flowing out of the company.

#4. FMS providers constantly update their tools as the accounting standards and tax codes change globally. Thus, you don’t have to assign a team of accountants to include the latest tax changes or accounting practices into your book manually.

Must-Have Features of a Financial Management Software

You can’t just grab any FMS tool online. The tool needs to offer the standard features and functionalities so that you get value for money. Here are the features that you should look for in an ideal FMS tool:

#1. General accounting module to cover accounts payable (AP), payroll, accounts receivable (AR), general ledger, etc.

#2. An FMS should also include a dedicated tool to manage cash, revenue, and treasury. 

#3. You’ll also need functionalities like budgeting, planning, and forecasting in your FMS platform.

#4. To ensure your business complies with all local and international laws, you need governance, risk, and compliance tools in an FMS.

Below is the ultimate list of the best financial management tools for small and mid-sized businesses (SMBs).

Workday

Workday is a renowned brand for business applications. One of its most subscribed tools is its finance management solution. SMBs use this tool to focus more on financial transaction analysis and planning than processing the transactions. Also, Workday updates its tools and functionalities more often so that your business can stay relevant in the market.

Furthermore, the Workday FMS tool employs state-of-the-art data processing technologies like machine learning, object data modeling, and in-memory computing for financial transaction anomaly detection. The tool can also provide intelligent and practical recommendations based-on your business process and finances.

Hence, with the Workday finance system, you need to invest less time in managing the routing transactions and processes. You can invest time savings in business areas like marketing and sales to improve revenue collection.       

Causal

Causal is a simple spreadsheet tool, just like Excel, without the complexities of Excel. Your accounting and finance team can use this tool to perform complex business finance calculations like scenario planning, data forecasting, and data modeling. Additionally, the tool allows for intuitive and interactive data visualizations in freeform texts, tables, and charts.

You can also integrate Causal with business data sources like accounting software, ERPs, and hosted databases. Doing so will allow your teams to pull data from these sources and incorporate live data or historical data in business reports. 

Therefore, the product is appropriate for startups, not-for-profit organizations, cryptocurrency businesses, finance teams, and marketing teams.

Sage Intacct

Since 1999 Intacct has been the leading service provider that offered tailored cloud-based FMS tools for small and medium-sized businesses. Additionally, it has been the pioneer in amalgamating finance and accounting with cloud technology and bringing the FMS tools online, accessible from anywhere.

Moreover, it has been the preferred source for advanced financial applications for the AICPA or the American Institute of Certified Public Accountants.

Sage acquired Intacct in 2017 and branded the FMS tool as Sage Intacct. It has become a vital part of the Sage Business Cloud. The new FMS comes with separate program cores like Core Financials, Advanced Functionality, Dashboards & Reporting, and Billing to cater to all the needs of global SMBs.

Xero

Xero is an elaborate accounting tool that lets small and medium businesses enter bills, send quotes to clients, send invoices to customers, digitize receipts with Hubdoc, bulk reconcile transactions, etc.

However, you can also subscribe to their add-ons like Claim expenses, Analytics, and Track projects to transform the accounting tool into a robust FMS. Furthermore, it offers you bonus built-in functionalities like project finance tracking, contact management, secure file storage, inventory management, etc.

Xero brings all the accounting and finance features to the table to enable SMBs to manage their business efficiently and achieve profitability goals. With its more than 20 features, the Xero dashboard will be in control of your business finances.

The dashboard brings cash flow statements, account balances, bank reconciliations, outstanding invoices, and specific business products in one place so that you can keep track of your company’s health.       

Kissflow

Kissflow is not just another finance management solution. It is a unified tool that enables your finance team to do everything an ERP tool can’t deliver. For example:

Furthermore, the graphical user interface (GUI) and visual elements of Kissflow lets SMBs customize the app effortlessly depending on the products and services the business offers.    

FinancialForce

FinancialForce is another popular name for business financial management, planning, and analysis. Its FMS ERP has been developed on the cloud-based Salesforce development platform.

The intelligent software programming enables the FinancialForce ERP to deliver a comprehensive and customer-centric status of the business. Furthermore, being a unified FMS ERP, it brings front-end and back-end in one centralized space without creating a workflow doubt among the employees.

software for finance students

Is finance management software really all that it claims to be? Can it really step in and help streamline key finance processes in your business?

And the crucial question: is it really worth investing in?

These are the questions we’ll take a look at, to see how well finance management software tools fit into workplaces today. Looking closely at the answers to these questions, we can delve into the true cruciality of finance management software, and whether it justifies your investment.

Top 6 Finance Management Software

Here are some of the best financial tools that you can start evaluating before choosing the one that suits you best:

1. QuickBooks

QuickBooks is a standard comprehensive financial management tool geared towards small and medium businesses and accountants. It helps you with bank reconciliation, invoices, tracking expenses, payroll, and advanced reporting. There are both cloud and on-premise solutions.

While on the more complex side, it’s powerful features offer a compelling reason if you usually deal with high volumes. A small business with limited requirement might find QB a bit overwhelming.

Suitable for: Accountants and Enterprises

Pricing: Quickbooks has multiple plans starting from $10/month.

2. Kissflow Finance & Ops Cloud

While not exactly a finance management tool, Kissflow is designed to help you develop a system of approval workflows for finance processes. There are pre-built apps for purchase orders, invoices, expense reimbursements or you can create your own, depending on your requirements with zero coding. With standardized approval flows and fairly automated processes, you can make finance process automation a complete breeze.

What sets Kissflow apart is that its visual interface lets you customize the apps based on your needs. There’s no coding required, regardless of the complexity. If your finance processes involve a lot of approvals and repetitive tasks, give Kissflow a try.

Suitable for: SMBs and Enterprises

3. Zoho Finance Plus

Zoho’s finance suite breaks down departmental silos and offers an end-to-end integrated platform for all your back-office operations: accounting, invoicing, inventory, expense management, and tax compliance. The suite delivers flexible, scalable, and secure applications to manage your entire finance process.

Every app is accessible from the rest making the usage seamless. The granular user roles limit access based on your needs and you can customize them to the smallest detail.

Suitable for: Small and medium businesses

Pricing: There’s a free 14-day trial after which the monthly pricing is at $149/organization.

4. Xero

Xero is an accounting tool that lets you create professional recurring invoices, reconcile bank and credit card statements. It also helps businesses with purchase and sales orders, contact management, payroll and inventory management.

Xero is light-weight and easy-to-use.

Suitable for: Small and medium businesses

Pricing: The starter plan starts at $20/month with optional purchases.

5. Oracle Financials Cloud

Oracle Financials Cloud is an ERP system that’s completely based on the cloud. It’s a scalable, comprehensive, and integrated ecosystem of finance tools. While on the expensive side, it might be a good choice for enterprises that look for more control and scalability.

Suitable for: Enterprises

Pricing: $600/user/month with a minimum of 10 users.

6. Sage Intacct

Sage Intacct’s applications are suitable for small and midsize companies, helping them manage the general ledger, accounts payable, accounts receivable, cash management and order management. With an open API structure, you can integrate them with other business applications like CRM, payroll, or POS systems.

Suitable for: Though enterprises find the value, it may not be the same for small and medium businesses

Pricing:  The base price of $5000/year makes it one of the costliest options in the market.

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