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Financial management solutions: 3 functionalities to consider when evaluating a financial management software

Posted by Minh Nguyen Quang on

Financial management
is the crucial part of every organisation. It helps them manage
and understand every aspects of their business from accounting to project
management and strategic planning. When the financial management system cannot
work in a jointed way, it is likely that the consequences will affect the
profitability and the success of the organisation.

Whether you are deciding to adopt a financial management
system or you are already having one, you should consider the three following areas
in order to decide if the system could provide you ultimate solutions:  reporting,
system integration, and functionality.

Reporting ability

Reports! Reports! I need reports! Do you remember how many
times you have to repeat this to your accountant at year end, month end or whenever
you need reports to back your decision?  You
know that generating a financial report always is not a fun at all.

Why is it such a difficult task to do? Think of your current
reporting process, the financial information and transactions resides or is
recorded in multiple systems. To generate a report, you have to gather data
from different systems then extract and analyse the information in a
consolidated format. As accounting cycle itself is a very complicated one, it takes
hours of working to locate, gather, input, clean and analyse data. These steps
often cause data entry errors and nonsensical information. Therefore, the
reports you get cannot give you a clear view of the business performance rather
than a confusing information that is impossible to make any decision out of it.

Solutions:  All you need
is a financial software that offers an integrated system which allows you to
import and export data quickly. Data will be compiled from a variety of
sources/systems and transformed into relevant and complete financial
information automatically. It should be easy to use and requires less technical
support. Here are some helpful abilities of a financial software that you
should look for:

  • Ability to generate quality reports in the real

  • Ability to generate different types of reports on

  • Ability to visualise data.

  • Ability to offer what-if analyses

  • Ability to adapt to changes in business
    structure, without changing

  • Less support required from IT team.

System integration

Normally, some financial software do not provide all the
necessary functions to users. To fix this, users tends to add multiple software
applications to create a system that can meet their demands. However, they
cannot create a platform that integrates multiple systems. For example, some
functional applications like accounting or human resources require different platforms
to run and maintain and these platforms need to be purchased. The problem is
that these platforms cannot integrate with each other. When you maintain them
as separated systems data need to be entered manually into each of them. This
is time consuming and costly. More importantly, with these systems that are
managed separately, you cannot get the right information due to duplication and

Solution: If you cannot adopt a system that offers a wide range
of functions, you should look for the one that acts as a single platform which
allows different applications to integrate with each other smoothly. In
details, a financial software that can merge multiple system should be:

  • A system that can host different
    applications/systems in a single platform
  • A system that can integrate data from multiple
    sources, reduce duplicates and fragmentation.
  • A system that is flexible enough to allow no
    data to be stored outside of it.

  • A system that can meet requirements of a
    specific industry


Think about what you want in your financial system, what
problems that you are trying to solve and potential issues that you might cope
with in the future. Normally, people just care about the systems that can
address the current issues and forget about what they might face with in the
long run. In addition, these financial systems are offered at a lower price
than others and that’s the reasons why so many organisations come up with
systems that have limited modules and functions. Traditionally, financial
software has basic accounting functionality which reduces the amount of
information that could be retrieved and processed by users. That means the
attained information could be insufficient, incorrect or fixed. In practice,
several companies try to ease the shortage of information input by developing
methods to store information outside the main financial systems. This system is
normally not fully integrated into the main systems which causes data
fluctuation and duplication.

Solution: There are plenty software that are available in the
market offering a range of modules and functions. These software are easy to be
configured to meet the different users’ needs. Some specific features of a full-function
financial system:

  • Apart from basic modules such as general ledger,
    account payable, account receivable and Purchase, it should have functions like
    Project or Job Costing, Inventory, Assets, Payroll, Human Resources, Financial

  • The flexibility to adopt to change in a business
    model without any impact on the organisational structure, purpose and business


When selecting a financial software it is
important to consider its technical functions that help enable reporting
flexibility and efficiency.The financial software you choose should offer a
more complete suite of modules that includes more extensive functionality, and
provides open technology for better integration with other systems.

Topics: Financial Accounting Management Software, Financial management solutions

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