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Types of Financial Software Solutions

2 Major Types of Financial Software Solutions & Their Uses

Businesses should have a good financial sense to reach their milestones. They must manage their revenues and expenses proactively, keep their cash flow budget up-to-date, set realistic goals, and so on. 

Unfortunately, money management isn’t in everyone’s DNA. Some fail in handling their business’ finances, thus, resulting in possible budgeting disasters and poor financial performance.

If only companies invest in financial software, then they would no longer face financial issues brought by bad money habits and poor financial management.

To keep you from losing goods, being sued, declaring bankruptcy, and other social, legal or financial consequences, make finance management a part of your life.

Keep reading to learn more about this system alongside its different types and uses. 

More About Financial Tool

As its name suggests, financial software is a type of application used to record a company’s financial activities (i.e. issuance of bonds and other debts, sale of shares, repurchasing of company shares, dividend payments, debt repayments, etc.).

It’s either executed as standalone software or integrated into a financial information system (FMIS). It works under the cloud or Internet and runs on the users’ computers or provider’s servers while the latter is an in-house platform that stores all financial data.

Such a program helps businesses bring finance management to a whole new level. It can maintain accurate and up-to-date records, stay on top of shrinkage or profit loss, and eliminate costly errors, among others.

Also, this tool can assist with the storage and analysis of financial data, tacking of financial accounts, creation of financial and tax-related reports, and so on. 

While these benefits look promising, it would be impossible to reap them when a finance software program is wrongly picked. Choose the right application for your business to ensure that you enjoy the financial rewards later on and simplify the complicated financial activities.

Below are the two financial application options that will provide you with the solution that you need:

1) Financial Management Software

A financial management program is often referred to as money-management software. It can be downloaded online for a fee or purchased in stores. 

This software type suits businesses that want to oversee and manage their income, expenses, and assets for the purpose to make a profit while at the same time ensuring data privacy.

When installed on the computer, such financial software functions like a dashboard that helps business-for-profit organisations do several things all in a single platform. It offers users the following:

  • Set spending limits and manage cash flow 
  • Perform banking transactions (i.e. pay bills online, print checks and reconcile account balances)
  • Plan for finances monitor and pay down debt estimate major life expenses, forecast retirement needs
  • Explore investment options, get stock quotes, and track portfolios
  • Print out a summary report of financial data for budget review and allocation
  • Export data into a tax-preparation program for accurate filing of tax returns

2) Tax Preparation Software

Tax preparation programs are generally used for preparing tax returns and compensation. However, these may be unnecessary if a company employs a certified public accountant (CPA).

While hiring a professional accountant offers a human touch in tax preparation, acquiring tax-prep software has its own advantages.

Aside from the fact that investing in it costs less than compensating a CPA, this software type can simplify and speed up the activities involved in the process. Here’s how companies benefit from this software:

  • Gain access to federal and state forms
  • Transfer financial data from other software programs
  • Check latest IRS publications and applicable deductions
  • Perform error checks and review returns for miscalculations
  • Get a quick confirmation that the e-filed tax returns have been received

What Is The Best Free Personal Finance Software?

Managing finances has never been easier with financial software. What’s even more ideal is that some financial tools are offered in free versions. 

Here are some of the best free personal finance software:

  • AceMoney Lite
  • Buddi
  • GnuCash
  • Mint
  • Personal Capital
  • Hubble
  • Klipfolio
  • DBxtra

The Bottom Line

Don’t let your company experience financial chaos. Capitalise on a robust and reliable financial system to shun you away from the danger zone and keep your business always in the right direction.

Additional Resources:

How Mobile E-Commerce helps in the growth of the global industry

Importance of Online Helpdesk Software for Your Organization

5 ways to create a learning culture within your software team

3 Main Contributing Factors That Drive the Success of Cloud ERP Systems

Amplify Your Customer Service Levels With Top 10 Free Help Desk Softwares

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