Why You Need Financial Reporting Software in Your Company
February 20, 2020 | Last Updated on: March 21, 2023
February 20, 2020 | Last Updated on: March 21, 2023
If you think financial reporting software is only for large companies, think again! Numbers do not lie. Financial reporting can answer all the vital inquiries in business management. After all, finances generated from and spent in operations power your business. This applies to every business type, model, and size.
Financial statements for small and medium businesses (SMBs) offer a picture of the existing business models and whether they’re profitable or not. They can include information on company balance sheets, cash flow, business trends, business income, capital expenditures, and how cash is handled.
There are a lot of reasons for SMB owners to analyze their financial statements regularly. Having a clear understanding of the revenue and financial patterns of your business is crucial. Projects, resources, vendors, and software all influence decision-making at an accelerated pace, thanks to the Internet of Things. Financial reporting enables you to dig deeper into the stories behind the numbers. Financial analysis, meanwhile, empowers you to review and improve your strategies in transforming and empowering your entire organization. This makes financial reporting software even more important if you want to make accounting tasks simple and easy to accomplish. A survey by Sage found that 9 in 10 accountants believe that there is now a cultural shift in financial management that is inclined toward technological adoption.
Below are a few reasons why you need financial reporting software in your company:
Financials often dictate the success of any business. A quick analysis of your financial statements will provide you with a better idea of your company’s financial status. It can include information regarding your profitability, leverage, and liquidity. It can also help you with regards to managing strategies for achieving your objectives and goals.
With financial reporting software, SMB owners can have access to information right at their fingertips. Accountants, bookkeepers, and other staff can obtain all the information they need at any time and anywhere. This helps them complete double-entry accounts, create financial statements, and perform bank reconciliations as deemed necessary.
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While financial statements aren’t the ultimate source of information in making crucial decisions necessary to grow your business, they can provide a glimpse of your financial health. Depending on the financial data available, financial statements can help you determine the management decisions and actions to make. Financial analysis software for small business, meanwhile, makes it easy for you to spot patterns and trends in inventory, expenses, accounts receivable, and various business activities.
For instance, if data points to department overlaps that are affecting your revenues, you may consider consolidating departments or laying off employees. Moreover, a quick scan of the receivables report showing all your customers with standing balance can help you identify troublesome collection trends. Furthermore, if you’re looking at requesting funds, a software system such as Biz2Credit enables you to see your payment history and outstanding balance. This information is vital when considering making new loan applications.
Analyzing financial statements constantly encourages accountability on every employee who contributes to your final statement reports. It assures you that no employee embezzlement or misappropriation is happening.
Moreover, cloud-based financial reporting software programs help you enjoy strong security as far as data protection is concerned. Paper-based bookkeeping and accounting solutions expose your business to the risk of confidential information falling into the wrong hands. Unauthorized access is limited through top-level authentication and automated back-up. Moreover, encryption of vital information like bank and credit card account numbers aids in securing sensitive data.
If you’re requesting funding, Biz2Credit’s solution enables integration with financial data aggregator Yodlee. You can automatically download transaction statements and history as you link your bank accounts to the system.
A lot of businesses tap the services of tax advisers and accountants to manage financial data, ensure its accuracy, and generate error-free reports during tax seasons. It is crucial, however, that you still take time to analyze your financial statements even if you outsource the bulk of your accounting work to validate the data. Keeping track of information like payroll, capital expenditures, and cash flow issues will ensure accurate financial reporting. This can be simplified with financial reporting software.
Report-generating features, access, automation, and easy-to-use dashboards help you input financial and accounting data with ease. While it would take an accountant or bookkeeper to complete this task manually, decent financial reporting software could accomplish it all in split-second. In most cases, operating a financial reporting system does not require experience. You can even master them in no time.
Decent financial analysis software for accountants save you not only time but also money. It also enables you to concentrate on running your business instead of spending valuable hours on daunting accounting tasks. According to a study by Mckinsey Global Institute, about half of accounting tasks can be automated using advanced technologies.
If you’re looking to request for funding your business, Biz2Credit’s dynamic dashboard enables you to see your request at every stage of the way.
Monitoring your income and managing expenses is a crucial task, yet it can be quite tedious. It is taxing and time-consuming to do collecting, storing, and inputting bills, receipts, and invoices manually again and again. Fortunately, financial reporting solutions can help you get rid of paperwork. It simplifies how you enter data and keep items organized through features like capturing images of receipts and invoices via a smartphone app.
If you’re applying for business loans, Biz2Credit’s DocVault feature enables you to store up to 10GB of business documents. It allows you to sync and share files, as well as manage revisions using an online or Windows app. It also has a mobile app that is ideal for clients who are always on-the-go.
Using financial reporting software tools can be a significant investment in your company. Some SMBs may still be hesitant to shift as they think it will be time-consuming or too difficult. To take the stress out of using advanced technology, follow this four-step process:
Consult a professional adviser by scheduling a demo. Discuss with the adviser what your current business needs are and take the chance to view first-hand the major features the solution has to offer. When you need to raise capital for your business, you may contact Biz2Credit at 800-200-5678 to help you plan using its system.
Discuss your business processes to the vendor, and ask how its product can fit into your current system. It must be able to show you precisely how the solution it offers can make your current business model better and more efficient. Check out a ranking of free accounting software solutions for your initial process review.
Evaluate the analysis report requested. This should include well-defined procedures and an overview of potential benefits. Find out how the software features will fit into your business processes and structure.
As soon as you have finished reviewing the proposal of your preferred vendor, a staff usually contact you to guide you through setting up and accessing the software. Make sure to coordinate with him accordingly.
Financial reporting software is a useful tool. With the right software, you can pay your bills on time, maintain your records and books, invoice your clients, and request for funding. When everything’s in place, it will be easier for your company to stay compliant with IRS audit standards. No wonder, its popularity in the market is growing.