Mostly every business faces a challenge when it comes to managing its finances. We all will agree that financial awareness is a critical aspect of any business’s success. Having a strong financial ecosystem platform is the backbone of any business because the ultimate goal of any business is to make money. Now imagine if you get a system which aligns with your organisation’s goals and makes it easier for you to track it.
Where technology has been evolving constantly to make lives simpler and easier, this problem was also addressed. Financial management tools have significantly evolved as technology grew over the years.
Here, in this blog, we are going to take you through different phases of the evolution of financial management software.
Stage 1 – Early financial management software
Earlier before the development of financial management software, accountants and finance managers were responsible to dig deep into the organization’s finances and come up with the outcome manually. This complete report was drafted on paper. Since it involved manual work, the chances of error were always high. The innovation of financial software was to reduce this issue. It was in the 90s when computers were introduced. This was when the financial management methods also started to evolve. The very first switch for financial management was to move to electronic spreadsheets. Although it got better, still it was completely dependent on staff members to create and manage the spreadsheets and emails.
Although using computers to manage finances made it easier for businesses, it also made it costly for them. This is not all, the lack of data provided in real-time also reflected a serious problem. Since the data when reached the manager was old and inaccurate. To resolve this, the next phase of financial management software came to the surface.
Cloud-based financial management software
With the evolving technology, the next phase that surfaced for financial management software was using cloud computing. Cloud-based financial management software was created with the goal of getting full accessibility & transparency of the financial data. Thanks to cutting-edge technology, you can now view live data updates & communicate with consumers in real time. Today, we have much cloud-based financial management software that is designed around cloud computing like Paci, Zoho books, Xero, QuickBooks, and more. Each one of these platforms is designed to offer multiple features under one name. From user-friendly dashboards, easy-to-create reports, invoicing, payment portals, and more, today you get it all under one name.
This is not where the journey stops. Financial management software is expected to keep evolving and we can expect more updates in the coming years.
Now that we have discussed the evolution of financial management software, let’s get to the list of benefits of financial management software.
Benefits of financial management software –
As one can imagine, there are many different benefits of financial management software for businesses struggling with their finances. Right from giving them technological support, the latest financial management software is designed to ease the entire process of financial management for any business – be it a startup, a small business, or an enterprise. What are these benefits?
1. Automation – The ultimate goal of using financial management software is to reduce the manual effort that was earlier being put into managing finances. With the help of AI and ML, financial management software, today, helps businesses automate different aspects of their business including their accounts and finances. Any ideal financial management software like Paci includes all advanced features for increased visibility, insights, and automated workflow. Features like invoicing, billing, cash flow management, and more can be automated with the help of financial management software.
2. Improved Security – Another important reason why most businesses are adopting financial management software is the enhanced security it has to offer. Every financial management software introduced in the market comes with top-level security to protect all finance-related information like cards, bank details, and personal and business information. The software that is most popular among startups and SMBs is Paci. It is one of the unified financial management software of today that is designed to offer all the important features that a business needs to track its financial status.
4. Real-time financial analysis – Another huge benefit of using financial management software is that they enable businesses to be on top of their financial data. With real-time financial analysis, you get a chance to look at the present status of the financial strategy and get chance to change it if not working immediately. This offers a huge opportunity for businesses to grow sustainably without wasting any time.
5. Reduced chances of error – With the introduction of financial management software, the manual work associated with finance management was reduced significantly. Unlike the times before when paper reporting or spreadsheets were used to manage financial reporting, today most financial reporting has become automated. With automation, the chances of the error have also been reduced, giving businesses more control over their finances.
Conclusion
These, are some of the primary benefits of using financial management software. Each and every point mentioned above has led more and more businesses to adopt financial management software. From making the financial analysis simpler and more efficient to automate different functions of the finance department like – invoicing, billing, expense reporting, payments, and more. In short, using financial management software significantly improves the operations of the financial department of any business.
Our recommendation
Paci, one of the latest and unified financial management software is the fastest-growing software among startups and small businesses. This platform comes with a set of features that make it a complete financial solution for every business. The best part about this platform is that it is quite economical. Unlike other popular software like Zoho Books, Quick Books, Xero, etc, Paci is the most affordable financial management software designed to offer everything that expensive software offer on a budget. We highly recommend startups and small businesses check Paci out and make the job of financial management simpler and easier.
Also Read: How Power Automate Benefit The Financial Industry