Financial management is key to a business’s longevity. Done well, it catapults ventures to success and ensures long-term returns. Conversely, poor financial management can lead to severe cash flow problems, sinking organizations in no time. It is the reason why, according to the US Bank, 82% of small businesses fail.
Earlier, companies relied on the expertise of their finance team to manage their daily business processes. As a result, most of the work, such as invoicing, billing, and cash flow management, would be done manually. In contrast, financial management has transformed exponentially today with intuitive tools.
McKinsey Global Institute’s automation research concluded that technologies currently in use could fully automate 42 percent of finance activities. So financial automation is the way forward for businesses. Financial management tools are software solutions that help you automate your financial systems from end to end.
They are designed to improve accounting systems by upgrading daily processes. You can use them to estimate costs, manage payroll, track expenses, reconcile invoices automatically, and more. If you are still wondering why you should use financial software – well, let’s share more reasons to convince you.
First, financial tools consolidate your business data about cash management, customers, and more on a single platform, often cloud-based. These tools are also secure, fast, and accurate. In addition, they help you maintain spotless audit trails, easing such processes as tax preparation and regulatory compliance.
In addition, they improve efficiency and lead to better results through their financial reporting function. Finally, they provide real-time insights into your performance, empowering you to make smarter decisions sooner rather than later.
Top 4 Financial Management Solutions
We have put together a list of the five best financial management solutions for your ease. Read on to find out the key features, pricing tiers, pros and cons, supported platforms, and customer support options of these tools. Make a comparison to discover the tool that fits your needs.
- Financli
- Xero
- QuickBooks
- Sage Intacct
1. Financli
Financli is a comprehensive financial management tool for businesses, including small-sized companies and startups. It also caters to advisors by providing customized features and plans. With this financial tool, you can plan your finances and manage them effectively.
It comes with templates to ease the process of budget and expense tracking. A user-friendly function it offers is that of smart alerts. The software alerts you when you are close to going over your budget limit.
In addition, Financli provides advanced financial reporting capabilities that companies can use to predict and enhance their performance. For instance, a sales team can use this tool to forecast revenue monthly or yearly. They can also get revenue analysis to assess their previous performance. This data-based analysis is critical to ensuring the long-term financial success of companies, both big and small.
Financli offers a financial dashboard software that gives you a visual overview of your financial status. You can track your progress and get insights into your profitability. It also generates detailed reports with a graphical representation of your performance. They help you make smarter, data-driven decisions down the line to lock greater success.
Key Features
- Depreciation And Amortization Schedule
- Inventory Analysis
- Loan Schedule
- Financial Ratios
- Financial Dashboards
- Marketing Budget
- Project Evaluation
- Revenue Forecast
- Reports
- Sales Forecast
- Scenario Manager
- Sensitivity analysis
- Variance Reports
Pros
- It is intuitive and easy to use for beginners.
- The setup and implementation process is painless.
- The customer support is highly responsive and helpful.
Cons
- It does not offer a free plan.
Pricing
Financli provides fully customizable pricing plans, considering the needs of your business. However, it offers a seven-day free trial, so you can explore it before going further.
Supported Platforms
- Web
Customer Support
- Email/Help Desk
- Phone Support
2. Xero
Xero is a cloud-based tool primarily geared to solving accounting problems. However, it has other capabilities to help with inventory, purchasing, and financial reporting.
This means you can use this software to manage your finances effectively. Like other tools in the market, it leverages automation to reduce manual work. For instance, you can use it to track your expenses, manage invoices, conduct bank reconciliation, and more.
Since Xero provides cash flow tracking as an integrated function, you can always stay on top of your income and expenses. Use it to enable online payments to fast-track your payment processing system. This helps you maintain an optimal cash flow.
Through automation, it also imports your daily transaction details into your database right from the bank, removing the need for manual data entry.
In addition, Xero provides financial reporting. For one thing, you can refer to its dashboard to get a quick overview of where you stand. It tells you about your outstanding invoices, due bills, and current bank balance.
It also prepares cash flow reports, client data, sales invoices, and more to give you a detailed insight into your performance. Xero comes with mobile apps so you can access your accounting dashboard from your phones as and when you need to. You can also add your financial advisors to the dashboard to collaborate effectively.
Key Features
- 401(k) tracking
- ACH payment processing
- Accounts payable & receivable
- Automated quoting & billing
- Bank reconciliation
- Billing & Invoicing
- Budgeting
- Currency conversion
- Customer statements
- Customizable invoices & reports
- Financial analysis
- Income & balance sheet
- Multi-channel management
- Online invoicing & payments
- Real-time reporting
Pros
- The setup and implementation process is quick.
- It comes with mobile apps for both iPhone and Android users.
- It provides third-party integrations with multiple other software, so you expand its functionality per your needs.
Cons
- It does not provide visual reports, which makes performance analysis difficult to understand for non-experts.
- The app can sometimes create duplicate financial reports, leading to confusion.
- It no longer comes integrated with payroll management functions.
Pricing
Xero offers these pricing plans:
- Early - $12 / month
- Growing - $34 / month
- Established - At $65 / month
- Xero offers a 30-day free trial.
Supported Platforms
- Web
- Android
- iPhone/iPad
Customer Support
- Email/Help Desk
- Chat
- Knowledge Base
- FAQs/Forum
- 24/7 (Live rep)
3. QuickBooks Online
QuickBooks is a financial management tool geared primarily toward small businesses. It has a cloud-based app but also offers an on-premise solution. You can use it for your income, expenses, payroll, and accounting management.
It provides an online portal where you can access all critical information about your customers, bills, invoices, and more. You can create invoices, send them, and get paid effortlessly online through this online platform.
QuickBooks has mobile apps for both iOS and Android users. As a result, it becomes convenient to capture receipts and store them. It also makes it easier to track expenses, manage the cash flow, track time, review transactions, and streamline client communication. With this tool, you can maintain a consolidated financial profile on a single platform.
The dashboard will give you an overview of your finances. You can also get detailed reports and profits, loss, and trade sheets. You can also customize your reports per your requirements.
You can add or remove team members from QuickBooks’ dashboard. In addition, you can edit the permission settings to restrict or allow people to access critical financial information. The app comes integrated with Intuit GoPayment and Quickbooks Online Payroll, so you do not have to spend extra money to get these capabilities.
Key Features
- Accounting
- Activity Dashboard
- Automatic Billing
- Compliance Management
- Data Import/Export
- Donor Management
- Expense Tracking
- Invoice Management
- Multi-Currency
- Payroll Management
- Sales Tax Management
- Third-Party Integrations
- Time Tracking
Pros
- The app comes with payroll management capabilities.
- It provides advanced expense tracking functions.
- It is affordable.
Cons
- Its financial reporting function is quite limited.
- The system can crash sometimes.
- The backup is unreliable, so there is a risk of losing vital information.
Pricing
QuickBooks Online offers these pricing plans:
- Simple Start - $8 / month / user
- Essentials - $12.50 / month / 3 users
- Plus - $17 / month / 5 users + accountant
- The app offers a free trial.
Supported Platforms
- Web
- Android
- iPhone/iPad
Customer Support
- Email/Help Desk
- Chat
- Phone Support
- 24/7 (Live rep)
- FAQs/Forum
- Knowledge Base
4. Sage Intacct
Sage Intacct is an enterprise resource planning (ERP) system with advanced accounting, inventory, purchasing, and other capabilities. It is a cloud-based financial tool that helps you track your expenses in real-time. In addition, your data is perpetually updated on the software’s dashboard automatically. This eliminates the need for manual data entry and gives you the latest insights into your financial status, allowing quick decision-making for improved results.
Through Sage Intacct, you can get financial reports and analytics as well. You can use it for integrated management of your finances and removing bottlenecks from the process of payments. As it has advanced accounts receivable and payable functions, you can find out pending bills and ensure their timely payments. This helps you maintain a consistent cash flow for the health of your business.
Sage Intacct leverages AI functions to provide intelligent financial management capabilities. It simplifies cash management by giving you complete visibility of the existing pricing system.
You can learn what’s working and what isn’t. Consequently, you can change the processes for improved results. Sage Intacct helps you develop a data-based understanding of your performance, streamline your workflow, and lock greater accuracy in your financial records.
Key Features
- 1099 preparation
- Accounts payable and receivable
- Approval process control
- Bank reconciliation
- Billing & invoicing
- Budgeting/forecasting
- Cash management
- Customer statements
- Duplicate payment alert
- Expense tracking
- Financial reporting
- Income & balance sheet
- Payroll management
- Reporting and analytics
- Tax calculation
Pros
- The tool updates regularly to cater to market demands.
- This app allows you to easily access your financial information from anywhere and at any time.
- The customer support is highly responsive.
Cons
- It provides limited customization offers.
- The user interface can be improved.
- The invoice management function is a bit cumbersome to use.
Pricing
Sage Intacct comes with custom pricing plans. In addition, it offers a free trial.
Supported Platforms
- Email/Help Desk
- Phone Support
- FAQs/Forum
- 24/7 (Live rep)
- Chat
- Knowledge Base
Customer Support
- Web
Conclusion
Financial tools or enterprise resource planning (ERP) systems have become necessary for businesses to survive and thrive in the modern world. These solutions consider the current market and are fully aligned with digital demands.
They are also scalable, so you can upgrade or downgrade as your needs evolve. With such convenience, you can consider them as a long-term investment. They not only empower you to streamline your financial management systems but also ensure sustainable growth.
Financial management software, such as the ones explored above, gives you an edge against competitors. They integrate your financial data, systems, planning, and analysis on a single platform. While they may involve a learning curve and money investment, the results they lead to are well worth it.
If you are searching for reliable financial management software, look into the tools we discussed in this blog. They are highly rated by experts and vetted by users in various industries. Since all of them either have free trials or free plans, you can try them out for free before deciding to purchase them.
We recommend starting with Financli – a comprehensive financial tool designed to revolutionize your finances. Whether you run a startup, a small business, or a non-profit, Financli will come to your aid. Try it out today!
FAQs
1. What is financial management software?
Financial management software is a tool used to manage an organization’s finances, including cash flow, income, assets, and expenses. Some of these financial tools, called enterprise resource planning ERP systems, also come with advanced solutions such as budgeting forecasting, supply chain management, financial compliance, data security, and others. Notably, these tools use automation to streamline an organization’s business processes.
2. What are the key features of financial management software?
The key features of financial management software include accounts payable and receivable, invoicing and billing, general ledgers, cash flow tracking, financial statements, collection management, expense tracking, budgeting, tax preparation, and financial reporting.
3. What is an example of financial management software?
Examples of financial management software include Financli, Xero, QuickBooks, and Sage Intacct.
