Reliance on gut feelings and individual reports doesn’t cut it when you need to know the specifics of how your business is doing. In order to have a clear, immutable picture of business health, you need to find financial performance software to help.
Financial reporting software refers to a number of critical tools for organizations to manage their finances, understand business performance, and report financial information accurately and efficiently. It can help organizations make informed business decisions, improve financial performance, and comply with relevant regulations.
There are several types of software that can help an operator understand their financial performance, so I’ll explore the most common in this article and explain the benefits and most likely users of each.
Here’s a range of financial performance software and a summary of the use case each one is best suited for:
This type of software is typically used by finance and accounting professionals, as well as executives and managers who need to make data-driven decisions based on financial information. It’s used to accomplish a wide range of tasks, from managing day-to-day accounting processes to creating long-term financial plans for the business.
Overall, financial performance software is designed to streamline financial processes, improve accuracy, and provide real-time insights into a company’s financial health, allowing organizations to make better financial decisions and improve their overall performance.
As I previously mentioned, there are a number of types of software that help individuals and teams analyze financial performance of a business. Here are some common types of financial performance software that people may be looking for:
Each type of software has its own unique features and benefits, and may be better suited for certain types of organizations or industries. It’s important to evaluate your organization’s specific needs and goals when selecting the right financial performance software for your business.
What criteria matter when figuring out the best performance software for your organization? Well, that depends. You need to understand what type of buyer you are, what you’re trying to accomplish by getting this software (and hence, which features and functionality are most important), and which other factors matter.
I’ve listed out some of the most common considerations below:
Financial performance software can be used by a wide range of customers, including:Small Businesses
Small businesses may want financial performance software to help them manage their day-to-day accounting processes, such as invoicing and expense tracking. Xero and QuickBooks are two popular options for small businesses, as they offer user-friendly interfaces and affordable pricing plans.Large Enterprises
Large enterprises may want financial performance software to help them manage complex financial processes, such as budgeting and forecasting. Oracle Netsuite and Workday Adaptive Planning are two examples of software solutions that are designed for large enterprises, as they offer robust features and can be customized to meet specific needs.Nonprofit Organizations
Nonprofit organizations may want financial performance software to help them manage donor contributions, track grants, and create financial reports for stakeholders. Sage Intacct is a popular option for nonprofit organizations, as it offers nonprofit-specific features and can help organizations ensure compliance with accounting regulations.Financial Services Firms
Financial services firms will likely need financial performance software to help them manage client accounts and portfolios, track performance against benchmarks, and create custom reports. Asset Vantage and SS&C Advent are two examples of software solutions that are designed for financial services firms, as they offer investment-specific features and can integrate with other financial systems.Manufacturing Companies
Manufacturing companies may want financial performance software to help them manage inventory, track costs, and create financial reports that reflect their unique business model. Epicor Financial Management and Sage X3 are two examples of software solutions that are designed for manufacturing companies, as they offer features that are tailored to the manufacturing industry.
Regardless of the specific type of software that you choose to move forward with, most users want financial performance software to help them with a core group of tasks. To get the most out of your software, check that the following features are available:
Note that the most important KPIs and ratios to track vary quite a lot between businesses and industries. If you don’t know exactly which KPIs are best for you to track, perform industry research or consider contracting an expert to find these for you.
The previous features are what the software needs to have. Key functionalities are what the software needs to help you do. Here are some of the most important functionality to look for when evaluating financial performance software:
Overall, your specific use case is going to change the order of importance for each element of functionality; you should target software that offers you the most critical functionality for you and opens up a clear pathway to improved financial performance.
In addition to the features and functionalities of the software itself, there are other important purchase considerations when evaluating financial performance software. Here are a few of the most important ones:
By considering these additional purchase considerations, you can ensure that you choose financial performance software that not only meets your functional requirements, but also provides the best overall value for your business.
Financial performance software is designed to improve financial processes, accuracy, and provide real-time insights for businesses. Different types of financial performance software include financial planning and analysis software, financial reporting software, budgeting software, accounting software, and business intelligence software. You should consider what you need before purchasing, as these types of software meet the specific financial management needs of different organizations.
Financial performance management software provides tools for financial reporting, analysis, budgeting, and planning, helping to improve financial controls, generate accurate and timely financial reports, control spending, and streamline financial management processes. When evaluating financial performance software, important purchase considerations include features and functionality that meet specific needs.