Best Financial Reporting Software & Buyer’s Guide
There are many types of financial reporting software for specific purposes such as for tax compliance, financial reporting for managing business operations, or for investor and shareholder management.
So, in this article, I selected a wide range of financial reporting software and highlighted the type of financial reporting that each tool is best suited for.
Here’s a broad range of financial reporting software and a summary of the use case each one is best suited for:
Below, I explain the different types of financial reporting, and the different types of scenarios in which you use this breed of software, to help you understand which products to look at and what to consider when making a purchase decision.
Financial reporting software is a type of software that helps organizations prepare and analyze financial reports. It is generally offered as a SaaS product nowadays and is used to track financial performance, manage finances, and report financial information to internal and external stakeholders.
Financial reporting software is used by a variety of professionals, including accountants, finance managers, CFOs, and executives, as well as investors, auditors, and regulators. It is used by organizations of all sizes and industries, including public and private companies, non-profit organizations, and government agencies.
Overall, financial reporting software is a critical tool for organizations to manage their finances and report financial information accurately and efficiently. It can help organizations make informed business decisions, improve financial performance, and comply with relevant regulations.
Here are some of the most common types of financial reporting software:
Accounting software: This software is designed to manage and automate accounting processes such as bookkeeping, invoicing, payroll, and the financial reporting process.
Enterprise Resource Planning (ERP) software: ERP software integrates various business functions, including accounting, inventory, sales, purchasing, project management and/or resource management, and manufacturing, into a single system.
Business Intelligence (BI) software: BI software analyzes business data to provide insights into financial performance, trends, and forecasts. This type of software is generally very interactive and customizable, allowing you to work from dashboard templates as well as build your own custom reports by feeding in data from your various work platforms, accounting systems, etc.
Financial planning and analysis (FP&A) software: This software helps organizations create and manage budgets, forecasts, and financial models for organization-wide financial decision-making.
Tax software: This software automates tax-related processes such as tax filing, calculation, and reporting.
Financial consolidation software: This software helps organizations consolidate financial data from multiple sources, such as subsidiaries, departments, or business units.
Audit and compliance software: This software helps organizations comply with financial regulations and standards by automating processes such as risk assessment, internal control testing, and audit management.
Financial reporting is broadly applicable to many businesses and industries, so I’ve defined the main types of buyers for you to easily see which category you fall into, as well as the overall key features and core functionality to look for when deciding to buy or subscribe to a financial reporting tool.
Financial reporting software can be useful for a variety of customers, including:
Small business owners:Small business owners usually start out using Google Sheets or Microsoft Excel—something simple and free to track their finances. As you grow, you’ll eventually begin to use financial reporting software to track income and expenses, manage cash flow, and prepare those time-consuming financial statements more easily come month-end.
Here’s a couple of great financial reporting products for small business owners:
QuickBooks Online: It is an accounting software that offers features such as invoicing, expense tracking, and financial reporting, making it ideal for small businesses. It allows businesses to accept credit cards online as well.
Xero: It is another cloud-based accounting software that offers similar features to QuickBooks and is popular among small business owners due to it’s intuitive interface and fairly easy setup. It offers some essential, standard tools for financial processing, expense management, and reporting.
Freshbooks: A very popular accounting software that’s user-friendly and helps manage all of the standard financial processes in a small business.
Finance and accounting professionals:Finance and accounting professionals, such as bookkeepers, accountants, and financial analysts, use financial reporting software to perform various accounting tasks, including bookkeeping, account reconciliation, and financial analysis.
Finance and accounting professionals often use financial reporting tools such as:
Sage Intacct: It is a cloud-based accounting software designed for small to mid-sized businesses. It offers features such as accounts payable, accounts receivable, and general ledger that’s set up with 8 dimensions (department, item, employee, customer, vendor, etc) to help you more clearly understand your metrics in each dimension of your organization and what’s influencing your KPIs.
Netsuite: It is an ERP software that provides a full suite of financial management tools, including general ledger, accounts payable, accounts receivable, and financial reporting. This company offers a huge suite of software solutions, including CRM, HCM, tools for omni-channel commerce, and a lot more.
CFOs and Controllers:Chief Financial Officers (CFOs) and Controllers use financial reporting software to create financial reports, manage budgets, and make strategic decisions based on financial data.
Here are some of the best options for financial reporting for financial controllers and CFOs at larger companies:
Workday Financial Management: It is an enterprise-level financial management software that provides financial planning, accounting, financial workflow management, and analytics tools, making it a suitable option for CFOs and controllers.
Adaptive Insights: It is a cloud-based financial planning and analysis software that allows finance teams to create budgets, forecasts, and financial models, making it ideal for CFOs and finance leaders.
Investors:Investors may use financial reporting software to analyze financial statements and make informed investment decisions.
Investors typically use financial reporting tools like:
Morningstar: It is a financial analysis software that offers investment research and analysis tools, making it suitable for individual investors and financial advisors.
Bloomberg Terminal: It is a comprehensive financial data and analysis platform that offers real-time market data, news, and analytics, making it a popular choice among institutional investors.
Auditors:Auditors use financial reporting software to audit financial statements, test internal controls, and detect fraud.
Auditors use a different breed of financial reporting products that are built for compliance management rather than managing day-to-day finances. Examples:
ACL GRC: It is a risk management and compliance software that offers audit management, data analytics, and fraud detection tools, making it a suitable option for auditors.
IDEA: It is an audit analytics software that provides data analysis tools and allows auditors to identify anomalies, errors, and fraud.
Government agencies:Government agencies use financial reporting software to monitor compliance with financial regulations, collect financial data, and prepare financial reports.
Here are some popular financial reporting tools in use at government agencies:
SAP Business One: It is an ERP software that offers financial management tools, including general ledger, accounts payable, accounts receivable, and financial reporting, making it suitable for government agencies.
Oracle Financials Cloud: It is a cloud-based financial management software that provides financial planning, accounting, and analytics tools, making it a popular option among government agencies.
Non-profit organizations:Nonprofit organizations use financial reporting software to manage donations, grants, and other funding sources, prepare financial reports, and track expenses.
Here are some examples of financial reporting tools that are well-suited for non-profits:
Aplos: It is a cloud-based accounting software designed for non-profits and offers features such as fund accounting, donor management, and financial reporting.
QuickBooks Nonprofit: It is a specialized version of QuickBooks that offers features such as donation tracking, grant management, and financial reporting, making it suitable for non-profits.
Customizable reporting: The software should allow users to customize reports to meet their specific needs, with options to create ad-hoc reports or standard reports.
Advanced analytics and forecasting: The software should provide advanced analytics and forecasting capabilities to help users make informed business decisions.
Automation: The software should have automation capabilities that streamline repetitive tasks and reduce the risk of errors.
Collaboration and sharing: The software should allow users to collaborate on reports and share them with others, either within the organization or with external stakeholders.
Mobile access: The software should have a mobile app or responsive design that allows users to access reports on-the-go.
Consolidating financial data: Financial reporting software can consolidate data from multiple sources, such as accounting software, spreadsheets, and other systems, to create a single source of truth for financial reporting.
Creating financial statements: The software can create financial statements, such as balance sheets, income statements, and cash flow statements, that are accurate and compliant with relevant regulations.
Analyzing financial data: Financial reporting software can analyze financial data to identify trends, track performance, and forecast future financial performance.
Reporting to stakeholders: The software can generate reports that can be shared with internal and external stakeholders, including investors, board members, and regulators.
Automating financial reporting: Financial reporting software can automate the process of creating and distributing financial reports, reducing the risk of errors and saving time.
Integration with other systems: The software should integrate seamlessly with other systems, such as accounting or ERP software, to ensure that data is accurate and up-to-date.
Security and compliance: The software should have robust security features and be compliant with relevant regulations, such as GDPR or HIPAA.
Support and training: The software vendor should provide adequate support and training to ensure that users can maximize the software's potential and troubleshoot any issues that arise.
Scalability: The software should be able to grow with the organization and accommodate increasing volumes of data and users.
Compare pricing and consider total cost of ownership: Finally, it's important to compare pricing and consider the total cost of ownership when choosing financial reporting software. Consider the upfront costs, such as licensing fees and implementation costs, as well as ongoing costs, such as maintenance, support, and upgrades. It's also important to consider the return on investment (ROI) and the potential savings in time and resources that the software may provide over time.
As you select financial reporting software, you’ll need to identify your specific reporting needs. I covered a range of products and explained what each product is designed to do in order to help you figure out which one will best fit your organization and goals.
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