Best Financial Statement Software & Buyer’s Guide

Imagine not having to worry about producing financial statements, yet having access to them any time you want. Sounds great, right?

While obviously useful for accounting and finance departments, financial statement software is just as useful for non-finance professionals, as it streamlines the process of collecting and organizing financial data, preparing financial statements, and generating reports, helping you automatically go from raw data to polished report. The software can automate financial consolidation, ensure compliance with accounting standards, generate reports and analytics, and improve financial performance management.

There are several types of financial statement software available for small businesses and large corporations, including cloud-based and desktop-based options.

10 Best Financial Statement Software

Here’s a range of financial statement software and a summary of the use case each one is best suited for:

• Cube – Best for advanced analytics and data visualization.
• Oracle Netsuite – Best for scalability and ERP integration.
• QuickBooks – Best for small business accounting and financial reporting.
• Sage Intacct – Best for automation and real-time financial insights.
• Multiview ERP – Best for end-to-end financial management and compliance.
• FreshBooks – Best for easy invoicing and expense tracking.
• Xero – Best for cloud-based accounting and bank reconciliation.
• Datarails – Best for automated financial planning and analysis.
• Board – Best for corporate performance management and predictive analytics.
• A2X – Best for automated Amazon marketplace accounting and reporting.

Below, we explain what, exactly, financial statement software is, the different types of financial statement software, and the top things to consider when making a purchase decision.

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What Is Financial Statement Software?

Financial statement software is a tool that helps organizations prepare and manage their financial statements. Financial statements are documents that summarize an organization’s financial activities and performance, such as income statements, balance sheets, and cash flow statements. They are important for decision-making by stakeholders such as investors, creditors, and management.

Financial statement software is used by a wide range of organizations, from small businesses to large corporations, across different industries. It is particularly useful for accounting and finance departments, as it streamlines the process of collecting and organizing financial data, preparing financial statements, and generating reports.

The software is used to accomplish several tasks, including automating financial consolidation, ensuring compliance with accounting standards, generating reports and analytics, and improving financial performance management. By providing a centralized location for financial data, financial statement software also improves accuracy and timeliness in financial reporting, which is essential for organizations to make informed business decisions.

Types Of Financial Statement Software

There are several different types of financial statement software available in the market today, including several software types that include financial statement functionalities within their broader systems. Financial statement software types can vary in terms of features, functionalities, and price points, so it’s important to understand the different options available before making a decision.

Some of the most common types of financial statement software (or software that include financial statement functionality) are:

1. Accounting software – This type of software is designed to handle basic financial tasks such as bookkeeping, invoicing, accounts payable and receivable, and payroll processing. It may also include features such as financial reporting and budgeting and often includes financial statement functionality.

2. Enterprise resource planning (ERP) software – ERP software provides a suite of integrated applications that help manage various aspects of an organization’s operations, including accounting and finance. It can handle more complex financial tasks such as financial planning and analysis, supply chain management, financial statement data collection and preparation, and customer relationship management (CRM).

3. Financial consolidation software – This type of software is designed to consolidate financial data from multiple sources, such as subsidiaries or business units, into a single view for reporting purposes. It can help organizations streamline financial reporting by preparing financial statements while ensuring compliance with accounting standards.

4. Performance management software – Performance management software provides tools for financial analysis, forecasting, and planning. It can help organizations identify trends and opportunities, and make informed decisions to improve financial performance, such as by consolidating data into statements for analysis.

5. Reporting and analytics software – This type of software is designed to help organizations generate financial reports and visualizations, and perform data analysis for decision-making purposes.

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 statement software for your business.

How To Choose Which Financial Statement Software To Buy

What criteria matter when figuring out the best financial software for your organization? Well, that depends. You need to understand what type of buyer you are, what features and functionality are non-negotiable for you, and which other factors matter.

I’ve listed out some of the most common considerations below:

Which type of buyer are you?

Financial statement software can be used by a wide range of customers, including:

Small Business Owners

Small business owners can benefit from financial statement software to manage their finances and prepare financial statements such as income statements, balance sheets, and cash flow statements. Some of the best financial statement software for small business owners include:

QuickBooks – QuickBooks is a popular accounting software for small businesses. It offers a range of features to manage finances, including invoicing, payroll processing, and financial reporting. It’s user-friendly and affordable, making it a good fit for small business owners with basic accounting needs.

FreshBooks – FreshBooks is another accounting software that is well-suited for small businesses. It offers features such as time tracking, expense tracking, and invoicing. FreshBooks has a user-friendly interface and offers affordable pricing plans.

Accounting and Finance Departments

Financial statement software is particularly useful for accounting and finance departments in organizations of all sizes, as it helps streamline the process of collecting and organizing financial data, preparing financial statements, and generating reports. Some of the best financial statement software for accounting and finance departments include:

Oracle Netsuite – Oracle Netsuite is an ERP software that provides a suite of integrated applications for managing various aspects of an organization’s operations, including accounting and finance. It offers advanced financial management features such as financial planning and analysis, revenue recognition, and financial consolidation.

Workday Adaptive Planning – Workday Adaptive Planning is a performance management software that provides tools for financial analysis, forecasting, and planning. It offers features such as scenario modeling, driver-based planning, and real-time data analysis. Workday Adaptive Planning is well-suited for finance teams that need to perform advanced financial planning and analysis.

Large Corporations

Large corporations with multiple subsidiaries or business units may benefit from financial consolidation software, which can help streamline financial reporting and ensure compliance with accounting standards. Some of the best financial statement software for large corporations include:

Cube – Cube is a financial consolidation software that helps organizations consolidate financial data from multiple sources into a single view for reporting purposes. It offers features such as intercompany eliminations, currency translations, and automated consolidation processes. Cube is well-suited for large corporations with complex financial structures and multiple subsidiaries.

Insight Software – Insight Software is another financial consolidation software that helps organizations streamline financial reporting and ensure compliance with accounting standards. It offers features such as data validation, automated financial consolidation, and intercompany eliminations. Insight Software is well-suited for large corporations that need to consolidate financial data from multiple sources and ensure accurate financial reporting.

Investors

Investors may use financial statement software to analyze financial data and performance metrics of potential investment opportunities. One of the best financial statement softwares for investors is:

Board – Board is a reporting and analytics software that provides tools for financial analysis and visualization. It offers features such as dashboards, scorecards, and data visualization. Board is well-suited for investors who need to analyze financial data and performance metrics of potential investment opportunities.

Auditors

Auditors may use financial statement software to review financial data and ensure compliance with accounting standards and regulations. One of the best financial statement softwares for auditors is:

Sage Intacct – Sage Intacct is an accounting software that offers advanced financial management features such as audit trail reporting, compliance management, and revenue recognition. It’s well-suited for auditors who need to review financial data and ensure compliance with accounting standards and regulations.

Government Agencies

Government agencies may use financial statement software to manage and analyze financial data and prepare financial reports for public transparency and accountability. One of the best financial statement softwares for government agencies is:

Xero – Xero is an accounting software that provides features for managing finances, including invoicing, payroll processing, and financial reporting. It’s well-suited for government agencies that need to manage and analyze financial data and prepare financial reports for public transparency and accountability.

Key features to look for

Some users are very specific about what they need their software to do; others have no idea what differentiates the robust from the rest. When evaluating different financial statement software, you should look for its ability to:

• Generate financial reports such as income statements and balance sheets (of course). Many comprehensive platforms offer many different services, but don’t ultimately allow you to generate reports within their system. Make sure any software you’re evaluating can actually do the job.

• Access data from a central organization server or cloud. This is critical because it allows for collaboration across departments, makes it easy for individuals to access information from anywhere, and makes it easier to produce compliance documentation.

• Automate workflows, as automation is critical to ensuring the accuracy of financial statements and reducing the risk of errors. Look for software that automates tasks such as data entry, report generation, and financial statement preparation, saving time and reducing the potential for mistakes. Software that offers workflow automation templates are even better.

• Consolidate financial data from multiple sources into a single view, which is essential for businesses with multiple subsidiaries or business units. The software should have features for integrating data from different sources, including other accounting systems, ERP software, and spreadsheets.

• General ledger and bank reconciliation are nice-to-have features typically included in accounting software because they allow for the tracking of transactions and the ability to reconcile bank statements.

Functionality to look for

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 statement software:

• Financial reporting: Reporting is the core functionality of financial statement software, and it’s the most important feature to have. The software should be able to generate customizable financial statements such as income statements, balance sheets, and cash flow statements accurately and efficiently.

• Analytics and forecasting: Analytics and forecasting tools provide valuable insights into financial performance and help businesses plan for the future. Look for software that offers features for financial analysis, scenario modeling, driver-based planning, and real-time data analysis.

• Compliance and security: Compliance and security are critical elements of financial statement software. The software should comply with accounting standards and regulations and provide features for ensuring data security and privacy, including role-based access control, audit trails, and encryption.

• Integrations: The ability to integrate with other tools such as accounting systems, ERP software, and business intelligence tools is useful for streamlining financial processes and improving efficiency.

• User interface and ease of use: While user interface and ease of use are important, they are less critical than the other functionality listed above. However, having a user-friendly interface can improve the user experience and increase adoption rates among staff.

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, such as what creates the most efficiencies or integrations.

Important purchase considerations

In addition to the features and functionalities of the software itself, there are other important purchase considerations when evaluating financial statement software. Here are a few:

• Scalability: As your business grows, your financial reporting needs may also change. Look for software that is scalable and can accommodate the needs of a growing organization.

• Cost: Financial statement software can vary greatly in price, from low-cost options to enterprise-level solutions. Consider the cost of the software, including any ongoing subscription fees or maintenance costs, and determine whether it fits within your budget.

• Customer support: Good customer support is essential for any software purchase. Look for a vendor that provides excellent customer service, including technical support and training.

• Ease of implementation: Consider the ease of implementation and integration with your existing systems. Some financial statement software may require significant setup and configuration, while others may be more plug-and-play.

• User adoption: The success of any software implementation depends on user adoption. Look for software that is intuitive, has comprehensive training available upon purchase, and has a user-friendly interface to encourage adoption among staff.

• Industry-specific needs: Depending on your industry, you may have specific financial reporting needs. Look for software that caters to your industry and can meet your unique requirements.

By considering these purchase considerations in addition to the features and functionalities of the software, you can make an informed decision about which financial statement software is the best fit for your organization.

Other Financial Analysis Software

• Financial reporting software [Buyer’s Guide]
• Accounting software [Buyer’s Guide]
• Reporting dashboard software [Buyer’s Guide]

Key Takeaways

There are different types of financial statement software available, such as accounting software, financial reporting software, financial consolidation software, and more. They vary in features, functionalities, and price points, and it is essential to understand them before making a decision.

Financial statement software is useful for various stakeholders such as corporations, investors, auditors, and government agencies. Different software options are available that cater to the specific needs of each stakeholder and it’s critical to know what your specific organization needs before making a purchase decision.

Financial statement software should have functionalities for financial reporting, automation, and data consolidation, followed by analytics and forecasting, compliance and security, integrations, and user interface. Businesses should also consider scalability, cost, and customer support when purchasing financial statement software.

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