Effective control of finances undoubtedly results in a more secure and profitable business. Organized data collection and overall administration can avoid payment errors. What’s more? Strategic finance handling allows the organization to comply with accounting regulations to prevent hefty fines. To remove the fear of accounting errors and fines, the Financial Management Software module of the ERP system can bring a breeze. So, how it helps and what tasks it can do for you, let’s find out in this detailed guide.
ERP Solutions for More Effective Financial Management
ERP solutions ease accounting and financial management in the company’s financial area. It is one of the essential modules of this system, thanks to its ability to integrate with the world of sales, production, supply, or human resources.
This comprehensive module provides flexibility to analyze cost accounting and financial accounting. Preparing balance sheets and income statements stands out among its different functions. This covers managing the company’s assets and treasury as well as creating accounting entries.
The latter refers to controlling collection and payment flows, credit lines and deposits, or managing current accounts. NYGGS Financial Management Software can also generate various financial and accounting reports. These reports help in further tax settlement by adhering to laws and regulations.
What are more functions that it can perform for an organization? Let’s learn in the next section!
9 Functions of Financial Management Software
Among the main functionalities of the ERP financial module, we highlight the following:
Collections Administration
FMS lets you settle incoming payments and close sales invoices and credit notes as paid. You can automatically configure payment rules and automate the bank account reconciliation. It is also possible to consult all customer movements at any time.
Moreover, it has features for recovering unpaid amounts, blocking customers who fail to make payments, and even adding an extension to account for potential late payments.
Payment Administration
It allows you to quickly manage accounts payable, whether they are suppliers or expenses assignable to employees. The software also helps to settle the outgoing payments from the Payment Reconciliation Journal.
Billing Control
Any company of significant size manages many invoices, both issued and received. Furthermore, each invoice is associated with a payment or collection, so managing this entire process well is essential for the correct financial functioning of the company.
The only way to manage it well is by using financial management software that helps without demanding huge inputs.
Budget Control
Most business owners, directors, or managers understand that creating and controlling a budget is necessary.
Financial Management Software helps you both create budgets and track them. It shows us how the company spends money and the possible deviations between budget and reality. A good financial management system can distinguish between the financial resources wastage and the efficient funds management. As a result, companies can save funds to reinvest in other valuable activities.
Cash, Liquidity and Debt
Companies need to know what money they have at all times.
Therefore, it is imperative to manage debt and cash properly. Companies must find the balance between excessive liquidity and over-indebtedness. And in this process, the financial management software allows a clear-cut view.
Risk Management
Risk is an inherent part of any business. The objective is to reduce it as much as possible.
NYGGS Financial Management System helps cut risks by providing an accurate picture of what is happening with the cash all the time. This helps decision-makers make informed and non-speculative decisions, which triggers risk.
Bank Reconciliation
Financial management software allows businesses to perform bank reconciliation automatically. Thus, it ensures that all transactions and expenses are correctly reflected in the bank account. It makes error or inconsistencies detection much more agile when checking balances.
Close Years and Periods
Financial Management Software defines the fiscal year and divides it into the required periods. It allows correct report generation on the company’s financial status when necessary. This report presents general or specific registration dates for some actions.
Further, if you work with several currencies, you can update and adjust the exchange rates for each agent (clients, suppliers, and registered banks).
In addition, you can print the necessary reports and verify the balances in the different accounts before closing the fiscal period. It lets you detect and regularize possible errors before the fiscal year closes.
Once the fiscal year is closed, you can export reports to create financial results.
Consolidate Financial Data from Multiple Companies
Financial management software allows you to carry out financial consolidation if you work with a group of companies that depend on a parent company. It consolidates the accounting movements of two or more subsidiaries into a single unified dashboard. Before running the consolidation, you can automatically check the data for all companies and cut repeated transactions.
Conclusion
In conclusion, the financial management system lets you calculate finances faster and more accurately. Having control and centralization of this type of information in real-time. At NYGGS, we provide ERP solutions integrated with Financial Management Software to improve your overall accounting. If you want to learn more, don’t hesitate to get in touch with us!
FAQs
Q1. What is the Financial Management Software module in ERP?
Ans. The Financial Management System module is an essential part of an ERP system that helps in accounting and financial management. It integrates with other modules like sales, production, supply, and human resources to provide comprehensive financial analysis and reporting.
Q2. How does a Financial Management System help with risk management?
Ans. Financial Management tool provides real-time visibility into cash flow, allowing decision-makers to make informed and non-speculative decisions. This helps in reducing risks associated with financial management and enables better risk management strategies.
Q3. What is the best software for Financial Management in India?
Ans. NYGGS Financial Management Software module in ERP is a comprehensive finance planning and management tool designed by focusing on small and medium businesses and accountants’ needs. Contact us to learn more!