There was a time when lengthy accounting registers were the need of the day, a time when yellow paged books were the best source of contact information. Interestingly, this period is not that long ago. Interestingly, the concept of manual finance management is still a modern-day phenomenon. Many companies continue to employ specific people to manage the business finance function. It may include a broad set of people.
The finance department tends to keep financial business matters in order. It so happens; the finance people have to spend most of their time developing and updating reports. Exponential growth in technology has resulted in many new innovative tech-based solutions coming forth. Moreover, the kind of ease they create is unparalleled.
Here we will explain a few solutions for financial operations successfully adopted by the corporate world.
TAX AUTOMATION SOFTWARE
Unless you live in one of the few tax haven destinations, tax is an essential component of your finance management. It becomes even more important if your country’s tax rate touches somewhere over 25% (One-fourth of your income goes away in taxes). It is pertinent to note; most countries of the world have tax rates higher than 25%. Therefore, tax is usually the area where the highest proportion of your finances get diverted. Furthermore, there is a wholesome variety of other payable taxes, e.g., sales tax, customs tax, local government tax, etc. The sheer value and types of taxes mean that attention is inevitable. Otherwise, there is a lot to lose.
Even more importantly, tax is not an area where you have room for failure. It is because failure to comply can result in serious legal action.
With the constant evolution and increasing variety of taxes, the chance of human error is dangerously high. In this regard, it becomes wise for businesses to explore tax automation technologies. With the availability of various tax automation software, companies can provide insight into the tax ecosystem. Moreover, an automated tax system allows the finance department to delegate the clerical side of things to the software. The software can automatically file cumbersome tax reports and stay updated with changes in tax regulations.
FINANCIAL ACCOUNTING SOFTWARE
Making accounts is a highly time-consuming part of business finance management. It is because transactions occur on a day-to-day basis. A dedicated professional tends to record every detail for the bank reconciliation statement and the trial balance. Apart from this, each account payable and receivable must be present to form the general ledger.
But guess what? All this is not as complicated as it sounds.
The majority of the accounting work got automated through the use of accounting software. The technology enables you to have data related to all costs and expenses at your fingertip. Even more importantly, you can use it to forecast your earnings and cash flow situation.
Many of us wait for the month-end to receive that paycheck. As per a study, 25% of Americans don’t have any savings. In simple terms, this means that they live paycheck to paycheck. One can only imagine the sense of anger generated among employees when there are delays in their salary payment. To be fair to the management, the process of ascertaining the salaries of a broad group of people can be incredibly complicated. Not only are there a lot of people with different pay scales, but things like Superannuation add to the complication. Moreover, other people need additional fuel allowances, mobile expenses, paid vacations, etc.
Therefore, automating this process is inevitable. Significantly, salary payment delays can fuel demotivation among the workforce, and timely payments can ensure a happy and satisfied workforce.
Research indicates that companies with happier employees perform better in keeping customers satisfied (Particularly for the service industry).
The last thing any business could want is a mistake in its invoicing system. Although often overlooked, the traditional invoice system is highly prone to human error. Even error-free invoices have the element of being highly time-consuming to prepare. You can also use invoice software to prepare accurate invoices and send them to the customer instantly. Additionally, it will increase the speed at which you receive payments from the customer, i.e., enhanced cash flow.
STEPS TO BEGIN WITH YOUR FINANCE MANAGEMENT SOFTWARE:
- Identify your business needs.
- Research extensively for the available software.
- Ensure the security and privacy of the platform.
- Check the reliability of customer support services.
- Keep rechecking the workability of the software periodically to identify any bug.
- Invest unhesitantly in upgrading new features.
Automating different aspects of financial management is a significant investment. However, integrating the various software installed in the system requires professional expertise. Suppose data does not travel accurately between the respective software. In that case, it will hinder real-time report production. In turn, it will negatively impact the ability to make timely decisions. In contrast, when done in an integrated manner, automation will produce long-lasting finance management benefits for the organization.