Typical finance software are designed to organize, store, and display any financial information for personal or business use. And its basic purpose is to generate consolidated reports. Today, there are dozens of free and paid financial platforms that offer these tools and a lot more. But so many choices can make the comparison even more complicated and taxing. Here are some features to look out for, for a less complicated software.
Types of finance software
Finance is an all-encompassing term that covers aspects like budgeting, savings, investments, and tax. So, it is imperative to choose the right accounting platform, especially when paying a premium subscription. Search and compare a software that integrates third-party tools based on the level of sophistication for personal or professional use. For example, a pure budgeting application will help track, categorize, and organize expenses. A savings software will help build an emergency fund, while a dedicated investment platform will enable long-term investment planning. A tax management software will manage all the financial obligations and compliances required by the Internal Revenue Service (IRS).
Cost
There are many free-to-use finance software that provide the basic tools and functionality. Understand that these tools will suffice for self-employed individuals. Alternatively, small business owners and large organizations can benefit from additional toolkits, plugins, and third-party integration to process annual cash flow and manage payroll. Premium features are available for a one-time purchase price, or they can be paid on a monthly basis with a vendor subscription. Vendors also provide custom plans for prominent business owners. Customization improves the scope of scalability, which means upsizing or downsizing the application depending on usage at any given. Custom plans will also have a different pricing structure.
Ease of setup and use
One of the key points to consider is the ease of use and setup. Premium paid finance software offer additional customer support with a dedicated executive to troubleshoot problems. But if downloading a free suite, ensure that its user interface is simple and manages all apps in a single dashboard. Moreoer, you want to avoid the hassle of navigating different tabs to manage simple budgeting, accounting, and reporting tasks.
Security
Since sensitive client and business information is handled while using a finance software, the platform ideally should be equipped with the latest SSL encryption certificates and security tools. Most premium suites feature advanced tools for data encryption and apply the necessary protocols to manage client credentials. Also, it is advisable to set up password protection to ensure only authorized personnel have access to the software and its integrations. Passwords enhance security, especially when uploading and downloading sensitive information online.
Key features
Choose a finance software that allows easy account reconciliation, schedules reminders for essential tasks, and offers a dashboard that manages everything online. For budgeting, ensure that the software boasts reliable income and expense categories to track all transactions. The software must also allow easy editing and quick preferences to organize the information at hand. This eliminates any redundancy with default categories that don’t cater to accounting needs. Mainly, look for a platform that provides flexible data entry features. Flexibility allows for more enhanced and visible reporting, minus the hassle of categorizing additional data points.
Simple report generation
The purpose of using a finance software is report generation. The platform should generate all the necessary cash flow, income and expense reports, and categorized reports for tax compliance. A software should have these features, irrespective of whether you download a free application for personal use or purchase a business suite.
Additional features
Avoid products that come with account restrictions and usage limits. Download and use platforms that offer total flexibility and control over usage to maintain complete transparency. Check if the application provides additional support with “how-to” guides, feature tutorials, and visual aids. Some even include free tools to check credit scores, assess creditworthiness, and even provide simulated results that can impact credit. This will allow a company to make sound financial decisions and avoid hassles at the time of general reporting and compliance.
