Financial management system: automate your processes

 


How is your company's financial control ? You can improve it with a financial management system. This tool helps the manager plan, monitor and control all finances, contributing to the sustainable growth of the business.

Financial planning is essential for any business. Regardless of the segment or size, it is necessary to keep records of revenues and expenses, both for controlling finances and for adopting strategies.

As much as financial management seems complicated, possibly you already perform some procedures, even without knowing their importance. But don't think that just controlling cash flow in a spreadsheet is enough.

Although this is the first step in business financial management, the ideal is that you rely on the help of management software to optimize and facilitate management follow-up.

If you're not sure what we're talking about or the importance of a financial management system for your company, don't worry. It is precisely to clarify this that we have prepared this post.

Continue reading and learn all about financial control and management automation.

What is a Financial Management System?

A financial management system is a tool that automates and optimizes financial sector processes. In this way, it makes financial control easier, faster, organized, reliable and safe.

The financial sector involves several delicate tasks, which require concentration and accuracy, as any mistake can result in completely incorrect data.

For this reason, the manual control of these processes is time-consuming and error-prone.

The financial management system automates several processes in this area. Thus, in addition to optimizing time, it reduces errors caused by man and brings more confidence in the veracity of the numbers.

Legal issues such as tax obligations and tax calculations are also done automatically.

The use of financial management software, in addition to helping employees with entry and exit records, issuing invoices and slips, also allows the manager to have a better view of the company, analyze indicators and issue reports for decision making. more assertive decision.

How to improve the financial control of the company

Financial control is a way of keeping the company's financial information organized, which allows identifying the company's financial movements and the company's results.

Based on this data, it is possible to adopt measures to correct or improve performance and stimulate the company's sustainable growth.

This control can be carried out in a spreadsheet or even in a notebook, however, only a financial management system will allow you to control all processes and quickly identify where or when a certain objective has not been achieved.

See the main points of attention to improve your company's financial management.

Control of expenses

To carry out the correct financial control of your company, start by identifying all expenses, that is, everything you need to pay is fixed or variable expenses.

This list includes the payment of salaries, purchases of inputs and raw materials, purchase of office items, payment of rent, water and electricity bills, maintenance of machinery, among others.

With all the expenses listed, it is possible to identify excessive expenses and make smarter choices.

Try to negotiate with suppliers and seek the best cost benefit. Likewise, it is necessary to maintain control of the accounts and avoid delays as much as possible so as not to pay interest.

Revenue control

Another fundamental step is to control the money that enters your company, so you can make sure there is enough money to pay all expenses and if there will be a profit.

Since the entries usually come from sales, it is necessary to control both cash and installment sales, estimating the billing in the month that will be received.

For greater financial management control , always work with a margin. That way, if any customer delays payment, your company's budget will not be compromised.

Analyze cash flow periodically

Cash flow is nothing more than the control of all cash inflows and outflows from the company's cash, that is, the combination of the two previous items.

However, for good financial management, it is not enough just to write down expenses and revenues, it is necessary to analyze these movements periodically.

This means checking the economic situation of your business and taking steps to always stay in the green.

The periodicity of the control will depend on the activity flow of your financial sector. If it is too high it is advisable to evaluate it daily, otherwise it can be weekly or even monthly.

This analysis enables the manager to make the necessary corrections, ensure that there were no errors and predict the best moment for future investments.

Automate the processes

The greater the movement of your finances, the more difficult it can be to successfully manage finances. Also more prone to failures and forgetfulness, which undermines all planning.

For these and other reasons, the best way to have efficient financial control is to automate processes.

In addition to reducing errors and failures, it increases the productivity and performance of the team and improves the results of the company as a whole.

A financial management system allows this automation of the financial sector, reducing unnecessary costs and helping to close the balance sheet, PJ income tax declaration , issuance of invoices and other documentation and obligations, all in a single system.

Thus, when registering new information in the system, it is automatically available in other sectors. You can, for example, already program all payment installments, integrate with issuing invoices, bills with tax deductions and other automated fees, without having to do any manual calculations.

In addition to better financial control, an ERP financial management system does much more for your company.

It also connects industries, improves communication, and provides up-to-date information whenever needed.

As the financial sector is essential for the company, all data and other information must be correct for better planning and decision making.

Therefore, a financial management system also issues management reports, with tables and graphs that demonstrate in detail the financial health of your company.

Through them, it is easier for the manager to follow the results, identify trends and make future projections, things that would be very laborious and require a lot of knowledge to do manually.

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