Financial reporting is an essential aspect of running a business. It involves generation of accurate financial statements and reports that provide insights into a company’s performance. However, traditional financial reporting methods can be time-consuming, tedious, and prone to errors. Fortunately, with the advent of modern technology, the process of financial reporting has become more streamlined and efficient.
In this article, we will highlight the top 5 must-use software tools that can help revolutionize your financial reporting. These tools not only simplify the financial reporting process but also provide real-time insights into a company’s financial health. Whether you’re a small business owner or a financial professional, these software tools will be a game-changer for your financial reporting needs. Read on to learn more about how these tools can help you take your financial reporting to the next level.
Essential features of financial reporting software
The main objective of financial reporting software is to automate the record of all financial transactions, use past performance data of your business and current trends allowing to forecast your financial future, which fosters flexibility in adapting to new situations or changes in the market.
Financial reporting software should also provide reporting capabilities, which should generate different types of financial statements like balance sheets, cash flow statements, and profit and loss statements, which are essential for tax purposes, business strategy, and performance evaluation. Furthermore, customizable reports can be generated based on the specific needs of your organization.
Another essential aspect of financial reporting software is its user-friendliness: it should be easy to generate comprehensible reports and the software should be intuitive to maximize productivity and convenience.
One more crucial feature is integration with other software used by organizations to streamline processes, encourage collaboration, and ensure consistency.
Find more information about how to streamline financial reporting.
Benefits of using financial reporting software tools
The use of financial reporting software tools offers several benefits. Firstly, it saves time and reduces errors. Traditional financial reporting methods typically involve manual data entry and calculations, which is highly erroneous. Financial reporting software tools automate these processes, optimizing performance, reducing the risk of human error, and freeing up your time for other tasks.
Secondly, financial reporting software tools provide valuable insights into a company’s financial situation. This allows businesses to make informed decisions quickly and proactively.
Thirdly, financial reporting software tools make it easy to handle the business’ finances even for not financially savvy people.
5 Financial reporting software tools to consider
1. Synder
Synder is a user-friendly versatile solution for a variety of accounting and business management needs including a built-in tool for generating financial reports. It features a great number of integrations with the most popular accounting software, sales platforms and payment processors (QuickBooks, Xero, Amazon, eBay, Shopify, PayPal, Stripe, etc.), categorizes and analyzes the data and generates financial reports calculating your revenue, COGS, gross profit, operating expenses and income, and net income. Synder can also manage invoicing, support multicurrency transactions, track your multichannel inventory and taxes (if pre-set). Its plans cost $11 per month and more.
We’ll give more details about one Synder’s best performing tools below. Stay tuned!
2. QuickBooks
QuickBooks is one of the well-established accounting software companies in the world. But some of you might not know that it also offers financial reporting tools. QuickBooks features a user-friendly interface that allows users to input data, generate reports, and manage inventory, taxes, expenses, and has multicurrency support. It also offers a range of integrations with other business software tools, including PayPal, Shopify, and Square. QuickBooks’ plans start at $7.8 per month.
3. Xero
Xero is another popular accounting software that has an in-built financial reporting tool for small companies. It provides its users with reporting features, payroll and expenses management, multicurrency support and integrations with other business software tools, including Square, Stripe, and PayPal. Xero offers plans starting at $11 per month.
4. FreshBooks
FreshBooks is a financial reporting software tool with such features as invoicing, generating financial reports on P&L, and expense tracking. It also has integrations with other business software tools, including PayPal, Stripe, and Shopify. The price for FreshBooks’ plans starts at $6.80 per month.
5. Wave
Wave is a financial reporting tool which can help you easily generate and customize reports, track your expenses, and monitor your cash flow in one place. It offers a user-friendly and intuitive interface, automated transaction categorization, and real-time updates. What sets Wave apart from other financial reporting tools is it has a completely free plan with basic reporting features including invoicing, accounting and banking. However, you need a paid subscription to have access to more advanced features like payments and payroll management, and advisors, having to pay extra for adding each particular option to your account.
How to сhoose the right financial reporting software tool for your business
When choosing a financial reporting software tool, it’s essential to consider the size and needs of your business. Freelancers or small business owners may find that free tools are sufficient for their needs, while larger businesses may require more advanced features such as inventory management or multicurrency support.
It’s also important to consider the cost of the software tool, any potential integrations with other business software tools, and the possibility to upgrade, allowing for more advanced options or a greater number of transactions. You might want to pay special attention to the latter point if you’re planning to scale your business. This way, you won’t have to switch to another software and go through training and adaptation again.
How to maximize the use of financial reporting software tools and avoid common mistakes
To maximize the use of financial reporting software tools, it’s essential to invest time into learning how to use the software effectively. This may involve attending training sessions, watching tutorial videos, studying their knowledge base (if available), or using a free trial (if available). This way you’ll learn all about the workflow of the software and see if this is the right tool for your business needs.
Also, it’s important to ensure you avoid typical pitfalls of managing financial reports.
One common mistake when using financial reporting software tools is failing to enter data accurately or regularly. This can lead to inaccurate financial reports and potential legal and financial issues. In order to solve this issue, you might consider using smart automated software like Synder.
Synder Sync is a solution that automates routine processes of data transfer from the connected sales channels and payment platforms into your books. Synder is a powerful tool that compares and double checks the information that comes from different sources, enables customizable categorization of data, offers the rollback feature that allows you to discard any unwanted changes, and the feature of historical data sync with no time limits.
And after you start using Synder to eliminate the risk of manual entry errors, make sure you avoid another trap – failing to review financial reports regularly, which can lead to missed opportunities and potential issues going unnoticed. Here, Synder can offer you a chance to get detailed per transaction reports or more general daily summary entries. You choose the level of details your business needs at the moment. It’ll allow you to adjust your business strategies and take data-driven decisions.
Ready for Synder to ease your business routine? Hop on a 15-day free trial or book office hours to learn more about Synder workflow.
Final thoughts
To recap, financial reporting software tools offer several benefits, including time-saving, reducing errors, and providing real-time insights into a company’s financial health. When choosing a financial reporting software tool, it’s essential to consider the size and needs of your business, the cost of the software tool, integrations with other business software tools, and the possibility to scale. To maximize the use of financial reporting software tools, it’s recommended to invest time into learning how to use the software effectively and ensure that all relevant data is entered into the software accurately and regularly. With the right financial reporting software tool, businesses can dramatically improve their financial reporting processes and make more informed decisions.
