Managing cash flow using spreadsheets can be time-consuming and prone to error, which has prompted many businesses to switch to cash flow management software. If you’re thinking of making this switch, too, you’ll need to know what features to look for in cash flow software.
In this article, we’ll discuss the key features to look for when choosing cash flow management software, from integration capabilities to security features.
Key Features of Cash Flow Management Software
Integration Capabilities
Cash flow management software is most effective when integrated with your current accounting software.
For example, Cash Flow Frog can sync with your existing accounting programs, allowing you to import financial information such as income and expenses. By automatically importing accounting data, you can save time and avoid errors associated with manual data entry.
When your cash flow management tool has access to financial data from your accounting software, it’s easy to create in-depth cash flow projections and what-if analyses. Cash flow software can also analyze your accounting data to gain customer insights.
Automation Features
When choosing cash management software, look for tools that can create real-time cash flow forecasts. For example, Cash Flow Frog can sync with QuickBooks to import your latest income and expenses and create up-to-date cash flow forecasts.
You can also use spreadsheets to calculate cash flow, but you’ll need to manually enter your data and perform calculations using spreadsheet functions. For simple and efficient cash flow forecasting, look for programs that automatically make calculations with the click of a button.
Reporting and Analytics
The most effective cash flow management software allows users to create a range of reports and analyses. Some reports and analyses essential for managing cash flow include:
- Cash flow forecasts
- Scenario forecasting
- Cash flow statements
- Customer insights
- Analysis of planned vs actual cash flow
These reports and analyses can give you a clearer picture of your current and future cash flow. For example, scenario forecasting can help you plan for external circumstances that can significantly affect cash flow, such as a downturn in the economy or supply chain issues.
Usability and Accessibility
The main benefit of cash flow software is that it makes it easy for anyone to create forecasts and manage cash flow, regardless of their accounting background. For cash flow software to be easy to use, it should include clear language, an intuitive user interface and automatic syncing.
Another challenge of cash flow management is collecting data from multiple departments since each department may use different collection methods and data formats. Look for software that makes it easy to import data from multiple departments and accounting platforms.
Customization and Scalability
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Security Features
Cash flow management software uses your company’s sensitive information, so you want to be sure that it has security features that will keep your data safe. Look for software that uses encryption and password protection, as well as backup and recovery in case your information is lost.
Additional Considerations
To see if a cash flow management tool is the right fit, choose software that offers a free trial. This way, you can test the platform and see if its features are compatible with your company and employees.
Also, consider choosing software that is designed for your industry. For example, Cash Flow Frog is built for a wide range of industries, including:
- Legal
- eCommerce
- SaaS
- Manufacturing
- Retail
- Construction
Finally, look for cash flow software firms that provide in-depth articles on how to use their software and have responsive customer support.
In conclusion
When choosing a cash flow management tool, make sure it allows you to import data from the accounting platforms you already use. This removes the need for manual data entry and allows you to create in-depth forecasts and reports based on the most up-to-date financial information.
Choose software with many features so you can customize it to the needs of your business. Make sure the software is easy to use and allows you to create customizable reports to share with all employees. Finally, choose a software provider that prioritizes security and has built the software to serve your industry.
