The financial situation of any company is of the utmost importance, and if it can be efficiently managed, the company will experience accelerated expansion.
By managing budget you can keep track of effective utilization of your cash flow.
By comparing your financial data with previous year's data you can define your future strategies.
Create invoices and send to customer with a click and also send payment reminder.
Create multiple proposals and keep track of it and connect with sales.
View financial reports to take future financial decisions.
You can map your existing cash flow for short term finance management.
You can compare various ratios like Sales to Salary, Sales to Expenses and find areas need to be improved.
Save time by regularly sharing financial information with your accountant or consultant.
Sales and Payments
Create invoices for your clients and track payments received. You may also send payment reminders, invoices, and payment confirmations instantly. If an invoice is associated with a project, then the project's profit can be identified.
Make a proposal for a client and keep track of the milestones you set for it. You can also keep track of how much money you get for each milestone.
Take care of your purchases and any payments that are made against them.
Keep track of all your income and expenses. This will help you do accurate accounting and figure out how much it costs to run your business.
This is our one-of-a-kind feature that helps you map your short-term financial information, such as expected income, proposed payments received, expenses, and proposed expenses, and then use that information to figure out your short-term cash flow and make decisions.
Create groups and define budgets for them, then map spending to them and monitor their use. Also compare the current year's budget to those of previous years, which will assist you in establishing goals for the current year.
Manage your bank transactions, such as putting money into and taking money out of your account and moving money from one account to another.
Manage Returns on Sales and Purchases, Debit Notes, Credit Notes, and JV Entries.
Access any party or bank's Statement, Cash Rojmel, Trading Account, Profit & Loss Reports, and Balance Sheet with ease.
Managing Budget using Excel
Manual procedure for sending invoices to clients and tracking payments
Maintain a record of all of your expenditures
Compare financial data with previous years
Why Finance Management?
Whether you want to start a firm, grow an existing one, add additional equipment, or develop new products, finance is the foundation of every commercial organisation in the modern day. Liquid funds are essential for the organization's day-to-day operations. From the simplest expenditures to the largest business expenditures, finance is essential. Agree?
Today's businesses are exceedingly fragile. Organizations spend a significant amount of money to keep their firm operational and completely functional. But you cannot continue to spend excessively or refrain from spending altogether. Today, it can be claimed that finance is the fuel of business, but its management is also essential for enterprises to achieve success. Only when good management is added to the sphere of finance can its benefits be realised.
While this may not be enough to convince you of the significance of financial management in every organisation, Lets' elaborate. However, before discussing the significance of financial management for every organisation, let's define the term.
Finance is unquestionably one of the most essential components of a business. With enormous capital, daily cash flow, and continual transactions, it becomes vital to manage and monitor the aforementioned. In reality, handling finances has a significant impact on decision-making. For instance, if the company has more funds, a portion can be used for investment reasons, however if the organisation has fewer funds than the threshold value, it is crucial to stop wasteful expenditure.
Specifically, financial management assists a company in deciding what to spend, where to spend, and when to spend. It provides a clearer picture of the organization's financial standing and outlines its financial processing.
Continuing this discussion, we list six reasons why financial management is essential for your company.
Why Financial Management?
- Generate Money
To start a business, you would require capital. Obviously, in order to take the initial step and begin a firm, financial investment is essential. In addition, as you go up the project's calendar, acquiring resources, recruiting personnel, marketing, and testing, each stage requires financial management.
- Organize Operations
Every day, businesses earn enormous amounts of money. This money must be utilised to pay bills, delegate funds, invest in different endeavours, and monitor these activities. Managing the flow of money into and out of your firm is essential. In the absence of the aforementioned, it is difficult to allocate funds efficiently and effectively. Remember that erratic cash flow might render a business insolvent.
- Manage Cash Flow
As fatal as having insufficient finances is having excessive funds. Cash flow management becomes essential for an organization's day-to-day operations. If you have more money than you need and do not use it appropriately, you are wasting resources. For a business with excess capital, investing in substantial engagements would generate superior returns and help it grow.
- Strategize Funding
Obviously, you will need to allot funds and use them to map your recurring expenses. However, it is not advisable to spend money without proper planning. You must track your spending, check their regularity, and then decide how and how much to spend. Occasionally, it is necessary to reduce unnecessary costs and expenses. And this is only possible if you efficiently handle your financial obligations. It is recommended that businesses have adequate finances to deal with economic downturns.
- Outline Long Term Goals
Organizations strive for growth and expansion of their operations. To achieve this, it is necessary for the organisation to have aspirational long-term objectives that it intends to achieve during the next five to ten years. Financial Management ensures the achievement of an organization's objectives. Consider that you intend to grow your business to three new cities. During actual plan execution, you run out of money. If you had handled your organization's finances and then executed, this would not have occurred. Planning ahead and focusing on the organization's accessible cash enables you to prevent future crisis risks while advancing toward your objective.
- To Sustain Economic Downturn
If you examine a company's growth graph, you will never discover one that rises straight or is lack of curves. The growth of the business organisation cycle is a mixture and fusion of highs and lows, which could be caused by a variety of factors. Recession, depression, success, and failure all contribute to the demise of a firm. With appropriate funds and effective financial management, it is less difficult for a corporation to progress through the business cycle. Regardless of the severity of the circumstance, they are always prepared to face the problem and accept the repercussions without fear of closure. Financial management strategies that are invulnerable to failure allow a business to thrive despite poor economic conditions.
Given the foregoing, it is evident that management is just as crucial for your organisation as finances. From collecting funds to allocating and spending them, organisational leaders must have a clear view of all financial activities inside the business and plan for the most efficient use of existing resources.