If you run a business and want to improve its financial management, this post may be of interest for you!
Financial management for business
One of the most delicate and important tasks that any business or company must perform is financial management. It is an activity that allows the organization of the company’s economic resources in order to face an effective financial plan and to make projections over time.
In this sense, financial management is essential not only for large companies and large companies, but also in the case of small and medium-sized companies and enterprises that seek to grow and improve their business performance.
This is the case with financial management software or BFM. Its meaning could be defined as a programme that provides financial analysis and control services that are tailored to the needs of the businesses that request it. Among its main advantages is the automation of data collection, the reduction in operating costs and the integration of open banking services.
Today, financial management is more accessible than ever: due to the multitude of IT and telecommunications developments, this market is constantly developing: according to a report produced at the end of 2021 by the Statista website, around 50% of small and medium-sized companies use this type of financial management software.
On the other hand, according to the report produced by the National Observatory of Technology and Society, the use of artificial intelligence systems is expected to exceed 9% by the end of the year, while database analysis accounts for around 11% of all systems in use. However, the most representative value is that of software with cloud services: 32% of the total in 2021.
What are the advantages of BFMs?
In general, this type of system seeks to strike a balance between flexibility of functions and tasks, on the one hand, and simplicity of interfaces and user experience, on the other. Therefore, it not only represents a substantial improvement in the processes associated with financial management and the balance sheet, but also reduces costs and streamlines operations without the need for a major investment.
BFM systems allow you to collect data from the different accounts and banking services with which the company operates and organize them in a single platform to integrate operations and obtain an overview of the accounts. It also makes it possible to link different providers to ensure the operation of APIs for open banking.
Implementing this type of IT solution ensures the joint management of business accounts, credit services and investment instruments, among others, in a single interface that simplifies the operation of the organization as a whole. As a result, balance sheet and accounting tasks are simplified, invoicing is streamlined and accounts are updated in real time.
This type of platform also assists decision making by enabling financial reporting, statistical analysis and long-term performance projections. Therefore, management strategies can be developed with more precise criteria based on financial data and economic needs.
Reference companies in BFM
The versatility and operational capability of BFM is evident in an increasingly automated world. Indeed, these financial management software products represent a competitive advantage for businesses and companies seeking to improve market performance.
This phenomenon could be seen during the pandemic, when the disruption of business and commerce forced companies to work remotely.
It is in this context that Strands gained notoriety as one of Europe’s largest BFM providers.
The company, now part of the CRIF group, is expanding and is seeking to optimize its products to improve its performance in open banking. In terms of its products, the company has won several awards for its personal financial management (PFM or Expense Manager) applications and solutions.
Its software products are aimed at simplifying financial management tasks by developing modular programs for multiple devices. These can be customized according to the requirements of the business and company to integrate different services of digital banking and open banking.
Coinscrap Finance is a reference company in BFMs in the Hispanic market.
It offers a white-label software solution that enables small and medium-sized enterprises (SMEs) to better understand how to manage their finances.
A product that adapts to the particular needs of each sector and each company regardless of its size. Thanks to its white label value, 100% customization is achieved.
Therefore, it favors the control of balance sheets, financial and economic spreadsheets, accounting and many other complementary functions that significantly improve the financial performance of businesses.
BFM offers the possibility of producing a comprehensive management system that includes all those functions and tasks associated with a company’s finances. Therefore, it represents an improvement in the performance of operational processes and a tool to assist decision making.