Financial management is an important aspect of any business enterprise, regardless of its size. More important is this article on the 11 best financial reporting software in 2023, as it will assist businesses in simplifying transaction records, collecting and calculating profit and loss data, creating balance sheets and budgets, planning, financial reporting, and so on.
Businesses are increasingly purchasing financial reporting software to simplify complex tasks that require expert skills for accurate and reliable results. But the question remains: How do you know which financial reporting software is best for your company?
Read on for a review of the market’s best financial reporting software, with detailed information to help you choose the best option for your company’s needs.
What is financial reporting software?
Financial reporting software automates data collection, generates reports, and assists finance teams in analyzing historical financial data to accurately predict future trends.
Quality financial reporting software improves business performance visibility and simplifies the financial reporting process, resulting in more accurate and efficient financial statements and custom reports for executives.
Financial reporting software assists internal users in budget preparation, performance analysis, and providing current financial statements to external users like regulators, auditors, lenders, and stockholders.
Modern financial planning and analysis (FP&A) and accounting teams use financial reporting software to meet regulatory requirements, make strategic decisions, and provide accurate fiscal health analysis.
The corporate performance management (CPM) platform offers financial reporting features for budgeting, forecasting, financial close, planning, analysis, and other FP&A processes and can be offered as standalone solutions.
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What Are the Benefits of Good Financial Reporting Software?
Adopting accounting software can significantly improve a company’s operational efficiency, data accuracy, and financial information visibility. Accounting software is widely used to automate and simplify daily bookkeeping tasks.
Meanwhile, some products provide additional benefits for growing companies, such as global tax management and compliance with global accounting standards. In addition to the above-mentioned benefits, some notable benefits of good financial reporting software include:
#1. Improved Accuracy:
Accounting software significantly reduces the risk of human error by automating data entry and other accounting tasks. Storing all financial data in a single system reduces the risk of errors in copying and pasting between various tools.
#2. Increased efficiency:
Accounting software enhances operational efficiency by automating daily financial tasks like transaction entry, invoice creation, and bill payment. Automation significantly boosts accounting software ROI by freeing up staff to focus on problem-solving and analysis, reducing paperwork processing time.
Accounting software integrates with ERP systems, thereby allowing companies to manage their entire business with a single suite of applications, eliminating repetitive data entry, accelerating workflows, and facilitating departmental communication.
#3. Real-time, company-wide visibility and collaboration
Managers and team members have immediate access to financial data, including payments, account balances, and sales, thereby providing a clear view of the business’s operations.
Customizable reports, dashboards, and other analysis tools enable managers to swiftly evaluate a company’s strengths and identify any issues that require resolution. Managers can use company data to gain valuable insights, which allows them to make informed decisions on implementing new strategies and adapting to market trends.
With accounting software, the company now has immediate access to precise and comprehensive information from all departments.
The appropriate accounting software can facilitate business growth by enabling companies to scale effectively. Cloud-based accounting software streamlines company expansion by eliminating the need for costly hardware or on-site software installation, allowing efficient function and user addition.
Accounting software is designed to cater to the complex requirements of growing businesses, including international operations, multiple currencies, and subsidiaries.
#5. Accelerated financial processes
Accounting systems facilitate financial processes that can be time-consuming otherwise. They assist companies in consolidating and reconciling information to expedite financial close processes with reduced effort at the end of each period.
Built-in financial reporting enables businesses to generate financial statements more efficiently and meet reporting deadlines.
#6. Better budgeting and forecasting
Leading accounting systems use budgeting and forecasting to accurately predict a company’s future revenues, expenses, and profitability by analyzing historical and current business data.
#7. Compliance with tax and accounting regulations
Accounting software is a vital tool for businesses to ensure compliance with accounting standards in each region they operate in.
For instance, some software can automate compliance with U.S. GAAP and international IFRS, enabling companies to streamline their accounting processes.
#8. Added security and continuity
Accounting software employs security features like encryption and customizable access controls to restrict access to sensitive data only to authorized users. Accounting systems often store financial data in the cloud, ensuring round-the-clock access even during power outages or natural disasters.
Selecting the right accounting software requires careful consideration of the features to ensure it meets your company’s needs and prevents potential errors in the selection process. These notable features are listed below.
All accounting software should be capable of handling fundamental accounting tasks like recording transactions, tracking payments, and generating financial statements. Most companies require additional features when selecting accounting software, particularly as they grow.
It is important to thoroughly examine each feature to guarantee its compatibility with your current and future requirements. Here is a list of 10 essential features to consider when choosing accounting software:
#1. Budgeting and Forecasting
Using accounting software, businesses should be able to use historical and real-time data to generate budgets and forecasts, which helps managers predict future business performance. Also, companies should be able to monitor their actual performance against their budget to identify and rectify any issues.
With accounting software, managers and financial specialists can quickly identify areas exceeding budget, identify issues, and make adjustments to enhance business performance by analyzing detailed data. Analyzing information helps businesses develop more precise future forecasts.
#2. Core Accounting
Accounting software should offer comprehensive support for essential functions like transaction recording, general ledger management, chart of accounts (COA) generation, financial statement generation, and more. These functions are important for monitoring revenue, expenses, and cash flow.
Accounting software should automate basic bookkeeping functions like journal entries, account reconciliation, and calculations while also ensuring compliance with regional accounting standards. This is particularly beneficial for expanding businesses with international operations.
As companies expand, payroll becomes increasingly complex and time-consuming to calculate and manage manually. Businesses dealing with multiple pay scales, overtime, benefits, sales commissions, and contract workers face significant challenges in managing their workforce.
The software is designed to simplify payroll calculations, including gross and net pay, payroll tax withholdings, and health and retirement benefits. Businesses can ensure accurate collection and filing of local payroll taxes in each jurisdiction, a basic feature for those operating in multiple states or countries.
Some software can automate timesheet scanning, analyze checks, deposit funds, and provide self-service capabilities for employees to view paychecks and other key information online.
#4. Billing and Invoicing
Accounting software automates invoicing, collection, and accounts receivable processes. It enhances cash flow, manages credit terms, and improves payment collection through automated alerts and multiple payment methods.
Accounts receivable staff can monitor outstanding invoices, customer payment history, and key performance metrics like days sales outstanding (DSO).
Accounting software for accounts payable can simplify accounting processes such as scanning incoming bills, coding expenses, automating approval workflows, scheduling payments, and controlling disbursement.
This ensures timely bill payments and captures available vendor discounts. The automatic matching of goods received to purchase orders and vendor bills can save time, reduce errors, and prevent fraud.
#5. Project Accounting
Many businesses require project-based accounting for revenue and expenses. For instance, construction firms, consulting firms, and others that perform project-based work for clients
Accounting software can simplify project accounting by automating the allocation and tracking of revenue and expenses, simplifying specialized bookkeeping tasks.
Project accounting allows companies to track progress against key milestones and invoice customers as each milestone is reached.
Managers can generate project budgets based on the company’s past experience and compare actual expenses with planned budgets in real time to identify necessary adjustments and course corrections.
#6. Reporting and Analytics
Accounting software facilitates and accurately completes financial statements like income statements and balance sheets for businesses, reducing the need for labor-intensive manual methods.
However, accounting software offers additional reporting features that assist managers and financial specialists in monitoring the company’s business performance.
Leading accounting software offers real-time dashboards and analytics for financial teams to monitor key metrics, analyze trends, and identify issues. Advanced analytical tools offer comprehensive data on a company’s current financial health.
#7. Asset Tracking
Many companies invest heavily in long-term assets like machinery, vehicles, and real estate, as well as short-term assets like inventory.
Companies use fixed asset management and inventory management software to track their total asset bases, thereby simplifying the process of tracking their value and details over their useful lifespan.
Fixed asset management software automates depreciation calculations, maintains a running total of fixed assets, and records each item’s value, inventory level, condition, and cost for GAAP compliance and tax purposes.
As a business expands and uses a wider range of applications, it is important to prioritize integration with other applications. For instance, ERP suite integration with accounting software eliminates manual data transfer, synchronizing financial data with sales and manufacturing data and ensuring seamless integration within the suite.
Integration reduces data-entry errors by facilitating data sharing across the organization and providing a comprehensive real-time view for each department.
Integration improves business visibility by enabling real-time data sharing across departments, such as CRM systems, and by enhancing the customer experience by providing real-time information about payments.
#9. Tax Management
Accounting software simplifies tax compliance by automatically performing intricate calculations in line with local, national, and global tax regulations. This enhances businesses’ confidence in paying and collecting taxes accurately, as they have detailed line-item records readily available for any necessary action.
Leading accounting software allows businesses to automatically calculate local tax obligations for domestic and international operations, including U.S. sales taxes, goods and service taxes (GST), and VAT.
#10. Mobile Support
Cloud-based accounting software with mobile support enables staff to access necessary information anytime, anywhere, whether they’re on the road, in off-site meetings, or working remotely.
Employees can easily access and update data from both desktop and mobile devices. Mobile apps enable staff to manage their workflow on the go, providing customizable dashboards for tracking metrics, tasks, reminders, and transactions.
In addition, Mobile apps offer the feature of working offline, allowing employees to continue working without connectivity and uploading information later.
After thorough research, we are able to identify the top 11 financial reporting software in 2023 for your consideration.
11 BEST FINANCIAL REPORTING SOFTWARE 2023
#1. Xero– Ideal for startups
Xero is a widely used accounting platform by businesses of various sizes across various industries. It is a user-friendly financial reporting tool that provides all the necessary tools for small businesses and startups.
The software provides automated reconciliations, bank balance projections, AI-powered cash flow predictions, and customizable financial reports for easy column customization. Xero offers a versatile platform with multiple currencies, unlimited clients, and user accounts, facilitated by comprehensive support and online tutorials.
The platform integrates with over 1,000 apps, including Shopify, HubSpot, MailChimp, Float, and Accelo, among others.
Xero offers numerous benefits, including unlimited users, invoicing tools, and automated receipt capture, and is very affordable. The disadvantages are limited features on the entry-level plan and the exclusive availability of multiple currencies on the highest plan.
#2. Tipalti: Perfect for large organizations:
Tipalti is a leading finance automation software that offers comprehensive financial reporting capabilities. The system provides financial reporting, automation, internal controls over financial reporting (ICFR), procurement, and international accounts payable tools.
The platform offers features such as automatic supplier validation before approval, internal control, and risk assessment tools. It efficiently checks suppliers for suspicious payees on anti-narcotics, anti-terrorism, and OFAC lists, enabling immediate reconciliations for faster detection of fraudulent payments.
The integrations include Oracle NetSuite, Sage Intacct, Microsoft Dynamics, Xero, and SAP. The benefits of this system include internal controls over financial reporting and risk assessment tools, automatic invoice coding, and supplier screening and validation.
The product has some drawbacks, including the absence of batch downloads and a somewhat steep learning curve.
#3. Workiva: Ideal for complex reporting
Workiva is a user-friendly financial reporting tool that offers document collaboration, data visualization, customized views, and ad hoc reports for efficient data management. It was chosen due to its ability to provide customized financial reporting solutions for organizations of all sizes.
Workiva’s key features include automation that simplifies data collection and financial reporting processes across your organization. Its automation improves the accuracy and timeliness of various financial reports, including budget-to-actual variance, management, internal controls, capital market transactions, and governance reporting.
To me, the tools that assist teams in monitoring business KPIs and debt covenant compliance appear to be highly beneficial.
Workiva integrations include Workday, Sage Intacct, Netsuite, Google Drive, QuickBooks, Tableau, Planful, and SAP. The product offers comprehensive reporting features, a user-friendly interface, and automated ESG reporting, available through both web and Android apps.
The main drawbacks include the absence of an iOS mobile application and no phone or live support.
#4. Sage Intacct: Best for ease of use:
Sage Intacct is a cloud-based financial reporting software solution designed to support growing companies that have in-house accountants or accounting teams. It is a highly recommended tool for growing organizations due to its customizable workflows, automated financial reporting capabilities, and advanced audit trails.
The “Intelligent GL” (General Ledger) feature allows quick scanning of thousands of transactions to identify irregularities and inaccuracies, thereby speeding up consolidations.
Sage Intacct is a suitable solution for organizations with multiple divisions or subsidiaries seeking to enhance their financial consolidation and reporting processes. The integrations include various platforms such as Salesforce, Workato, Solver, Versapay, Omnidek, Tipalti, Paychex, and Workiva, among others.
The advantages of Sage Intacct include a user-friendly workflow automation interface and industry-specific solutions, providing numerous advantages. The disadvantages of this system are opaque pricing and the inability to edit manual payments.
#5. Oracle NetSuite: Best for global enterprises:
NetSuite is a comprehensive financial reporting solution designed for large organizations, as it integrates financials, inventory management, enterprise resource planning (ERP), commerce, and supply chain management. It was chosen due to its ability to provide valuable operational performance insights to organizations across various industries.
The software is highly flexible, offering advanced features like embedded analytics, user-friendly dashboards, and the ability to download specific data for any period of time.
Oracle’s dashboards are highly role-specific and customizable, allowing users to customize their experience according to their specific needs. The integrations include Shopify, Amazon Supply Chain, ShipStation, Adobe Commerce, Microsoft Excel, BIRST, Adaptive, and Oracle Analytics Cloud.
The benefits of this software include its high customization capabilities, pre-built dashboards and analytics, and ERP functionality. It also has major drawbacks, such as high costs for small businesses and a steep learning curve.
#6. Cube – Ideal for growing teams:
The Cube is a web-based financial planning and analysis software that assists businesses in creating strategic plans, performing sensitivity analyses, and synchronizing data across multiple systems.
Cube was chosen for its compatibility with Excel and Google Sheets, allowing teams to efficiently manage budgeting, forecasting, and financial data reporting through configurable workflows.
The software offers features such as automated audit trails, customizable dashboards, and stored data rules for financial consolidations and general ledger account mappings.It also integrates with Quickbooks, Salesforce, Sage Intacct, Xero, NetSuite, Google Sheets, and HubSpot.
The software offers several advantages, including the ability to connect to multiple data sources, a user-friendly interface, and highly responsive customer service. The major drawbacks of this product include its high cost and the absence of suppress-zeros functionality.
#7. Freshbooks – Perfect on a small budget
Freshbooks is an affordable and user-friendly accounting software that is perfect for small businesses, freelancers, and solopreneurs.
I added Freshbooks to my list because it is a versatile solution for small businesses and freelancers, offering a comprehensive approach to financial reporting without the complexity of most other software options.
The product offers exceptional features like annual and interim financial statements, bank account synchronization, and detailed tax reporting. Along with its basic reporting functionality, Freshbooks offers a variety of financial reporting tools, including invoicing, client management, payments, and expense management,
The integrations include Hubspot, QuickBooks, Google Sheets, PayPal, Gmail, WooCommerce, Square, and Shopify. Also, the software is user-friendly; it integrates with your bank for efficient reconciliation and offers customizable invoices and email templates.
#8. Budgyt: Best for simple projects
This software is cloud-based and offers advanced financial planning and reporting tools. Budgyt was chosen due to its user-friendly interface and unlimited users on all plans.
The software is an easy-to-use budget management tool that offers features like multi-department collaboration, transaction-level data analysis, agile forecasting, audit trails, and user-based access controls.
In addition, Budgyt offers numerous educational resources and guides, like webinars, videos, in-person training, and documentation, which users can use effectively.
Budgyt integrates with Quickbooks, Xero, ConnectWise, Great Plains, Oracle NetSuite, Sage Intacct, SAP, PeopleSoft, and Lawson.
The benefits of this product include budgeting and forecasting features, excellent customer support, extensive product support, and comprehensive training guides. Its disadvantages are limited integrations and it’s somehow expensive for small teams.
#9. Insight Software: Ideal for custom reporting
Insight software simplifies data export from ERP or EPM systems to Excel, allowing for the creation of personalized dashboards. I added insight software to my list due to its customizable Excel reports, integration with departmental planning, and efficient workflow management.
The software offers features like Account Payable (A/P) and Account Revisable (A/R) aging, pre-configured queries, audit trails, and easy form, report, and dashboard configuration, along with auto-prep and formatting tools.
The report creator simplifies the process of creating personalized financial reports for team members. The integrations include Microsoft Dynamics, Sage Intacct, Oracle NetSuite, and SAP.
This tool offers advantages such as its user-friendly spreadsheet interface, efficient data imports, and customizable reporting options. Insight software has limitations, such as limited analytical tools and may be too expensive for small teams.
#10. Spreadsheet Server: Best Excel-based solution
The Spreadsheet Server from Insights software is a user-friendly add-in for Microsoft Excel that offers analysis and live reporting of data from your ERP solution.
Spreadsheet Server is a highly customizable financial reporting tool that allows users to add data from major ERPs into Excel, enabling the creation of various reports and dashboards.
The software offers various features such as report templates, customizable dashboards, role-based user permissions, variance analysis, and ad-hoc reporting tools. The integrations include Excel, Oracle NetSuite, SAP Business One, CMiC, SYSPRO, Workday, MYOB, Sage, and BannerFlow.
The benefits of this tool include its high customization, pre-configured data queries, and seamless integration with Excel. The software’s drawbacks include its limited support for only eight languages and a potential learning curve for those unfamiliar with Excel-based solutions.
#11. CCH Tagetik – Best comprehensive solution:
CCH Tagetik Wolters Kluwer helps in utilizing historical financial data to create precise budgets, financial plans, and forecasts. It is a robust financial reporting software solution suitable for large businesses and organizations, offering advanced data analytics and advanced reporting features despite its steep learning curve.
The software offers advanced analytics, business intelligence tools, scenario analysis, and activity-based and driver-based costing models to provide insights into financial statement line items.
CCH Tagetik’s Profitability Analysis and Analytic Information Hub assists in analyzing profit margins for various customers, products, and salespeople. It works alongside SAP, Oracle, Microsoft Dynamics, Workday, Qlik, and MS PowerBI, among others.
The benefits of this tool include advanced analytics, highly customizable reports, multi-user support, and access permission levels for a better user experience. The disadvantages include a steep learning curve and a lack of group cash flow functionality.
After considering our top 11 financial software, here’s a quick guide to help you through selection.
How to Choose the Right Accounting Software
The choice of the right accounting software is crucial for any business to effectively manage its core financial processes. To effectively manage your business, it is crucial to conduct a thorough analysis of your current needs, while also considering future requirements.
A system’s ability to scale up, integrate into ERP suites, offer essential features like fixed asset management, project accounting, and advanced forecasting, and its intuitiveness for employees are key factors.
When choosing accounting software, it is equally important to consider the software’s efficiency in automating accounting tasks and its ability to be customized to suit your specific needs. Also, check the ability of the software to handle all regional and international tax requirements for your business operations being evaluated for both now and future use.
For international businesses, it’s important to consider whether the software supports multiple subsidiaries and adheres to both GAAP and IFRS accounting standards. Also, consider the software’s ability to support multiple locations and mobile devices for staff access from a single central office.
In conclusion, be sure that the software provides real-time data analytics for tracking key performance indicators (KPIs), analyzing issues and trends, and strategizing for informed decision-making.
Financial reporting software improves the reliability, speed, compliance, analysis, and scalability of important financial reporting processes. This allows your business to make informed decisions, comply with regulations, and enhance its overall financial performance.
Without financial reporting software, it becomes difficult to comply with accounting standards and regulations. Financial reporting software also reduces the errors and inaccuracies in financial statements that result from manual processes.
However, before adopting a solution, be sure to have carefully assessed the advantages and disadvantages of each financial reporting software, and carry your teams along in a consultation to choose the best solution for your organization. Finally, take time to carefully listen and think through information to ensure a smooth and successful financial reporting process.
Thank you for reading.
Why use accounting software?
Accounting software enhances accuracy, and efficiency, supports business growth, provides real-time financial information, monitors cash flow, manages invoicing and payment processes, facilitates reporting, and meets accounting standards and tax requirements.
What are advanced accounting software features?
The advanced accounting software offers features like multi-currency support, machine learning, project accounting, fixed asset management, and customizable workflow automation.
What reporting options does accounting software offer?
Accounting software can generate reports either upon request or automatically at the end of each financial period, depending on the specific product. Accounting software helps businesses create financial statements and detailed reports, including lists of outstanding bills and invoices, to analyze specific business aspects.
What Are the 4 Types of Financial Reports?
Profit businesses use four main financial statements: balance sheet, income statement, statement of cash flow, and statement of retained earnings.
Can you use Excel for financial reporting?
Yes, you can. Many businesses use Excel, but it can be time-consuming unless the business is small or simple, or if an Excel expert is on staff. But in order to carry out forecasting, reconciliation, visualization, or data integration, you need software or a plug-in.
Is Sap a Financial Reporting System?
Yes. The SAP financial system allows for the management and supervision of fixed assets, providing detailed information and reporting data.
What Are the Major Financial Accounting Report Systems?
The three primary financial statement reports are the balance sheet, income statement, and statement of cash flows.