When Excel starts to feel restrictive, it is time to look for a system that not only replaces spreadsheets but also takes financial reporting to the next level. But what are the key factors for successfully navigating the purchase of a modern financial reporting tool?
When evaluating the market for a financial reporting system, there are five key factors to keep in mind.
1. Functionality
It is essential that the solution suits both you and your business. You need to be clear about how you want to use the system, what information you expect to get from it, and who within the company will be using it.
Many companies invest in expensive systems that are far too complex for their needs and difficult for employees to use. Often, they end up not being used at all. Buy what you need today and make sure there is scope to grow with the solution by adding functionality over time.
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2. Integration
Seamless integration with your accounting system is essential when choosing a financial reporting solution. Make sure the system you select has open APIs and can integrate with the system you use for accounting.
You should not need to export and import files. The system you choose should be easy to use. Through the integration, you get direct access to your accounting data and can view your figures in real time within the system. This makes your financial reporting both faster and easier.
3. Ease of use
Another important factor to consider is that the interface should be user-friendly and easy to get started with, without requiring extensive training. In an intuitive system, you should be able to easily create informative and visually appealing reports, budgets or charts.
If you currently have reports in other systems, such as Excel, it should be quick and easy to move them into the new solution. The system provider should offer ready-made report templates to get you started, while also allowing you to create your own business-specific templates over time.
4. Cost
The tool should be cost-effective in two ways – firstly, it should help reduce the manual workload as much as possible, saving valuable working time.
It should also work on a ‘plug and play’ basis, meaning that it requires minimal training or consultancy time to use.
As a customer, you should be able to administer the system yourself. You should not need to rely on a consultant to programme a custom report, as this quickly becomes both costly and time-consuming.
5. Future-proofing
Keep in mind that we are in the midst of a paradigm shift, where AI will improve and automate large parts of financial analysis and reporting. Make sure you choose a provider that is already ahead of the curve, with a forward-looking roadmap for AI and the integration of new technology. This will save you both time and money in the future.
With a smarter finance function, you will be able to work proactively with analysis and actions that support profitability and long-term business success.
