Introduction
Modern financial analytics requires a new approach. Now every business is going digital to handle its finances. So big data, customer analysis, and data warehousing are becoming increasingly common.
Accurate financial decisions are crucial for the future of any company. And digital finance solutions provide quick access to accurate data analysis.
In this article, we explain:
- what software with analytics in finance is;
- why you should consider it;
- how you can develop a custom financial analysis solution.
What is software with financial analysis?
As the name suggests, such software allows businesses to:
- monitor their financial performance;
- make predictions and decisions based on it.
Who uses it and why?
Accounting departments use it to:
- track and compare financial transactions and accounting entries;
- track KPIs;
- make sure all financial data is accurate.
These programs offer many very useful features as a whole. They generate reports that comply with IFRS and GAAP standards. They also check operations for financial compliance. Plus, these apps feature secure access systems.
Every financial application requires access rights. A user with a high access level (e.g. CFO) can get the details from any financial entry. In contrast, a junior accountant’s access level is more limited. A digital finance solution also speeds up access to transaction details. This saves time and money.
Why use financial statement analysis software?
Analysis is a crucial element of the financial industry. Digital tools analyze financial data with utmost precision in an instant. Software like that is naturally attractive.
Still have your doubts? Not sure about investing in a financial analysis app? That’s understandable. But consider these financial application pros. Perhaps, they will change your mind.
Financial Software Pros
Improved efficiency
That advantage is obvious. Automation is perfect for instantly:
- organizing data;
- carrying out financial analysis;
- generating reports.
Digital financing solutions also help safely preserve and access records. This results in a productivity boost. After all, your staff can focus on less monotonous tasks.
Data Accuracy
Do you need to get rid of accounting errors? Of course, you do. For this you need software capable of financial analytics.
It can minimize errors in accounting with:
- exact data from transaction records;
- integration with banks;
- accurate up-to-date asset and liabilities data.
This incredible precision leads to:
- better forecasting;
- proper budget distribution;
- faster and smarter business decisions;
- zero duplicated data.
Data security
A proper financial analysis app protects your company financial data from:
- leaks;
- corruption;
- hacker attacks.
There are usually several security measures. This includes:
- full restriction of data access;
- different access levels (depending on the user role).
So some transaction details and analytics are only available to higher-tier users (i.e. chief accountant).
Enhanced security also includes:
- basic user account protection (password);
- two-factor authentication.
Synchronized operations
One of the greatest benefits of a financial analysis app is interconnectivity.
This means:
- your company departments are connected;
- data is instantly processed between different units or corporate branches.
But let’s say your business is big. Then you may already have an ERP system set up. Well, no problem. Simply integrate financial analysis statements software into that ERP.
Don’t have one yet? You can develop a custom ERP app from scratch. It will help you keep all the management in one place. Just don’t forget to add financial analysis features!
Growth measurement
A finance analysis app lets you:
- easily measure company performance;
- evaluate company growth;
- do so for any given branch or department.
Accurate automated reports give you:
- more effective budgeting;
- proper forecasting;
- a clear view of areas needing improvement;
- a localized list of the needed changes and their cost.
Scalability and flexibility
Custom financial analysis solutions have one exclusive advantage. And it’s very significant.
They can be expanded and adapted to your needs over time. Your requirements might change, but your financial analysis app will still handle them well. That’s because you can upgrade custom software whenever you want. Just ask your dedicated development team to add a new integration or feature.
Out-of-the-box solutions lack this advantage. In fact, they have a few cons custom software doesn’t. Such as:
- you will have to buy new solutions if your needs change;
- new software is expensive;
- your staff will have to switch applications for a single operation. A great way to lose money and annoy your employees.
How do you develop custom software with financial analysis?
Ready for a custom financial statement analysis application? One tailored to your business requirements? This complex task requires time and effort. But it can be divided into smaller steps. Here’s how you do it.
Choose a platform
This is the first step to your future financial analysis software. You need to choose the best platform for your application. Do you want a web application or a mobile app? Both? Should it be iOS or Android?
This requires serious thinking and consideration. Each software platform needs different development technologies. And the solutions for them also vary.
You have to specify all of your app requirements. Both functional and non-functional. Answer the following questions.
- What do you want the software to do?
- How do you want to interact with it?
- Can you imagine the final product?
No need to be perfect. A clear vision of the final product is what’s really important.
Hire developers
Software development can’t start without developers, obviously. You have 3 options:
- contract freelancers;
- get your own in-house team;
- outsource.
First things first. Freelancers are a bad choice. Especially when developing financial software with an analysis module.
Solutions like this are very complex. They require full-time compliance and seamless communication. And you can’t expect a freelancer to be fully reliable in that.
An in-house team is a much better option. It lets you have full control over the dev process. Yet an in-house team is pretty expensive and time-consuming. You need to invest in:
- headhunting;
- management;
- operations;
- training;
- office space;
- development tools;
- equipment;
- salaries.
Given the above, there’s only one p choice for developing financial applications. Pick outsourcing.
Outsourcing software development provides:
- faster, cheaper, higher quality service;
- resource efficiency;
- experience in domain zones;
- established business processes.
Of course, that’s if you hire a respected vendor.
Don’t forget – outsourcing team members know each other. They’ve worked together in the past. So they don’t waste your time and resources on teambuilding.
Perform requirement analysis
Any application development begins with a requirement analysis. It’s mandatory. That’s when you also assess the software developers. Make your needs perfectly clear.
Clarify:
- your product functionality and design;
- operating details;
- order of feature delivery.
Make sure the team is ready to provide the necessary input. A proper software vendor is efficient at sorting the details. They also suggest what can be added or removed.
A software development company is here to make your software better. If you are looking for a financial analysis solution, make sure its key features are present. Namely:
- general accounting;
- fund accounting;
- asset management;
- taxation module;
- projections;
- planning;
- risk management;
- reports;
- billings and invoices;
- vendor management.
Once these are present, you can start adding unique functionality. One that targets your complex needs.
Participate in software development
Your job doesn’t end once the software development process starts. The business owner is a key figure here. You set the requirements, terms, and conditions. Your company will use this software on a daily basis.
And it’s your responsibility to ensure the project stays on track. The programmers, coders, designers, and managers all rely on your involvement. So don’t leave the application development process until it’s complete.
It’s not as difficult as it sounds.
The dev team will provide regular updates. That way you’ll always be on the same page. Calls, reports, and meetings will supply feedback from both sides. Stay in the loop and don’t be afraid to offer your own ideas and solutions.
Test the software
Testing (a.k.a. Quality Assurance) is a key part of software development. It ensures that:
- every feature works as designed;
- security measures are in place;
- the software as a whole performs properly on every platform.
Any finance-related application should also provide data safety and stable performance.
Software testing can be performed at:
- your side;
- software developer side;
- independent vendor side.
QA is a common procedure for any software vendor. So it’s most commonly done on the developer side.
Start implementing
At last, you can implement the application in your company. You launch the app. It’s time to teach employees how to use it. You need to make them excited about this cool new technology. Use simple words to talk about its pros and functionality.
The more they like the software, the faster it will be adopted. And the faster you will start reaping the benefits. It shouldn’t take long if the app is functional, well-designed, and easy to use.
Conclusion
Financial software is an incredible tool for any enterprise. Such applications allow the business to be:
- more efficient;
- secure;
- organized;
- profitable.
Custom financial analysis app development is very complex. But it’s much easier with a good dev team on your side. Bamboo Agile is an expert in top-notch Fintech software. Want to learn more about custom financial analysis app development? Feel free to book a consultation with our specialists today.
