The flow of finances in any organization needs to be recorded and managed well in order to save time, cost, and labor. The availability of software platforms to cater to users who have shifted to transacting online helps bring structure to accountants and finance professionals as well. Having a good financial management system (FMS) software will help simplify the entire accounting process and modernize traditional business functions. An FMS in an educational institution performs functions like recording transactions, making and receiving payments, reducing accounting errors, and ensuring compliance with accounting standards. The main types of financial management systems can be categorized into financial accounting, managerial accounting, and corporate finance. Every educational institution differs from the other and the needs for some systems might not arise unless expansion in terms of institution size or region is on the management agenda. The pandemic-set norms of digitization have led to an uptick in the number of financial management systems out in the market. We explore some in this article:
Ken42 is India’s first System for Education Design and Management. It offers a comprehensive unified dashboard for institutions to track income and expenses, accounting process workflows, bank transactions, and reconciliations. Easily available data on a real-time basis helps the management access, analyze and remedy financial activities with a single click. Ken42 has a host of features, apart from just being an LMS. Fees and salaries payments, bank reconciliations, invoicing, order fulfillment, integratable platforms with legacy systems, and more ease the processes of the Finance function in an institution. With 24/7 IT support, a dedicated team to help with implementation and data security, the platform enables all online financial transactions, making the process easier.
Workday Financial Management is a cloud-based solution for financial planning, analysis, and transactions. By combining transactions, accounting, analytics, and always on audit in one system, Workday empowers decision-makers with in-the-moment and on-the-go financial and business insight they can act upon and plan for the future.
An accounting software that helps with end-to-end accounting processes like GST compliances, business workflows, income and expense statements and integration of financial management processes. It also helps reconcile multiple bank accounts and provides the user with a seamless experience.
FinancialForce Financial Management is designed to help institutions with all of their accounting needs. Some features are real-time financial analysis, modeling compliance reports, and measuring financial health. Accounts payables and receivables, fixed assets, cash management, and reporting can all be accessed from one place, giving the user greater control and flexibility.
A lot of big-league software companies have tailored their products and features to meet the evolving needs of the Accounts and Finance departments in educational institutions. Oracle Higher Education Cloud is a cloud service that integrates HR and finance functions to increase the student and parent experience as well as the management of the institution.
There tends to be a lot of anxiety around end-of-financial year reporting with many organizations scrambling to consolidate all accounting and financial data and have them audited. With a sound financial management system, the challenges of gathering accurate and updated data are effectively eliminated. The investment into a financial management platform must be carefully done after ascertaining the ROI and other internal requirements. An effective financial management system has the following benefits:
- Streamlines short-term and long-term business efficiencies and performance by organizing invoicing and cash flows
- Eliminates manual accounting errors
- Minimizes record-keeping redundancy
- Ensures compliance with tax and accounting standards and regulations
- Helps accounting and finance personnel to quantify and explain budget planning to the management
- Offers flexibility to expand and accommodate change and growth in the size of the organization.
The accurate presentation of financial statements and information is key for all stakeholders involved in running the educational institution. It increases the trust and value of the organization and is indirectly crucial to attract quality faculty and students.