Which financial mgmt system (FMS) to choose?
Choose the right financial management system to start with
There are many things to keep in mind when choosing a financial system, but it is important that you not only look at your business here and now, but also include your future ambitions for your business in your considerations. Because if you choose the wrong financial system to start with, switching to a new system later can be expensive and difficult.
The definition of an financial mgmt system
The term financial management system, also called accounting management system, covers systems that allow companies to track the company's cash flow, i.e. the money that moves in and out of the company. Basically, it is your accounting system that you use to keep your financial records and you use it to record transactions, invoices, bills from suppliers and other income and expenses.
It goes without saying that, as a Dynamics 365 Business Central (formerly Navision and Dynamics NAV) partner, we recommend that you choose Business Central. It is a solid solution that is widespread throughout the world and tested by thousands of users over many years. Having said that, the things we point out below are general and apply regardless of which financial system you ultimately choose.
Five things to consider before choosing a financial mgmt system
Here are five pieces of advice you should pay attention to when you go out and find the financial system that suits your company. If you have questions that are not answered here, you are of course very welcome to contact us.
Before you choose a financial management system, it is a good idea to consider which functionality you need, as well as which functions you may need in the future. Because if you choose the wrong financial system to start with, it can be both expensive and difficult to switch to another financial system later.
This means that the financial management system must be flexible and scalable, which means that it must be easy to expand the solution with additional functions and to connect new users as needed.
Before choosing a financial management system, you should familiarize yourself thoroughly with the total costs of the individual system. Because the costs of an economic system are not only made up of the license price, but also of the costs associated with implementation, ongoing operation and future upgrades.
You should also be aware that there are often different license types, that there are costs in expanding a financial management system and that there may be different add-on modules with corresponding differences in functionality and price.
A financial management system is full of reliable personal data relating to your customers and employees and also contains confidential information about prices, purchase agreements, contracts and so on. Therefore, it is important that you are extremely aware of the security around your system so that you can secure all this information.
An up-to-date financial management system is generally better protected against cyber-attacks than a system that is out of date. So when choose a financial management system, you must be aware that there may be costs associated with future upgrades.
If you host your financial management system on your own server, it is important that your data is adequately secured. This means that your data must be backed up with automatic backup so that it is protected against theft and fire. The alternative to hosting your financial management system on your own server is to choose an online solution.
If you choose an online SaaS (Software as a Service) solution, your data is secured and backed up and your solution is typically updated automatically on an ongoing basis.
4. Online or on-premise?
When choosing a financial system, the first – and perhaps most important – choice you must make is whether you should choose an on-premise solution, where your financial system is located locally on your own server, or an online solution, where your solution is located in the cloud on a rented server.
The advantage of choosing a financial system in the cloud is that the solution is hosted on servers operated by the server supplier. If you use an online ERP system, you can often choose a SaaS (Software as a Service) license model, where you rent your financial system, often on a monthly basis, rather than buying it. The advantage is that you know your operating expenses at all times and not to be surprised by sudden costs and that you have very low start-up costs.
You should also investigate the extent to which there is a need for training and education of your employees in connection with the implementation of the financial management system you are considering acquiring, because it is only when you and your employees understand how to use the system's options and many functions to the full, that you get full benefit from your investment.
It is therefore important that you choose a user-friendly financial management system, with an intuitive user interface and hosting tips. Once you have found the solution you want to buy a license for, you should find a supplier who can offer courses and other training. If the financial management system is widespread enough, there will typically also be a lot of training videos and tutorials available online.
Financial management system FAQ
What is an financial management system?
A financial management system system is an IT-based solution that companies of all sizes use to manage finances, budgets and accounting.
What should an financial management system be able to do?
A good financial management system optimizes business processes, creates an overview of your finances and supports the company's growth.
What does a financial management system cost?
The price of a financial management system depends on many factors such as license type, functionality, number of users and so on, but today financial management systems are licensed at a price level that all companies can afford.