Financial systems for small and large businesses

A reliable financial system is an essential tool for most businesses. However, it is not always obvious which system is best suited to a business. Below we go through the basics of how different financial systems work and what is important to consider for both small and large businesses.

What is a financial system?

The company's financial system is an important part of the business system, which is designed to facilitate the administrative work in the company. Business systems and financial systems are not the same thing.

The financial system is limited to handling mainly invoicing, accounting, tax management, order management and accounts receivable and payable. However, a financial system is not designed to handle things like budgets and future forecasts.

A well-functioning financial system gives the company the best conditions for managing administrative tasks. With the help of the financial system, processes can be automated and thus made more efficient. Automation is something that saves both time and money for a company. Things that can be automated with the help of a financial system are, for example:

1. Approval of supporting documents
2. Invoicing
3. Produce reports or other documents
4. Bookkeeping

Choosing the right financial system for your business

Every business has different needs. The tools a company needs often depend on the size of the business. The financial systems that meet the needs of a smaller company may not be suitable for a larger company that needs more features to streamline financial management.

In order to choose the right financial system, it is important to clarify in advance which processes the financial system needs to be able to handle. The company should also think about future goals, so that the financial system works for the business also in the future. A system that cannot provide the necessary functions can create unnecessary problems in the company's work processes.

Cloud-based financial systems

Small and medium-sized businesses with a small number of transactions can often do well with a so-called cloud-based financial system. This is an online financial system that eliminates the need for the company to store all the data itself. The system will also be easy to access from anywhere, as long as there is an internet connection.

The advantages of this type of financial system are that they are very easy to implement, often cost less and require no system maintenance from the company itself. However, it is important to be careful to choose a reliable supplier so that the system maintains the high level of security required for this type of data.

Local financial systems

Using a locally installed financial system is often suitable for larger companies that need to manage a large number of transactions smoothly. The main difference from a cloud-based financial system is that the local financial system is installed locally on the company's own computers and servers. This way, the company has full control over the system, but also has to pay for the storage space.

The advantages of using a local financial system are that the company does not have to worry about potential security flaws with an external provider. The financial system can also be somewhat easier to customize to suit the business.

Financial system suppliers

There are a lot of different financial systems on the market today. Visma/Hogia/Fenix/Fortnox/Ifs/Agresso/SAP/Garp/Hansa/M3/Microsoft are all good examples of suppliers of financial systems suitable for small businesses as well as medium and large companies.

Financial systems - list of recommended suppliers:

1. Wint financial system
2. Björn Lundén financial system
3. Fortnox financial system
4. PE Accounting
5. Setly financial system
6. Visma eEconomy

Make your financial management even better

The right financial system lays the foundation for smooth management of your company's invoices, orders and more. With Mynts company card, accounting and expense management can be even better. The company card has, among other things, integrated expense management that is directly linked to accounting.

Sources

Wh group - what is a cloud-based financial system?

Businesswith.com

Sharespine.com

Ucsone - cloud-based or local ecomomic system?