Financial software or financial system software is special

application software Application may refer to: Mathematics and computing * Application software, computer software designed to help the user to perform specific tasks ** Application layer, an abstraction layer that specifies protocols and interface methods used in a c ...

that records all the financial activity within a business organization. Basic features of this system not only includes all the modules of accounting software like accounts payable, accounts receivable, ledger, reporting modules and payroll but also to explore alternative investment choices and calculate statistical relationships. Features of the system may vary depending on what type of business it is being used for. Primarily, the goal of the financial software is to record, categorize, analyze, compile, interpret and then present an accurate and updated financial dates for every transaction of the business.

Features of financial software

Pipeline tracking

Pipeline tracking is one of the key features of an accounting system and software for

asset management Asset management is a systematic approach to the governance and realization of value from the things that a group or entity is responsible for, over their whole life cycles. It may apply both to tangible assets (physical objects such as buildings ...

. This provides summarized information on all the details pertaining to the potential investments that are being monitored. The system and software will organize the pipeline and record the source, execution status, approval status, feasible

investment capital In economics, capital goods or capital are "those durable produced goods that are in turn used as productive inputs for further production" of goods and services. At the macroeconomic level, "the nation's capital stock includes buildings, eq ...

and the targeted purchase price. It provides an efficient analysis of the best deals, timing and price for the utilization of the investment team. Pipeline tracking provides tracking of the source, history and status. It also provides customized classifications and categories. The system can easily execute a

cash flow A cash flow is a real or virtual movement of money: *a cash flow in its narrow sense is a payment (in a currency), especially from one central bank account to another; the term 'cash flow' is mostly used to describe payments that are expected ...

model and create return assumptions.

Asset management

Asset management Asset management is a systematic approach to the governance and realization of value from the things that a group or entity is responsible for, over their whole life cycles. It may apply both to tangible assets (physical objects such as buildings ...

is another important feature of a financial software. It uses the updated status of the investment to provide the necessary tools in creating every possible outcome, such as future payments that are distressed, conversions for debt to equity and maturity of loans. It also provides an efficient tracking of payment dates and rates. Updated

financial statements Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form which is easy to un ...

are readily available, which makes it very easy to determine credit standing and as a result make proper adjustments on the projections. Asset management can modify dates of payment, conversion of floating to fixed rates, deferred payments,

interest rates An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, th ...

, maturity extensions and change schedules for repayment. It also uses various assumptions to store and run multiple cases such as downside, base and upside.

Fund management

The next feature is fund management, which provides an accurate projection of all the investments as well as factors of the borrowing and operating cost of the fund in order to create a view of the cash levels in the future and investment returns. This system aids in the evaluation and structuring of any fund. Fund management provides a combination of the projections of the cash flow on all investments in order to create a monthly summary. It provides customized assumptions on the leverage cost, interest income, taxes and expenses. The system also creates several scenarios concerning the cash allocation such as reinvestments, distribution of investors and fresh investments. It also creates an analysis of the leverage and call of the capital. Income statements and anticipated balance sheets can also be efficiently created with the use of the system.Method and system for providing financial functions , Grant – Filed 12 June 2008 – Issued 14 June 2011 – Alejandro M. Pilato – TradeRisks, Inc

Data warehousing

Another feature of the financial software, is the

data warehousing In computing, a data warehouse (DW or DWH), also known as an enterprise data warehouse (EDW), is a system used for reporting and data analysis and is considered a core component of business intelligence. DWs are central repositories of integra ...

. This feature syncs the accounting system and retrieves investment transactions. It also uses a customizable category or name. This key feature allows an effortless re-categorization of the investments. The calculation of investment statistics will depend on the

computation Computation is any type of arithmetic or non-arithmetic calculation that follows a well-defined model (e.g., an algorithm). Mechanical or electronic devices (or, historically, people) that perform computations are known as ''computers''. An es ...

of the user at any given moment. Customized reports on the performance of the investment can be created using any of the calculations programmed in the

database In computing, a database is an organized collection of data stored and accessed electronically. Small databases can be stored on a file system, while large databases are hosted on computer clusters or cloud storage. The design of databases sp ...

of the system. There are approximately more than 100 various calculations programmed in the system. If there is a need for more calculations, then it can easily be provided for the user. Several investments can be categorized into subgroups or groups and they will be used for the creation of totals. It identifies the total price of the fixed income in comparison to the equity investments.

Uses of financial software

Use in pipeline tracking

Pipeline tracking has multiple benefits and one of them is that it provides a standard layout for possible deals. It also detects the deals that have been approved but are still awaiting execution. It provides an accurate comparison of the cost of investment with the expected returns. The system can easily provide a recycle plan for investment opportunities. It also creates a manifold portfolio with potential returns by utilizing information on the target industries or regions. Pipeline tracking speeds up the decision-making of the committee for

financial investment Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing is ...

Use in fund management

There are many benefits of the fund management feature of the financial software. Fund management can determine which specific investments are creating returns. It also pinpoints the availability or shortage of cash. It provides an evaluation of the leverage options as well as determines the effect on the returns. The system also creates a central and systematic modelling, management and analysis of the funds.

Use in asset managements

The benefits of asset management include the creation of a platform for maintaining the projection of cash flow on investments. Excel models also eliminate the possibility of manual errors. Asset management increases the scale and adds investments without the loss of analytic perspective. Through this software managers of portfolios have a better grasp on the performance level of the investment. It also provides accurate information on whether the prediction of the analysts was close to the actual performance of the investment.

References

{{Commons category, Financial software