financial application

This definition is part of our Essential Guide: A guide to using Excel as financial accounting software

A financial application is a software program that facilitates the management of business processes that deal with money. 

Types of finance applications include: 

accounts payable software - allows a business to stay on top of  outstanding payments and make sure all payments are made correctly and on time. 

accounts receivable software - allows a business to efficiently manage customer activity and automate invoice processing to ensure timely revenue collection. 

bank reconciliation software - simplifies the monthly reconciliation process for a business by integrating bank accounts, automatically identifying unrecorded transactions and locating differences between the bank statement and the general ledger. 

bill of materials (BOM) software - gives businesses the ability to track production costs and accurately compare it to expected costs. 

budget management software - provides forecasting and planning tools to help business make informed decisions during the budgeting process. 

consolidations software - provides businesses tools for consolidating multiple ledgers on an ad-hoc basis.

construction accounting software - can be used in strategic planning and operations management and can function similarly to an ERP system.

credit card process software - allows a business to efficiently authorize and process credit card payments and capture important transaction information.

financial modules software - helps a businesses to take full advantage of all the data in their financial system and view finance holistically. 

fixed assets software - simplifies the process of registering assets, managing assets, locating ghost assets and depreciating assets. 

general ledger (GL) software - provides businesses with the ability to streamline double-entry bookkeeping and accounting transactions. 

multi-currency software - allows a business to post transactions to the general ledger, generate invoices for customers and process credit card payment with current exchange.

payroll software - gives business the ability set up multiple payroll rates, taxes, leave accruals and options for direct deport and personal deductions including 401 K retirement plans and child support. 

project accounting software - allows a businesses to manage the people, processes and costs for individual projects. Provides project managers with the ability to store all project related information in one place. 

remote data capture software - allows a customer to scan checks remotely and transmit the check images over the Internet to a bank for deposit.

sales and operations (S&O) software - includes dashboards that display data related to equipment, labor, facilities, material and finance.

This was last updated in March 2012

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