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Financial management software for project management

14/09/2022 minute read Daniel Docherty

In recent years, finance functions have navigated business through a pandemic, an inflation high, a national insurance increase, cost-of-living crisis, and the current economic downturn.

Nevertheless, some organisations have fared better than others when it comes to finances, with those who have implemented financial project management best practices in the Cloud better positioned to deal with uncertainty.

As a CFO or someone in a similar leadership position, project financial management is crucial. Finance functions equipped with the right tools in the Cloud can plan, organise, direct, and control financial activities consistently, responsibly, and effectively with good financial project management processes.

A business needs to be flexible and equipped with actionable data and insights so that it can make quick decisions. Compliance must be simplified, books must be consolidated and closed faster, and models need to be created to prepare for the future. Financial management systems can help in all these areas.

When it comes to managing change, financial project management software can help you remain calm when uncertain, and respond strategically in the long run.

What is financial project management software?

Project finance management is a critical aspect of effective project management due to its ability to integrate key actions, strategies, and teams towards specific KPIs and goals. As a result, managers are able to make data-driven decisions with greater clarity and focus. In addition to boosting ROI and profitability, organisations can implement key technology measures to improve financial project management.

By using a Cloud-based financial management system, you can collaborate, plan, deliver and monitor projects all in one place. In this type of system, finance teams can use a variety of network tools within the software in real-time instead of using outdated tools, such as spreadsheets.

In summary, project finance management is an essential aspect of effective project management, focusing specifically on business metrics. For a full picture of each project and to determine financial viability, key areas such as budget consumption, revenue, cash cycle management, and project funding must be mapped consistently. Financial transparency can also be improved with the right financial management protocols, risk management controls, and strategies.

The development of a solid financial roadmap also helps to ensure that projects are completed on time and within budgetary constraints. With the incorporation of best practices in project financial management, finance team members are also able to streamline pre-planning, execution, and risk analysis significantly.

What are the benefits of Cloud FMS for project management?

Real-time access to accurate financial data

It is often the case that financial projects are managed on Excel spreadsheets, which leaves you with out-of-date information that prevents you from reacting swiftly to issues. With outdated financial management tools, finance teams often experience time consuming manual data entry and errors in data, inability to access real-time financial data, and difficulty in managing budgets, which can make it difficult to track projected versus actual expenditures.

With an integrated financial project management software solution, you can simplify your processes and manage these variables easily. Using predefined and customisable "stop lighting", for instance, you can monitor what's important to your company and prevent problems before they arise.

Clearer view of project costs

You can track, view, and analyse costs and revenues for individual projects while they are in progress with Cloud financial project management software. Margins can also be forecasted and controlled, and future expenses can be seen easily without waiting for the end of an accounting period.

Gain instant expense visibility

By taking into account known or expected expenses within a project, financial project management software allows you to generate realistic budgets. Subcontractors, purchase charges and labour charges as commitments can be recorded as soon as they are entered so that future costs can be accounted for. As a result, giving you better visibility into future expenses.

Improved resource cost management

There are a variety of features in financial project management software, including cost matrixes for resources, resource groups, and project-specific costing. You can use this tool to cost different resources for different projects based on activities, work types, and date spans.

More flexibility when it comes to invoicing control

Whether you're invoicing for a project or a specific invoice, you need the flexibility to assign different billing methods, rates, and mark-up rules. The ability to generate invoices on demand is also essential. Cloud-based financial project management software can help you group invoices according to work breakdown structures, resources, or single line invoices.

Enjoy shortened invoice cycles

With financial project management software, you can shorten invoice cycles and improve cash flow by converting unbilled receivables into revenues as soon as possible. 

Invoice generation is simplified with invoice formatting, invoice suggestion submission, and easy note of corrections, approval, and receivable posting. These activities can be completed quickly and efficiently when managed through one solution.

Boost project collaboration throughout the business

The financial status of projects is often overlooked, which is why it's crucial to have a single system in the Cloud that enables finance team members and project managers to utilise the same set of data for better analysis and project accountability through collaboration. Data can then be accurately presented in ways that are easy to understand across the business.

Improve reporting

As long as all projects are set up consistently, KPIs (key performance indicators) can be set, reported against, and relied upon. With a single integrated solution, you can collect and charge costs for individual projects within a flexible structure.

How Cloud FMS can improve project management

The ability to budget and track costs across large organisational undertakings is crucial to understanding the financial impact and success of a project alongside controlling and restricting cash flow where required.

It’s clear that the shift to successful Cloud financial project management practices will determine tomorrow's success for businesses. Without these processes in place, your business will likely fail if faced with unprecedented changes.

Project management in Advanced Financials allows finance teams to manage and allocate costs so that the finance department can accurately monitor and track costs over time.

By setting the tone for your financial project management processes in the Cloud, you can ensure your finance team runs smoother operations both now and in the future. Get in touch with one of our experts today.