Financial reporting software: types, key features, benefits & selection criteria
October 22, 2024
Whether you need to enable reporting capabilities within the existing financial software or create a standalone financial reporting solution, Itransition can help you implement the project in line with your requirements.
Types of financial reporting software
There are different types of software that automate different financial processes while offering robust reporting capabilities.
Accounting solutions automate AR/AP operations, bookkeeping, tax calculation, and other financial management tasks, helping businesses track their expenses and revenue, create accurate financial statements, and stay compliant with applicable regulations.
ERP systems are integrated business process management solutions that consolidate data from different departments, enabling accountants to produce accurate and up-to-date reports while maintaining clear audit trails.
Financial planning & analysis (FP&A) software
While focusing on financial planning and forecasting, FP&A software provides reporting capabilities that help professionals analyze financial data to assess business performance and build a data-driven financial strategy.
Tax software
Companies use these solutions to calculate tax amounts, automatically generate tax forms and reports, and file them with authorities, simplifying tax return processes and ensuring regulatory compliance.
Corporate performance management (CPM) software
With CPM software, organizations can build reports to track their financial KPIs. This information helps them set feasible business goals and develop effective strategies to achieve them.
BI software provides advanced reporting and analytics capabilities that enable users to present complex financial data in the form of interactive dashboards and reports, streamlining financial performance analysis and financial forecasting.
Financial close & consolidation software (FCCS)
FCCS tools enable businesses to quickly close accounting books and perform financial consolidation across subsidiaries by generating accurate reports that adhere to financial reporting standards.
SEC reporting software
Using this type of software, public companies can automate the preparation and filing of financial statements with the US Securities and Exchange Commission (SEC), providing key information to existing or potential investors.
Key features of financial reporting software
While software capabilities vary depending on the solution type and specific business needs, there are some core features that can bring tangible benefits to any company.
Financial statement generation
to automatically prepare key financial statements, including profit and loss statements (also known as income statements), balance sheets, and cash flow statements.
Custom report creation
to enable authorized users to generate statements with custom fields, views, and formatting, helping them track specific financial metrics and drill down for a detailed data analysis.
Data integration capabilities
to connect financial reporting software with systems that store financial data and ensure a smooth data flow, eliminating the need for manual data entry.
Dashboards
to display financial information with a set of key metrics, graphs, and charts, helping users spot patterns and trends at a glance and perform accurate financial data analysis.
Report sharing
to export reports and dashboards in a convenient format for scheduled or ad-hoc sharing of financial information with stakeholders for more efficient collaboration.
Multi-user access
to allow collaboration on the same report for multiple accountants or financial consultants, streamlining the reporting, bookkeeping, and tax preparation processes.
Security mechanisms
including user permissions, role-based access control, and multi-factor authentication to provide secure access to financial data only to authorized personnel, helping protect sensitive data and prevent its exposure.
Forecasting
to predict upcoming trends, identify the most probable financial outcomes, and model different scenarios based on historical and real-time financial data for business decisions.
Consolidated reporting
to bring together financial data from all business entities and subsidiaries and create aggregated financial statements, providing complete visibility into the corporation’s financial health.
Streamline financial reporting with a tailored solution
Best financial reporting software
An open-source ERP platform that provides a dedicated module for accounting.
Key features
- Report templates, including balance sheets, profit and loss reports, and cash flow statement
- Executive summary
- General ledger
- None
- Tax reporting
- Bank reconciliation
- Data inalterability check reports
- Custom reports
Advantages
- AI-powered capabilities
- Native mobile apps
- Highly customizable
Limitations
Scaling and ongoing maintenance requires technical expertise
Best for
Small and mid-sized companies looking for advanced integration capabilities and great user experience
Free trial
15-day free trial for the Standard and Custom plans
A cloud-based business software suite that provides apps for business accounting, ERP, CRM, and ecommerce operations.
Key features
- Configurable financial reports
- Report snapshots
- Multidimensional data analysis
- Support for multiple reporting standards
- Customizable report layouts
Advantages
- Preconfigured implementation templates
- Embedded localization features (language, taxes, currency, and regulatory compliance)
Limitations
- A steep learning curve
- Price hikes in the long run
Best for
- Small companies
- Mid-sized companies
- Fast-growing companies
Free trial
Not available
Microsoft Dynamics 365 Business Central
A lightweight ERP that offers comprehensive business management capabilities, including financial reporting.
Key features
- Reporting automation using predefined workflows
- Multiple report layouts and formats
- Custom reports
- Real-time data updates
- Built-in compliance tools and standards
Advantages
- Easy to implement
- Embedded AI and generative AI capabilities
- Seamless integration with other Microsoft products
Limitations
Manual data consolidation across subsidiaries
Best for
- Small companies
- Mid-sized companies
Free trial
30 days
Microsoft Dynamics 365 Finance
An ERP module for financial users to transform raw financial data into actionable insights.
Key features
- Pre-built reports like balance sheets and cash flow statements
- Flexible report customization with the Report Designer app
- Reporting trees to reflect an organization’s hierarchical structure
- Interactive report viewing
Advantages
- Robust capabilities for managing all finance-related activities
- Seamless integration with other products from the Microsoft ecosystem
Limitations
A steep learning curve
Best for
Mid-sized to large enterprises that prioritize advanced financial management and automation
Free trial
30 days
Freshbooks
Cloud-based accounting and financial reporting software suitable for non-tech users.
Key features
- Budget and sales tax summaries
- Profit and loss reports
- Expense reports
- Balance sheet reconciliation
- Journal entry tracking
- Custom reports
Advantages
User-friendly interface
Limitations
- Not suitable for businesses with complex accounting needs
- One user per plan
Best for
- Small businesses
- Freelancers
Free trial
30 days
QuickBooks
Сloud-based financial analysis software that simplifies accounting and bookkeeping tasks.
Key features
- 60+ financial reports, including expense reports, profit and loss reports, and balance sheets
- Support for an unlimited number of invoices and bills
- Mobile receipt capture
- None
- Customer balance summary
- Accounts receivable aging summary
- VAT and GST support
- Excel data import
Advantages
- Easy to navigate and use
- 750+ pre-built integrations, including PayPal, Amazon, eBay, and Shopify
Limitations
- Limited capabilities for generating advanced and custom financial reports
- Low-tier plans offer only basic reporting capabilities
Best for
- Small businesses
- Growing businesses
Free trial
30 days
Xero
Web-based accounting software that covers basic accounting, payroll, workforce management, and expenses management functions.
Key features
- Customizable reports
- Budget vs actuals comparison
- Report collaboration capabilities
- Lock dates
- Data search functionality
- Accounting dashboard
Advantages
- Interactive KPI-specific reports
- User-friendliness
- An extensive ecosystem of connected apps and connections to banks and other financial institutions
Limitations
Monthly transaction limits per subscription (e.g., only 1,000 sales invoices per month on any plan)
Best for
- Small businesses
- Medium-sized businesses
Free trial
30 days
Sage Intacct
A SaaS platform streamlining accounting, payroll, and HR processes.
Key features
- Multi-entity usage
- 150+ ready-made report templates
- Customizable financial and management reports
- 200+ prebuilt interactive analytics visuals
- Customizable multi-dimensional dashboards
- Report collaboration tools
Advantages
- AI-powered accounting
- Dedicated software suites for 10+ industries
Limitations
A steep learning curve for the reporting module
Best for
- Small businesses
- Mid-sized businesses
Free trial
1 month for accounting and payroll solutions
Microsoft Cloud for Financial Services
A fully integrated suite of cloud solutions tailored to the finance industry.
Key features
- Unified client profile
- Automated client onboarding process, including KYC and AML
- Customizable reports
- Automated report generation
- Data analytics dashboards
- Fraud detection
- Financial services regulatory compliance, cybersecurity and privacy
Advantages
- Embedded AI
- Native integration with Microsoft ecosystem apps
Limitations
Since the platform is available out of the box, adding extra functionality requires custom development
Best for
- Wealth & asset management firms
- Banks
- Insurance companies
Free trial
Not available
How to select financial reporting software
There are multiple financial reporting software solutions on the market, each offering different capabilities and suitable for distinct types of companies. To help you select a tool that fully aligns with your business needs and brings maximum ROI, we recommend considering the following factors.
Software capabilities
Opt for a financial reporting tool with features that can address most of your reporting needs. Shortlist several solutions that offer core functionality you need (like automated report generation) and capabilities that are nice to have (like advanced scenario analysis or team collaboration tools).
Industry needs
Specific industry regulations impose distinct reporting requirements (like fund reporting for investment companies or asset depreciation reporting for manufacturers), so make sure your solution has proper reporting capabilities in accordance with your industry standards.
User-friendliness
Provide your team with a financial reporting tool that is easy to navigate. For example, it should have an intuitive user interface, clear navigation, and pre-built report templates. This will help you reduce time spent on staff training, accelerate the completion of reporting tasks, and contribute to higher job satisfaction among employees.
Deployment model
Financial reporting tools can be hosted in the cloud or on-premises. Carefully consider your security and compliance requirements to choose the deployment option that best suits your business.
Pricing
Research the tools available on the market and check which of them fit your budget. Take into account the initial implementation costs, ongoing expenses on licensing and maintenance, and possible hidden costs like customer support costs or fees for adding new users.
Scalability
Ensure that you can increase the capacity of your financial reporting solution to handle larger data volumes without compromising its performance.
We’ll help you implement your financial reporting solution safely
Benefits of financial reporting software
Higher reporting accuracy
By automating data collection, processing, consolidation, and report generation, financial reporting software enables companies to eliminate manual data entry and significantly reduce the risk of human error, which increases report reliability and facilitates informed decision-making.
Increased team efficiency & time saving
Financial reporting software frees finance teams from time-consuming and repetitive tasks and enables them to focus on more high-value activities, which contributes to business growth.
Improved financial management
Financial reporting software consolidates financial data from different sources, allowing users to easily track expenses, liabilities, and profits. This way, companies gain visibility into their financial performance and build more effective financial management strategies.
Improved regulatory compliance
Financial reporting systems provide audit trails, allowing any changes in financial records to be traced thus providing a transparent history of financial transactions.
Our service offering
Relying on 15+ years of experience in financial software development, Itransition helps businesses across industries implement financial reporting solutions that meet their needs and keep financial data secure.
Consulting
We offer technology advisory to help businesses conceptualize their future reporting solution and select a suitable technology toolkit to build it. Our consultants create a detailed software implementation roadmap and supervise the implementation process, guiding companies through the possible challenges and risks.
Implementation
We build financial reporting software from scratch or on top of market-leading platforms, delivering end-to-end implementation services, from project planning and solution design to deploying the software to the production environment and its post-launch support.
Itransition’s selected financial reporting projects
300,000
bills handled monthly
Billing management software modernization
We redesigned the architecture of the customer’s online billing management system, implemented security and performance improvements, and delivered new custom features, including reporting. The upgrade enabled our customer to significantly expand their global client base, including 100+ Fortune 500 clients.
up tp 200,000
daily transactions
Payment processing system revamp
An established payment service provider reached out to our team to overhaul their outdated payment processing system. We eliminated the issues that the old system had, improved the solution’s integration capabilities, introduced a new report generation feature, and enhanced user experience, which allows both consumers and service providers to manage payments quickly and easily.
50,000+
corporate end-users
BI solution enhancement
Our team helped improve InsightUnlimitedâ„¢, the market-leading reporting, budgeting, and reconciliation software solution. In addition to minor enhancements, we developed the advanced commenting and pixel-perfect reporting functionality, which is the most significant part of the application.
300,000
bills handled monthly
Billing management software modernization
We redesigned the architecture of the customer’s online billing management system, implemented security and performance improvements, and delivered new custom features, including reporting. The upgrade enabled our customer to significantly expand their global client base, including 100+ Fortune 500 clients.
up tp 200,000
daily transactions
Payment processing system revamp
An established payment service provider reached out to our team to overhaul their outdated payment processing system. We eliminated the issues that the old system had, improved the solution’s integration capabilities, introduced a new report generation feature, and enhanced user experience, which allows both consumers and service providers to manage payments quickly and easily.
50,000+
corporate end-users
BI solution enhancement
Our team helped improve InsightUnlimitedâ„¢, the market-leading reporting, budgeting, and reconciliation software solution. In addition to minor enhancements, we developed the advanced commenting and pixel-perfect reporting functionality, which is the most significant part of the application.
300,000
bills handled monthly
Billing management software modernization
We redesigned the architecture of the customer’s online billing management system, implemented security and performance improvements, and delivered new custom features, including reporting. The upgrade enabled our customer to significantly expand their global client base, including 100+ Fortune 500 clients.
up tp 200,000
daily transactions
Payment processing system revamp
An established payment service provider reached out to our team to overhaul their outdated payment processing system. We eliminated the issues that the old system had, improved the solution’s integration capabilities, introduced a new report generation feature, and enhanced user experience, which allows both consumers and service providers to manage payments quickly and easily.
50,000+
corporate end-users
BI solution enhancement
Our team helped improve InsightUnlimitedâ„¢, the market-leading reporting, budgeting, and reconciliation software solution. In addition to minor enhancements, we developed the advanced commenting and pixel-perfect reporting functionality, which is the most significant part of the application.
Accelerate financial reporting with a tailored solution
In today's fast-paced business environment, timely and accurate financial reporting allows businesses to make more informed business decisions, meet regulatory requirements, and improve their overall financial performance. By automating financial reporting with robust software, companies can speed up the delivery of comprehensive reports while boosting their finance team’s efficiency.
If you’re ready to transform your financial reporting processes, Itransition’s experts can help you implement a reliable and secure software solution.
FAQs
What professionals can benefit from using finance reporting software?
Any stakeholder concerned with the financial performance and regulatory compliance of an organization can gain value from using financial reporting software. These individuals typically include Chief Finance Officers (CFOs), finance team members, executives, department leaders, and investors.
How much does it cost to build financial reporting software?
The final cost of financial reporting software depends on many factors, including the type of the solution, the number and complexity of features, the deployment model, and integrations. Our team carefully analyzes your business needs and objectives to conceptualize a solution and select an optimal technology stack within your budget. If you need a preliminary estimate for your project, contact our team.
What are the current trends in financial reporting software?
Modern technology, increasing financial data volumes and complexity, regulatory changes, and shifting market demands call for the constant evolution of financial reporting tools. Here are several trends that are transforming financial reporting software:
- Cloud technologies
Companies are increasingly opting for cloud-based financial reporting systems to leverage the advantages of cloud computing, such as accessibility, scalability, and cost-effectiveness.
- Data visualization & storytelling
Visualization tools allow users to interpret complex financial data and identify trends more easily.
- Predictive analytics
Predictive models help businesses forecast financial trends and improve budgeting and planning processes.
- Inclusion of non-financial data
Factoring in non-financial aspects like customer relationships or supply chain management can help companies improve their financial performance.
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