Definition
FMS or financial management system is a software and a list of processes that help a company easily manage its income, expenses, and assets. This system/process helps companies in carrying out daily financial operations. Financial management systems also help in maximizing profits and ensuring long-term sustainability.
Example
Some of the top FMS systems include:1. QuickBooks2. Kissflow Finance3. Zoho Finance Plus4. Xero5. Oracle Financials Cloud6. Sage Intacct
Why it matters
FMS matters as it helps a company's finance team in:1. Streamlining the invoicing and bill collection.2. Building efficiency in daily, monthly, and yearly cash flow.3. Compliance with accounting norms.4. Maintaining audit trails.5. Reducing errors through automation of finance processes.6. Ensuring better planning, budgeting, and forecasting.7. Ramping up the financial close process.