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What Features to Look for in Cash Flow Software: A Buyer’s Guide

Cash flow software is an effective tool that should be a part of any business’s cash flow management strategy. However, not all cash flow software offers the same features and benefits.

In this buyer’s guide, we’ll take you through all the essential features you should look for when choosing cash flow software and some things to take into account before making a decision.

Let’s dive in! 

Understanding Cash Flow Software

Before the use of computers in cash flow forecasting, businesses manually collected data and performed cash flow calculations by hand. This method was time-consuming and prone to error.

Cash flow software automatically collects and organizes data, then performs the necessary calculations to create a cash flow forecast. Cash flow software creates forecasts in a fraction of the time compared to manual methods and is capable of analyzing much larger data sets. 

Key Features to Look For in Cash Flow Software

There are many types of cash flow software on the market, all with different features and levels of quality. During financial software selection look for the following key features.

Visual Reports

With software like Cash Flow Frog, you can create visually appealing cash flow reports to share with colleagues, customers and partners. 

Cash flow forecasts shown through visuals are especially useful when sharing insights across departments since not all employees are experts in interpreting data.

Scenario analysis

A crucial aspect of cash flow management is being able to test multiple cash flow scenarios. Cash flow forecasting is simply a prediction, so scenario analysis can help businesses understand a range of possible future outcomes. For example, scenario analysis can show what will happen if a business loses its top client. 

With cash flow software users can create and manage multiple scenario forecasts without making changes to any accounting software data. 

Software also allows organizations to share scenario forecasts across all departments, so everyone in the organization can understand the different scenarios and give their input.

Customer insights

When choosing a cash flow software, look for programs that provide customer insights. Cash flow software is capable of analyzing large data sets and identifying patterns among customers.

Software like Cash Flow Frog uses customer data to identify customers who pay on time and contribute to healthy cash flow. It can also help companies identify customers who routinely miss payments. With this valuable information, you can focus solely on customers that contribute to healthy cash flow.

Comparison of planned vs actual cash flow

Choose a cash flow software that allows you to track your actual cash flow versus your forecasted cash flow. By identifying variances between forecasts and reality, you can find problems in your cash flow projections and make the necessary corrections to improve forecasting methods and future projections. 

Manual comparison of planned versus actual cash flow can be done manually, but this is time-consuming. Software makes it easy, as it automatically imports cash flow data from accounting software and makes comparisons with your previous forecasts.

Integrations with other programs

When deciding which cash flow software to choose, look for software that integrates with other accounting and bookkeeping programs. 

For example, Cash Flow Frog integrates with popular programs like Excel and Quickbooks. This makes it easy to import existing accounting data and make forecasts in real time. By integrating with other programs, a business can save enormous amounts of time spent on manually importing data.

Choosing the Right Cash Flow Software for Your Business

Before choosing cash flow software, it’s important to understand your business needs and objectives. Look for a program with customized forecast models that meet the needs of your business. 

Choose cash flow software that has built-in integrations with programs you already use. This makes for a seamless transition between cash flow software and your existing bookkeeping software and can eliminate errors associated with manually importing data.

Even if you own a small business, it’s important to choose software that can scale as your business grows. Thinking about your immediate business needs is important, but you should also consider your long-term objectives.

In conclusion

When making a financial software selection, consider your business’s cash flow forecasting needs and choose cash flow software that fills this gap. Features like what-if scenarios and comparing actual versus planned cash flow can give your business an edge in cash flow planning. 

Visual reports allow you to share insights across departments so all employees can be involved in cash flow forecasting. Integrations with other software make it easy to import data from existing bookkeeping programs. Cash flow software can also provide insight into customer behavior, so you can focus on your best customers.

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