How to choose your cash management software?
Cash management is among the fundamental elements of company management. If done in an old-fashioned way, it can consume a lot of time and generate stress for the manager. However, monitoring and anticipating a company's cash flow can be made easier by using cash flow software such as Agicap. Yet, it is not always easy to determine which treasury software is the most suitable for a given company: many factors come into play and the choice is not obvious! Fortunately, today we have decided to provide you with a collection of tips that will help you make an informed choice.
What is a cash management software in ERP?
First, we will look at what we mean exactly by "cash management software" in enterprise resource planning.
Cash management software above all provides a view of available cash - in other words, you can check whether a business has enough money to meet its commitments in the short term and maybe increase its forecast resources to mitigate the risk of facing a cash shortage. Cash management software therefore provides real-time information about available resources so you can anticipate your Working Capital Requirement (over a week, a month, six months, a year) and optimally manage your business. Cash management software is therefore a true decision-making tool!
👉Cash flow software: the complete guide
Accounting software, meanwhile, is particularly used, as its name suggests, for accounting. Accounting software may be adapted or developed by the company itself, or sourced from a supplier. Accounting software generally performs basic accounting tasks, such as accounting for purchases and sales, bank statements and cards, fixed assets acquired or disposed of, year-end entries, and accounting disclosures (balance sheet, income statement, etc.).
Now that you know what cash management software is and how it differs from accounting software, let's take a closer look at why more and more companies are using it on a daily basis.
All you need to know about : Cash Management
Why choose Cash Management Software?
Choosing your cash management software is an important step in managing your business.
You are no doubt wondering why you should opt for cash management software when you can already do a lot of calculations with an Excel spreadsheet. Excel is a great tool for preparing a business plan and forecasting costs and income before you start up a business. But, once you are up and running, it soon begins to show its limits. This spreadsheet is a source of recurring errors mainly because it is complex, time-consuming and stressful to build. It is often difficult to make it readable and to develop a consolidated vision of your business while keeping the level of detail you need to confidently manage your company.
If you need to start making cash management in Excel : Download our free resource :
Does this manual cash flow management sound familiar? Let us explain what benefits cash management software can deliver. Cash management system is a tool designed to simplify a process that can quickly become time-consuming and laborious by:
- providing more reliable information in real time,
- saving a lot of time by automating data inputs,
- improving visibility of the near future by visualising how different scenarios will impact your cash flow.
Features of Cash Management Software
To choose the right cash management software for you, focus on what your business needs. Here is a list of features to look for when choosing your cash management solution:
Inflow and Outflow Tracking, wherever and whenever necessary
Cash management software should allow you to view your actual cash flows and have real-time information wherever you are. This tool centralises data, so you can easily manage your business thanks to a clear and reliable view.
Customisable Alerts
To manage your cash position, you must be able to monitor your payment terms and your bank overdraft. A carefully configured system of alerts will allow you to take preventive measures in time to avoid getting into difficulty.
Reliable Bank Data
Your cash management software should allow you to extract various data concerning your past and future cash flows to facilitate communications with your bank and negotiations with your partners. If you are planning to apply for a loan, an overdraft or a payment facility, clear and easily readable cash flow reports are a very good basis for engaging talks with your banker.
Jean-Marie Cavalier, a french Pizza Hut franchisee, explains how his cash management software helps on a daily basis: “Whereas I was once rather in the dark, today I manage my business with a much clearer view of my cash flow.” To learn more, watch the video below to discover his experience!
Automated Bank Reconciliation
If you want to reduce inputs by hand, linking your cash management software to your bank accounts will update your cash flows automatically, thereby saving a lot of time compared to the painstaking cash management in Excel.
Short-, Medium- and Long-Term Cash Flow Forecasts
Cash management system should allow you to choose the timescale of the cash flow forecasts you wish to make. Because, depending on your needs, you may want to forecast your business over several years. So make sure that the software allows you to choose the timescale of your forecasts.
To make your choice by taking into account the available features, consult our comparison of the best tools below to find the right cash management software for you.
Cash management and treasury software solutions
Cash management software solutions minimise manual work intervention and errors by automating liquidity management and offering clear visibility into your cash positioning. Equipped with the criteria to choose cash management software, we outline some of the best treasury software providers you can choose as follows:
Agicap: As a dedicated cash flow software, Agicap directly communicates through APIs with several financial management tools, including bank servers and invoicing software, and automatically pulls in requisite transaction data into cash flow forecasts. It allows for scenario analysis, ensuring effective cost management.
Quickbooks: Similar to Agicap, Quickbooks offers system integration, affording easy data retrieval, which is then presented as a table. It allows for the generation of cash flow statements and proper invoice and receipt management in under a few clicks.
Axonaut: Besides cash flow management, Axonaut, a CRM software suite, provides invoicing and customer management. It provides real-time visibility into bank transactions and presents the data in a statistical overview. It enables an easy comparison between cash flow forecasts and actual performance.
What cash management software programs are available in the UK market?
| Software | Main characteristics | Advantages | Price | Suitability |
|---|---|---|---|---|
| Agicap Test here |
All-in-one automated cash management software offers dedicated solutions to monitor, forecast, and consolidate your cash flows. It also offers Agicap CashCollect tool to collect and follow up on receivables | - Cash flow management and collections in one tool - Offers 300+ system integrations, enabling automatic data retrieval in cash flow forecasts - Automates and customises transaction categorisation - Has a mobile app and supportive client support |
Offers a minimum annual subscription to businesses based on their requirements; offers demos and free trials | For SMBs and mid-market companies looking for a focused cash management software |
| Quickbooks | An integrated accounting software that includes cash flow forecast management | - Easy granular level cash tracking at project, job, or location levels - Get up to 24 months of cash flow forecasts - Personalise bills, transactions, and expense labels |
Self Employed: £10/ month Simple Start: £14/ month Essentials £24/ month Plus: £34/ month Advanced: £70/ month |
For self-employed and SMBs wanting a generalised accounting solution |
| Axonaut | CRM tool that unifies financial management, including cash flows, customer management, expense management, and invoices, on a central platform | - Easy to use, well-rounded cloud-based cash management solution that both links to bank accounts and emails - Allows users to customise and categorise invoices and quotes as per corporate brands and logos, VAT, and other special conditions - Offers marketing, ticketing, and HRM support |
Starts at $49.99 per month with a 15-day free trial | For small businesses seeking integrated accounting tool that also provides customer management |
Our Tips for choosing your Cash Management Software
Choosing the right cash management software can quickly become complicated, as there are a number of criteria to consider. Here are our main tips and things to consider when comparing cash management system to find the one that best meets your needs:
1. Customisation
Cash management software is a tool that will assist you daily in running your business. The degree of software customisation is therefore a key criterion to take into account.
Enquire about the possibility of integrating specific items you need, such as categories and sub-categories of inflows and outflows, or a special section for VAT. You may want to export data generated by the software to share it with your partners, banks or investors, so it is essential to be able to tailor your content to the people receiving your reports.
2. Visual Aspect
Another important factor to consider is the quality of the data presentation generated by the software and its user-friendliness. One of the main aims of cash management software is to save you time, so its use must be intuitive! Make sure you fully understand how it works and all the features it offers.
3. Multi-Users
Within your company, you may need to work with colleagues on your cash management software. It is indeed a great tool for sharing information so you efficiently run the business. Being able to grant access rights to your employees at different levels can therefore be very useful for your company.
4. Number of Manageable Entities
If you have several entities in your group, remember to find out about the number of entities you can manage with your cash management software. In this case, you will probably also need a consolidated view of your business and especially of your available cash.
5. Multi-Currency
If your company is already active abroad or you are planning to develop internationally, the cash management software will allow you to automate the application of different exchange rates and related fees to clearly see your cash flows with greater accuracy.
Watch a customer testimonial in which Sam Hewitt, CFO of M2A Media, explains how the cash management software has helped him manage multi-currency payments efficiently:
6. Data Security
You have no doubt realized that your cash management software will be processing sensitive data, particularly for a takeover or if you wish to grow your business. You must therefore also check the security of your data. Make sure that access is secure with an SSL certificate (i.e. with the "https" in the navigation bar and the padlock to the left of the link).
7. Number of Partner Tools
Before you opt for cash management software, you may already have chosen your accounting software or other tools. So make sure that the cash management software you choose can be automatically connected to these platforms. Integrated software is often what will allow you to scan your invoices and enter banking data. This makes your cash management smoother and centralised in a single tool!
8. The kind of Business the Tool is designed for
When you decide to opt for cash management software, on top of the features, advantages and drawbacks, remember to check that it is designed for your type of business (SME, very small business, franchise, large group, sole trader, etc.). This might sound obvious, but it is a decisive criterion!
Watch our webinar to find out more about the current trends affecting finance functions in SMEs: A future-proof finance function: what does it mean for SMEs?
9. Support: A Good Customer Service
Even though cash management software should be a user-friendly tool, you might need to interact with the service provider to improve your customer experience and optimise your use of the tool. So don’t overlook this aspect: even if you invest in a cash management software subscription, if you don't know how to fully use all its features, you won't get the most out of it.
10. Trial Period and Software Demonstration
Finally, find out about the free trial periods and the possibility of testing the tool via a demonstration (guided or personal discovery). This will help you confirm all our tips above. This step will also let you see how user-friendly the tool actually is.
Treasury software: users' opinions
Today, many financial managers and directors are already using cash management software. They share their experiences with you!
“Not only does it help me sleep better at night knowing that we have the forecast properly accurate and knowing where the company is going, it just means that we know we can stay on track. “ says James, the managing director at Sales2
“One of our favourite features in Agicap, is its ability to automatically categorise transactions as they come in. It really helps me prioritise our sort of bill payments and what I’ve called “coming in and out” shares with us Will, the general director at Sourcing Table.
Key takeaways: What is the best way to monitor cash?
To summarise, picking a particular cash management software should be done after a thorough analysis of what your business needs. Your cash management software should meet your expectations and provide you with the resources to effectively analyse your financial situation without the tedium of daily data entry into Excel. The right cash management solution will facilitate your management by providing you with a clear view of your current financial situation. What's more, it will allow you to anticipate potential liquidity risks. By automating your cash management, you'll finally start spending more time on other operational and marketing activities, so it's definitely worth a try.
Try Agicap, the cash management software leader :
