3 Areas Where Financial Planning Software Helps You Better Manage Your Agency

Financial planning software automatically manages all revenues and expenses of your business. Through automatic monitoring, all company finances can be tracked and analyzed. There are 3 key areas that are essential for financial planning:

• Future planning of revenues and expenses
• Business metrics / KPIs
• Automatic analysis / alerts and warnings / smart assistants

Future Planning of Revenues and Expenses

The core of any financial planning software is liquidity planning — ideally with scenarios. Here you simply project your revenues and expenses into the future. This way, you know your cash flow in 3 weeks or even 3 months — and avoid running into shortfalls. Plus, you don't always have to worry about having enough money in your account to prevent a shortfall — you can surely put your time to better use.

Screenshot: finban.io

It's best to choose a tool that retrieves current transactions from your bank at least daily — so you're always up to date without the hassle of maintaining Excel spreadsheets. Additionally, financial planning software should support scenarios so you can at least distinguish between best case, default case, and worst case.

Business Metrics / KPIs

Successful companies grow with the help of business metrics. Only with KPIs do you know what's going well and what isn't. Without KPIs, you can't improve or you'll repeat unnecessary mistakes. A good financial tool supports your strategic decisions with the help of key performance indicators. Read more about this in our article on KPIs for agencies.

Automatic Analysis / Warnings and Alerts / Smart Assistants

This is where it gets exciting. Large companies can afford CFOs — but can you spare several hundred thousand euros for an annual salary?

There is financial planning software (or liquidity planning software) that provides you with an automated CFO at your side. It may not be as smart as its real, human counterpart, but through analyzing your data, it can produce remarkable analyses.

Additionally, it can issue alerts and warnings when certain metrics get out of hand.