There are several software modules available for financial reporting. The objective behind the development of software modules of financial reporting is to facilitate users in the overall process of financial accounting and reporting to a great extent.
Many individual software modules are available in the market to help the clients or the companies in generating financial reports, as the effective and efficient reporting system is the basic requirement of a business to consider various factors in terms of its performance and growth. In fact, there are several features that a software module of financial reporting should have, but some of those that are important are mentioned herein.
Being compatible with all the intents and purposes of financial reporting system, it is one of the best attributes of a good financial reporting software module is its efficiency at all times. The financial reports should be error free. Since the accuracy leads to high reliability on the reporting system and based on which several action plans are suggested, it is important that a financial reporting software module should provide accurate and timely reports.
A software module of financial reporting should not lack any thing that is needed in the process of financial reporting, such as, income statement summary and income statement details, balance sheet summary and balance sheet details, working capital summary and working capital detail. When it comes to making comparative studies between financial statements, income statement or balance sheet, as per the desired months, the software should enable the users to get the reports accordingly by providing specific options for summary as well as detailed reports.
Besides, as and when needed, the module or the software must be capable enough for generating various ad hoc or miscellaneous reports, so that several options may be selected and the reports may be generated accordingly. For example, if a manager is interested to know the general and administration expenses of a particular month, the software module should bring the desired results while offering various options in addition to those that are used commonly.
It is also important to give a thought about enhancement of the utility of software module of financial reporting in terms of other reports that may be required by management over a period of time.
Hence a software module should be designed and developed in such a manner as to provide its utility currently as well as in the future effectively and efficiently by making the whole process of financial reporting easier and error free while reducing time and efforts of the users extensively.
Working capital is defined as being the capital of a business which is used in its day-to-day operations. It is the net of current assets minus current liabilities.
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