What Makes A Good Budgeting and Forecasting?
Budgeting and forecasting software can be helpful tools for small businesses looking to improve productivity and profitability by managing budgets and forecasts. Here are budgeting and forecasting software options with pros and cons to help you pick the right one for you.
Pros: It’s free: There are no subscription fees or hidden costs associated with budgeting and forecasting software products. Some offer free trials, and some require a paid plan. But all of them are available for absolutely free.
It’s user friendly: Budgeting and forecasting software must be simple enough for users to understand how to perform basic tasks such as entering data into spreadsheets, updating reports, and viewing financial information. Budgeting and forecasting software should also provide a clear view of what each item represents and where it fits within a business’s finances.
It provides customisation: Depending on the size of your company, there may be several budgeting and forecasting software programs you could choose from. Each program will have its own unique set of features and capabilities, but finding out what each one includes before making a decision will help you select the right product.
Cons: Can’t integrate with accounting systems: Budgeting and forecasting applications generally come with proprietary reporting tools and dashboards that allow you to create custom views of your financial data. However, they don’t always interface well with other accounting software packages, so you should know ahead of time whether this functionality is included.
Limited integration with third-party services: Budgeting and forecasting programs often lack integrated solutions for connecting with online payment processors, bank accounts, eCommerce platforms, CRM systems, social networks, and more. Without the ability to connect to external services, you won’t be able to import transactions from outside sources automatically, and you’ll miss out on the benefits these integrations offer.
No mobile compatibility: Not every budgeting and forecasting application is designed to work with smartphones and tablets. It would help determine whether you’ll be using the software primarily on a computer or mobile device. Suppose you plan to rely heavily on the software on mobile devices. In that case, you’ll want a solution that works seamlessly across both types of devices.
Lack of security: Security is another crucial consideration when choosing budgeting and forecasting software. You want to ensure that the program is protected against malicious attacks and hackers. You also want to avoid spending money on unnecessary subscriptions and upgrades.
Not compatible with Excel: Most budgeting and forecasting software are incompatible with Microsoft Excel. While you might not need Excel for day-to-day operations, you likely still rely on it for longer-term planning and analysis projects. If you’re investing in a budgeting and forecasting software package, make sure that it integrates with Excel.
What Is Budgeting and Forecasting Software Budgeting and forecasting software helps business managers plan finances and projects ahead of time. They can forecast future revenues and expenses based on historical trends.