Archive | November 2013

Staying Competitive with Financial Risk Management Software

A financial risk management software enable commercial banks to improve risk-adjusted profitability. This comprehensive risk management and software provides banks with the ability to make better commercial lending decisions, allocate capital more efficiently, and monitor credit portfolios more effectively, all the while complying with increasingly complex regulation. By combining specialized risk consulting and category lending software, a financial risk management software offers a risk management solution that is tailored to the unique needs of your every client. Some of the most common features of financial risk management software include the following:

  • A standardized approach in assessing the creditworthiness of a customer, particularly in making loan approvals
  • The ability to monitor credit portfolios using stress testing and advanced risk analysis
  • Having multidimensional analytic capabilities for costs and margin analysis and pricing

With financial risk management software, you can improve risk-adjusted profitability. It gives banks many more significant benefits which includes the following.

  • Make better lending decisions. The financial risk management software will help banks improve on their lending decisions with comprehensive and robust credit assessment capabilities that include limit setting, risk appetite, stress testing and risk analysis, provisioning and monitoring. All of these can help increase efficiency and accuracy in the approval process.
  • Track risk exposure. Using financial risk management software will help banks ensure a diversified and balanced credit portfolio. Using features for tracing weaknesses in the portfolio composition and for stress testing and shock modeling, banks are able to reduce their costs and manage exposure to risk.
  • Improve risk-adjusted profitability. With financial risk management software, banks are able to monitor and assess risk adjusted profitability and quickly react when profitability from various dimensions within the organization changes. Having an integrated view of economic and regulatory capital. Financial risk management solutions will help banks create strategies to increase risk adjusted profitability and ensure that capital position and planning is consistent with the overall risk profile.

Banks strive hard to manage their finances as well as their clients, ensuring that both these aspects are in great conditions, and financial risk management software can greatly aid them in this goal.

This entry was posted on 28. November 2013, in Accounting.

Benefits of Using an Asset Manager System

Using an asset manager system can help any business stay profitable by reducing inefficiencies and keeping track of assets within a company’s infrastructure. There are even systems that can streamline business logistics to decrease the number of employees needed. Asset manager systems can also keep track of physical and financial assets. Depending on the level of functionality a business needs, there are some systems are free.

Informed Decision Making

Asset manager systems simplify cataloguing data, giving a system for informed decision making. The software can facilitate consistent data collection and create an integrated asset inventory where all the information can instantly be accessed. These systems can turn big data into business insights that will help managers establish the best practices and optimize the processes of the organization.

Planning for the Future

Reports that are based on historical asset data are a great tool in predicting any maintenance need for the future. This is especially very important when the assets are expensive or are difficult to replace. An asset manager system can aid in planning and preparing, which allow users to point out trends and implement the most efficient strategies.

Better Communication

Asset manager systems which integrate automatic data collection like field and office staff can make communication more efficient. With information collected and immediately recorded on-site, users are able to share data throughout the organization faster than ever. It also eliminates the risk of paperwork los or data entry errors.

Improved Recordkeeping

Whether mandated by law or needed to validate work, recordkeeping can prove the long and meticulous process. An asset manager system will help comply with standards and regulations while saving valuable time and guarantees that records are completed all the time. Documents like reports, invoices, or photos are stored in a secure digital database to simply the retrieval of information.

Capturing Staff Knowledge

Many companies find it had to capture the unique knowledge of that they experienced staff has acquired over the years. When staff members retire, many of their valuable insight is lost to the company so it becomes impossible to transfer such knowledge to newer workforce. With a asset manager system that catalogues processes, documents and assets, companies can avoid unnecessary loss of data.

Understanding Fund Accounting

People who are way out of the boundaries of financing and accounting could have a hard time understanding what fund accounting is, or how it works. Normally, people would see financial accounting as keeping tabs of the money that is earned over a certain period of time. This means that businesses usually account for their profits as how much money came in to the business.

Fund accounting is another method of accounting which records how the money was spent by an organization or a governing body instead of how it was earned. This system of accounting is usually used by non-profit organizations and government organizations. For these types of organizations, keeping records of how the money was spent is more important compared to how it was earned, unlike corporations or most private business companies.

Reports regarding fund accounting may consist of assets, liabilities, revenues, net assets, and the expenses of the organization. The basic principles or concepts of fund accounting includes the following:

Acquire Funds. How do organizations acquire funds? Non-profit and government organizations usually acquire funds from different sources. Funds may come from companies or businesses that support the organization, or it may come from certain individuals who donate and give funds to them in order to enhance the activities of the said organizations. These sources must be given a fund accounting report as to  how the money was spent – what activities were done, and what improvements were made.

Requirements. The budget that these kind of organizations acquire should meet the needs and the requirements of the group. Usually, these needs and requirements would include fees that will be used for the activities and improvements of the organization, as well as salaries of the employees in the organization. The two main categories for a non-profit organization’s expenditure are general fund and special purpose fund; if the expenditures do not meet the requirements, then the funds cannot be used.

Reporting of Funds. Reporting of funds should be given to the individuals or the companies that have helped the non-profit organization detailing how and where the money was spent. This fund accounting report must include all the expenses that was used by the organization.

Even though fund accounting is mostly used in government and non-profit agencies, private corporations and businesses can also use it for a specific purpose. For example, an owner of a furniture shop may want to track what and how much materials were bought for a specific project, or a contractor may want to look into how much constructions materials were needed for a certain project.