Capterra Glossary
Finance
Financial Management System (FMS)

Capterra Glossary

Financial Management System (FMS)

A financial management system (FMS) is the software and processes a company uses to manage its income, expenses, and assets. Companies use an FMS to:

  • Keep financial records up to date

  • Maintain audit trails

  • Reduce accounting errors

  • Reduce paperwork

  • Find cost savings

  • Comply with accounting standards

  • Handle payments and receivables

  • Manage multiple bank accounts

What Small and Midsize Businesses Need to Know About Financial Management System (FMS)

SMBs might use an FMS because they can't afford a large accounting team or lack a dedicated financial manager or accountant on staff. An FMS can be a more cost-effective way for SMBs to handle accounting tasks.

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