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.
Related Terms
- Compound Annual Growth Rate (CAGR)
- Financial Planning and Analysis (FP&A)
- Selling General and Administrative (SG&A) Expenses
- Hedge Fund
- Gateway
- Record to Report (R2R)
- ROIT (Return on Information Technology)
- Chief Revenue Officer (CRO)
- SAC (Subscriber Acquisition Cost)
- ROE (Return on Equity)
- Tokenization
- Net Present Value
- Fintech
- Business Capability Modeling