Custom Cash Management Software Development: Features, Benefits, Use Cases, and More

What is a Cash Management System?

A cash management system is a software solution that allows you to record, track, forecast, and report the cash flows of your business. Besides supporting cash flow management, the software offers your organization the capabilities needed to:

Why Should You Use Cash Management Software?

Cash flow management software brings greater visibility, accuracy, efficiency, and control to your cash management processes. It empowers you to make better financial decisions, optimize cash utilization, and improve overall financial performance.
Business benefits of using cash flow management software:

1. Improved Financial Visibility

2. Accurate Cash Flow Forecasting

3. Efficient Cash Collection & Payment

4. Enhanced Cash Flow Analysis

5. Optimized Cash Utilization

6. Enhanced Decision-Making

7. Compliance and Reporting

8. Time and Cost Savings

9. Integration and Scalability

Cash Management System: Key Features

Cash Flow Forecasting

Detailed cash inflow and outflow projections for a specific period based on historical data, transaction records, and other trends and patterns, typically to aid financial decision-making.

Bank Account Integration

Integration with various bank accounts to retrieve real-time information on bank balances, cash position, credit and debit transactions, and other account details.

Cash Position Monitoring

Centralized tracking and reporting to monitor your cash position in real-time, including balances, transactions, and pending items, and promptly identify discrepancies.

Cash Collection and Disbursement

Streamlined processes for cash collection, including e-invoicing, automated payment reminders, integration with payment gateways, and the ability to track payment statuses.

Cash Concentration and Pooling

Optimize cash utilization, minimize idle balances, and enhance liquidity management by consolidating funds from multiple sources into a single account or pool.

Reporting and Analytics

Customizable reports, dashboards, and analytics offer insights into cash positions, cash flows, liquidity ratios, and other KPIs.

Security and Compliance

Data encryption, user access controls, and other robust security features to secure financial data and cash management processes. Compliance with industry standards and safety regulations for securing financial transactions.

Third-party software Integration

Integration with other business applications, such as accounting software, ERP systems, or treasury management systems (TMS), to streamline cash management processes and facilitate seamless data exchange.

Mobile Accessibility

Access key features and perform essential tasks such as cash flow monitoring, approvals, and payments through mobile devices, ensuring flexibility and convenience.

Off-The-Shelf vs. Custom Cash Management Software

Commercial, off-the-self cash management systems offer a set of standard features that can’t be customized to handle your organization’s unique needs. This is where custom cash management software comes into play.
Here’s a quick comparison of custom cash flow management software vs. off-the-shelf cash management systems that will help you choose the right option:
Evaluation Criteria
Custom Cash Flow Management Software
Off-The-Shelf Cash Management Systems
Features and Functionalities
Exclusive feature list customized to your specific needs
Standard set of features built for the mass market
Development Time
Long development process, but a one time fix
Faster to implement with the vendor’s support
Development Cost
Requires significant upfront investment, but the costs will pay off in the long run
Moderately priced, but forces the user to pay for unwanted software features
Support and Maintenance
Product fixes and upgrades can be prioritized as per need
Risk of unplanned downtimes, support will be based on the vendor’s terms and conditions
Compliance to Business
Built to comply with your organization’s ecosystem and standards
Requires a high level of customization and extra components to function
Third-party Integration
Enables seamless integration with compatible external apps
Inherently inflexible, doesn’t support deep customizations or integrations
Highly scalable and adaptable to your future business requirements
Time-consuming and costly customizations needed to address the rising needs
Data Security
Highly resistant to cyber infiltrations, tested thoroughly at each stage of development
Vulnerable to cyber attacks and software glitches

Top Integrations For Cash Management System

Integrating your cash flow management software with other business applications can significantly enhance the functionality and efficiency of the software. It’s important to assess your needs and select integrations that align with your cash management objectives and technology landscape.
Choose the right kind of business applications that need to be integrated with your cash flow management software based on your organization’s size, industry, and operational requirements.

Top Integrations For Custom Cash Management Software

Accounting Software

Banking Systems

Invoicing and Payment Gateways

Enterprise Resource Planning (ERP) System

Customer Relationship Management (CRM) System

Payroll System

Expense Management System

Treasury Management System (TMS)

Business Challenges Solved by Cash Management System

Implementing a robust cash flow management system will help your business overcome these challenges and maintain sound financial health.

Inadequate Emergency Funds

Maintaining emergency funds to handle unforeseen expenses or economic downturns.

Lack of Financial Stability

Financial instability and uncertainty that affect your operations, growth prospects, and investment opportunities.

Difficulty in Debt Servicing

Servicing existing debts, including loans, credit lines, or other financial obligations.

Cash Shortages

Missed payments, damaged vendor relationships, and disruptions to business operations.

Increased Borrowing Costs

Relying heavily on borrowing can result in higher interest rates, reducing profitability and strain financial resources.

Inefficient Resource Allocation

Misallocation of funds, inadequate budgeting, and suboptimal investment decisions.

Vendor and Creditor Issues

Late payments lead to strained vendor relationships, reduced credit terms, or loss of supplier discounts, impacting the cost of goods and services.

A Step-by-Step Guide to Developing Custom Cash Management Software

Here’s a high-level overview of the steps involved in the custom cash management software development process:

Define the requirements and objectives of your cash management software. Identify the key features, functionalities, and integrations that you expect from the software.

Design a user-friendly interface that allows users to navigate and interact with the cash management software easily.

Develop the backend infrastructure with the essential logic, database structure, and data models to handle the core functionalities of the software.

Use integration APIs to connect the cash management software with external systems such as ERP, accounting software, banking platforms, etc.

Develop AI algorithms and ML models that leverage historical data, transaction records, and other relevant factors to generate accurate cash flow projections.

Integrate reporting and analytics capabilities that give users insights into their cash flow, liquidity, and financial performance.

Implement robust security measures such as data encryption and access controls to ensure data privacy and prevent unauthorized access.

Thoroughly test and debug the software to ensure that it functions as intended and is free of errors.

Deploy the cash management software in a production environment and provide necessary training and documentation to users.

Continuously monitor and maintain the software, addressing bugs, performance issues, or evolving user needs through regular updates and enhancements.

Cash Management System Implementation Costs

The cost of custom cash management software development will depend on several factors, including:

Cash Management Software Use Cases

Vendor and Supplier Management

Track and manage payment terms and obtain favorable pricing, discounts, and terms by ensuring timely payments and maintaining strong vendor relationships.

Cash Flow Reporting and Compliance

Auto-create cash flow statements, financial reports, and policy documents to ensure compliance with financial regulations and provide stakeholders with transparent and up-to-date financial information.

Payment and Receivables Management

Streamline payment processes and receivables through the automation of invoicing, payment tracking, and reconciliation, auto-reminders, etc., to improve cash collection and reduce payment delays.

Working Capital Optimization

Maximize the utilization of available funds by monitoring and controlling inventory levels, managing receivables and payables, and optimizing cash conversion cycles.

Expense Management

Gain visibility into cash outflows through expense tracking and analysis. Control expenses, identify areas for cost reduction or optimization, and align expenses with your budget.

Custom Cash Management Software Development: Choosing The Right Partner

Here are some key factors to consider when selecting a custom cash management software development partner:

How Fingent Helps

Being a top custom software development company, Fingent’s development experience spans multiple industries and advanced tech, including data analytics, augmented and virtual reality, artificial intelligence, robotic process automation, the Internet of Things, and more.
We follow an impeccable workflow and a set of best practices to develop and deliver custom software solutions that improve your competency and profitability. Our end-to-end custom software development process is tailored to meet our clients’ business needs, challenges, and goals.
Want to know how custom software development can add value to your business and improve your customer experience? Contact us to get an extended consultation.

Cash Management System FAQs

A cash management software automates parts of your cash flow management processes like monitoring transactions, managing payables and receivables, cash reconciliation, financial reporting, liquidity management, etc. The software frees up time for your financial professionals to work on strategic endeavors, reduces data duplication and errors, and increases your overall savings.
Inventory, accounts receivables, and accounts payables are the three main components of cash management.
The three common types of cash flows are:
  • Operating cash flows
  • Investment cash flows
  • Financing cash flows
Cash management tools are cash flow management software solutions that allow businesses to monitor and optimize cash flows, control cash position, predict cash flow trends and requirements, and improve their overall financial health.