Financial reporting is a critical operation for microfinance institutions, so it’s essential that it’s conducted accurately, and without consuming time and resources.
Automated financial reporting software achieves this. By implementing the right software, your business will gain the following benefits.
Increase Compliance
Compliance is a key consideration in the microfinance field and the magnitude of its impact is only increasing. Reporting, a major component of standardisation initiatives, needs to be consistent across all MFIs for increased transparency to outside stakeholders.
Automated financial reporting ensures that you comply with reporting standards and are able to provide monthly management reports.
Enhance Efficiency
Manual financial reporting requires human involvement that drains time, resources and ultimately, money.
It can be especially problematic if multiple people are involved in the process, where, without proper procedures and documentation, reporting can become significantly delayed and time-intensive to produce.
For microfinance institutions, in particular, reporting is further complicated by the disparity of operations in multiple regions, which can complicate the coordination of report building.
Using automated microfinance reporting software smooths this procedure, freeing up employees to concentrate on business activities.
Eliminate Errors
Of course, another problem associated with human involvement is the risk of errors. Errors can seriously affect business both in the short and long term, as they essentially warrant your bank performance ratios as inaccurate and potentially useless.
Reporting automation greatly reduces the human role in financial reporting and adjustments, decreasing the risk of omissions and errors and leaving more time for the review process.
Manage Risk
Due to the nature of markets that microfinance institutions operate in, risks, such as that of over-indebtedness, are inherently elevated.
Automated financial reporting provided within dedicated microfinance banking software to monitor and manage risk, will act as a guide for future business strategy and assurance to investors.
Reduce Administration Burden
For many microfinance networks, financial reporting isn’t a focus area of expertise. Focus often centres around managing the microfinance portfolio and seeking investment opportunities.
With a microfinance banking software system that automates financial reporting your efforts don’t need to be directed towards reporting - it’s automatically taken care of for you.
If you’re interested in implementing a powerful yet cost-effective automated reporting system, speak to a financial expert at BankBI by requesting a banking software demo.
