Finance software market is expanding. Corporations are increasing their investments in finance software to support corporate finance governance, compliance, and risk management. This emerging market is forecast to grow approximately 24 percent annually. Throughout the world, compliance regulations are driving businesses to financial compliance. The financial requirements are worldwide because companies that are registered under U.S. Securities and Exchange Commission must comply, regardless of which countries you are in. companies are required to establish financial management controls and programs. Many organizations are now establishing governance, which consists of the key elements of identifying, planning, implementing, analyzing, and monitoring. More companies are purchasing new compliance management, monitoring, and automation solutions, which are found in finance software.
Exploding demands from companies has not gone unnoticed in the finance software market, and it seems to be growing by the minute as more vendors are coming at this market. Implementing finance software involves process changes. Because of the different requirements of the companies, the interpretation of the finance software can be very different from one vendor to another. Not every vendor sees the full picture yet, and thus not everyone has an equal chance to win in this finance software market.
As more companies are looking for the suitability of the finance software, vendors in this market should look into developing of software that is aligned to the compliance life cycle. Finance software should be able to identify the appropriate regulations that apply to companies, interpret the regulation for the company’s environment, monitor for changes and compliance, and understand and document the company’s finance processes. Compliance means meeting the requirements of the governance. Corporate governance is the framework that looks into how decisions are made and provides the policies, standards, and laws for a company’s governance.
Many factors affect the growth of finance software market. Confusion and concern regarding the vendors and the technologies used and their control requirements is one of the factors. Consistent functionality does not exist with some vendors, and companies are often confused about the level of controls that must be put in place. Another factor is the merger of large and small companies, which is beginning to bring uncertainty about vendor selection and their finance software product offerings. Availability of budgets and company’s priority also affect this market. However, more vendors are delivering better-performing, more comprehensive, and more integrated products. They already have it planned for the future versions.