Looking to keep tabs on your Corporate Venture Capital? Here’s how

Posted by Aisha Wehrle on April 28th, 2021

Every business needs to plan its financial management through, especially when it starts growing rapidly.  At the initial stage, tracking finances and manually accounting for them isn’t as difficult as compared to when you’re making speedy progress. It is at this point that you need to up your game and use financial management software. Accounting software is used to process vital financial information that includes invoicing, tax compliance, income and expense statements, payrolls, balance sheets etc. By keeping a track of these things, the business learns where it stands in terms of financial management - as well as being able to keep a tab on the flow of funds itself.

Businesses that experience large cash-flows often require tracking solutions that are easily deployable, scalable and low-maintenance. Venture capital firms, for example, often have massive transactions across sectors, with budgets assigned to each. Now if your business has invested in startups, your corporate venture capital needs to be accurately tracked and looked after for tens to hundreds of simultaneous transactions - which is where investment accounting software comes in.

To get into the depths of how an investment accounting software would benefit your business, let’s understand some of its benefits:

1. Financial control- Helps you track your investments and be up to date with their progress. Breaks down information into reports, analysis, formal statements, etc to give you a better understanding of your finances.  Creates investment records that you can refer to with ease and stay organized. Sends you timely updates on your investments.
2. Data Accuracy- Investment accounting software creates daily records of your investments and corporate venture capitals. These records are accurate as they aren’t subject to human errors or other manual complications. All your crucial investment related data is stored properly in one place for you to access conveniently.
3. Detailed insights- The software gives a detailed understanding of how and where the capital has been invested, and what the ongoing changes are. It is constantly updated and makes sure you’re in line with all the developments that happen.
4. Security-  Any kind of financial data falls under confidential information. It needs to be saved from prying eyes and highly protected to avoid its misuse. An accounting system ensures the safety of your investment  data by storing it in a system that is strongly protected. It enables monitoring and allows only those with access rights to see the data.
5. Prepares reports- Creates comprehensive reports of the finances invested and helps you understand the investment progress better. These reports save your time and eliminate any unnecessary confusions. It also becomes easier to keep a record of other investment related things.
6. Saves time- One of its biggest advantages is that it saves time. Making spreadsheets, discussing with employees, tallying data, checking individual records etc can all be avoided. The software does all the work in minimal time and provides you with complete results.

Conclusion
As you can see, the advantages of using an accounting software are plenty. It adds to the efficiency and productivity of the business  by keeping things in line. Investments, corporate venture capital and other major external financial practices can all be conveniently tracked with investment accounting softwares. These softwares can be used internally as well, for general financial management of the corporation. They reduce the complications involved in everyday finances and lead to smooth financial management.