In terms of economic transactions and commercial dealings, an NBFC or a non-banking finance company is no less important than a bank. They are the investment mediators without the legal authorization and with a much flexible monetary policy in comparison to the banks. They provide all kinds of banking services, in which accounting plays an important role. Handling the monetary functions of an NBFC, is not an easy job to do. It requires proper planning and strategies to be followed. These works can be perfectly done by an accounting software, while manual involvement may generate many errors.
The proper execution of the monetary tasks including the acceptance of deposits, excluding the demand deposits; calculation of EMI and loan; managing credit card system; automation of invoices; preparing balance sheets and payroll details; creating a budget forecast and so on, helps to build a good relationship between the investors and the NBFCs. This is the major reason of hiring an accounting software by the non-banking finance companies. These are entirely computer based software and possess salient features through which they implement the fiscal functions tactfully. Some of them are discussed below-
The calculation of EMI
The Equated Monthly Instalments or EMI is a significant part of the loan scheme, which should be handled properly. The NBFC appoints financing software which has an inbuilt EMI calculator, which provides a fair estimation of the sum of EMI to the clients.
Preparing loan scheme
Loan is the key thing an NBFC deals with. It is the debt offered by the NBFCs at a specific rate of interest. These online based software possesses an inherent loan scheme generator, which prepares numerous client-friendly schemes appropriate for your company rules. After a good assessment of the current fiscal market, it eradicates and modifies many schemes to fit to the demand.
Sending invoices
Invoices are a proof of the regulations and developments made by the company with the revenue. It marks the designation of the company to the clients in terms of profit and loss. Sending an invoice manually is a time and endeavor taking procedure. This software automatically sends invoices to the customers through emails and SMS, when required.
Automation of the records and details
Employee management is a significant part of an NBFC. It includes the handling of their expenses, time sheets and payrolls. There are many other financial things, which should be dealt automatically such as the budgets of the whole company and departmental expenditures. The chances of mistakes are there, if this information is ill-handled. The advantages of hiring a financial software by an NBFC are that this online software prepares a detailed fiscal record automatically.
Scrutinizing the due instalments
The instant analyze system of these software helps to mark the due instalments and thus prepares a report beforehand.
Source : articlesbase.com
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