The advantages and disadvantages of MoneyGuidepro - Essay Example

The advantages and disadvantages of MoneyGuidepro Introduction Financial planning can be termed as the process of evaluating an individual’s or an organization’s present and future financial situation with the aim of predicting future income flows and withdrawal decisions. Financial planning incorporates drafting of the budget in order to organize the usage of funds and disposition of savings in future. In essence, an organization cannot operate smoothly without a financial plan. It is necessary to develop a financing strategy and control the usage of funds for efficient performance of an enterprise. Financial planning facilitates allocation of income for future expenses that a firm anticipates to incur in its operation and development projects. The aim of this paper is to analyze the benefits and drawbacks linked to the use of MoneyGuidepro computer software for financial planning and the strategies that can be implemented to fix the drawbacks. Benefits Saves on time Financial planning computer software such as the MoneyGuidepro have gained widespread popularity in the recent past (Drucker & Bruckenstein, 2003). The program has many benefits for financial planners and their clients. For instance, the software facilitates timely completion of financial planning. In essence, the software aids in saving the time spent on analyzing financial reports from various sources such as the financial statements and cash flow statements, thereby, easing financial planning procedures. In this regard, the financial planner can develop multiple plans simultaneously since the information required is configured in one location. The software has outstanding capability to handle complex financial planning problems faster and easier compared to manual planning. Multi-tasking With financial computer planning software, it is possible to perform many task at the same time. For instance, the MoneyGuidepro software facilitates calculations of various variables on the same page. In essence, the software supports combination of various problems on one platform and solving them simultaneously. In addition planning for activities such as retirement, college studies, asset allocation and estate planning is done more conveniently than using manual methods for financial planning (Updegrave, 2013). In essence, the software provides alternative solutions for the financial planner and the client in the planning process. Economical Use of financial planning computer software is cheaper than carrying out manual financial planning. For instance, use of MoneyGuidepro software requires minimal manpower in computing future expenses and allocating resources to various departments of an organization. With the aid of a computer, one person can do tasks for more than ten people. In this regard, the labor cost is reduced. In addition, use of MoneyGuidepro software for financial planning is more efficient than using people to carry out the activity manually. Appropriate for future financial forecasting. MoneyGuidepro software has the capacity and ability to keep track of records for a long period. As a result, an individual/organization can monitor financial progress for a long period. Therefore, projections about future behavior of income can be done by comparing the current situation and past financial behavior. In addition, the software provides a variety of functions and features to financial planners such as insurance need analysis, goal planning, assets allocation planning and many other options. Therefore, future forecast of cash inflows and outflows can be made accurately with minimal errors. Convenient The software is less complex to use and suitable for financial planning in various fields. In additional, the software is compatible with numerous devices such as the windows personal computers, iPhones and tablet PCs among others. Consequently, the program is compatible with many web browsers including Google chrome and Mozilla Firefox. In this case, the program is accessible at any place, provided the internet connection is efficient. In essence, the user can carry out financial planning activities at any location. Drawbacks Expensive Many resources and time are spent on training the users of the software. People used to manual financial planning require comprehensive training on how to use MoneyGuidepro financial planning software. Therefore, the enterprise must employ trainers or hire new experienced personnel in the software usage. Additional money is required to buy new equipment such as computers and other electronic devices. Generally, the software costs an enterprise additional expenses in fixing physical and technical problems. Security risk Financial planning computer programs are prone to many kinds of risks. For instance, the stored data can be lost especially when a program is infected with a virus. Additionally, the information can be hacked and therefore expose valuable information to unreliable people (Greenwood, 2001). The user may forget to log out from the software, especially when using a public computer, and therefore expose personal financial details to the next computer user. Such incidence may result to huge losses of both time and resource invested on the software. . Strategies that may be employed to fix the drawbacks There exist many strategies that can be adopted to offset the drawbacks of using MoneyGuidepro financial planning software. For instance, the software user should ensure that the device used is installed with a strong antivirus. Such a mechanism would reduce the incidences of losing data due to virus problems. Additionally, the user should log out from the software immediately after use to prevent the next user of the computer/device to access person financial data. Extensive research should be conducted before installing the software in order to evaluate the cost involved in the installation and running of the software. Knowledge regarding the cost associated with the software would aid the potential user to put the necessary measures that would reduce future expenses. Conclusion Financial planning has received a major boost from the modern technology. The traditional methods of financial planning have been replaced with modern advanced techniques that are more accurate and reliable. The use of MoneyGuidepro software has eased the practice of financial planning and planners can now develop multiple financial plans simultaneously. However, modern financial planning techniques present disadvantages such as insecurity and high cost to users. The users of modern financial planning computer programs should have adequate knowledge regarding security of information and the cost of installing the software. References: Drucker, D. & Bruckenstein, J. (2003). Technology Tools for Todays High-Margin Practice: How Client- Centered Financial Advisors Can Cut Paperwork, Overhead, and Wasted Hours. Hoboken, N.J: Bloomberg Press. Greenwood, R. (2001). Handbook of Financial Planning and Control. Aldershot, Hants, England: Gower. Updegrave, W. (2013). Retirement Income Redesigned: Master Plans for Distribution -- an Advisers Guide for Funding Boomers Best Years. Hoboken, N.J: Bloomberg Press. Read More