Tools for financial harmony: why budget management software is important

Personal financial management is becoming increasingly important these days, as it helps to effectively control income and expenses, ensuring financial stability and security. Aleksandr Makarov, the winner of the National Business Award “Technologies and Innovations-2023” and a member of the GPN Tech.Challenge expert committee, will talk about how modern technologies influence the development of budget management software and what new approaches and features can be expected in this area in the coming years.

Aleksandr, what inspired you to create tools for financial management? 

Probably life itself and professional experience. I have been programming for more than 13 years, and during this time I have managed to work on various projects, from mobile applets and web applications to complex corporate systems. However, lately I have been focusing on developing programs for budgeting and financial management. It all started when I myself faced the need to plan my expenses and income more clearly. When your life becomes more busy and you have a lot of monetary obligations, you start to realize how important it is to have a tool at hand to help you organize it all. I tried several existing solutions on the market, but many of them seemed either too complicated or not functional enough. That’s when I decided to create something of my own. Imagine that managing your finances is like gardening. You don’t just throw seeds on the ground and wait for a crop to grow. You have to plan, water, fertilize. It’s the same with finances: you have to constantly monitor your expenses and income, adjust your plans, and look for ways to save money. And my tool helps users to be such “financial gardeners”.

What problems do you think personal budget management programs solve? 

They solve several important problems at once. First of all, they help people better understand where their money goes. Often we don’t notice how occasional expenses turn to often ones and eventually add up to large sums which seriously hit the budget. Also, such programs allow you to plan future expenses and income, which is very important for financial stability. For example, if you want to save up for a vacation or a new car, the app will help you create a savings plan and stick to it.

Every year, the task of controlling debt obligations becomes more and more urgent. Few people keep track of their loans and credits, which eventually leads to unpleasant surprises in the form of overdue payments. The program will remind you of the deadlines and amounts that need to be paid. In addition, such tools often offer an analysis of expenses and income, showing you where you can save money. It’s like a financial coach that helps you make more informed decisions and improve your financial literacy. And, of course, one of the main benefits is the reduction of stress related to budgeting. You have to agree, when everything is under control and every step is thought out, you feel much calmer and more confident in the future.

What about organizations? Do you have solutions for them as well? 

Yes, one of the applications I have been working on was specifically designed for large law and accounting firms. It’s no secret that in today’s environment clients often compare offers from different companies to choose the most favorable solution, and my goal was to create a tool that helps to quickly create budgets for new projects, while ensuring profit and benefit for clients. This app allowed companies to quickly estimate project costs, offer discounts and develop detailed plans with a space for write-offs and other unexpected losses. It provides full control over all financial aspects, can customize notifications and adapt to changes in external circumstances, supporting efficient resource allocation. In doing so, we have leveraged machine learning algorithms to perform complex calculations based on analysis of previous requests and data, meaning the program creates budgets that accurately match current business needs and quickly adapt to changing market conditions. Using data from past projects, the algorithm automatically optimizes costs by suggesting optimal solutions and detailing plans, allowing our clients to save time and money when planning and managing finances.

Explain what key features a good budget management program should have? 

First is the ability to enter income and expenses quickly and easily. Ideally it should be continuous integration with banks and other financial institutions to  always have up-to-date data. The user should be able to easily add their transactions so that the app always shows an up-to-date picture of finances.

Second, it is important to have automatic categorization of expenses. The program should be able to recognize types of expenses so that the user can immediately see where the money goes – for food, transportation, entertainment, and so on. So, I developed an application that analyzes transactions from a user’s bank account, categorizing them and providing detailed information about expenses. Unlike existing software solutions from some banks, which are usually limited in functionality and do not always provide complete information about transactions, my application provides full control over the reports. It helps avoid misunderstandings related to ambiguous payments such as, for example, store purchases or car repair costs, which are often grouped under the “other” category in bank reports. My goal was to create a tool that saves users time by providing more granular and accurate information for financial decision making.

What’s more, the option to create and track budgets is important. Users should be able to set limits for different categories of spending and see when they are approaching or exceeding those limits. A reminder feature for upcoming payments and due dates is also necessary. This will help avoid overdue bills and penalties.

Another key feature is the quality of analytics and reports. The program should first output high level data as a general picture and next provide the user ability to dig deeper into detailed reports on income and expenses. It should be able to predict trends and offer recommendations for budget optimization.

Finally, data security is the foundation of a good program. Users need to be confident that their financial information is protected and confidential.

How do you see the future of financial management programs? What new technologies or features do you think will emerge in this area in the coming years? 

First of all, the role of artificial intelligence and machine learning will increase. Imagine that your budget management software doesn’t just record your spending, but analyzes it and offers personalized savings tips. For example, if you often spend money on coffee, the program could suggest alternative coffee shops with better prices or even help you calculate how much you’d save if you started brewing coffee at home.

In addition, I think that integration between financial services will develop. In other words, the budget app will become the center for managing all financial operations, from bank accounts to investment portfolios and pension savings. So, you will be able to manage your stocks and bonds directly from the budget app, see your entire financial picture in one place and get advice on optimizing your assets. Another interesting trend is voice assistants and smart devices. Imagine simply telling your smartphone or smart speaker: “How much can I spend on dinner tonight?” and get an accurate answer based on your budget and current spending. This will make financial management even more accessible and convenient.

In short, the future of financial management programs looks very promising. New technologies and features will make these programs even more powerful and useful, helping us better manage our money and reach our financial goals.

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