Owning a small business and managing the finances can seem endless. Track with financial tools and keep up with your business. It’s amazing that business owners ever find the time to deal with actually creating items or rendering services, what with all of the invoicing, expenses, day-to-day accounting, and dealing with the IRS.
Fortunately, technology has created a wide range of solutions that can help small business owners with daily financial responsibilities by saving them time and hassle. Check out these 10 financial tools for your small business to simplify your financial management procedure so you can get back to your actual job.
The process of raising capital or finances for any type of spending is known as finance. It is the act of directing various financial resources—such as credit, loans, and invested capital—to those parts of the economy that need them most or can use them most effectively.
Top 9 Financial Tools for Your Small Business:
1. Accounting Software:
The industry standard for small business accounting software has long been QuickBooks, but recently, online accounting programmers like Zero have gained popularity. Make your accounting software work for you by selecting a financial instrument that is as reliable and adaptable as feasible.
Business News Daily advises you to look for the following features: automation of billing and recurring payments, quote and estimate creation, tax preparation, multiple-user access, payroll processing, mobile access, and integration with tools like point-of-sale software, credit card processing, and Google Apps. Basic accounting tasks like invoicing, expense tracking, and client/vendor contact management are also recommended.
2. Budgeting Financial Tools:
For your small business to be financially successful, it is essential to develop and adhere to a realistic budget. You might not require a different financial tool if your accounting software allows you to establish budgets for your company right there. PlanGuru is a great option if you require a standalone, distinct budgeting program.
3. Payroll Management System:
Payroll handling takes a lot of time and is error-prone. Eric Siu, CEO of Single Grain, suggests the payroll/HR systems Gusto (formerly ZenPayroll) and Zenefits to assist you to automate payroll and get rid of expensive inefficiencies. There are various payroll administration applications, and these are just two of them. Frequently, these programs link with other accounting or storefront programs you already use without any problems. Even local, state and federal payroll taxes can be calculated and paid automatically with SurePayroll. How much simpler is payroll?
4. Agile Billing Financial Tools:
Payments will be made and processed more quickly. And money will enter your company more quickly the more streamlined and agile your billing process is. You may speed up the invoicing process and even boost customer satisfaction with a rapid, cloud-based billing solution. (try FreshBooks or Bill.com).
You’ll enhance customer experiences and reduce accounts receivables delays by introducing agile billing tools and procedures.
5. Financial Dashboard:
Use a dashboard, such as LivePlan or InDinero, to get an overview of the financial situation of your small business. To determine whether your company is “thriving and not merely surviving,” you can use these apps to track key performance indicators (KPIs).
And by keeping track of these crucial financial metrics in one location with understandable visualizations. You’ll be able to see any financial deviations right away and take action to correct them.
6. Cash Flow Analysis:
Measuring your cash flow accurately on a regular basis is essential to keeping your company ready for any financial situation, whether you use the cash flow statement feature in your accounting software, a cash flow-specific monitoring tool like Float, or a straightforward spreadsheet. Through the use of historical data patterns and financial future projections, cash flow analysis enables you to weather fluctuations in your cash position.
7. Inventory Management:
Utilize cloud-based inventory management tools like SOS Inventory or Scout’s top Shelf to effectively track your inventory from the time you buy things for resale until the time you fulfill a customer’s request. These solutions can generate sales data, set up automatic low inventory alerts, handle order packing and shipping, and track your goods in addition to tracking them.
8. Expense Tracking Financial Tools:
Small company expenses like meals, cabs, and gas may pile up rapidly and are challenging to keep track of. Employees can scan receipts or add cash charges from their mobile devices and upload them using an expense report tool like Expensify. You can then quickly import the data for approval, rebilling, expense accounting, and reimbursement.
9. Business Credit Card:
According to Anita Campbell, getting a business credit card can help you build your company’s credit history, give you access to more significant credit limits for borrowing on behalf of your company, and qualify you for business-specific benefits and discounts.
Campbell found an unexpected benefit after selecting a corporate credit card account with the ability to simply manage employee cards (with modest credit limits). This technique not only made it easier for her company to pay for employees’ expenses like travel, but it also increased morale.
People Also Ask:
- Which tool is best for finance?
Most financial tools are Zoho Finance Plus, Kissflow Finance, QuickBooks, and Sage Intact.
- What are financial control tools?
The balance sheet, income statement (sometimes known as a profit and loss statement), and cash flow statement are the three most crucial financial controls.
- What are the 5 financial instruments?
5 Financial Instruments are – Money Market, debt security, equity security, derivative, and foreign exchange instruments.
- Is Excel a financial tool?
Excel is widely used for accounting and financial tasks. In reality, Excel spreadsheets are used by many firms to manage their whole budgeting, forecasting, and accounting processes. Although Excel is referred to as a “data” management tool, financial data is most frequently managed.
- What are the 7 sources of finance?
7 Sources of Finance – Personal investment, Love money, Venture capital, Angels, Crowdfunding, Business Incubators, Grants and subsidies, and Loans.