Financial management tools are essential to improve the financial success of your small business.
Owning a small business can be difficult but implementing the best financial management solutions can improve the financial future of your business.
As a small business, it might be difficult to find the best financial management tools to ensure that all your bases are covered. Having the right financial management tools for your business is essential, though, so it is beneficial for you to do comprehensive research to verify that you’re choosing the best solution.
Financial Management Tools for Small Businesses
The first on the list of financial tools your small business needs is accounting software. QuickBooks is the most popular accounting software used by companies but there are also online options like Xero. Both are good options, but it is necessary for you to choose a financial solution that best fits the needs of your company. Whatever software you choose for your company, it should offer basic accounting tasks like invoicing, expense tracking and client or vendor contract management. The software you choose should also offer multiple-user access, payroll processing, mobile access and integrate with other programs like your POS software, credit card processing, and Google Apps.
Basic financial management for small businesses is essential. You should start by creating a realistic budget and sticking to it. A lot of accounting software offers the ability to create budgets for your business without needing a separate tool. While it is unlikely to find a free small business budgeting software, there are many options available for a low monthly cost like PlanGuru. No matter the cost, though, budgeting software is essential to the financial success of your business.
Managing your payroll is another necessity for your small business. Managing payroll is a very time-consuming process that is prone to many mistakes. A good payroll management system is essential to eliminate errors, inefficiencies and to streamline your payroll process. There are many good payroll management systems out there with ZenPayroll, Zenefits, and SurePayroll being three of the best on the market. It is beneficial, though, to choose a payroll management system that can easily integrate with your other accounting software.
Ensuring that your billing process is smooth and using a financial dashboard to see your business’s financial health are a couple of other necessary tools for your business. When you ensure that your billing process is smooth, cash will flow much faster into your business. There are many options to manage your billing process including cloud-based platforms. Implementing a financial dashboard allows you to track your KPIs and measure whether your business is doing well and not just surviving.
Another essential tool for you to implement is financial analysis software for small businesses. It is crucial for you to regularly and accurately measure your cash flow. Again, choosing an accounting software that offers a cash flow statement is very beneficial for you as a small business owner. An accurate cash flow analysis will better prepare you for any financial need that may come up in the future like major fixes or repairs.
Inventory management and e-commerce solutions are two other tools that are necessary for you to think about when you are deciding which financial management tools to implement into your business. There are many solutions to handle inventory management, including many cloud-based solutions. A lot of inventory management software offers sales reports, can alert you when inventory is low and can even manage the packing and shipping of your orders. Customers today expect to be able to pay for what they want from your business instantly. For this reason, implementing an e-commerce solution that can offer this is essential to the financial success of your business.
Many companies understand the benefits of a company credit card. These benefits include improving your business’s credit history, gaining access to higher credit limits for your business borrowing needs and receiving rewards and discounts specific to your business. If you have multiple employees that need access to this card, it would be beneficial for you to choose a business credit card account that has the capability to easily manage those employee cards.
The most important financial management solution you can implement into your small business is to track expenses. Even small expenses like gas, meals, and transportation quickly add up and can be difficult to track. There are many solutions available that allow employees to scan their receipts and add cash expenses from their smartphones. Implementing a solution like this will make rebilling, expense accounting and reimbursement much more efficient and streamlined.