9 Essential Finance Management Tools & Why They Matter For Your Small Business
Incurring debt in business is quite natural but the most important thing is to keep it within your control.
With the use of different financial management tools, you can manage your business finance well to stay out of the debt trap.
For entrepreneurs, especially for those who are starting up or with a smaller business, there are different finance management tools available on the internet.
Whenever you face any difficulty in your business financial management, make sure that you try out any or all of the following financial management tools.
This will help you to revive the financial health of your business and survive for a long time. These tools will not only allow running your business smoothly, but you will be also able to save, control, manage and grow your business funds as well.
When you effectively manage the finance of your business, you will never end up having a large number of unmanageable debts that may lead you to the big and dark hole.
Thanks to the development in technology these different financial management tools will make your financial management better.
These tools do not require any high-quality device to operate and are compatible with even the latest mobile devices. These tools will help you in many different ways such as:
- It will help you to make proper plans for the future
- It will ensure smart money management techniques
- It will help you to streamline your approach towards your business irrespective of the fact whether you are a startup or an established campaigner
- It will help in proper accounting and bookkeeping so that you know what comes in and what goes out.
- It will help you to know where you stand exactly and how much you can spend on further development and expansion of your business
- It will help you to make plans regarding repayment of debts, saving and investing
- It will simplify your effort when you make cash flow analysis and
- You will get enough help in making your invoices and maintaining all records in a file.
You will know when a bill is due and never miss any payments which may be a frequent issue when your business grows. With the help of these tools, you will be able to manage your loan accounts well whether it is a bank loan, any investment policy or even credit card payments.
With the help of a single dashboard, you will be able to manage all your financial activity effectively. Apart from making the payments on time, you will be able to keep a track of your financial goals as well.
Therefore, opting for such useful and beneficial digitized maintenance of your business finance is the most prudent decision to track and avoid faults and errors, make proper plans for the future and use the searchable database.
These tools will also make the complicated payroll maintenance look like a child’s play as you will be able to manage it effectively with just a simple click of a button. Just makes sure you choose the right tool depending on your need, nature, and specification of your business.
Financial literacy matters
For small businesses, financial literacy matters most when it comes to money management because it is more dependent on personal skills and knowledge.
If you find that managing your finance or debt with the help of a professional expert is unaffordable currently, then you can use financial management tools for your purpose.
You may also look out for all other available options and debt relief programs at reliable sites if you really have to get rid of a specific debt.
Moreover, small business owners being a renaissance may have to know everything about the business from finance management to marketing, production and advertising, sales and employee hiring, product designing to taxation, placement and debts as well. It is not an easy job at all but these tools can help you to be a successful business owner.
Choose one or a couple from the list of following business finance management tools:
- Accounting Software: There is a large variety of such software such as QuickBooks that will help in your small business accounting. You may also opt for other online accounting solutions such as Zero. Make sure that whichever tool you choose it is robust, as flexible as possible and works for your type of business in the best possible way. Look for the features in it as it must include basic accounting, invoicing, client-contact management, expense tracking, automation of billing, recording recurring payments, tax preparation, estimate creation, quoting, payroll processing, multiple-user access, mobile access, integrated with Point-Of-Sale software, Google Apps, and credit card processing.
- Budgeting Tools: This will help you to create a realistic budget for financial success and to stay out of debt. Rely on a separate and standalone budgeting tool such as PlanGuru.
- Payroll Management System: This will make this time-consuming and erroneous process simpler and help you to streamline it to avoid costly inefficiencies. Integrating with other storefront tools it will calculate and pay local, state, and federal payroll taxes automatically as well.
- Agile Billing: This will make the process smoother, simpler, error-free and quick. Use cloud-based billing system to shorten the billing process, increase customer satisfaction and reduce accounts receivables delays.
- Financial Dashboard: You can also implement a dashboard to see your business’s financial health and track down the Key Performance Indicators.
- Cash Flow Analysis: Use accounting software that has cash flow statement capability to measure cash flow, weather ups, and downs, and be prepared for any financial emergencies.
- Inventory Management: This tool will help you to keep track of your purchases, inventory control, order fulfillment, track your goods, generate sales reports, manage order packing and shipping, and set up low inventory alerts automatically.
- You may also use Expense Tracking and Business Credit Card tools as well.
These effective tools will save more time and take away all your worries about your business finance and debt accumulation and you can concentrate now more on training and overseeing your employees.
About the Author
Kelly Wilson is an experienced business consultant and financial advisor. She helps clients both personal and professional in long-term wealth building plans. She loves to share her knowledge and experts tips about business productivity, personal finance, wealth generation with her readers.