Did you realize that only around 50 percent of small businesses last past the five-year mark? Finding a way to keep your business open and thriving is important. Often times, financial problems are one of the main causes of small business failures.
While new business owners are great at raising funds for a new venture, many lack the knowledge and discipline to keep their company going. Luckily, there are a number of financial tools on the market designed specifically for small business owners.
These tools are designed to help you stay ahead of the curve when it comes to things like inventory management or cash flow analysis. Read below to find out more about the financial tools you need to ensure your business keeps thriving.
1. The Power of Accounting Software
Keeping track of things like invoicing, monthly expenses or billing automation is essential for a small business owner. Failing to keep this information current can lead to you being unable to keep your business afloat.
With all of the different online accounting software programs on the market, you need to do some research before choosing one. Among the most popular accounting programs on the market is QuickBooks. For years, business owners have used this software due to how simple and effective it is.
Rather than letting the use of new tech tools intimidate, you need to embrace the software at your disposal. Doing so will allow you to keep business finances in check with ease.
2. Financial Tools Can Help You Create and Maintain a Budget
When it comes to keeping a small business successful, making and maintaining a budget is crucial. Ignoring the need for a budget will cause major money problems that may lead to you closing your doors.
Instead of letting this financial mistake ruin your business, using tech tools specifically designed for small business budgets is a good idea. If you are looking for a standalone piece of software to help you create and maintain a budget, then check out PlanGuru.
This program uses the art of value-adding analysis to help its clients. With PlanGuru, you can look at financial forecasts and monthly reviews of your spending. These reviews are a great way to see where money is being wasted.
3. Avoid Payroll Management Problems
One of the most time-consuming and mistake-ridden tasks a business owner has to handle is payroll management. If you are tired of slaving over your computer each month when doing payroll manually, then investing in the right software is a must.
One of the most popular payroll management tools on the market is ZenPayroll. The best part about this program is that it can be incorporated with other accounting tools to make our life easier.
With this system, you can figure up all of the taxes you have to pay for each of your employees. The money you pay for a payroll management program will pale in comparison to the cost of tax penalties or the stress of an IRS audit.
4. Technology Makes Billing Customers Easy
The only way you can get paid for the services or products you provide is by accurately billing your customers. Some business owners get so busy with running day to day operations that they get behind on their billing. Instead of letting the financial side of your business suffer as a result of invoices not getting sent out, you need to look for a solution to this problem.
Programs like FreshBooks provide business owners with the tools they need to bill customers with the click of a button. The faster you are able to get these invoices sent out, the easier you will find it to get paid in a timely manner.
Using these types of agile billing tools will also improve the experience customers have with your company.
5. Assessing Your Company’s Financial Health
Are you curious about your business’s financial health? If so, using the power of technology to get this useful information is a must. Using a program like LivePlan will provide you with the ability to look at the financial health of your company in real time.
These programs work by allowing business owners to track various key performance indicators. Often times, these indicators will be things like monthly sales or customer acquisition rates.
By looking at these metrics in real time, you can correct financial mistakes quickly. The longer you ignore the financial health of your business, the higher the risk will become of disasters occurring.
6. The Importance of Inventory Management
If your company specializes in selling goods to the general public, adequately managing your inventory is paramount. The last thing you want is to disappoint a customer by telling them you don’t have the item they ordered.
Using the reorder point formula calculator provided by the team at inFlow can help you stay on top of inventory issues. If you want more info about this calculator, be sure to visit their website.
7. Business Expense Tracking is Important
Companies who have field service workers spend a lot of money on things like gas and vehicle maintenance. Knowing exactly what is being spent each month on these expenses can help you assess whether or not your company is financially sound.
For years, business owners have used programs like Expensify to avoid wasting money on unnecessary expenses. These programs allow your field service workers to scan their receipts from mobile devices. Once the receipts are uploaded, you will be able to review them to ensure they are for legitimate purchases.
Taking Your Business Into the 21st Century
Using outdated financial tools will put you and your business at a disadvantage. By investing in state of the art business tools, you can keep your company on an upward trajectory.
Looking for more advice on choosing the right business technology? Be sure to check out our article on the software programs every small business needs.