When you’re running a small business, it can be challenging to keep up with your finances. You have to track daily, weekly, and monthly expenses and organize invoices as well as make sure that you’re paying your taxes correctly and on time. Since handling the financial aspects of your company can be time-consuming, you may find that it’s difficult to simultaneously handle other tasks like developing a new marketing campaign or getting goods to customers in a timely manner and your company finances.
While being a small business owner comes with lots of responsibilities, technology offers several tools that make it easier to keep up with your finances. Here are a few suggestions that could prove helpful.
For years, QuickBooks has been the go-to software for small business accounting. However, there are other online solutions like Xero that are becoming more popular with small business owners. Regardless of the software you select for accounting, make sure you choose a program that is flexible and has all the features you need. According to the Business News Daily 2015 Buyer’s Guide, you should purchase accounting software that handles expense tracking, invoicing, billing and recurrent payment automation, payroll processing, and mobile access.
In order to make your company financially secure, it’s important to create a realistic budget for your business and stick to it. You can use software to create your budget and send it to your email so you can refer to it each time you need to make a purchase, or you could hire a few people to be part of an accounting and finance team. This way, you’ll always know which business necessities take up the most of your budget and when there are unexpected expenses that your business must pay.
Payroll Management and Agile Billing Systems
You can also properly manage your finances by using a payroll management program. If you try to handle this task on your own, you’re likely to make mistakes. Eric Siu, CEO of Single Grain, says that payroll and HR systems like Zenefits and ZenPayroll can expedite the payroll process and help you eliminate errors. You may also want to check out SurePayroll as this program calculates your state, federal, and local taxes so you can pay them automatically.
The smoother your billing process is, the faster you can make payments to vendors or process payments from customers. This provides a steady cash flow for your company. Try using a cloud-based system for billing like Bill.com or FreshBooks to ensure that your billing process is quicker and more efficient so that you can provide optimal customer service.
Financial Dashboard with Cash Flow Analysis
You’ll also need a financial dashboard like InDinero or LivePlan to see your business’ financial needs and discover the factors that contribute most to your monthly and quarterly profits. The right financial dashboard, in conjunction with tracking tools like Float or a Microsoft spreadsheet, will also help you keep tabs on all the things you spend money on so you can see where you need to make adjustments to save your business money.
When you’re aware of your business’ cash flow habits you’ll know whether you’re eligible for a discount from vendors or a bank fee refund. These perks are often available when you’ve been doing business with certain entities for a few months or years, so be sure to check for these potential boosts in your profits.
Company Credit Cards
In addition to using expense report tools like Xpenditure and Expensify, you may also want to consider a business credit card. When you’re paying for all your business supplies and inventory from one place, it’s easier to monitor your expenses and make adjustments when necessary if all the payments are coming from a credit card designated for company expenses. The longer you have a credit card, the more your company will be eligible for higher lines of credit and cashback rewards.
Finally, make sure you practice good inventory management as well. Use cloud-based software like topShelf from Scout or SOS Inventory to create sales reports and send you alerts you when your inventory is low so you can restock as soon as possible and continue providing quality service to your customers.