Software systems have become integrated into the life of every business owner. Innovative tools can streamline your day-to-day operations and boost business performance. Technology-enabled tools are especially beneficial for small businesses, allowing them to keep pace with bigger organisations and even stay ahead.
The financial side of the business can be especially challenging to deal with. Managing invoices, tracking expenses and handling accounting – there are a plethora of tasks to juggle. And here, financial software development solutions come to the rescue and offer a seamless way to manage daily financial tasks.
According to Semrush, 66% of small business operators encounter financial difficulties and paying operating expenses is one of the most common. Financial applications and technologies can take the pain of dealing with routine finance-related tasks away and save time for company owners to focus on developing their core business. Here is the rundown of crucial financial tech tools that every small business owner should know.
1. Accounting tool
Accounting is an essential part of running a business. Fortunately, today’s entrepreneurs do not need to make calculations by hand. Accounting tools may include a wide range of features, from basic accounting like expenses tracking, recurring payments, billing automation to different aspects such as inventory management.
Different companies require different features; selecting the right accounting software depends on business demands. So, while choosing an out-of-the-box application, pay attention to the set of features it offers and whether it is within your budget. Additionally, define whether you would like to install a tool in your system or use the one located in a cloud.
2. Payroll management software
Payroll tools enable accurate and on-time payment of salaries and wages. With the help of quality payroll software, business owners can automate pay management, which is usually a complex and challenging process, eliminate the possibility of human error and preserve smooth daily activities.
Professional payroll software application covers such aspects as calculating wages, establishing and paying off wage taxes, tracking vacations, sick leaves and time off, paying bonuses, etc. Moreover, make sure that the payroll solution of your choice can be scaled up as your business expands and is compatible with your accounting software.
3. Business budgeting tool
One of the crucial factors of a successful business is maintaining effective budgeting. Tracking a real-time cash flow help companies plan ahead, establish prices to boost profits, and make rational purchasing decisions.
Many small businesses are still using spreadsheets as a budgeting tool because computer software usually provides it. However, manually creating and updating income and expenses is quite an error-prone and unreliable option. A small mistake or typo can cost a business a fortune.
An automated budgeting program is designed to manage, track, and forecast a company’s budget. Some budgeting software offers such functionalities as real-time expenses monitoring, seamless invoice creation, monthly, quarterly, and yearly financial report compilation and more.
4. Billing and invoicing systems
For any business, timely invoicing and tracing payments ensures that vendors settle the bills on time. Billing and invoicing systems can streamline these processes. Such software helps businesses monitor sales and provided services, who was issued an invoice, when the transaction was conducted or when the payment was expected to be received if it wasn’t.
Billing tools automate many routine activities by offering various features, including tracking working hours, sending payment reminders, creating templates for invoices, processing payments online, etc. Moreover, such software enables the use of additional digital payment channels and mobile payments, streamlining the payment process for your clients.
5. Tax filing program
Filing taxes may become an exhausting task for many companies and figuring out which tax forms small businesses should fill out is one of the many reasons why. On average, one of the three small business operators spends around 80 hours yearly on federal taxes. Tax management programs allow one to navigate the difficulties of the tax filing process and regulations and speed up dealing with taxes.
There is a wide range of tax preparation software available. It would be best to rely on the key features and functionalities your business requires. A typical tax management tool can offer automatisation of tax deductions, calculate quarterly or monthly taxes to help businesses save up for taxes payments, store readily available forms of tax filing or return, automate the updating of sales tax rates and many others.
Running a successful business is a challenging task and handling its financial side is not an exception. However, there is a multitude of technology solutions that can help a company streamline their accounting operations, automate billing processes, manage budget, and more.
With multiple options available, a firm should consider whether a program suits its business needs and is easily integrated into its network. You can opt for a partnership with a fintech software development company to design and develop a custom solution for you. An experienced software developer will start with an in-depth analysis of your needs, business processes and workflows to ensure your new financial software perfectly integrates with your business ecosystem. After the solution is deployed, your partner will stay by your side to help you maintain the product, improve and scale it whenever there is a need.
Author: Olha Zhydik is a Content Marketing Manager at ELEKS, a global custom software development company. Olha has been working in the IT industry for over 10 years, including 6 years in marketing. Thanks to her diverse experience, her writing offers a fresh perspective on how technology can help businesses not only innovatively solve problems but also gain a competitive edge. You can connect with Olha on Linkedin or Facebook