6 Best Financial Tools Your Business Should Consider
 Finance & Accounting

6 Best Financial Tools Your Business Should Consider

Rick Johnson
Rick Johnson
November 9, 2022
Last updated on:

November 9, 2022


Read time: 6 mins

Do you feel that handling the finance and accounting aspects of your organization is one of the never-ending operations?

If so, your business is most likely not leveraging the power of any financial management tools. However, from regular expenses to daily invoices, you can outsource finance and accounting operations to help your business to be successful.

It is a great way to keep up with your track expenses and savings. Let’s learn all about these tools, why your business needs to consider them, and how to choose the best ones.

Financial Tools: When Do You Need Them?

The financial condition of any business enterprise depends on its effectiveness and efficiency in managing its finances. Gone are the days when manual economic systems used to be a thing. Today, digital platforms or online software programs have become the essence of financial management in the business world. By eliminating the need for manual financial management with such online tools, your business can effortlessly eliminate issues like inability to scale up, low accuracy, limited vision, and monotonous steps. Here are the indicators that signify the need for financial tools is as follows:

  • Complex Processes: Traditional finance-related procedures need a lot of employee attention and engagement. This is where leveraging the power of online financial tools can help you and your employees.
  • Time-Consuming: If your current manual financial procedures are tedious and take up plenty of your employee’s productive hours, it’s best to opt for the best finance software tools. Monotonous financial processes can result in a significant decrease in business productivity.
  • Manual Errors: Almost any financial document that is produced by the manual systems is prone to human error. Here, introducing automation via a financial tool will enhance financial systems’ efficiency, accuracy, and precision.
  • Less Visibility: You get limited visibility into the financial business transactions with the help of manual finance procedures. Here, a financial tool ensures 100% visibility into the financial systems’ status.
  • Scalability: With business expansion, your business will encounter a proportional increase in the volume of financial transactions. In such a case, if you still use manual finance tools, you won’t be able to cope with the substantial business demands.

To be precise, manual business procedures are insufficient to fulfill the demands of any emerging business enterprise. However, they can overcome such challenges and enhance business productivity with the help of the best financial management tools. The financial tools mentioned and described below are crucial to operating your business seamlessly. So, keep reading.

6 Must-Have Financial Tools For Businesses In 2022

1. Accounting Software

Although a few accounting software tools have been recognized as best-in-class for several years, other latest software options are becoming more and more popular every day. Before deciding on an accounting tool, consider crucial features of your business. These features are as follows:

  • User-friendliness
  • Automatic updates and scalability
  • Mobile usage and enhanced security
  • Payment processing
  • Analysis and report
  • Records of every financial transaction
  • Identification and prevention of errors
  • Accounts payable

Some advantages of using these tools are:

  • Data-entry procedures become fast and simple
  • You’ll gain comprehensive and in-depth financial reports
  • Reduced manual errors to let you take precise decisions
  • Reduced time for approval of cash disbursements and invoices
  • Enhanced flexibility and scalability
  • Multiple departments can access the centralized accounting data
  • Get informative and timely financial reports

2. Expenditure Tracking Tools

If your employees are on the go, you’ll often have to reimburse a few unique expenses - like mileage and meals. Knowing and tracking such expenditures is a functioning of some accounting tools, but not all, so consider a program that ensures seamless integration with your accounting tool. Make sure that you’re not spending more than what you want and need. There are a few expenditure management tools that are more sturdy than the requirement of an SME business. Features To Look For When Considering An Automated Expenditure Management Software:

  • Seamless expenditure reporting procedure
  • Real-time policy checks
  • Advanced data analytics
  • Machine-independent expenditure management software
  • Enables seamless integration with preferred software
  • Digital audit trails
  • Easy approval procedure
  • Advanced data analytics

Advantages Of Using An Expenditure Management Software:

  • Quick and easy repayments to employees
  • Enhanced efficiency in operations
  • Enhanced visibility
  • Simplified reporting
  • Quick and simple process
  • Minimal error and delays
  • Expenditure policy enforcement
  • Enhanced fraud protection

3. Budgeting Software

One of the significant ways by which businesses can become efficient is by maintaining thoughtful budgeting. It becomes simpler to manage cash flow by having insight into what money comes in and goes out every day. You can use reports from your organization’s accounting tool to ensure inflows and outflows are doing well on track. When considering a budgeting software, you must look for these obvious and much-needed features:

  • Offer web-based or thin client software
  • Ability to perform complicated calculations
  • Exceptional vendor support
  • Enhanced flexibility for business requirements
  • Multi-user access
  • No unusual project management overhead expense

However, many other benefits are worth considering, like:

  • Ability to report, analyze, and dashboard
  • User-friendliness
  • Microsoft SQL Server back end
  • No costs for extra modules
  • Web and Excel integration
  • Self-sufficient - Minimal or no reliance on consultants

4. Payroll Management

It needs a lot of effort and hard work to manage your business’s payroll, and making any mistake, error, or omissions in this aspect can turn out to be expensive. Once your business starts to grow and expand, it becomes challenging to handle your payroll anymore. It’s recommended that the ideal payroll solutions for SMEs are those that automatically scale with the business growth and the one that integrates with an accounting tool. If your business collaborates with both W2 employees and freelancers, ensure that the solution enables things to work conveniently with them. Here are a few features of an excellent payroll management software you must know:

  • Recording files and payslips
  • Keeping track of income
  • Direct deposit to an account
  • High-security level
  • Integrated accounting
  • Reporting in payroll software
  • Easy tax management
  • Optimal customization

Now, the advantages of using a payroll management system include:

  • Quickly deal with payroll deductions and calculations
  • Determine expenses, bonuses, and holiday pay with minimal effort
  • Automation of tasks like year-end reporting
  • Produce accurate payslips

5. Easy Billing Software

If you wait for the vendors to pay your bills, your business will face many challenges. Paying late is a typical business practice of several big suppliers, and there’s nothing you can do about it. However, having easy billing and payment methods can be simpler for some businesses. If your business is already accepting payments via online or digital solution, the chances are that their on-the-go invoicing abilities may serve. If you purchase software, it’s crucial to get a solution with a flexible pricing structure and a sturdy set of features. It’s crucial to create invoices and track expenditures and time effortlessly. Also, never forget to check if your tool integrates with other payment applications. To be successful, your business must maintain careful budgeting.

Having insight into the inflow and outflow of money enables it to manage your cash flow conveniently. When considering a Billing Software, you must check whether they have the following features or not:

  • Usability
  • Global compliance
  • Reporting
  • Fraud protection
  • Simplicity
  • Functionality
  • Revenue recovery
  • Customization

Now, check some benefits of using an automated billing platform for your business:

  • Enhanced accuracy and alleviated errors
  • Payment collection simplification with an automated billing system
  • Enhanced security and better customer relations
  • Gain valuable insight On key subscription metrics
  • Saved time and resources

6. Inventory Tracking

POS software keeps track of your sales, whereas accounting software tracks the profit and losses, but what do you need to keep track of inventory? Monitoring inventory can become simpler when your business has only one location. Meanwhile, when you handle products over numerous locations, you’ll need something more compelling to ensure everything goes well on track. Using software solutions lets you automate inventory tracking and monitoring to ensure a competitive edge and save time and money. However, your inventory software must ensure seamless integration with your POS software. Now, some features of this financial tool are:

  • Reporting of the business operations
  • Centralized inventory management
  • Enhanced flexibility and automation
  • Optimal inventory levels

Here are some benefits of leveraging an inventory management system:

  • Inventory forecasting
  • Reduced eCommerce business costs
  • Enhancing supply chain operations
  • Easily add new selling channels
  • Automated inventory management
  • Avoid stock-outs and overselling
  • Enhanced inventory planning and forecasting

Best Financial Management Tools For 2022

Having insight into the inflow and outflow of money enables it to manage your cash flow conveniently. When considering a Billing Software, you must check whether they have the following features or not:

  • Honeydue
  • Personal Capital
  • Money Dashboard
  • Pocketguard
  • GoodBudget
  • Albert
  • YNAB
  • Mint
  • Mvelopes
  • Future Advisor
  • Moneydance
  • EveryDollar
  • Yotta
  • Quicken

So, if you’re considering setting up a robust and efficient financial management system for your enterprise, consider one of the tools from the above list depending on your business requirements. Operating a business successfully is not only about having sufficient financial resources; it’s all about how you efficiently do financial management. However, you can track and manage financial transactions and make informed investment decisions and savings plans with a financial management tool. If you automate your business’s entire finance management via a cloud-based workflow automation tool, you get to simplify and streamline financial management.

Join Hands With Invensis To Leverage The Best Financial Tools

We at Invensis help businesses to manage financial operations and systems by introducing the latest and most advanced technology solutions. Our professionals consult and offer the best financial management tools for seamless business integrations and operations. Our top-notch quality financial tools improve bottom lines and ensure enhanced business efficiency. So, join hands with us at Invensis to leverage the best financial tools ever for a sustainable business future.  

Frequently Asked Questions -

1. Why are financial tools essential?

Using the right financial tools will help your business gain more precise insight and a more transparent and thorough image of financial positioning and enable businesses and finance officers to make informed decisions.

2. How to keep track of finances for businesses?

It is possible to track your monthly expenditure by checking account statements, categorizing your expenditures, exploring other expense trackers, using expense-tracking or budgeting apps, or identifying a room for change.

3. What do you actually mean by a financial tool?

The financial tool is specifically made to support a particular sector or interest, thus elevating the chances for businesses running in that sector to gain the financing that otherwise wouldn’t have been possible.

4. Which is the most important financial tool for businesses?

The most important business financial tool is the financial budgeting tool. It works by allocating money to specific areas of expenditure and limits the amount of money that can be spent in each area. This helps businesses to control their spending and stay within their means. Budgeting also allows businesses to track their progress towards financial goals. This makes it an essential tool for businesses of all sizes.

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