6 Money Management Tools Modern Businesses Need in 2021 and Beyond

6 Money Management Tools Modern Businesses Need in 2021 and Beyond

Cash flow management is critical in any business as it entails wise use of the company’s capital and other financial resources. It is a crucial factor that affects a business’s financial stability.

But managing cash flow can become a bit exhausting, especially if you’re still doing it manually. It can be difficult to keep up with the many factors and ever-changing financial variables that should be considered.

Fortunately, technology paved the way for the birth of modern tools you can use to make this task easier. From online business banking to cash flow analysis, here are six money management tools every company needs in 2021 and beyond:

[1] Online Banking and Bills Payment

Online banking makes managing money more efficient.

Thanks to its wide range of features, you can accomplish plenty of tasks on your financial accounts, including your bank savings, credit cards, and loans. It also allows you to pay your bills, send out cash, and save money on demand.

Most banks also offer an automated bills payment feature that simplifies the process of dealing with regular expenditures. Not only does this remove the task from your to-do list, but it also saves you from the unnecessary late payment penalties.

Besides using your money electronically, you can also monitor everything that happens to it. You’ll be able to see the cash that goes in and out, and know when and why the transactions were made.

Transferring to different accounts is straightforward, too, whether it’s to your own or other people’s.

For instance, some banks give their business clients the option to enrol in small business online banking programs that makes the transfer of funds across different accounts easier and more affordable.

Some business bank account packages also include access to checking, savings, credit cards, loans, and lines of credit. In most cases, there is also little to no extra fees tied to transactions made across and between enrolled accounts.

Some banks also allow employee access to company bank accounts. Of course, this can be customized or limited according to your specific preferences. For example, you can make it so that they can view the account balances but not be able to transfer the money without your approval.

Most importantly, you can do this anytime, anywhere.

[2] Accounting Software

While you can rely on certified accountants for your bookkeeping needs, having accounting software is still recommended. This is because many of these programs may have useful features, such as:

  • cloud-based data entry
  • POS software integration
  • email integration

You can also use accounting software like QuickBooks in conjunction with online banking platforms so long as they are compatible. This makes importing critical data easier across the two platforms.

Take note that this may come with additional fees sometimes, although the benefits outweigh the costs.

For one, this will make reconciliation and comparison of transactions with your bank easier. You can also set QuickBooks to regularly download reports and account updates (you can even set it daily).

[3] Expense Trackers

Many employees have different expenses that need to be reimbursed, from transportation costs and meals to lodging (in case of business trips). This is where expense trackers come in handy.

If your accounting software has an expense tracking feature, you’re all set. But if not, you may need to find something that makes monitoring and accounting expenditures easier and faster.

Some features you’ll want to look for include receipt scanning and mobile cash expense uploading. You’ll also want data import capacity so that you can use the information to approve, re-bill, reimburse, or account for specific expenses.

[4] Payroll Management Software

Any error in the payroll can be expensive, so there is a lot that goes into this aspect of money management in a business.

When a company is growing, it could be challenging to handle payroll on your own. This is where payroll management solutions come in handy.

Look for a payroll solution that is designed for the size of your business. Even better if you can find one that can be integrated into your accounting software.

Do not forget to consider the type of workforce you have as well. Some payroll management programs also allow timesheet system linking. This means you no longer need to manually compute how much you need to pay an employee based on their time log.

With data on hours worked, attendance, and basic payroll data (e.g., rate per hour, etc.), payroll systems can offer instant salary calculations and in-depth analysis of your workforce expenditures. Some may even provide a detailed analysis of staff costs across different departments, individual jobs, and the entire business as a whole.

[5] Invoicing and Billing Applications

Late payments from clients can make running a company challenging. Some big suppliers consider this the standard practice in the business, leaving you no other choice but to work with other companies.

However, this doesn’t mean things can’t improve. In fact, many businesses are now implementing easy billing and payment options, which hastens and simplifies the entire process dramatically.

These applications let you see whether your invoice has been viewed. They also show the updated status of each transaction, including payments made and processed as well as outstanding balances and overdue bills.

Besides keeping you abreast of your collectables, this also makes your financial relationships with customers more synchronous. In other words, having this type of tool in your arsenal hastens the invoicing process and, as a bonus, supports better customer service.

More importantly, having real-time updates closes the gap between money flow and your business records.

[6] Cash Flow Analysis

Cash flow analysis is crucial in ensuring that your company can weather the ups and downs on your cash balance. This is because it correlates historical data and finds patterns to forecast your financial future.

Whether it’s done on a simple spreadsheet, on your accounting software, or even a dedicated cash flow analyzer, having a system to measure your cash flow accurately and regularly gives your business a better chance to prepare for every financial possibility.

Make the Most Out of Your Money

Managing money matters in business goes beyond just knowing how much cash is flowing in and out.

If you use the tools listed here, you can do more than just save money – you can also track, analyze, and make the most out of your financial resources.