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How to Use Tech to Streamline your Business Finances

October 31st, 2024 Posted in Business
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More and more developments are happening within the tech world as the years go by. Even cloud accounting is changing the way that we do business, as the world embraces new processes. If you want to find out more about the current advances that are happening within the world of tech, or if you want to begin embracing tech more and more, then all you have to do is take a look below.

How to Use Tech to Streamline your Business Finances - business meeting image

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Improving Cash Flow

Cash flow is the lifeblood of any business. If your clients aren’t paying you on time then this can disrupt your entire business operation. It can also have a huge impact on your financial health. Small businesses are often the ones affected most by people paying late, but there are ways that you can work around this. If you are facing issues like this within your business then you may struggle to pay your bills. This can lead to strained relationships and it can also lead to you getting late penalties from your tax return. If you want to do something about this then you may want to look into automated invoicing. The great thing about automated invoicing is that it helps you minimize the impact that late payments have on your business. Automated invoicing helps you to schedule your client invoices way ahead of time, so you can save time as well as encourage your clients to pay as early as possible. If possible, you also need to stop using Venmo for business and start adopting new methods that safeguard your financial future.

Speeding up Routine Tasks

You also need to start speeding up routine accounting tasks. Good financial management, at the end of the day, calls for you to have accurate and up-to-date business records. With that said, staying on top of your books can be time-consuming. If you want to help yourself here then you need to make sure that you are not increasing the risk of human error on your accounts. Track your transactions automatically and make sure that you are linking your business bank account with your accounting software. If you do this then you can allow your bank account to download everything automatically, so you can push forward. Other types of software can help you to automate your records as well, by importing your bills and your receipts. 

Combining Technology

AI-powered accounting tools are great as they can help you learn about your business accounts while providing you with valuable insights moving forward. With technology helping you to analyze your real-time data, you will also find that you can predict what is going to happen in the future. You can draw up forecasts and you can also use financial statements as a way to try and make better decisions overall. Computer-generated reports do have constraints, however. You may find that they don’t include external trends and that they also do not have economic predictions built-in either so you do need to account for things like this if you can.

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Understanding Your Business Expenses: What’s Important To Know On Day One

December 12th, 2023 Posted in Business, Entrepreneurship
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Your business expenses can vary wildly from month to month. Some will be fixed, sure, but some are going to cost you more here and there than you’re used to. Understanding that is one of the core components of running a business in 2024. But what else should you know from day one about your cash flow? Here are the points to keep in mind as you build upwards. 

Understanding Your Business Expenses, man on stairs with laptop image

Equipment is Rarely a One Time Cost

You buy it once, it’s yours and won’t ever break down, right? Not in the modern age. A lot of specialist business equipment, as well as software, are run on subscription models these days. Even your printer is at risk here – companies such as HP run an ink delivery based on when your model signals that it’s running low. Buying your own ink to replace it could even ping back a warning! As such, that’s another ongoing cost you should factor into your accounts. 

It Might Take a Long Time to Get Paid

Even when you send an invoice on time, and you’re used to them getting paid within a day or two, there’s always going to be a client who takes an age to respond to you. Sometimes they might not even pay at all, and ignore your attempts to reach out to them entirely. 

That’s where the double cost comes in. You may need to hire the best debt collectors you can find to get this certain invoice paid, or you may need to let it go, if the amount of money is insignificant or the person who owes you cannot be found. Always have this possibility in the back of your head and plan your future payment methods accordingly. 

Insurance Policies Have Very Specific Terms

And you should always read the small print before signing on the dotted line. Otherwise you may get into a situation where you need insurance to sort things out, but the policy you’ve signed into existence doesn’t cover you for it. Your office being burgled, for example, or needing to take time off as a result of illness. Always check the terms and see if they expand to cover enough of the instances that could affect your business. Otherwise, you’re likely to see a big bill headed your way when something goes wrong.

Loans Need Paying Off ASAP

If you’ve taken one out in order to establish your business, clear it as soon as you’re able to. Focus most of your attention here in your first year. It’ll make all the difference to your bottom line. Why? The less time spent collecting this interest, the more liberated your finances will become. That’s good news for any business, but for a small business, it’s the difference between 5 year survival and 1 year destruction. 

If you don’t understand your business expenses now, it’ll be hard to control them later on. Keep this in mind, and use the tips above to stay on track. 

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