Small business owners spend most of their time and energy, managing their business finances and ensuring the accounts are up-to-date. In doing so, they prepare invoices for transactions, monitor expenses, finalizing the accounts, and filing tax returns with the IRS. Only then can these owners determine how much revenue and profits their small businesses generate in a particular period.
Many of them do not even get the time to look into other aspects of their businesses. Industry experts say owners should take advantage of the advances in cloud-based technology when it comes to handling their business finances. There are numerous online financial tools using this technology which they can choose to help them achieve their objectives.
What do small business owners need to consider when acquiring cloud-based online financial tools?
These specialists state when installing and using online financial tools, small business owners should consider the following 6 factors:
- These online tools should be suitable for the industry in which these owners operate their small businesses;
- The online tools should have specific features which enable owners to recover corrupt financial data without any difficulty;
- These online tools should make it easy for the owners to prepare their financial statements in accordance with relevant tax laws;
- The online financial tools should be compatible with most smartphones available in the market. This makes it easier for the owners to maintain their business finances via their mobile phones;
- The online financial tools the small business owners opt for should have adequate security features to prevent unauthorized access. Only then can the owner’s rest assure their vital financial data will not fall into the hands of nefarious individuals; and
- The online financial tools the owners intend to purchase should come within their budget.
What type of online financial tools should owners consider using for their small businesses?
The experts further point out that owners should be using the following 5 cloud-based online financial tools for their businesses:
Cloud-based accounting software platforms
Owners will probably come across many accounting software platforms suitable for their businesses while browsing online. When it comes to choosing the best ERP accounting software for their businesses, they look into its certain specific features. The employees of these owners would not have any difficulty learning how to operate the software platform to record financial entries.
The system would also enable owners to generate relevant financial reports, reconciliation statements, and manage customer accounts without difficulty. They will also be able to share their financial data with their trading partners using the platform via third-party integration. Moreover, the owners will be able to incorporate their point-of-sale platform (POS) with this cloud-based accounting software.
Expense monitoring of financial tools
Owners know how important it is for them to keep their operating costs within manageable levels. For this, they need to keep a close watch on their business expenses. For instance, the sales representatives of these owners have to visit different places in the course of carrying out their responsibilities. This is necessary to enable them to promote their employer’s products or to meet new customers in the hope of generating sales. In doing so, they incur certain expenses that owners need to look into before reimbursing them. The qualified professionals from credible debt- settlement companies like National Debt Relief.com state there are online financial tools to help owners scrutinize these expenses. They need to select the right one for their businesses.
Online financial tools which simplify Invoicing
Business owners find many of their corporate customers have a habit of not paying up their dues on time. Many of these companies complain their creditors do not dispatch their sales invoices on time after every purchase. Moreover, the companies notice often several discrepancies in such bills after receiving them. This is why corporate enterprises delay payments to their creditors until they sort out the errors. In such a situation, it very difficult for the owners to manage their business finances. Fortunately, there are many advanced online financial tools which small business owners use to streamline their invoicing systems. They just need to choose a suitable one for their businesses.
Financial tools for streamlining inventory
Most small owners spend a lot of money acquiring the latest point-of-sales platforms for their businesses. This makes it easier for them to record the cash sales their customers make whenever such transactions occur. Unfortunately, the experts say these owners do not pay so much attention to keep track of their inventory and purchases. As a result, the owners end up wasting a lot of money, which they can easily avoid. For this, the owners just have to invest in proper online financial tools that can automate their inventory monitoring process. This enables the owners to know in real-time when to order raw materials for their businesses without any difficulty.
Software platforms for tax return preparation and filing
To operate their small businesses successfully, owners need to comply with a number of statutory requirements. One of them is to prepare and file the tax returns relating to their businesses to the authorities on time. Otherwise, they could end up paying fines and facing legal action.
Most owners find that preparing their business accounts according to guidelines the tax authorities lay down is a time-consuming affair. They need to ensure every detail in their financial statements is correct and accurate to avoid facing tax scrutiny. There are many online financial tools platforms and the best tax software available in the market to help them prepare and file their tax returns. The owners need to choose one suitable for the business they operate.
Online financial tools using the latest cloud-based technology can help owners simplify the process of managing their business finances. They will know in real-time exactly how much money is coming into their businesses and where is being spent. Moreover, the owners can determine how much profits they are making in a specific period.
These online financial tools enable owners to prepare their business accounts, monitor expenses, simplify invoicing, and improve inventory management. They can even prepare and file their tax returns without any difficulty. When it comes to choosing the right financial tools, owners should look into their features; compare prices, ensuring they are user-friendly and mobile compatible.