Small businesses often do not have the budget to hire a full-time accountant or pay for a third-party financial person. With limited budget, often adopting software tools can help them manage their finances more cheaply than before. For the head of a small business or their finance team, accounting software, billing software and corporate performance management software are worth particular consideration.
A system that factors and maximizes your income and expenses, projected costs, performance and taxes is the basis of successful financial performance at any stage. An accounting system with accuracy, preparation and contingency for all of your financial activity requires extensive diligence and knowledge to maintain, and it’s standard to adopt a software system among accounting professionals. Many of the systems out there are intended for accounting professionals and a challenge for even someone with an MBA to use. Others are designed for simplicity and no official knowledge or training in finance is required.
Either way, managing your company’s finances is always helped by the consistent precision that only a software system, fitted to the needs of your company or finance team, can achieve. There really isn’t a way around having to embrace the behaviors of currency if you want to make money on your own, especially considering the multi-stream income variability of most small businesses today.
Businessnewsdaily.com did a write up on Wave for the best small business accounting software in 2016, assuming you don’t require accounting software with a mobile option. In which case, a solution like cloud based FreshBooks is very highly ranked among consumers and, like other worthy small business accounting solutions, integrates with software like PayPal and MailChimp. Intacct, a cloud-based system, also offers services for small- to mid-sized nonprofits.
Billing is a standard inclusion with modules of any accounting system, but there are many satisfactory standalone billing software types for specific needs or for freelancers who often start with invoicing before adopting other financial software tools.
You might require a multi-currency billing system like Kashoo, also reviewed on moneycrashers.com. FreshBooks and long-time industry standard QuickBooks Desktop Pro standout for functionality in both billing and accounting, with Zoho Invoice for billing pairing easily with Zoho Books.
Being compensated for your services would seem like the painless part of small-business finance, but it can create the most stress without a system in place to automate the invoicing and payment process, as well as smooth out client interaction. Oversights, delays, low access invoice templates and any inconsistency in billing repeat clients can all interfere with receivable income and cash flow, with a major impact on productivity and profit.
Corporate Performance Management Software
CPM software raises an interesting discussion, especially in the realm of small business. It can be daunting to imagine having to adopt and implement a whole new method of predictive functions for a 15-person operation if you’ve already put extensive time and effort into fine tuning a spreadsheet system—particularly when the software is new and frequently updating.
Avoiding progressive performance analytics in the name of simplicity could lead you to miss out on potential risks and profit maximization. Fine-tuned analytics that keep you on target minimize losses and help foster a proactive rather than reactionary approach.
At the same time, saba/workplacetrends.com research posted by Forbes.com notes that about 55 percent of employees who have any performance management process at all feel that it is effective, whether or not that process is software based to begin with.
CPM software like Trakstar reviewed on fitsmallbusiness.com can help with goal setting, strategic feedback, performance review and light continual feedback. In the crucial employee/employer relationship and its impact on creativity and effectiveness on the job, tools of this nature in a small-business setting are an extension to existing performance management. Wisely implemented in keeping with the culture and objectives of a company, corporate performance management software may serve to aide employee activity or as a useful template if newly putting a system in place.