Top 3 financial management tools and services for your business.
Whether you’re a founder, running a small business, or enjoying the freelance life, the buck stops with you when managing the finances.
With so many options for everything, from financial systems and expense management software to billing and payment processing, it can be hard to decipher the right financial tools for you. We believe in learning from other’s experiences, so we’ve narrowed it down to the Sleek community’s most popular financial management tools.
Financial tools: Accounting software solutions
The biggest headache for small businesses when it comes to financial management is keeping an accurate track of what comes in and goes out of your business. Having manual finance processes increases the headache, leaving you at a greater risk of mistakes.
Accounting software offers a range of features that can benefit businesses of all sizes.
One of the key features of accounting software is automation. Automating financial processes can save you time and effort and can streamline the entire financial process, from tracking income and expenses to generating reports.
This saves time and effort but also reduces the likelihood of human errors, ensuring the accuracy of your financial records. Most systems also enable electronic record-keeping, eliminating the need for manual paper records and facilitating easy access to historical data.
Another significant advantage is the ability to send invoices and collect payments directly through the software. This expedites the billing process, improves cash flow, and reduces the chances of missed or late payments. Your business can also benefit from the valuable insights and analytics, using them to make more informed financial decisions.
Pros and cons of accounting software solutions
| Pros and cons of accounting software solutions | |
| Pros | Cons |
| Saves time and effort | Can be costly, especially for small businesses |
| Improves accuracy | Learning curve |
| Electronic record-keeping | Security concerns if data is not protected adequately |
| More efficient invoicing and payment collection | Limited customisation |
| Insightful reporting and analytics | Technical issues can disrupt operations |
Questions to ask when choosing an accounting system
- Does it have automation features that will save you time?
- Is it an easily integrated cloud-based solution ideal for sharing with your external accountant or bookkeeper?
- Can it help with payroll management?
- Is it secure enough to handle sensitive financial information?
- How does it manage online billing processes?
- Can it track inventory and sales orders?
Sleek is a platinum partner of Xero, an online accounting software solution for small businesses. Many of our customers use this tool to keep tidy online bookkeeping records, automate tasks like invoicing and reporting and get a full picture of their business with up-to-date financial data. And it allows our customers to easily share this data with us, making it smooth and straightforward when managing their accounts.
Budgeting tools
If you’ve been running your small business for a while, you’ll know that creating and sticking to a realistic budget is an ongoing process. It also plays a vital role in your organisation’s financial health and sustainability. By knowing how to create budgets, you can make more informed financial decisions that positively impact the long-term success of your business.
A budgeting tool can be a powerful asset for any business, promoting effective finance management, financial planning and decision-making. Carefully consider your options taking into account cost, complexity, security, and your commitment for its successful implementation.
| Pros and cons of budgeting tools | |
| Pros | Cons |
| Improved financial planning | Depending on the tool, it can costly |
| Real-time insights | Complexity can take time to master |
| Better expense control | Security concerns if data is not protected adequately |
| Easier to analyse different scenarios | Maintenance and update requirements |
| Align your business goals with financial objectives | Accuracy relies on input which is open to human error |
Questions to ask when choosing budgeting software
- Does it clearly map out all aspects of your business budget including revenue, expenses and investments?
- Can you examine your past financial data and use this information to inform your budget?
- Will it categorise your expenses into fixed and variable components?
- Does the tool address cash flow so you can ensure you have enough liquidity?
- Can you regularly review and adjust your budget using real-time data?
- Can it create financial projections to see how your budget will fare in the future?
Tax preparation services
Using tools and software to keep your business finances organised and accurate is vital for small businesses for several reasons. Firstly, it makes your bookkeeper or accountant’s job much easier and quicker, which reduces their time and cost to your business. Second, inaccurate records can result in penalties and fines, which can cause unnecessary financial pressure and stress for your business. Professional guidance is always recommended due to the complicated nature of tax, tax obligations and understanding the deductions and concessions available.
Engaging professional tax preparation services helps ensure compliance for your business, giving you peace of mind that you’re doing everything by the book. It also gives you confidence you are maximising deductions and not paying more tax than necessary. It’s essential that owners do their research and find a trustworthy tax professional.
| Pros and cons of outsourcing tax services | |
| Pros | Cons |
| Guaranteed expertise and compliance | Can be costly so it’s important to find a service at a reasonable price point. |
| Time and cost savings | Need to find the balance between outsourcing and understanding finances |
| Maximised tax deductions | Security concerns if data is not protected adequately |
| Peace of mind | Miscommunication can result in errors |
| Audit support | Inconsistent quality requires you to do research and find a qualified professional. |
Questions to ask when choosing an accounting or tax preparation service
- Is the service suitable for businesses of your size?
- Does the service use cloud-based or online solutions?
- Are they set up to easily integrate with your accounting software of choice?
- Do they have the flexibility to grow alongside your business?
- Can they help your business processes mature through insights and guidance?
Sleek’s services are designed to remove the stress of accounting and company tax so founders, freelancers and small business owners can get on with running and growing their businesses with the peace of mind that experts take care of their finances.
Summary
The right financial management tools, accounting software and services should improve the financial health of your business and reduce the time you spend balancing the books.
Find out how Sleek can help your business with finance management, payroll management and small business accounting by completing the contact form below.
