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Techniques to Streamline Your Business Financial Management

Financial management is essential for long-term wealth creation and stability. One of the biggest business killers is cash-flow degradation. A lack of capital and monthly cash-flow will create an environment of pressure and lower product quality, ultimately crashing sales and customer loyalty. Therefore, it is essential to keep on top of finances throughout your business structure, both on a project basis and overall liquidity standpoint.

There are hundreds of financial management software systems available for different businesses, usually focusing on accounting and tax organization. On the other hand, companies like Scoro provide software systems that manage finances as a function of daily activities, linking accounting and taxes to project management. Billing and expenses are made simple through credit invoices and sales issuing, budget control and forecasting, and overall system integration.

If you are interested in streamlining your business finances so you can concentrate on the project at hand here are a few simple techniques to successful make the transition.

Streamlining your Money Management

Invest in Time Management Software – Time is money and money takes time to accumulate. If money was stagnant and cash-flows were always predictable, most executives would be out of a job. With an ever-changing world with ever-changing external factors, organization is key to effective financial management. Linking time management by breaking down labor and material costs per job then funneling each part into an overall viewing whole is imperative for financial management. As projects change, whether costs increase or budgets alter, businesses must track the changes daily through time management software that integrates accounting and business expenses. Scoro is an application that synchronizes financial information with your current accounting software to your calendar and task management tools, keeping all of the information per job in front of your manager and personnel.

Keep It Simple – Find accounting software that also calculates taxes and employee benefits. The essential functionality of the software must be integration ability, keeping the programming simple and cohesive. For example, mixing ERP software like SAP with Microsoft Dynamics provides great cohesiveness and functionality. Usually working with more commercial software products in the beginning will help with integration, as compatibility is most prominent with multiple businesses using the same software. As a company grows, researching more customized management software systems will be productive, but keep the user interface simple and efficient so all employees within various departments can understand most functions.

Tracking and Bill Pay – Money used to be slow, with checks coming in the mail from clients or business partners every couple of days. These days money moves with the click of a button, and if your business does not have fast account receivable and payable systems, your financial management will become more strenuous and time-consuming. Bill Pay for businesses is just one example of fast money. Your managers can have fixed monthly expenses deducted from the company account automatically with filters available for various expenses and payable accounts. In addition, simple software systems like Evernote keep receipt storage and purchase tracking simple. My advice would be to find an accounting system that provides all the functionalities of automatic bill pay and direct deposit that stores transactions with your bank and tracks data for internal management purposes.

Research Investor Mistakes – The best way to learn about efficiency is to analyze other mistakes and avoid them yourself. Warren Buffet always says, “The key to investing is never lose money.” One of the best ways to accomplish this is through current product research. Find out what competitors are using for enterprise resource planning systems and determine whether your business could also benefit. Less is often more with business finances – too many software systems cause a lack of control and over-analyzing can bog down daily operations vital to your company’s success.