Running a business is never easy. You need to manage operations. Establish your brand. Service your customers, and much more. Above all, you need to make sure your business has sufficient funds on hand to keep operations going and grow your organisation. For many entrepreneurs, cash management is their number one struggle. Luckily the use of online accounting software can give your business the required boost.
On average small businesses are overpaying taxes, and large corporations are underpaying. Especially in countries where the tax level is decided arbitrarily by the tax inspector. By proving the actual profit, your business made and all the expenses you incurred you can make sure that you are paying the accurate amount of taxes.
Get paid faster
Don’t wait until the end of the month to send out all your invoice. Create and send an invoice immediately to your customer to moment you have delivered the goods or rendered the service. The earlier you send your invoices, the earlier you’ll get paid. Our research has also shown that those who accept payments online on average get paid 25% faster. Enabling digital payments can have a positive effect on your cash flow.
Follow up on your receivables
When planning your cash flow you don’t only have to look at when you expect your clients will pay you, but when they actually pay. The reality is that some customers always pay late. Only accounting software offers you easy reports to follow up on your receivable so that you can take immediate action the moment an invoice goes overdue. Taking action in time is a must. If you’re dealing with a company in trouble, you need to make sure you get your cash before they go out of business.
Do you always know where your money goes? Most business owners say yes but the reality is that a large portion is not aware of a sizable amount of hidden expenses. Maybe you're paying some subscriptions for services you no longer need or could scale down. Using online accounting, you’ll always have an accurate and detailed view of all your expenses. Review them regularly, and you’ll be amazed by how much you can save on a yearly basis.
Reduce your operational cost
Yes, accounting software has a price, but you’ll save way more on operational expenses. Take the example of creating an invoice. Calculate the cost of the time spent drafting an invoice in Word or Excel. Printing it, put in in an envelope, mail it… Cloud accounting software allows you to create a professional looking invoice in just a few clicks. You can send it digitally to your clients saving you time and money. For those who don’t trust email as a delivery system, we have email tracking. Email tracking provides you insights on when your invoice was delivered to your customer and when they viewed it. It gives, even more, assurance than paper mail.
Act in time
With online accounting, you have access to the financial of your business at anytime from anywhere. A close follow-up of your financials allows you to act and spot potential cash flow problems in time. It will save you the hassle and the expenses of finding external financing in case you would have run into a cash problem.
Easier access to financing
Sometimes you need some extra cash to run your business. Maybe you want to make a significant investment or need some additional working capital. Getting access to financing is not always that easy. As a business owner, you have a clear view of how this extra cash will help grow the business, but a financier might have a different opinion. Especially when there is a lack of trust in the numbers you present your investor. Online accounting software provides you with accurate and trustworthy reports that enable any investor to have a clear view of the history of your business. It will help you to win their trust and get access to the funds your business needs to scale.
Whether you’re just starting or have an established business, the use of online accounting will have a positive effect on the cash flow of your organisation. Give it a try to today and create a free account for your business.