Business Financial Tools & Packages
Do you have a solid strategy in place to look after your finances? Good financial management is one of the most critical steps in starting and growing a small business. Keeping close tabs on your sales, bills, purchases, employee salaries and all other transactions allows you to identify areas of your business that might be losing money, set measurable goals and plan for growth.
According to Xero, poor financial management is one of the main reasons why many small businesses fail. Another reason is lack of funding or working capital – many small businesses owners don’t account for all costs needed to sustain the business in the first few months. Financial management and raising capital go hand in hand – in fact, good bookkeeping and financial management is often a prerequisite for securing finance. To secure any type of debt or equity finance you’ll need to provide a business plan and your business accounts so that the lender or investor can see if and how healthy your financials are.
We have a range of offers for financial tools, software and packages to help you manage your financials including cashflow management, budgeting accounting, invoicing and more. We also have offers for business finance and financial risk management including business loans, business credit cards, business bank accounts, grants, insurance and more.
With so many tools and offers on the market, it can be difficult to understand what’s what. Our goal is to give you an overview of financial tools and business finance packages options to help you choose the best options for your business.
Let’s get started.
What are financial tools?
As a small business owner it often feels like there isn’t enough time in the day. Invoicing, inventory management, tracking daily expenses, payroll – you know the drill. Financial tools are designed to make your life easier and streamline the financial side of running a business.
You can organise your financials in one place and integrate your other systems to minimise the risk of losing important data and documents. In addition to daily administration tasks, financial tools have sophisticated analytics and reporting features to pull reports with the click of a button or gather key insights to improve your operations, reduce waste and profitability.
Most financial tools nowadays are cloud-based, meaning you can log into your software from any device with an internet connection (hence “the cloud) making it super accessible and convenient. There’s no need to purchase hardware or hire a technician to do services or repairs. Learn more about the pros and cons of cloud-based software.
Why are the benefits of financial tools and software?
Financial tools can save you a substantial amount of time and energy trying to keep your financials in check. We’ve summarised the top benefits below:
- Increased data security: Unlike paper recordkeeping and Excel spreadsheets, cloud-based tools allow you to store and back up data on a secure server.
- Accessibility: Cloud-based systems allow you to access your from any location as long as you have an internet connection.
- Increase productivity: Free up your’s and your team’s workflows by automating data entry and manual tasks.
- Improve efficiency: Integrate your financial tools with other operating systems for streamlined business operations and reporting.
- Affordability: Using financial tools is more affordable than hiring an accountant. Granted, you may still need an accountant for some tasks but it allows you to keep many things in-house.
- Improve your bottom line: Increased efficiency can help you reduce labour costs and free up resources to focus on growth.
What are the different types of financial tools?
Finance is a broad topic and so is the range of tools on offer. That said, they generally fall into the following categories:
- Accounting and bookkeeping software
- Budgeting and planning tools
- Expense tracking tools
- Invoicing tools
- Payroll management software
- Credit rating tools
- Tax and regulatory compliance
Some tools are designed for specific tasks such as inventory management and invoicing, and, while others offer an all-in-one solution – it all depends on your business needs. Let’s take a closer look at how to choose the right tools.
How do I choose the right financial tools for my business?
Below are some of the key things to consider when choosing your tools:
- Features: What do you need the software to do? Is it for certain tasks or do you need an all-in-one solution? Make sure it can cater to all of your current needs and future needs if you plan to scale.
- Usability: How many users need access to the software? Would you prefer cloud-based or desktop software? How easy is it to use? Make sure all members of your team can use the software with ease (or after training).
- Integrations: Do you need the software to integrate with your customer relationship management (CRM) software or other systems? Ensure it has integration capabilities if needed.
How much do financial tools cost?
Most financial software nowadays is cloud-based which means the only thing you need to purchase is the software subscription (that is if you already have a computer, laptop or tablet to use it). Subscriptions are billed on a monthly or annual basis, some of which are free (although free plans often have limited features). Paid plans can start from as little as $15 per month/per user.
As we mentioned earlier, good financial management is vital in order to secure startup capital and ongoing business finance. Like software and tools, there are many options to suit different types of businesses and what you intend to do with the funds. We’ve put together some key information to help you understand business finance options and some of the offers features on SavvySME.
What are the different types of small business financing options?
There are a number of reasons why you might require business finance. You might need to raise capital to start your business, purchase a commercial van for customer deliveries, renovate your shop to give it a fresh new look – the list goes on. Whatever reason you need funds, it’s good to suss out what’s available and take advantage of the products and packages for startups and SMEs. Popular products and packages include:
- Business loans: You may be able to take out a business loan if you meet the minimum qualifications and requirements, have a good personal and business credit rating and can provide a solid business plan to evidence your financials. Most banks and finance companies offer competitive interest rates and flexible repayment options. Alternative, non-bank lenders are smaller than banks and are regulated by different regulations, which means there’s often a lower barrier to get approved for loans.
- Business grants: The Australian Government offers a range of grants and subsidies to existing businesses and people who are looking to start a business. There is no requirement to repay the funds, as they are given in the hope that they will positively contribute to the Australian economy.
- Business overdrafts and credit cards: A business overdraft lets you dip into a negative balance on your business bank account. You pay arranged overdraft fees and interest on the money you use. Most businesses have an arranged overdraft as it’s relatively easy to get and comes in handy for maintaining a healthy cashflow. You can also consider taking out a business credit card to separate your personal and business expenses and build up your credit rating for future financing solutions.
- Asset finance: Asset finance allows you to invest in new equipment or upgrade your current business assets such as commercial vehicles, office equipment, specialised tools and equipment, etc. The equipment you purchase is a type of collateral (security) during the repayment period, so interest rates are usually slightly lower than standard business loans.
- Insurance: Business insurance can protect the financial health of your business, assets and personal income if you experience a business interruption that brings your operations to a halt.
- Investor funding and capital: Investor funding and capital are highly sought after among SMEs. Investors, venture capitalists and angel investors are eager to fund innovative startups and profitable business ideas.
How do I choose the right business finance?
Regardless of whether it’s a loan, asset finance, business credit card or overdraft, there are some important things to consider when choosing a product or offer:
- Understand your financial health
- Read the fine print
- Consider getting financial advice
Before you do anything else it’s important to review the current financial health and needs of your business. Do you have a good credit rating? Do you need short-term or long-term financing? Determining your needs and having a basic understanding of what you may qualify for will steer you in the direction of suitable products.
Understanding the fees, charges and terms and conditions of any product or package is vital. Make sure you understand the provider’s terms and conditions including interest rates and the repayment period. Do they offer flexible or alternative repayment arrangements if your circumstances change?
Finance professionals such as finance brokers, loan brokers and financial advisors offer tailored advice and recommendations based on your personal circumstances. There isn’t a one-size-fits-all model when it comes to business finance so it’s always worth getting professional advice if you’re unsure.
Healthy financials are the backbone of every successful business. Financial tools take the grunt work out of managing your finances and give you a much clearer insight into your business. The better your financials, the better positioned you are to apply for and secure finance to grow and work towards your goals.
Make sure you check in regularly to see the finance offers on this page so that you don’t miss out. If you have any questions about small business financial tools and packages for cashflow management, financing, insurance etc., feel free to reach out to our community or get in touch with accountants or business advisors for tailored advice.
