With technology solutions being ever more present in the business world, David Luck, the Co-founder and CEO of Capital on Tap provides their top tips to integrate tech solutions into your business model for a more streamlined approach.
Going digital can help your business in many ways. From selling products and services online to setting up marketing campaigns for a wide audience, technology can also help you with entrepreneurship’s financial side. Here is a guide for business owners to manage their finances more effectively and efficiently.
Utilize Today’s Technology Â
Today, companies have more than two choices in how they want to manage their finances. Instead of being completely dependent on an often expensive accountant or heavy, not very inflexible software, the possibilities have become endless.
Fortunately, nowadays, there are a number of “variants†that are based on user-friendly technology. Consider, for example, online accounting. An online accounting program simplifies the entire process by linking directly to bank and credit card accounts, stock, or CRM systems. These links provide real-time insights into the financial status, such as cash flow and valuation, providing a clear overview of your finances.   Â
Learn More: Customer Demand Is Driving Contactless Payments for SMBs
Stay Organized
Too many small business owners only think about their finances when it’s time to file the VAT return or pay their taxes. The problem is that important decision points happen organically, not just around the end of the fiscal season.
One solution in managing your corporate finances is to set aside time each week to review your finances. It doesn’t matter if you just check your current outstanding invoices or want to compare and assess monthly sales. Most importantly, your financial management should be part of your routine. While it may seem tricky at first, implementing this into your daily to-do will pay off in the long run.
No more time registrations that later turn out to be incorrect. No more outstanding invoices that still haven’t been paid after 100 days. No more fines because the VAT return is too late. These kinds of parts have a huge impact on your own company and its financial status. Managing your business finances is essential to a successful business.
Learn More: The Rise of Digitalization in Fintech
Use Digital Invoicing Software
With an online invoicing program, you as an entrepreneur can quickly and easily create a digital sales invoice yourself. You fill in your company details and payment conditions once, and you can get started.Â
Would you like to create a new invoice? Choose a customer, describe the activities, and note the amount. Invoices are automatically numbered and saved, the VAT amount is calculated for you, and you can send an invoice directly to the customer. No more struggling with complicated formulas in Excel or printing invoices. Some examples of digital invoicing software you can use are Xero, QuickBooks, or FreeAgent.Â
Implement Digital Payment Options
Digital payment options are fast becoming the go-to way for companies to exchange business and take care of admin tasks. Make it easy for your customers to pay your invoices by giving them a digital option. Prevent an invoice from escaping attention by adding payment options. For example, let customers pay directly via Direct Debit or add a QR code. This way, a customer will not make a mistake when taking over your account number.
Learn More: Digitize, Survive, Revive, and Thrive: Making It Through COVID-19 and After
Set up Links To Do the Work for You
Avoid doing the same task twice. Check whether you can send digital invoices directly from your accounting software or it’s possible to link with an invoicing program. This way, you can ensure that you’ll never forget to enter an invoice and that your administration is up-to-date. By linking your invoices to your accounting, you can also easily work online with your accountant: you provide the figures of your company digitally, and your advisor gets to work. Â
Another useful thing to set up links with is your bank account. Some online billing programs offer a direct bank link. By linking your business account to your invoice administration, bank transactions are automatically linked to sent invoices. This way, you know exactly which invoices have already been paid and what amount is still outstanding.
Set up Payment Reminders
Has the due date of an invoice passed, and you still haven’t yet received payment? With digital invoice administration, you can see exactly which invoices are still outstanding. You can set notifications when the payment term has expired and easily – or even automatically – send a payment reminder. This way, you keep a grip on your income.Â
Speed up Your Cash Flow
Increase speed with your cash flow by setting up mobile payment systems. Mobile payment systems can enable faster and easier payment acceptance for products and services. A system called Intuit’s GoPayment is one example of making payments simpler and faster. It allows for acceptance of payments via cell phones and can download the data directly to invoicing software.Â
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