Today small business finance management software does much more than simply pay the company’s bills and track its incoming revenue. The best finance software for small businesses helps owners determine how profitable they are and how they can improve the bottom line. They also confirm that the business is meeting its tax obligations, and estimate the potential return on investments in new equipment and other resources.
These are only a few of the financial insights that accounting software provides to small business owners. By integrating with the organization’s POS systems, the programs save managers time and improve the accuracy of their financial records. In addition, cloud-based financial management services keep your accounting figures, employment records, and other vital information secure while making them easy to access from anywhere.
Advances in Small Business Finance Management Software
All categories of software are being enhanced with machine learning and other artificial intelligence features that automate time-consuming manual processes. For financial management software, these latest must-have features include:
- The ability to receive financial data automatically from banks and credit card providers.
- Cloud-based storage of sensitive financial information to protect against data loss.
- Inclusion of both accounts payable and accounts receivable.
- Built-in inventory management for businesses that sell products.
- The ability to integrate with other business software, including POS systems, customer relationship management, and email marketing.
- Bookkeeping functions such as the ability to record debit and credit transactions, generate reports that analyze the company’s financial performance, and print and transmit invoices.
- Recurring and batch invoicing, online payment of recurring fees, categorization of expenses, and automatic reconciliation of bank statements.
- Mobile accessibility for billing information, customer payments, receipts, and other expense reports.
The Growing Importance of Finance Software Integrations
The biggest benefit of cloud-based financial management for small businesses is the ability to connect the company’s financial data to other business applications. For example, many POS systems allow businesses to sync journals daily across multiple locations. Revenue fields can be mapped automatically from the POS entries to the corresponding accounts in programs such as Xero, Quickbooks, and Sage. Businesses can also map credit card payments by card type.
While all accounting systems include modules for general ledger, accounts receivable and payable, payroll, and reporting, Software Advice notes that many cloud-based financial management solutions distinguish themselves by targeting specific markets, such as nonprofits, sales-focused businesses such as real estate that need the ability to calculate commissions, and medical offices that require “claims scrubbing” to detect errors in billing codes.
Integrating financial management with other business processes is vital for reporting and analytics, which have become increasingly important for a small business’s success. Systems that provide a dashboard interface give business owners a snapshot of their current operations as well as deep dives into their sales history, including real-time reports and forecasts. They also tie into customer loyalty programs, discounts, gift cards, and promotions to gauge the effectiveness of the company’s marketing efforts.
Questions to Ask When Choosing a Finance Management Solution
Few small business owners possess the expertise of an accountant or other financial pro. Before you trust a financial management application to maintain their company’s accounts in good order, here are a few questions that will help you know that you’re putting your finances in good hands:
- How often do you back up system data?
- Are your service’s application programming interfaces (APIs) secure?
- Will there be any added costs or fees?
- What are your customer support hours, and how long will I have to wait after submitting a support request?
- What types of problems have you solved for businesses like mine?
- How easily can your system be scaled with future growth?
- What other programs do you integrate with?
- How easily can reports be exported?
- What support do you offer during tax season?
In addition to the standard processing of invoices and bills, some small businesses will need a financial management program that creates purchase orders, sales receipts, credit notes, and statements, usually via online form templates. Another important feature of small business finance management tools is the ability to automatically categorize office expenses, payroll taxes, travel and meal costs, and other payments to ensure accurate reports and income tax returns.
Today’s small business finance management software is so versatile, affordable, and easy to use that many companies may never need the assistance of a professional accountant. Business.org calls accounting software one of the most rewarding investments a small business can make. It’s never too soon to get a company’s revenue numbers, expenses, and other financial information in order. The right financial management application saves business owners time and helps them avoid headaches as they steer the operation toward its growth goals.
Learn more about how the talech POS system helps small and midsize businesses optimize their financial management and other business processes to boost profits and improve the experience for their customers. We work with you to determine the best ways to meet the needs of your customers and employees so your business can thrive. We take the time to learn your business so we can balance your specific needs with your budget and comfort level in a custom POS system implementation. The result is a valued investment that will pay for itself in short order. Reach out to us today to sign up for a free demo and learn more about how talech can be your valued partner in the POS world.