Of the businesses that fail, 82% experience cash flow problems. That is a stellar number that simply cannot be ignored. It is also not the easiest item on the business agenda to address.
When it comes to managing funds in a business, there are several reasons businesses tend to experience the cash flow crunch. Thankfully, those who are willing to make a change in their businesses will have access to some technological advancements that take the stress out of daily fund management.
Online Money Management Tools and Financial Software
Crunching the numbers every day no longer requires a fussy accountant in a small office in the back of the building with reams of paper and a financial calculator. Thanks to some software innovation, business owners now have the means to do their accounting online and merely send the figures every month. Accounting programs such as Xero and Sage One are well supported and easy to learn, which means less time and money spent accounting for each dollar.
Easy Access to Financial Support and Loans
Banks and other financial institutions are finally coming on board with innovative products that no longer require business owners to stand in long queues for assistance. Time is money in business and every second saved is one that can be added to the bottom line. This Norwegian example of loan packages details the ease with which owners have access to a simple cash injection in their business when they need it most. Customers also have access to online banking facilities that allow them to make payments, view statements, and even perform other transactions previously only done at the branch level.
Budgeting Is Possible, Even for Businesses
This may seem like a task that is only designed for the household, but budgeting is a big part of business success. A business owner needs to stay on top of the numbers and the easiest is to set up a workable budget. Online apps such as Mint provide business owners with the tools they need to work out their budget and keep track of it as the month goes along. Once an owner knows what they’re working towards every month, it becomes easier to resolve the annual business budget.
It’s not easy for business owners to remain outside the statistics when starting up a business, but with the help of a few online tools, this becomes far easier. Cash flow management is about more than just knowing the numbers in a business. It requires dedication and patience to work those numbers and use the funds for the intended purposes. When this happens, 82% of the startup battle is already won.