Cash flow is regarded as the oxygen of many businesses but, unfortunately, many small Australian businesses wind up gasping for air as they fold. Figures from Illion (formerly Dun & Bradstreet) indicate poor cash flow management is implicated in 90 per cent of small business demises. On the upside, if you run an SMB, the solutions you can adopt to manage your cash flow are becoming increasingly sophisticated.
As more Australian small businesses’ warm to Software as a Service (SaaS) and, as cloud-based financial management software continues to evolve, opportunities are booming.
Recent research by Harvard Business Review highlights many businesses are looking to cloud solutions to improve on their productivity and efficiencies. However, small business owners have been early adopters of the technology and are continuing to look to the cloud for solutions to their pain points.
If you’re wondering how your small business might benefit from cloud-based financial management solutions for cash flow management, here are some functions to consider.
Mobile cashflow management
One of the big attractions of cloud-based financial management software is that you can use it from any device with an internet connection. Whether you’re in a cafe or inching through gridlock in a cab, you can adopt mobile accounting to raise invoices, log receipts, generate profit and loss reports and track expenses – all from the palm of your hand. So, if you’re an SMB, why wouldn’t you adopt this change? Cloud financial management programs enable business owners to get a real-time view of their business and cash flow data. It means your business can be more flexible and productive in managing cash flow and make more informed business decisions.
Analysis from Mindshare predicts automation programs can cut costs by at least 30 per cent across functions such as finance and accounting in one year.
Already, automation is enabling small businesses to bypass a lot of manual cashflow management tasks. With a quality cloud financial management solution, your business can automate a range of routine or administrative tasks. You can set automatic forecasts to alert you when you’re close to running too low on cash; you can automate software to follow up on outstanding invoices. Automating your cashflow management through cloud-based applications is an easy way to enrich your understanding of the money coming in and out of your business.
Data and analytics
You can learn a lot about your business when you can see key cashflow data, in real time. With a few clicks, you can pull up eye-catching pie charts and bar graphs that tell you a range of illuminating stories. One of financial management software’s biggest strengths is its capacity to synch with an ecosystem of platforms that support cash flow management. Leading SaaS vendors can give you an instant picture of your entire business, from cash flow, sales, order management, CRM and omnichannel performance.
Cashflow is a key barometer lenders and investors rely on to determine the financial strength of your business. Are you keen to have a bird’s eye view of your business?
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