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Home » Featured » 5 cash flow management solution tools for businesses in 2023

Top 5 Cash flow management tools /software /solution for small business in 2023

Featured, Productivity

5 cash flow management solution tools for businesses in 2023

January 24, 2023
TIME TO READ 6 mins

What is cash flow, and why does it matter?

Cash flow, also known as operating cash or liquidity, refers to the amount of money coming into and going out of a business on a regular basis. Cash flow management tools are essential in helping small businesses monitor their cash, keep track of their expenses and stay on top of upcoming payments. Small business owners are often focused on meeting customers’ needs and keeping the company going that they neglect to take care of the fundamental operations of the business and its financials. This is particularly true when it comes to cash flow management solutions.

Cash flow management is one of the most important aspects for any business owner. Letting finances spiral out of control can lead to various issues, such as insolvency or bankruptcy. This is why small business owners need to adopt strategies that will help them manage their company’s cash flow more effectively and keep their company profitable and remain in operation for the long term.

There are two parts to the cash flow equation:

Cash flow management: The process of tracking, analysing and improving the financial health of your business. The goal is to be “in the green”, where you have more money coming in than going out and you’re making a profit, not just breaking even.

Cash flow forecasting: This involves estimating your future cash flow based on projected sales and expenses. With accurate forecasting, you’ll be able to figure out if you’ll have enough in the bank to run your business in the future or if you can afford to expand.

Manage your cash flow well, and you’ll have enough money coming in to cover your expenses, fewer headaches, and the confidence to grow your business. Manage it poorly, and you’ll be in the weeds or, worse, even shutting up shop.

That’s where technology makes all the difference: it can help you stay on top of the numbers, plan ahead, and improve your cash flow.

5 cash flow management tools for businesses in 2023

4 things to look for in cash flow management software solution

There are tons of different cash flow management tools out there today, from simple tracking tools to robust platforms with all the bells and whistles.

Ultimately, the right software for you will depend on your cash flow for business needs. However, it pays (literally!) to make sure your platform ticks off these four boxes:

1. Integration with your existing accounting software.

These platforms are gold mines packed with insights that will help you manage your cash flow and plan for the future.

2. Automation.

Look for a platform that automates as many pesky manual processes as possible, from reporting to pulling information directly from your accounting software.

3. Easy to set up.

The best tools are the ones you can get up and running ASAP — not ones that require extra web development time or hours of training.

4. Accessible.

You shouldn’t need a degree in finance to understand the information from your cash flow management software! The tool you choose should present all the information you need in a clear, user-friendly way.

5 cash flow management tools you must try in 2023

Having the right cash flow management tools in place makes it easier to monitor your cash on a day-to-day basis. These tools will help you anticipate what your cash balance will look like in the future so that you can plan accordingly. Here are some helpful cash flow management tools that you can add to your small business toolbox today.

1. Payment Due Dates

All businesses should keep track of payment due dates. By keeping this information at the forefront of your mind, you can avoid sending out invoices with incorrect due dates. This will help avoid any confusion on the part of your clients and make it easier for you to manage your cash flow.

One of the easiest ways to keep track of due dates is to use a spreadsheet or existing online accounting platforms. That way, you can easily see which clients you need to send invoices to next and avoid accidentally mixing up the due dates.

On top of keeping track of due dates, you should also keep tabs on your terms of payment. If you accept credit cards as a form of payment, your terms of service should state that the payment is due on the date the customer receives the charge on their credit card. If you accept other forms of payment, such as checks, you should state in your terms of service that the payment is due upon receipt.

Cash Flow Frog is a straightforward, easy-to-use cash flow forecasting and scenario planning tool that helps you understand the current financial health of your business and figure out where it’s heading in the future.

2. Cash Flow Forecasting

Cash flow forecasting is an essential tool for any business. It’s a process that uses historical data to predict how much cash will be coming in and going out in the future. Depending on the type of business you operate, cash flow forecasting may be relatively simple or extremely complicated. This is especially true for businesses with a high level of risk or uncertainty, such as those in the healthcare, manufacturing or retail industries.

For example, if you operate a seasonal business that is particularly sensitive to the weather, you may have to forecast your cash flow based on the past five years’ worth of data. Because of the inherent uncertainty of these types of situations, you’ll need more sophisticated forecasting tools to accurately predict your future cash flow.

Futrli Predict’s selling point is that it makes cash flow forecasting simple, live, fast and accurate for small businesses. This tool pulls data from your existing accounting software and build a forecast across your P&L, Balance Sheet and Cash Flow for the next 3 years — all in minutes.

3. Accounts Receivable Tracking

Accounts receivable tracking is the process of keeping tabs on all of your outstanding invoices. This can be done manually or through the use of software. Accounts receivable (AR) tracking is useful for a few reasons.

By tracking the status of your outstanding invoices, you can avoid writing off clients who are behind on payments. In fact, you can even send them reminders and suggest ways that they can make timely payments. When it comes time to pay your bills, you can use the data you’ve collected to determine your payment schedule. For instance, if you owe $5,000 to a supplier and have $2,500 in outstanding invoices, you’ll have to wait until your clients pay you before you can make the payment.

Summit is an up-and-coming platform that’s making waves thanks to its highly visual cash flow forecasting and financial planning tool. Coining itself as a ‘financial canvas’ for businesses, Summit is incredibly flexible and easy to use — especially for teams or owners that aren’t huge Excel users.

The best bit? Summit is in early access, which means it’s currently free to use.

4. Managing Debt Repayment

As part of your cash flow management strategy, you should be keeping an eye on your debt repayment schedule. Make sure you’re paying attention to your due dates and keeping tabs on any payments that are past due. This way, you won’t have to deal with any serious consequences and you’ll have one less thing to worry about. For example, you have a $10,000 loan due in 30 days. You also have $5,000 in outstanding invoices. In this situation, you’ll want to pay off the debt as quickly as possible so that you can avoid getting behind on payments and occurring additional fees and interest charges.

Futrli Predict’s selling point is that it makes cash flow forecasting simple, live, fast and accurate for small businesses. This tool pulls data from your existing accounting software and build a forecast across your P&L, Balance Sheet and Cash Flow for the next 3 years — all in minutes.

Futrli Predict is also jam-packed with useful information for business owners, including a breakdown of income streams, outstanding bills and invoices, and analysis into customer trends, company debts and tax.

Conclusion

Cash flow is the lifeblood of a business. It’s the source of capital that allows a company to operate, grow and succeed. Cash flow management solutions are essential to any small business owner’s to-do list. To succeed, you have to know how much money is coming in, what money is going out, and how you will make sure you have enough cash to keep things running smoothly. You can’t afford to ignore and let cash flow slip through the cracks if you want to keep your business afloat.

With the right cash flow management solution tools in place, you’ll have all the information you need at your fingertips and a greater sense of security. Check out existing accounting and cash management platforms that can help you navigate and organise your finances.

If you do require funding but are unsure about your options, chat with one of our lending specialists on 1300 760 930 or Get Started so that we can assist you with getting funds approved within 24 hours.

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