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How To Get Better Insight Into Your Company's Cash Flow

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There are many components that go into running a successful small business. It comes as no surprise that financial health can either make or break a business. A lot more determines the financial health of your business than just whether or not you're making more money than you are spending.

Cash flow is one of the most important financial components of your business that you must understand and carefully manage to ensure a successful future. The use of software to gain understanding and insight on the cash flow of your business is crucial to not only keeping your business afloat but helping it thrive.

This is your guide to the importance of understanding the future cash flow of your business and software that can help you achieve this. 

What is Cash Flow?

Cash flow refers to the amount of money coming in and going out of your business within a month. Money flows into your business in the form of payments from clients for products purchased or services rendered. Cash flows out of your business in the form of payments to cover the costs of running the business, including inventory, employees, facilities, and the various other costs that are necessary to run your business. 

Why Is It Important to Stay in the Know of Your Business's Cash Flow Activities?

It is important to understand your company's cash flow at all times.

Cash flow can make or break a business. Cash flow focuses on the cash that is actually going in and out of your business in real-time. In other words, how much cash do you actually have in the bank?

This is not to be confused with assets, which is money owed to you by clients who have not yet paid. 

Having constant insight into your business's cash flow is important so that you can measure the financial health of your business, scaling your business, as well as planning for future changes.

Let's look at 6 accounting and bookkeeping programs that will help you keep a close eye on your company's real time cash flow as well as weekly, monthly, quarterly or annual trends. 

6 Accounting and Bookkeeping Programs That Give You Better Insight Into Your Company's Cash Flow

1. QuickBooks

QuickBooks is a well-known accounting and bookkeeping software platform that allows users to:

  • Manage bills
  • Track incomes and expenses
  • Manage invoice and payments
  • Pay employers and contractors
  • Track time and miles
  • Keep track of inventory
  • Create useful reports for your business
  • Create estimates
  • Calculate sales tax
  • Keep track of tax deductions

QuickBooks is a powerful accounting tool that also offers businesses the ability to keep a close eye on their business's cash flow in both real time as well as trends over a selected period of time. 

2. Sage 50Cloud

Sage 50Cloud is an accounting software that is geared toward small and medium-sized businesses. In addition to popular features such as:

  • Ability to analyze business performance
  • Ensure your business is tax compliant
  • Secure remote access

This program is also known for its ability to help you understand and manage the cash flow of your business. Sage 50Cloud allows you to safely and securely track all of your purchases, expenses, and income to make sure that you stay on top of your finances. 

3. Xero

Xero is a great accounting and bookkeeping program for business owners and managers who need to have the ability to run their business from anywhere in the world they might be. This powerful software allows you to:

  • Access your business from your desktop, laptop, tablet, smartphone, or any other mobile device
  • Understand the financial health of your business by having the ability to look at:
    • Real-time cash flow
    • Financial reports
    • Financial patterns and trends

Xero also allows users to keep track of inventory, keep accurate financial records, send invoices online, and receive payments conveniently online to help you get paid quicker and increase the cash flow into your business. 

4. Zoho Books

Zoho Books is a well-known accounting software for businesses that helps to simplify accounting tasks for small businesses. Zoho is also a great program for gathering insight into your business's cash-flow. It allows you to keep track of:

  • Accounts receivable
  • Accounts payable
  • Inventory
  • Expenses
  • Income
  • Taxes

You can also link your business's bank account to Zoho so that you can make sure you know how much money your company has on hand as well as what invoices you are still waiting on clients to pay. This helps to make sure you never miss a payment. 

5. Kashoo

Kashoo is a lesser-known bookkeeping and accounting program that is geared towards small businesses. This simple, yet powerful platform allows users to:

  • Keep track of expenses
  • Keep track of income
  • Link your company's bank account

These features, in addition to the core accounting features of the software, allow you to have a comprehensive picture of the cash flow of your business. Even better than that, it allows your business to receive payment from clients via Stripe and BluePay for your client's convenience. 

6. FreeAgent

FreeAgent is a small business accounting software that is designed for owners who have a need to:

  • Create many invoices
  • Manage payables
  • Manage receivables
  • Keep a close eye on the cash flow of the business

You can also stay on top of your taxes and run your business remotely from your laptop or mobile device no matter where you are in the world. 

Make Sure Your Financials are Error Free

These 6 software programs are a great way to help you reduce human error and make sure your financial records are in good standing all while allowing you to gain better insight into your business's cash flow. Let's face it, keeping your business's books is tedious and takes up valuable time that can be refocused into other areas of your business. 

Luxa Enterprises is an outsource HR, Tulsa Accounting, and payroll solutions provider. We offer professional, precise, and error-free bookkeeping and financial services so that you cannot only clearly understand the financial health of your business, but you can focus on scaling and growing. Contact us today for more information on how we can help your small business!

Click here to schedule your consultation – or call us at 918.928.7288

Topics: Accounting Best practices Advice Business Advice Bookkeeping