Why Pay for a Cash Flow Management Tool?

Posted 10 December by Barb Easter in Accounting, Advisory, Bookkeeping, Cash Flow, Entrepreneur, Small Business, Tools and Resources

If your business is so complex, you’re using (or should be using) cloud-based accounting software, cash management tools may be right for you.

Let’s face it, spreadsheet management processes can start becoming intense as soon as others need access or begin fiddling with them. You need a solution that integrates with your accounting software so you can reduce the “human error” factor. Using a cash flow management tool can accomplish all this and more! Saving you many future accounting headaches and making your finances easier. 

But why cash flow management? 

Simply put, cash is what keeps businesses alive. But many businesses have no idea what their current situation looks like until they “run the numbers”. By using cash flow management software you’re able to get a snapshot of your business’s health at any moment in time, while also forecasting other scenarios that may be applicable. 

Sure, this can be solved by closely monitoring cash flow, but if you don’t want to be spending all your time watching the dollars drip out of your account, implementing a cash flow management tool can be a great time-saver. 

So, what can cash management tools do? 

Improve your business by using a cash flow management tool for any of the following: 

  • Cash flow projections 
  • Speed up cash inflow 
  • Slow cash outflow
  • Automate tasks
  • Monitor business health

Let’s examine these benefits a little further.

  • Cash flow projections

By now, you should know what a cash flow projection is… and you also probably know that they take a long time to prepare because the numbers are always changing.

By using an integrated cash management tool that connects to your cloud-based accounting software, you will be able to create cash flow projections at the drop of a hat, because all your software is connected. 

  • Speed up cash in 

Speeding up cash inflow sounds nice… and it is achievable through cash management tools like Dryrun.

You can speed up inflows using your cash management tool by sending invoices, processing bills instantly, setting up automated check-ins on accounts receivables, and optimizing your inventory levels so you’re not sinking too much cash into inventory. 

  • Slow cash out

If you can speed up the cash inflow while slowing cash outflow, you are living the accounting dream! 

Slowing spending doesn’t always mean a business is suffering… on the contrary, it might just mean a business is managing its bills better and keeping more money in the business to increase spending power. 

Slowing cash flow means avoiding paying bills before they are due AND tracking bills to avoid late fees/interest. Don’t pay more than you have to or earlier than you have to! 

  • Automate tasks

If you ever feel like the majority of your day is spent preparing and sending invoices, you definitely need a cash management tool. Routine tasks like generating and sending invoices to repeat customers can be completely automated, freeing up a large portion of your time. 

In addition, you can create reminders for bill payments (avoiding late fees and interest) and setting alarms when your cash reaches a dangerously low level. 

  • Monitor business health

Finally, implementing a cash management tool allows you to watch your business’s numbers more closely and while optimizing cash flow. Getting a snapshot of your business’s health has never been more instantaneous. 

You may also change your dashboard display to illustrate key data sets like cash on hand, or accounts receivable/payable. Watching the numbers of these accounting components will allow your business to thrive based on the health reports available through cash management tools. 

Conclusion

When you string it all together, software that connects to your cloud-based accounting, reducing human error, saves you time and money, all while automating tasks almost sounds too good to be true. 

But thankfully, because so many businesses are using cloud-based accounting, the tools supporting this method of accounting just keep on getting better and better! 

So, that’s the case for connecting your cloud-based accounting software to a cash management tool today. With the time it’ll save you running reports it will pay for itself. 

Do you have questions about cloud-based accounting or cash management software? Wondering how cash management software can benefit your business? We’d love to chat! 

Hit us up in the comments below or send us a message to learn more. 

dryrun.com

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