Every startup business needs to focus on its financial balance and make the right financial projections in order to focus on growth. It is important to know and understand clearly where the money comes from, where it goes, how well the business performs, and how it will perform in a couple of months. From an investor’s point of view, this information is vital to their making a decision of whether or not they will invest in your startup. In order to get to that stage you need a set of good financial startup tools to achieve your financial goals for the company, be it cash flow, investor returns, or meeting payroll.
In case you are wondering which important tools are used in financial planning, or what are examples of financial tools, here is a list of the best financial startup tools to assist you and ensure the success of your venture.
Startup financial model: This is your one-stop solution for creating a detailed investor return summary, income statement, balance sheet, cash flow, customer lifetime value analysis, pre-money, and post-money valuation, and other financial statements necessary for running a startup and raising funds for the business. A startup financial model is an upgrade from a traditional business plan; this model has a simple interface and allows you to create a multi-sheet, elaborate business plan that is inclusive of everything from sales to staffing and all this can be achieved in just about an hour.
Cloud based accounting: Cloud-based accounting platforms are now a reality and Xero is a classic example of the same. Platforms like Xero and others allow you to get access to your cash flow, create professional recurring invoices, and receive updates when they are opened, import and categorize your latest financial transactions, whether through the bank, credit card, or PayPal and create and send custom orders effortlessly. These platforms come with several hundred tools that help you manage your core business financial transactions along with successfully managing your payroll and your inventory.
Quickbooks: This is one of the most reliable business financial toolkits available online. The tools available on Quickbooks allow you to perform a number of functions easily, including tracking your income and expenses, maximizing tax deductions, preparing invoices and making payments, running reports, sending estimates to customers, keeping track of sales and sales tax, and managing your bills. In addition, it allows you to work together with your team, track employee time and work hours, keep track of inventory, create and manage budget and pay employees with free direct deposit.
Freeagent: To help with accounting, this is a software designed for small businesses and freelancers. It allows you to manage your invoices, expenses, projects, and taxes from one place. The best part about this software is that it is inexpensive to buy and one can avail of all that it has to offer for as little as $10 per month.
Freshbooks: This is another easy to use software, that comes with a simple interface, has the ability to automate invoicing, organize expenses and manage projects and payments and track time. This software is available on android and iOS platforms and enables you to keep track of our business no matter where you are.
Bill.com: This enables you to automate every financial transaction that your business makes. It is compatible with Quickbooks, Xero and numerous other accounting software. With this you can automate payments, send invoices and get paid upto three times faster.
Gusto: This payroll software is the answer to every startup business owner’s problems. It provides a solution to one of the biggest challenges that business owners face by providing a comprehensive, yet easy to use platform to simplify and automate the company’s payroll, benefits and HR all with expert support. It is one of a kind and allows startups and other businesses to set up and manage their payroll on the cloud in a matter of minutes. In addition, they provide an array of free services to help kick-start your HRM strategies. And what’s better is that you can try out their free services by signing up for a free plan.
Float: If you are looking for an online cash management and daily forecasting tool that manages your business and keeps on top of your cash flow and budgeting strategies then Float is the answer. It allows you to create PDF reports of your forecast and use them to present to investors and board members. This tool also allows you to model different scenarios and take a look at the impact of how various spending decisions or potential new businesses will play out for a medium period of time.
Expensify: This is one of the best reporting applications that allows you and your employees to scan receipts for reimbursement. The application integrates seamlessly with the organization’s policies and provides features to smartscan the receipts, automatic reimbursements to employee accounts, duplicate expense detection, and credit card expense imports.
Paypal: This amazing software should not be ignored if you plan to do business in the current digital area. PayPal is a powerhouse tool kit that enables you to perform a number of financial transactions including having the benefit of a digital and prepaid wallet, transfer money to and from bank accounts, receive payments, get credit, get working capital loans, and so much more.
What tools does your business use to manage finances? If you aren’t using these tools to simplify the process of startup financials, you need to upgrade and avail of the benefits that these toolkits offer. CoffeeMug.ai is the best platform for startups to move forward with their inventive ideas. The platform helps budding firms to grow and transform their concepts into feasible business strategies. The team at CoffeeMug.ai will help an industrialist determine whether his innovation is marketable, do market research to determine the best combination, receive feedback, and produce a market-ready prototype.
FAQs
Q. Why financial planning tools is important?
A. Financial planning is important to identify various financial objectives based on multiple investment strategies. A financial planning tool also helps in quantifying different financial goals amid certain unforeseen events like job loss, death or significant illness.
Q. What are the 7 key components of financial planning?
A. Following are the seven important components of financial planning:
- Liquidity management
- Managing your risk
- Budgeting and taxation
- Obtaining funds
- Investing money wisely
- Plans for retirement
- Documentation and record keeping
Q. Is budget a planning tool?
A. A budget is an important planning tool for monitoring and controlling the company’s finances. A good budgeting system could also help managers make better decisions.
Q. What is financial planning process?
A. Financial planning is the process of assessing and optimizing the use of financial resources to meet an organization’s goals and objectives. Financial planning protects companies against unethical policies and practices while also assisting them in mapping their financial trajectory.
