Managing finances: Increase Efficiency & Savings for Your Small Business

Think about how you currently do business. Are there tasks that you do over and over again, that you could automate with technology? As your small business grows, the software you use for tasks become just as important as the employees you train.

Streamlining your administrative operations and financial tasks with technology can help your business maximize efficiency and productivity, decrease expenses and increase profitability.

Time Is Money: Automate Tasks to Save Time

No matter what market your business is in, the right tools allow your business to benefit. However, don’t spend money on new technology just for the sake of upgrading. Consider how your business operates and determine which technologies will benefit your organization the most in terms of saving time and increasing your bottom line.

Every business owner’s goal is to be as efficient as possible. There are options like simple internet-based project management systems that create to-do lists and can be accessed anywhere. There are also systems with a complete suite of management tools like calendars, client projects, and password-protected client progress tracking systems. Below are a few suggestions on ways to keep your business functioning like a well-oiled machine.

How Technology Maximizes Efficiency

New technology allows faster processing of data, easier retrieval of information, and even reduces the number of physical employees necessary. This allows you to save a lot of money. When people perform tasks by hand, it’s time-consuming and mistakes happen. Using computers for repetitive operations reduces human errors and minimizes the time it takes to complete tasks.

Perform research to see what specific needs your business might benefit from in upgrading. For example, there are many accounting or management applications that can alleviate pain-points in your business.

Ask yourself the following questions:

  • How much do you have to invest?
  • What software is designed for your niche?
  • Does it need to be accessible through multiple platforms?
  • What is its main purpose? How will it increase efficiency and save you money?

Financing That Fits Your Needs

Successful businesses often use outside funding to afford updates they need. When it comes to investing in any new software or equipment, financing saves your business money.

Evaluate your priorities and options that give you the highest value of returns on any investments. Funding options vary for every business. The most popular options are business credit cards, angel investors, and Small Business Administration (SBA) loans.

Small Business Loans

SBA loans are government-backed loans that ensure easier access to capital from banks. Going through the SBA loan program for capital is a good option for business owners who may not have established business credit. SBA loans offer lower down payments, flexible overhead requirements, and no collateral for some loans.

Angel Investors

Angel investors are wealthy individuals who invest in your business because they believe in your business plan and want to help you succeed. Typically angel investors have a net worth of $1 million and an annual income of at least $200,000.

Business Credit Cards

When it comes to making large purchases for your business, using cash back business credit cards can save you money and improve your business credit profile. Using business credit cards for new software technology can offset your spending if used responsibly. In order to reap the benefits of any rewards the business card offers and avoid expensive interest on a card without a 0% introductory offer, the card must be paid in full at the end of every month.

Improve HR Software

It Reduces Business Costs and Saves Time

The biggest benefits of investing in HR and payroll software is the money and time it saves. Investing in a good HR system negates the need to hire multiple HR staff members, which allows you to avoid the costs associated with employee salaries. Improving efficiency and productivity through streamlining more repetitive tasks saves money and time.

It Streamlines Payroll and Time Off

Payroll management is often a burdensome task, especially as your business grows in manpower. With HR software, employees easily manage any payroll preferences, time off, and other important information without the assistance of an HR representative. Employees access and update their information easily through self-service portals.

It Assists with Financial Record Keeping

HR management software often contains tools that benefit record keeping and accounting, such as payment tracking. When you keep better track of your financial records, tax filing is made easier, and applying for business tax incentives are a cinch.

Conclusion

Whatever technology you choose, it’s important to continually evaluate how efficiently it’s operating. However, if your management systems become outdated, it’s possible your small business won’t reach its full potential. Never overspend on new technology that doesn’t serve a specific purpose or improve your overall business operations. Review different financing options and know how much the money costs in terms of interest, down payments, and annual fees.