Looking to streamline your cash flow? Discover five essential cash flow management tools equipped with the latest features and functionalities tailored for businesses in 2024.
Got cash flow conundrums?
You’re not alone. Nearly three-quarters of Australian businesses have encountered cash flow issues in the past year. Amidst the dynamic business landscape shaped by COVID-19, cash flow management has become more critical than ever.
If there’s one priority for your business, it’s mastering cash flow management.
The good news? You don’t need to hire a financial expert to enhance your business’s financial well-being. A plethora of tools is available to assist you in managing your cash flow, ranging from basic forecasting and management utilities to comprehensive analytics platforms.
In this article, we’ll outline four essential features to seek in your cash flow management software, along with our top five recommendations for businesses in 2024.
But before we delve into that, let’s cover the basics.
What is cash flow, and why does it matter?
Struggling with cash flow challenges?
You’re not alone. Nearly three-quarters of Australian businesses have faced cash flow issues in the past year. Amidst the dynamic and ever-evolving business landscape shaped by COVID-19, effective cash flow management has become more crucial than ever.
If there’s one objective you should prioritize for your business, it’s mastering cash flow management.
The good news? You don’t need to hire a financial expert to enhance your business’s financial health. There’s an array of tools available to assist you in gaining control over your cash flow, ranging from basic forecasting and management utilities to comprehensive analytics platforms.
In this article, we’ll outline four essential features to seek in your cash flow management software, along with our top five recommendations for businesses in 2024.
But before we delve into that, let’s cover the fundamentals…
What is cash flow, and why is it important?
Cash flow refers to the movement of cash in and out of your business. This encompasses income from customers and clients, as well as expenses such as salaries, rent, debt repayments, tools, and inventory.
There are two components to the cash flow equation:
- Cash flow management: This involves tracking, analyzing, and enhancing the financial health of your business. The objective is to maintain a positive cash flow, where you have more money coming in than going out, resulting in a profit rather than merely breaking even.
- Cash flow forecasting: This entails estimating your future cash flow based on projected sales and expenses. Accurate forecasting enables you to determine whether you’ll have sufficient funds to sustain your business in the future or if you can afford to expand.
Effective cash flow management ensures that you have enough incoming funds to cover your expenses, minimizes headaches, and instills confidence in growing your business. Conversely, poor cash flow management can lead to financial difficulties or even business closure.
This is where technology plays a pivotal role: it enables you to monitor your finances, plan proactively, and optimize your cash flow effectively.
4 things to look for in cash flow management software
There’s an abundance of cash flow management tools available today, ranging from straightforward tracking utilities to comprehensive platforms with advanced features.
Ultimately, selecting the right software hinges on your specific business requirements. However, it’s essential to ensure that your chosen platform meets these four key criteria:
- Integration with your existing accounting software: Seamless integration with your current accounting software is crucial. This ensures that you can leverage valuable insights to effectively manage your cash flow and plan for the future.
- Automation: Opt for a platform that streamlines manual processes by automating tasks such as reporting and data retrieval directly from your accounting software. This saves time and enhances efficiency in managing your cash flow.
- Easy setup: The ideal tool should be easy to set up, allowing you to get started quickly without the need for extensive web development or lengthy training sessions.
- Accessibility: Your chosen tool should present financial information in a clear, user-friendly manner, eliminating the need for specialized finance knowledge to interpret the data. Accessibility ensures that all stakeholders can understand and utilize the insights provided by the software effectively.
Got cash flow conundrums?
You’re not alone. Nearly 3 in 4 Aussie businesses have reported having cash flow issues in the past 12 months — and, with the dynamic and ever-changing business environment that we’re operating in during COVID-19, cash flow matters more than ever.
If there’s one goal you need to have for your business, it’s to get a handle on your cash flow.
Here’s the good news: you don’t need to hire a number-cruncher to improve your business’s financial health. There are plenty of tools out there to help you get a handle on your cash flow, from basic forecasting and management tools to in-depth analytics.
In this post, we’ll run through four things you should look for in your cash flow management software, as well as our top 5 picks for businesses in 2024.
But first things first…
What is cash flow, and why does it matter?
Cash flow is the amount of cash “flowing” in and out of your business. This includes income from your customers and clients, and expenses like salaries, rent, debt repayments, tools, and inventory.
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.
4 things to look for in cash flow management software
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 business needs. However, it pays (literally!) to make sure your platform ticks off these four boxes:
- 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.
- Automation. Look for a platform that automates as many pesky manual processes as possible, from reporting to pulling information directly from your accounting software.
- 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.
- 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 to try in 2024
Float
Similar to water, Float offers fluidity and adaptability, making it suitable for businesses of all scales. It boasts an array of features, including a visual representation of your historical, current, and future cash flow, along with real-time forecasting capabilities.
One standout feature of Float is its scenario planning functionality, allowing users to explore various hypothetical scenarios. This feature enables businesses to assess the potential financial impact of decisions such as hiring new personnel, expanding operations, acquiring assets, and more.
Furthermore, Float seamlessly integrates with Xero and retrieves data directly from bank accounts, providing users with an up-to-date snapshot of their financial status without requiring additional manual effort.
Fathom
Fathom offers a unique approach to cash flow management through its intuitive graphical representations and robust forecasting capabilities. It seamlessly combines business planning and comprehensive three-way forecasting to provide users with valuable financial insights for informed decision-making.
This tool provides access to a suite of features, including reporting, forecasting, and financial insights, presented in a clean and user-friendly interface. One of Fathom’s standout features is its ability to effortlessly model planned business activities and create multiple scenarios across the Profit & Loss, Balance Sheet, and Cash Flow Statement with just a few clicks. These scenarios can be visualized on a Business Roadmap, offering a clear overview of projected outcomes over time. Additionally, users can generate polished management reports to effectively analyze each scenario and optimize financial strategies.
Fathom seamlessly integrates with leading accounting software such as Xero, QuickBooks, and MYOB, streamlining data synchronization and enhancing overall efficiency in financial management.
Futrli Predict
Futrli Predict stands out for its ability to streamline cash flow forecasting, offering simplicity, real-time updates, speed, and accuracy tailored for small businesses. By leveraging data from existing accounting software, this tool swiftly generates forecasts spanning the Profit & Loss, Balance Sheet, and Cash Flow for the upcoming three years — all accomplished within minutes.
Moreover, Futrli Predict provides an array of valuable insights essential for business owners, such as detailed breakdowns of income sources, outstanding bills and invoices, as well as analyses on customer trends, company debts, and tax obligations.
In addition to its integration with Xero, Futrli Predict offers seamless cloud management through integration with Google Sheets, allowing users to easily access and manage their financial data across platforms.
Cash Flow Frog
Cash Flow Frog offers a user-friendly cash flow forecasting and scenario planning solution, providing clarity on your business’s current financial status and future trajectory. In addition to forecasting and planning capabilities, Cash Flow Frog delivers intelligent cash flow projections, insights into customer sales and payment schedules, and customizable reporting features. Users can also review planned cash flow against actual results, evaluating the effectiveness of their strategies. Cash Flow Frog seamlessly integrates with leading accounting software, including Xero, enhancing accessibility and data synchronization for users.
Summit
Summit is an emerging platform gaining attention for its visually dynamic cash flow forecasting and financial planning tool. Describing itself as a ‘financial canvas’ for businesses, Summit offers remarkable flexibility and user-friendliness, catering to teams or owners less familiar with complex Excel functions.
The most enticing aspect? Summit is currently in early access, meaning it’s available for use at no cost, making it an attractive option for businesses looking to streamline their financial management without added expenses.
