3 Financial Management Tools For Business Success
The right tools will allow you to run your business with ease. They will also allow you to fully step into your POWER!
In this wonderful world of technology, we have great tools available to us but in most cases, they are categorically underused! Below, we’ll discuss some tools in the Financial Management toolbox that you can use to make the process easier. We’ll also address their pros and cons so you can decide which are right for you.
[ctt template=”8″ link=”9UeYf” via=”no” nofollow=”yes”]Having a system, no matter what you choose, is the most important thing you can do to make your business run more smoothly.[/ctt]
Additionally, it will make your life easier.
Financial Management Tool #1- AutoPay.
Pros: Set it once and forget it! Often the vendor itself will have an auto-pay option on their website. You simply enter the amount you want to pay, your routing number and bank information, and the date that your account is to be debited. It is that easy to get you set up. Your bills will be automatically debited each month.
Cons: If you run into some cash flow issues, you have to be sure to go in and change or cancel the debit date within the allotted period. If you do not do this you may incur an overdraft bank fee. If you work on a freelance basis or have any type of irregularity in your inflow of funds, this may not be a good option for you.
Hints: You can set your payment within the grace period even if it is after the due date without needing to request a payment date change. It’s usually 10 days, but don’t assume! Make sure you check that you’re not accruing late fees or bad pay history by over-staying your grace date. Also, if you need to, vendors typically allow one due date change per account history. Therefore, if you know the due date won’t work for you, change the date. But choose wisely- typically you get only one shot!
Financial Management Tool #2- Online Bill Pay.
Pros: This system is typically offered through your bank, although some vendors offer the one-time payment option on their websites. Done right, you can spend an hour or so once a month. Simply set up the dates that you want the vendors to debit your account for that month’s bills. This is a great system for those with irregular pay dates because you have more control and insight into your budget and cash flow for that month! Click here for tips on how to set up ACH payments.
Cons: You have to invest time monthly to set up these payments.
Financial Management Tool #3 – Banking Apps.
Pros: This is basically the mobile version of #2, but many people don’t remember to use the apps for their bank. In most cases, you can do all the things on your app that you can do on their website. However, this option is usually more user-friendly. The mobile banking app is convenient because you can utilize it while on the go. This can be a great use of time wasted during lengthy medical appointments waiting room times. If you’re a multi-tasker, this is a great tool!
Cons: You run the security risk of someone having access to your banking info if you lose your phone. These days though, our phones are an extension of our wallets and we all know to treat it as such! Just be sure to include security measures as you would for any other information you don’t want to be shared with a thief. Password protection, phone locator apps, and other tools can be of good use.
With a little planning each month, your bill-paying nightmares can be a dream! Don’t delay! Get a system in place today.
40 thoughts on “3 Financial Management Tools For Business Success”
Thank you for this article, You Explained In Excellent Way. Your Above Article Is Very Useful For Me…
I am happy to hear that.
Great tips Elise and I know I could use all the help I can get at the moment
I hope that you find that these boost you up tremendously.
Online banking is so handy, you know exactly where your funds are. I remember the days of balancing checkbooks, ugh. Some parts of the modern world are such an improvement.
I always hated doing that.
In the UK I use a great tool called Bean…it tells you when annual bills such as broadband / utilities/ TV are up for renewal and finds a cheaper option. It’s fab
,
Oh, that sounds interesting. I wonder if we have it in the USA.
These are all great methods for getting in control of bill paying. Interesting to compare the pros and cons of each approach.
Thank you.
Nice summary. I like the option to be able to pay bills online and autopays comes in handy as I do not have to remember to pay by a certain date and risk a late fee.
Thank you and thank you also for sharing what works best for you and why.
Set and forget is a great way to avoid those late payments! Especially good for those who are forgetful! Thanks for sharing at The Blogger’s Pit Stop!
Set it and forget it is a great thing for certain tasks.
Hi Elise,
Financial management is the key factor in the success of every business. If you cannot manage your finance that means you cannot manage your business.
Even is the day to day life financial management help to manage things. Online Bill payment, bank apps, and auto pay are the part of common life now.
Thanks for sharing.
You are indeed correct. They do go hand in hand.
This is part of my business I really need to work on I’m terrible with anything financial!
It takes some practice but you can do it. Plus you can always reach out for help when you need it.
Systems are the keyword here. Living in a world of technology, systematize, automate and GO! Keep it easy and remove the daily work!
You got that right!
Definitely found this post to be super helpful! I plan on starting my own hair care line in a few years and will be needing to make sure I master the art of financial management.
I want to know more about your line, Inbox me and let’s talk. elise@askdrho.com
Hi Dr. Elise,
Great post. I couldn’t agree more with you on the fact that technology presents to us so many tools, which we greatly underutilize.
I use my mobile banking app to make most of my payments. Thanks for sharing.
You are quite welcome. I love discovering new tools and reminding people of them too.
Banking apps may not be the most secure but are definitely convenient and user-friendly. With many people on the go and only have their phone in hand, banking apps are useful.
So far I have found them to be secure. Of course, the most secure is to physically go into the bank. However, hardly anyone does that anymore.
I like the automated payments so I am never late (because if I don’t I always remember the day after).
Thanks for the pros and cons of each.
You are so very welcome.
Very informative! I don’t own or run a business. Just looking for more tools to help organize my finances and this was perfect. Something else I like to do is keep track of my receipts so I can look back and see how much I spent on what. It’s one thing to swipe and forget but it helps to look at how much you are spending on what so you can make more conscious spending decisions in the future.
Yes, it definitely helps when you keep track of receipts too. There are also several good apps for that.
Hi Elise,
Some great information there! I’ve got all my money payments automated. I use my banking online to auto pay all my bills as soon as my pay is in my account. This includes paying myself as well (separate linked account with an auto transfer) so by the time I go to my account for food shopping etc it’s only spending money left.
Thanks for another informative read 🙂
Thank you for sharing how you handle your finances. It is great information to help many people.
great post you made here, I found your second tool the most unique and special. Thanks for sharing
Wonderful to hear.
I am using banking tools with a schedule payment! Working smooth so far!
That is great to hear.
What a coincidence…I already put all three tools to use! Thanks for the info.
Then you are roaring and ready to go.
Dr. Elise,
I like to schedule my credit card payments in advance each month, not on an automated schedule though. But for car payments, electric and car insurance, automatic payments are essential. At the start of the month I just debit the from my6 checking account with the scheduled date listed. I also schedule automated payments for those items that can be paid by credit card, e.g., my monthly phone bills. Without scheduling in advance or auto-payments, there is always the risk of forgetting, getting too busy, being out of town or out of commission – and then incurring a late fee or losing a domain as I once did because I was moving, forgot to pay, and the domain got sold. My Free Report suddenly went nowhere.
Thank you for sharing what works well for you. IT can be fairly easy to forget a payment when we live a busy life so the fail-safe of prescheduling certainly takes out a great deal of risk.