There are several tools a startup needs. Why the company needs them and what the tools do for the company is a crucial point of consideration. Many tools come into play for the management of business expenses, divided into categories and use-cases too. Among the different tools that a CFO requires, here are the four most essential tools required to get the startup off the ground.
1. Accounting Software:
Accounting software carries out a variety of accounting and bookkeeping tasks. The software can automate tasks like tacking of accounts payable and accounts receivable, formulate expense reports, generate profit and loss statements, and prepare other financial documents.
Being prioritized among the tools category, it can efficiently execute bookkeeping and generate statements in excel. But, the software mainly exists to automate iterative tasks concerning financial reporting so that the team can focus on other vital tasks. To facilitate scalable growth for the startup, the finance team should automate processes as soon as the transactions are carried out.
2. Payroll Software:
To track employee movements and attendance, payroll software is utilized. It can automatically compensate employees on payday, withhold tax, enhance compliance, and generate tax forms.
Especially in case of limited workforce available in the finance team, better management of tasks is necessary. With the payroll software installed, the compliance to payroll laws is taken care of so that employees can focus on projects that move the company forward.
All employees are paid on time, making them productive and efficient at executing respective works. Automated payroll assures just that, by processing the payroll transactions on time.
In addition to automation, the software can run on cloud allowing the whole finance team to operate the payroll reports simultaneously. This is much hassle-free and seamless than mailing the desired spreadsheets and corrections back and forth in case of collaboration.
3. Billing Software:
Finance teams can invoice clients, send receipts, and also accept payments with billing software. It integrates with accounting and payroll to track and automatically reconcile transactions.
Being the CFO of a company, the main aim is to cut down the unnecessary expenses levied on the company, especially factors like payment processing fees. These extra costs can be avoided by requesting the customers to fill the invoices via checks, instead of payments that involve the fees. Along with the development of the firms, waiting weeks for the check to arrive is not affordable or specially set someone to focus only on processing them is also impossible. To avoid the loss, it is important to bite the bullet by adopting the billing software. Many billing software offers the firms’ customers low processing fees to no processing fees when a particular volume of transactions has been reached. As the company expands, the software can also be scaled along with the enterprise.
4. Customer Payment Processing Software:
Payments are accepted in-person and online from the customers through credit and debit cards, bank transfers, and other methods by utilizing customer payment processing software. The software can also be used to set-up recurring payments and subscriptions for convenient transactions. It supports e-commerce and SaaS companies.
Modern businesses are all about their online presence and accepting payments online is of primordial importance. Customer payment processing software assists you to get paid quicker than any other old school methods of payments.
As the finance teams use Excel mainly to record the transactions, many add-ons to Excel can be utilized to have a much more specialized toolset. These tools complement the tech stack and automate the process that will optimize the transactions recorded aiding to the growth of the company. Investments carried out in the payroll, accounting, billing, and payment processing software can support and enhance the growth of the company in several ways until perpetuity.