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Top 5 Financial Tools for Startups

 

 

Accounting and Bookkeeping Software 

 

Tracking finances, such as account receivables, payables, and preparing for tax season, is crucial for every company. Today, this function has evolved; although accountants are still the ones who crunch the numbers, accounting software has emerged to make the process more seamless. Estimates show that the accounting software market was valued at $13.94 billion in 2021 and could grow to $24.13 billion by 2026.

As such, there are several accounting software options available in the market. One good example is QuickBooks, a cloud-based accounting software designed for both small-time players and well-established companies. With QuickBooks, companies can automate several accounting tasks, including organizing bills, generating reports, and keeping a record of tax obligations.

Notably, there are other accounting software options such as Sage, FreshBooks, Odoo Accounting, and the Thomson Reuters CS Professional Suite. All these platforms are designed to make the accounting process much easier; the only key difference lies in additional features and pricing.

Payroll Management Systems 

 

Payroll management is another function closely linked to accounting, but more importantly, payroll efficiency is at the heart of ensuring employee satisfaction on payday. To this end, digital startups and traditional businesses looking to fully automate their processes ought to identify which payroll software works best for them.

Of course, there are some comprehensive workforce management software options such as Workday, which provides all-round solutions, including payroll management. But with the emergence of the gig economy (with 59 million gig workers in the US alone in 2022), Workday might not be the perfect solution for this group.

On the brighter side, there are alternative payroll management systems such as Deel, which have been designed to cater for the growing demand in the gig economy. This particular payroll software functions as an all-in-one HR platform, not only allowing employers to seamlessly make payments but also to source talent globally, all while remaining compliant.

Budgeting and Forecasting Software 

 

Digital businesses, whether a new venture or an established firm, need to always be on top of how they are spending funds. This is where budgeting and forecasting come in; the former, as you probably know, involves planning for future spending by allocating quotas to each department or function. Meanwhile, forecasting is essentially used to counter-check if the business is on the right track based on futuristic extrapolations.

Some of the prominent budgeting and forecasting tools that digital businesses can use include Causal, Mosaic Tech, Anaplan, and the SAP Business Planning and Consolidation (BPC) software. Notably, some of these tools rely on information from accounting software and, as such, are designed to allow data integration from spreadsheets or accounting software like QuickBooks and Xero.

Financial Management and Payments Tools 

 

Besides internal processes, businesses carry out other functions which, in most cases, involve making or receiving payments. This function has evolved over the years, and with the rise of digital marketplaces, international payments have become more common in today's global economy. While banks have traditionally bridged this gap, alternative fintech payment solutions are emerging as a better avenue for transacting globally.

In fact, solving the challenges that exist in the global payments system is the foundation of our core belief at Peanuds' - reimagining the future of payments. Digital businesses looking to enhance their payment processes can leverage a couple of features that we intend to offer, including SEPA and Swift transactions, debit cards, multi-currency support, and an intuitive mobile app where one can manage finances on the go.

With the global e-commerce market revenue projected to reach $5.56 trillion by 2027, digital startups planning to capitalize on this market will be better positioned to do so by making the payment process as easy as possible. As such, financial management and payment software will be a huge part of this revolution.

Data Analytics and Visualization Software 

 

As they say, data is the new oil. Once refined, it can provide many valuable and actionable insights for any type of business. With data analytics, businesses can now better understand customer behavior, enhance product development, identify growth opportunities, and mitigate risks, to name a few.

Some of the prominent data analytics and visualization tools include Microsoft Power BI, Tableau, Zoho Analytics, and Domo. While there are some technicalities involved in using these tools, they are definitely worthwhile if the data is analyzed effectively to guide decision-makers.

For better context, data analytics involves cleaning the data gathered from a business and leveraging visuals, such as graphs, to present a simple yet actionable perspective. In recent years, both small and large businesses, including the likes of Google and Amazon, have benefited greatly from harnessing the power of analytics.