In today’s competitive market, equipping your business with the right financial tools is crucial for success. These are resources that help business owners streamline processes, enhance decision-making, and improve overall financial performance.

From basic bookkeeping software to advanced analytics platforms, financial tools are designed to cater to the diverse needs of businesses across various industries.

How do the financial tools help your business?

Financial Management: Financial tools are important in automating tasks such as invoicing, expense management, and payroll, helping you save valuable time and minimize the risk of errors.
They are necessary for organizing and tracking income, expenses, and cash flow.

Real-time Insights: By using financial tools businesses gain access to real-time financial data. This enables owners and managers to make informed decisions, identify potential issues early, and take proactive measures to ensure financial stability and growth.

Top Financial Tools for Business Growth

• 1. Accounting Software

Accounting is a critical part of running a business. Integrating an accounting tool that is reliable, intuitive, and affordable depends on the features you will get.

For the longest time, QuickBooks has been known to be the go-to software for accounting. Today we have seen alternative platforms Xero, Zoho, and Sage being developed that promise to deliver the same features as QuickBooks at competitive rates.

These tools offer features like invoicing, expense tracking, and financial reporting.

However, before choosing your preferred accounting tool, look for some key features important to your business. These could be features like cloud-based entries, and integration with your payment (POS) system.

• 2. Budgeting applications

Some accounting tools will support a budgeting functionality, but if it does not, it is vital to integrate a budgeting tool that will help you create a realistic budget for your business and help you stick to it.

A crucial element of a successful business is keeping a tight budget.

Tracking your cash flow helps you plan ahead, set prices to increase profits, and make wise decisions when it comes to purchases.

Applications such as Goodbudget, Freshbooks, ZohoBooks, and many others available online can help you with your budgeting needs.

• 3. Billing and Invoicing applications

Billing is a way to keep track of what someone owes you or what you owe someone else. When you buy something from a store, you receive a receipt that shows the items you purchased and the total amount you need to pay. This is a form of billing.

If your billing process is quick, payments will be processed quickly, and cash will flow into your business at a faster rate.

Not only can billing tools automate routine tasks like sending payment reminders and generating invoice templates, but they can also handle online payments.

Some tools that are available online and help you with invoicing include Zoho invoice, FreeAgent and Invoiced.

• 4. Inventory tracking applications

Now that you can track your profits and losses, what about your inventory?
Inventory is a collection of goods or products that a business holds for sale, distribution, or production.

Investing in inventory monitoring and tracking software saves you time and money. Some of the popular inventory tracking software include Zoho Inventory, Veeqo, Sortly, and InFlow Inventory.

Always do your research to find the tool that best fits your needs to manage your stock and suppliers easily.

Some tools can be set up to automatically send you alerts when something is out of stock, or low on supplies. Other tools can also help you manage orders and shipping.

• 5. Digital financing applications

Financial institutions like banks have taken a step in developing applications that make it possible for their customers to access financial services such as transactions, loan applications, and repayment easily.

As a business owner having a tool that gives you access to funds when you need them is fantastic. This means that your business will never get stuck due to a lack of funds.

Features to consider on such apps are a loan calculator, a seamless loan application process, simple loan payment options, loan statements, and other products that might be beneficial to your business. Ngao Credit App is such an app.

• 6. Payment Gateways

Payment gateways, such as Pesapal, Skrill or Lipa na M-PESA, enable businesses to accept online and mobile payments securely. By integrating these gateways, businesses can expand their customer base and offer convenient payment options, leading to increased sales and revenue.

It is important to assess transaction fees, security measures, and the availability of local payment options when selecting a payment gateway.

• 7. Business Intelligence (BI) Software

BI tools such as Power BI, and Tableau offer advanced analytics capabilities, allowing businesses to analyze large datasets and get valuable insights.

These tools help identify trends, monitor key performance indicators, and make data-driven decisions.

• 8. Digital Wallets

Digital wallets such as M-PESA and Airtel Money facilitate cashless transactions and offer a convenient payment solution for businesses. By integrating digital wallets, businesses can provide a seamless payment experience to customers, enhance customer satisfaction, and improve overall efficiency.

Key Takeaway

Small businesses have a lot of financial responsibilities. Maintaining a healthy cash flow and managing inventory are just a few examples. If you take the time to consider the above areas and find a suitable tool for each, then your business will stand a chance against competitors.

The right financial tools give you the necessary tools to monitor and control your finances effectively, adapt to changing market conditions, and seize growth opportunities. They are a vital resource for businesses of all sizes, providing a solid foundation for financial success.

Whether it’s accounting software, payment gateways, budgeting tools, BI platforms, or digital wallets, each tool brings unique benefits and considerations.

By leveraging these financial tools effectively, businesses in Kenya can unlock their potential for growth and success. Start exploring these tools today and empower your business for a prosperous future.