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8 Financial Tools Every Small Business Owner Should Know

Posted by Arya Chatterjee

November 18, 2023

Your finances will run smoother, and your stress levels will decrease, leaving you to focus on growing your small business. 

In an era of cutting-edge technology and digital innovation, it’s easy to assume that small business owners and entrepreneurs have it easy to run a business. And why not? Significant technological shifts have changed every facet of our lives, offering unprecedented access to information, resources, and tools at the click of a button. 

But the truth is, a savvy entrepreneur can only thrive in this demanding and competitive digital age by recognizing the need to embrace and leverage financial tools and software. 

Data from the Bureau of Labor Statistics, as reported by Fundera, revealed that approximately 20% of new businesses fail during their first year of operations, almost half during their first five, and 70% at the end of the decade — with only 30% left standing. The leading cause of failure? Inadequate financial management. This underlines the critical need for entrepreneurs to educate themselves about tools and software that enhance financial operations strategy. 

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To kickstart the discovery process, we dive deep into the intelligent tools to help you stay afloat and thrive in today’s competitive business landscape. 

Tools for finance process improvement 

1. Accounting All-Star: QuickBooks 

Consider QuickBooks the LeBron James of accounting software – he’s an all-star. With over 5.6 million small businesses trusting this tool for their financial operations management, QuickBooks is a trusted name in financial management. Wouldn’t you want your accounting process to be simplified to track income and expenses, create invoices, and manage taxes easily?

According to Intuit, the parent company of QuickBooks, their software has made routine financial tasks needed to run the business 30% more efficient on average.

2. Invoicing Hero: FreshBooks  

FreshBooks will become your go-to maestro if you can only make or clear payments based on invoices. It is a cloud-based accounting software that makes creating and sending professional invoices a piece of cake. You can track your expenses and time, and it’s perfect for service-based businesses, freelancers, and consultants. 

FreshBooks customers have reported saving an average of 16 hours per month, which frees up your time to focus on other aspects of the business.

3. Free Financial Manager: Wave 

Suppose you’re new to the world of entrepreneurship. In that case, you’re looking for a pocket-friendly financial manager that will make an impact. Well, Wave is the cloud-based software you’re looking for, and best of all, it’s free. This is a winner for startups that need to take care of accounting, invoicing, and receipt scanning. 

Talk to us about how our outsourced business services can help your company access financial expertise. 

4. Global Player: Xero 

Are you aspiring to conquer international waters? Then, Xero is a global player you need on your financial roster. This cloud-based accounting software has multi-currency support, making it easier to manage your finances across borders. It also offers integration with third-party apps and services, which lets business and financial operations be customized. 

5. Freelancer’s BFF: QuickBooks Self-Employed 

QuickBooks Self-Employed is designed to keep the unique financial needs of freelancers and solo entrepreneurs in mind. You can track your income and expenses, estimate taxes, and get detailed reports to make tax season a breeze. 

6. E-commerce Adventurer: PayPal Business 

For businesses that rely on e-commerce, PayPal Business offers a suite of financial services products. For example, you can access payment processing, invoicing, and a business debit card. PayPal is a renowned household name, making it a reliable and trustworthy service. 

7. Pocket-Friendly Game Changer: Zoho Books 

Zoho Books is yet another affordable option for small business owners and entrepreneurs. It offers accounting, invoicing, and inventory management tools at a pocket-friendly price. It also integrates various other Zoho apps to cover financial process improvement. 

8. Expense-Tracking Extraordinaire: Expensify 

Expense tracking can be an absolute drag for small business owners, especially those who dislike accounting operations. Expensify solves this problem for you with its user-friendly interface and innovative features. All you have to do is click pictures of receipts to track expenses in real-time and generate reports seamlessly. 

Final Word for Small Business Owners  

Small businesses often face unique challenges, from cash flow issues to making strategic investments. While these digital software can be in your financial toolkit, consulting a skilled advisor who can provide invaluable guidance in navigating these complexities is paramount. With their expert understanding of these tools, they can help small business owners make informed decisions to optimize their business and balance their financial health. Combining these two assets can ensure your small business’s financial stability and long-term success. 

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Want to know more about finance and accounting? Since 2006, Escalon has helped thousands of startups get off the ground with our back-office solutions for accounting, bookkeeping, taxes, HR, payroll, insurance, and recruiting — and we can help yours, too. Talk to an expert today. 

This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage with Escalon, please contact us here.


Arya Chatterjee
Arya Chatterjee

Arya Chatterjee is a freelance writer and consultant from Mumbai. With a background in journalism and over five years of creative writing experience working with legacy media like Architectural Digest and Femina India and brands like The Label Life, and Macy's, she crafts unique and compelling stories that engage the readers. She enjoys writing about health, beauty, fashion, and lifestyle and exploring the symbiotic relationship between thriving businesses and happy employees through her writing. She is always looking to explore new avenues to expand her creative energy.

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