6 Fintech Tools Your Business Should Consider Investing In

As your business grows, staying on top of your finances is essential. Thankfully, the rise of fintech tools has made it faster and easier to process your finances. But what fintech tools are right for you? With so many new options on the market, it can be difficult to determine what makes sense for your business. Here are six fintech tools that growing businesses should consider investing in for long-term success. 

1. Credit Card Processing

If your business can’t accept credit cards, you’ll limit your customer base. Yes, credit cards come with processing fees, but you should be able to offset them by attracting more business with this convenient payment method. Plus, many fintech tools have features to keep these processing fees limited. 

Start by choosing a tool for small business online credit card processing. This will help you process credit cards through your website, which makes online purchases convenient for your customers. You’ll also need a way to process payments in person. Even if you don’t have a brick-and-mortar location yet, you may still make in-person sales at events or in the community. One of the easiest ways to do this is with a mobile card reader. These are small devices that attach to your phone and allow you to process credit cards through an app.  

Additionally, leveraging accounts receivable financing can provide immediate cash flow based on your outstanding invoices, helping to manage your finances more effectively and ensure smooth business operations.

2. Automated Invoices

Sending and managing invoices is another important financial task for growing businesses. Keeping track of billable items, generating the invoice, and following up with clients can be a very time-consuming process. Investing in an automated invoice tool can save you a huge amount of time each month. 

These tools will help you generate invoices quickly using professional templates. They also give your clients the option to pay online using a variety of different payment methods. This makes paying invoices much more convenient for your clients. It also helps you get paid more quickly so you can stay on top of your financial goals. 

3. Payroll Processing

Managing payroll is another financial task that can be very time-consuming for small businesses. However, staying on top of your payroll is a must for retaining employees and staying compliant. You’ll need to track how much you owe each employee for the designated pay period and calculate the correct payroll taxes to withhold. 

Investing in payroll processing software makes this process easier. When you onboard a new employee, you’ll put information about their pay rates in the payroll software. This will help you automatically calculate the correct pay and tax withheld for each employee. Many payroll tools also integrate with tax and accounting solutions to help you manage your finances seamlessly. In case, if you need to create such a robust solution, you can hire a financial software development company which can help you to build your own payroll app and add other special features reducing redundancy and improving the efficiency of your operations.

4. Tax Preparation Tools

Remaining tax-compliant is a must for any growing business. You’ll also want to make sure you’re taking advantage of all your deduction options to avoid paying more than necessary. However, tax laws are very complex, and managing your taxes manually can be very time consuming. This is why growing businesses should invest in tax preparation software. 

Even if you have a third-party tax expert file your returns, it’s still helpful to use tax software as part of your internal accounting processes. These software programs help you calculate estimated taxes ahead of time so there are no unpleasant surprises. They’ll also help you keep track of deductible expenses, which makes filing your returns much easier at the end of the year. 

To further enhance this process doing internal controls in accounting can prevent errors or fraud in financial reporting as it ensures accuracy in your tax filings and compliance with tax regulations, safeguarding your business from potential risks.

5. Digital Bookkeeping

Instead of using a spreadsheet to balance your budget each month, consider investing in a digital bookkeeping solution. Digital bookkeeping tools have a variety of features to help you stay on top of your finances. For example, you can track income and expenses, monitor inventory, and log important transactions. 

One of the biggest benefits of using a digital bookkeeping tool is that it helps you keep your documents organized. If you handle your bookkeeping manually, it’s easy for documents to get lost. If you have multiple employees working on your accounting, it’s also very difficult to share documents safely. A digital bookkeeping tool keeps everything in one place and ensures that your finances are properly documented. 

6. Online Funding Solutions

As your small business grows, there might be times when you need outside funding to reach your goals. While traditional banks and credit unions offer plenty of great lending options, there are also an increasing number of fintech companies that offer online funding. 

Working with an online lender can help you get the money you need more quickly. In many cases, you’ll also get better payment terms than if you went through a traditional bank. Some of these tools even have peer-to-peer lending features, which allow community members to invest in your growing business. When choosing an online lender, do your due diligence, the same way you would when taking out a loan from a bank. Compare multiple options to find a funding solution that’s right for your needs. 

Final Thoughts

These powerful fintech tools help you automate time-consuming and frustrating financial processes. As a small business owner, you have so much on your plate. Using these technologies will help you save time on important finance tasks, so you can focus more on working with customers. Using fintech tools will also help you make sure your finances are accurate so you can avoid problems later on.