- November 6, 2017
- Posted by: Dr. Elise Cohen Ho
- Category: Marketing & Money
Having Great Tools for Financial Mangement can make everything easier.
Proper Financial Management is a cornerstone of business management.
In this wonderful world of technology, we have great tools available to us but in most cases, they are categorically underused! Below, we’ll discuss some tools in the Financial Management toolbox that you can use to make the process easier. We’ll also address their pros and cons so you can decide which are right for you.
Having a system, no matter what you choose, is the most important thing you can do to make your business run more smoothly.
Additionally, it will make your life easier.
Financial Management Tool #1- Auto Pay.
Pros: Set it once and forget it! Often the vendor itself will have an auto-pay option on their website. You simply enter the amount you want to pay, your routing number and bank information, and the date that your account is to be debited. It is that easy to get you set up. Your bills will be automatically debited each month.
Cons: If you run into some cash flow issues, you have to be sure to go in and change or cancel the debit date within the allotted period. If you do not do this you may incur an overdraft bank fee. If you work on a freelance basis or have any type of irregularity in your inflow of funds, this may not be a good option for you.
Hints: You can set your payment within the grace period even if it is after the due date without needing to request a payment date change. It’s usually 10 days, but don’t assume! Make sure you check that you’re not accruing late fees or bad pay history by over-staying your grace date. Also, if you need to, vendors typically allow one due date change per account history. TTherefore, if you know the due date won’t work for you, change the date. But choose wisely- typically you get only one shot!
Financial Management Tool #2- Online Bill Pay.
Pros: This system is typically offered through your bank, although some vendors offer the one-time payment option on their websites. Done right, you can spend an hour or so once a month. Simply set up the dates that you want the vendors to debit your account for that month’s bills. This is a great system for those with irregular pay dates because you have more control and insight into your budget and cash flow for that month!
Cons: You have to invest time monthly to set up these payments.
Financial Management Tool #3 – Banking Apps.
Pros: This is basically the mobile version of #2, but many people don’t remember to use the apps for their bank. In most cases, you can do all the things on your app that you can do on their website. However, this option is usually more user-friendly. The mobile banking app is convenient because you can utilize it while on-the-go. This can be a great use of time wasted during lengthy medical appointments waiting room times. If you’re a multi-tasker, this is a great tool!
Cons: If you lose your phone or it’s stolen, you run the security risk of someone having access to your banking info. These days though, our phones are an extension of our wallets and we all know to treat it as such! Just be sure to include security measures as you would for any other information you don’t want to be shared with a thief. Password protection, phone locator apps, and other tools can be of good use.
With a little planning each month, your bill paying nightmares can be a dream! Don’t delay! Get a system in place today.