Traditionally, banks offer better services for larger businesses. Small businesses don’t get the same treatment from banks—and that’s a problem. Why? Because small businesses don’t have the same purchasing power as larger organizations, banks have little incentive to put in the extra effort to service these customers well.
Banks don’t cater to their expense management well, whereas a small business in its nascent stage needs proper expenditure management to grow and evolve.
Moreover, Invoicera, a cloud-based invoicing software, has everything a small business owner needs to flourish in its early stage. Unlike traditional banks, it offers an exceptional expense management system and expense categorization, which means you can focus on your business efficiently.
Read on to know why banks don’t work hard enough for small businesses and what Invoicera can offer you to keep your business going smoothly.
Reasons Why Banks Don’t Fit For Work for Small Businesses
1. Weak Cash flow
Cash flow is one of the important reasons banks don’t prefer working for small businesses owners. They are very concerned that companies have enough cash flow to pay the multiple charges that banks charge from companies. Unfortunately, many startups and small businesses struggle with keeping sufficient money in their bank accounts even when they are profitable.
The average small business owner pays ~$20 in monthly fees, including service and maintenance fees. A report from ACI Payments even suggests the number of bank charges can be as much as $450 per year. Typically a company needs to maintain at least an opening balance for around $500-5000, which is usually too high on cash flow-ridden businesses with fluctuating revenue streams. That’s why banks don’t put extra effort into working for smaller companies.
Also read: 5 Secrets No One Tells You About Small Business Finance Management
Challenges Small Businesses Face with Record Keeping
1. Low Visibility of Records
One of the challenges that small businesses face with record-keeping is the low visibility of records. This means that it is hard to find the records that are needed. This low visibility is caused by piles up of unkempt records and inadequate filing systems.
Small businesses do not utilise modern database technology to manage their records because they think it is too expensive and complicated. Also, most of them are used to traditional manual record-keeping methods. This has led to the poor visibility problem small businesses face with record keeping.
These small businesses must realize that they do not need complicated database technology to keep their records. The issues can be resolved by simply having automated invoicing software like Invoicera. Moreover, it is important for them to file the records as soon as possible so they can find them easily when needed.
2. Limited Insights of Balance Sheets
One of the challenges small businesses face with record keeping is limited insights into balance sheets. This has been caused by a lack of time as most owners manage day-to-day operations.
Many managers tend to focus more on running the business rather than looking at their financial statements. This is a massive problem because it leads to the creation of inaccurate financial statements, which are difficult to understand later on.
Small businesses must allocate time to review their financial statements to address this challenge regularly. This way, they can spot problems with their business in the early stages rather than later when it gets too late.
With Invoicera, managers can easily create multiple invoices for each customer. Data entry is fast and easy because one can create these invoices with just a few clicks.
Additionally, the invoices will show how much money is owed by each customer and when it is due. This will give business owners a better understanding of their company’s financial health.
3. Untracked Expenses
Small businesses also face the challenge of untracked expenses. This is because most of them do not have a system in place to track their expenses. As a result, they tend to forget about some of their expenses and this can impact their overall business performance.
To address this challenge, small businesses must track all their expenses using a system that is easy to use and understand. They can use software like Invoicera which will help them track all their expenses in one place.
Additionally, by tracking their expenses, small businesses can save money on taxes. This is because they can identify which expenses are tax-deductible.
Invoicera offers a powerful reporting feature that helps small businesses keep track of all their expenses. The reports can be customized according to the needs of the business.
Also read: 3 Easy Finance Management Tips for Small Business
Invoicera-The go-to Platform for All Your Financial Needs
By using Invoicera, small businesses can overcome the challenges of record keeping. The software is easy to use and it offers a variety of features that help businesses keep track of their finances.
1. AR and AP management
Invoicera software keeps track of all your amount received and the amount paid. This way, you have control over your money. Moreover, managing your vendors has never been easier. With a single dashboard of accounts payable and receivable management software, you can easily keep track of all vendor invoices as well as estimates. However, In banks, you don’t get such a facility.
2. Cash Flow Management
Small businesses face challenges for keeping cash flow in momentum, keeping in mind, Invoicera has designed a tool to create invoices and timely payments. This way, you will be able to focus on your business to grow better.
3. Expense management
With Invoicera, you can manage your expenses conveniently and effectively. Take a look:
- You can easily maintain a record of expenses that happen regularly.
- You can easily import expense files on the Invoicera dashboard.
- The software creates searchable categories, and you can also analyze reports country-wise.
4. Financial Forecasting
Invoicera offers you complete control over your money in different projects. It provides detailed reports on your expenses that help you track and forecast finances for better productivity.
5. Multi-Currency & Multi-Lingual
You can make and receive payments worldwide in different currencies and languages. It is quick, easy, reliable, and trusted by many small and medium enterprises.
6. 15+ Payment Gateways
Invoicera has always kept in mind the needs and requirements of small-sized businesses. The integration of 15+ payment gateway is one of the ways to ensure their convenience for making payments worldwide.
- Integration with International Payment Gateways (Forte, PayGate, SagePay, Eway, BluePay, Stripe, PayPal, Moneybookers, iTransact, Setcom, paymate, etc.).
- Integration with Indian Payment Gateways (Razorpay, Citrus, PayU India, Paydollar, EBS, Asiapay).
Over To You
If you own a small business, the chances are high that you face challenges with your expense management and record keeping. Invoicera offers an easy solution for invoicing that can help reduce operations costs while also helping you stay more organized financially in general.
This way, you can spend less time worrying about your finances and more on growing your business. So, don’t let your current provider hold back your company’s growth. Let’s get started today by signing up for a free trial account here.