While holistic financial planning is important for all businesses, startups need it more than most ventures as they are yet to establish themselves in the market. Financial planning allows startups to meet their existing and future financial goals by creating robust plans.
A good financial planning tool helps you allocate the right resources in the right areas to achieve the desired financial goals. From maintaining a healthy cash flow to earning the desired ROI, financial tools help you sustain your business and thrive in the market.
Startups are exposed to several financial tools depending on the purpose they serve and the features they offer. It is important to evaluate these options and choose the right tools to create a financially sound plan.
Here are a few factors you should consider to evaluate financial planning tools for startups:
Choosing Between In-house Or Outsourced Implementation
When it comes to implementing a financial planning tool, startups have two major alternatives to choose from – outsourcing the implementation or in-house implementation. While in-house implementation is well-informed, as the team members know the business well, outsourced implementation is quicker and more specialized. You can make your decision according to your business needs and preferences.
Third-party Integrations
Suitable third-party integrations expand your financial planning tool’s overall functionality. Choose the tool you can readily integrate with the right applications and services to enhance your financial processes.
Product Dimensions
Make sure you are aware of the different dimensions you can pivot on before choosing the right financial planning tool for your startup. Decide if these dimensions are unlimited or if they can be fixed after the implementation. Moreover, make sure you know how you want your team to handle different aspects related to creating extensive plans to choose a suitable planning tool.
Seamless Cash Flow Management
A stable cash flow is arguably the most important element in a startup’s financial plan. Gone are the days when employees would manage cash flow manually. Always go for financial planning tools that facilitate seamless cash flow management with simple yet automated functionality.
Hassle-free Accounting
Financial accounting often forms the crux of a financial plan. Financial statements like balance sheets, profit and loss statements, etc., help you analyze your startup’s performance and identify important trends. Implementing a financial planning tool that ensures hassle-free accounting and provides users with valuable insights into the business’s financial records is always advisable.
Layered Security
Financial records are often some of the most sensitive records handled by an organization. A startup cannot afford any breaches in its valuable records. Implement a financial planning tool that provides you with layered security and sets standard security protocols to keep your system safe from several threats.
Create A Robust Financial Plan For Your Startup With VIZIO
If you run a startup and want to keep it financially sound, VIZIO can help you create robust and business-specific financial plans. Our experts are trained to blend software development with finance management, helping you make the right financial decisions across the board.