ERP & Financial Health: Things Every Startup Should Know

Taking off a new enterprise to the next big level requires a tremendous amount of attentiveness and intelligence. Right from customer acquisition to retention, driving a new business on the right foot is no easy feat. Of all the areas, financial health is one such area that requires special attention and vigilance. Yes, even the greatest of business ideas can turn futile if the cash soaks up. If accounts is not your cup of tea or primary expertise area, then here are some accounting tips that you as a startup entrepreneur should know and yes, you ought to get an ERP software.

1. Plan and stick with your budget. Don’t let go!

Refrain from spending until you decide and finalize a budget for your startup. Simply put, decide where you want your cash to flow and allow the finances accordingly. Yes, there might come a time or situation where something might pop up all of a sudden that could disrupt your budget. Thus, it is always advisable to spare funds for any unexpected emergency or situation.

1. ERP software: A perfect accounting sidekick

Signing checks blindly and checking your bank account every day is never a smart way of managing your finances. In fact, it is the worst thing you can do to your startup. To make smart financial decisions for both long and short term, you ought to have a good grip on your finances. The most sound and smart way to ensure this is by using an intelligent accounting or ERP software. Yes, an ERP system will serve as a perfect companion for your startup when it comes to taming your finances. Further, a cloud based ERP solution makes it a cakewalk to access your financial data from anywhere and anytime.

1. Work smart!

As a token of loyalty, you can consider offering special discounts for customers who pay you early and promptly. You can set up automatic alerts and notifications for the same. Again a good ERP software can help you achieve this since it would automate your sales and purchase processes whilst giving you a clear view of a customer’s purchase and payment history. Nothing works better when it comes to winning your customers’ trust than rewarding them for their loyalty.

1. Don't wait to open your umbrella until it starts raining!

Never wait for the stormy rains before babbling out to open that umbrella! Have a backup plan ready and reserve your cash for it. Look ahead at the funds that you plan to expand in the next couple of years and ascertain if the funds reserved could help you get there. ERP solution can be of great help here since it would offer a comprehensive view of your finances at the click of a button.

Takeaway

The money invested in an ERP software will payout in the long run. A good ERP system can keep a track of your day-to-day finances thus, giving you total control over your cash flow. Startup owners ought to keep a bird’s eye view of all the critical processes and financial health is something that they cannot afford to miss. Use smart accounting tricks along with equipping your startup with an intelligent ERP software to help your small venture gain ground.