A Guide to Business and Cashflow Software for SME's

Managing cash flow is one of the biggest challenges for business owners. Without the right tools, even profitable businesses can struggle to maintain financial stability. That’s where business cashflow software comes in—helping you track, forecast, and optimise your finances.

With the right cash flow forecasting software for small business, you can plan ahead, avoid cash shortages, and make informed decisions. In this guide, we’ll explore the best cash flow software for small business, how to choose the right one, and why cash flow forecasts are important to small businesses.

Why Cashflow Software is Essential for Business Success

Small businesses often operate on tight margins, and a single late payment or unexpected expense can create cash flow problems. Cash flow management tools for small business help mitigate these risks by providing real-time insights into your financial position.

Benefits of using cash flow software include:

• Accurate forecasting: Predict cash inflows and outflows and prepare for seasonal fluctuations.
• Expense tracking: Identify areas to cut costs and improve cash flow.
• Automated reports: Reduce manual work with auto-generated cashflow projections.
• Scenario planning: Test different strategies for business cashflow planning.

For a deeper dive into why cash flow forecasting is important, check out our article on Why Every Business Needs Long-Term Cash Flow Forecasting.

Types of Business and Cashflow Software

There are different types of cashflow forecasting software to consider. Here’s a breakdown of the most popular options:

1. Xero Cashflow Forecasting Apps
   Xero cashflow forecasting is a popular option for small businesses already using Xero for accounting. It provides real-time cash flow tracking, connects with bank feeds, and integrates with third-party cash flow apps for small business.
   🔹Best for: Small businesses looking for a simple way to forecast cashflow in Xero.

2. Float Cashflow Forecasting
    Float is a cashflow forecasting software designed specifically for small businesses using Xero or QuickBooks.        It pulls in real-time data and allows for scenario planning.
    🔹 Best for: Businesses that need advanced 3-way cashflow forecasting.

3. Cashflow Manager Small Business Accounting Software
     This standalone software focuses on cash flow tools for small business, including expense tracking, invoicing,       and budgeting.
    🔹 Best for: Businesses looking for a free cash flow software for small business option.

4. Pulse Cash Flow Software
    Pulse offers simple but powerful cash flow forecasting software for small business, allowing companies to            track cashflow projections and manage expenses.
    🔹 Best for: Small businesses that need cash flow apps for small business with intuitive dashboards.

How to Choose the Best Cash Flow Software for Your Business

With so many small business cash flow management software options available, it’s important to choose the right one. Here are key factors to consider:

Integration with Accounting Software:

Does the software integrate with Xero, QuickBooks, MYOB, or your existing accounting platform? If you’re using Xero, check if it supports a Xero cashflow forecast app.

3-Way Cashflow Forecasting:

A 3-way cashflow forecast includes projections for cash flow, profit & loss, and the balance sheet. Many advanced cash flow apps for small business support this feature.

Scenario Planning:

Can the tool test different financial scenarios? This helps you plan for worst-case situations and understand how decisions will impact cash flow.

Automated Alerts & Reporting:

The best cashflow business software should automatically notify you of potential cash shortages so you can take action.

Pricing & Scalability:

Some businesses need cheap 3-way cashflow forecasting software, while others want premium features. Ensure your chosen software fits your budget and can scale with your business.

How to Improve Cash Flow with Software

Using business cashflow software effectively can make a huge difference in financial management. Here’s how:

• Automate Your Cashflow Forecast - Most cashflow forecasting Xero apps allow you to create an automated cash flow forecast that updates in real-time. This removes the guesswork and lets you focus on strategic planning.
• Monitor Receivables and Payables - Use cashflow forecasting software to track overdue invoices and send automated reminders. Many cash flow tools for small business allow you to set up early payment discounts.
• Cut Unnecessary Expenses - Regularly reviewing costs is a key part of small business cash flow management software. Set spending limits and get alerts when expenses exceed projections.
• Plan for Seasonal Fluctuations - Retail businesses often experience seasonal cash flow swings. Using Xero cashflow forecast tools, you can prepare for busy and slow seasons in advance. For more insights, check out our blog: Managing Christmas Cash Flow (And Planning Ahead).

Using business cashflow software is one of the best ways to stay on top of cash flow forecasting. However, software alone won’t solve every problem—having the right cash flow strategies in place is just as important.

Discover the top strategies for maintaining steady cash flow in our article: Effective Cash Flow Solutions for Businesses.

Common Cash Flow Challenges & Solutions

 Even with the best business cashflow software, cash flow problems can arise. Here’s how to handle them:

1. Cash Flow Shortages
   Problem: Unexpected expenses create a cash flow crisis.
   Solution: Use cash flow management tools for small business to set aside a cash reserve.
2. Late Customer Payments
   Problem: Customers delay payments, affecting cash inflow.
   Solution: Send automated reminders using cashflow forecasting Xero integrations.
3. Poor Budgeting
   Problem: Expenses exceed revenue, leading to financial strain.
   Solution: Implement free cash flow software for small business to track spending.

If you’re struggling with cash flow, check out our blog: Understanding the Cash Flow Statement: A Comprehensive Guide. 

FAQ: Business and Cashflow Software

1. What is a cash flow spreadsheet?
   A cash flow spreadsheet is a tool (often in Excel) used to track money coming in and out of a business manually.
2. How to improve cash flow?
   To improve cash flow, monitor expenses, reduce late payments, and use cashflow forecasting software to anticipate shortfalls.
3. How to improve cash inflow?
   Increasing cash inflow involves speeding up receivables, optimising pricing, and using a small business cash flow app.
4. How to increase cash flow?
   You can increase cash flow by cutting costs, renegotiating supplier terms, and using cashflow business software for better financial planning.
5. What is a cashflow projection?
   A cashflow projection estimates future cash inflows and outflows, helping businesses prepare for financial ups and downs.
6. How to calculate cash flow?
   Use this formula: Cash Flow = (Total Income – Total Expenses) – Increase in Receivables + Increase in Payables – Increase in Inventory – Decrease in Debt.
   

What's this mean? Learn more in the Cash Flow Playbook.

Final Thoughts: Choosing the Best Cashflow Business Software

The best cash flow forecasting software for small business depends on your needs. Whether you’re looking for a Xero cashflow forecast app, a small business cash flow app, or a business cashflow Xero integration, the key is finding a solution that helps you stay ahead of cash flow issues.

Want expert help managing your cash flow? Check out our Cash Flow Forecasting Services.