3 Ways to Automate Your Business Finances (Even If You’re a Beginner)

Imagine this: you're crushing it. Your business is booming, new clients are rolling in, and you're on the cusp of that next BIG level. 

Except... you're buried under a mountain of invoices, receipts, and bank statements. The idea of tackling your finances fills you with dread, stealing precious time you could be spending on growing your empire.

Been there? Yeah, me too. As entrepreneurs, we wear a million hats. But trust me, Chief Financial Officer shouldn't be one of them (unless you actually love spreadsheets, which, let's be honest, most of us don't). 😅

That's where automation comes in. It's your secret weapon for freeing yourself from the financial quicksand and focusing on what truly matters: scaling your business and building your dreams.

Here's the magic: by automating repetitive tasks like bill payments, expense tracking, and even generating reports, you can reclaim hours each week. Think of it as having a tireless financial assistant working behind the scenes, keeping everything running smoothly.

But wait...

Automation isn't just about saving time. It also helps you avoid costly mistakes. No more late fees or missed payments because a bill got lost in the shuffle. Automation ensures everything gets paid on time, every time.

Now, you might be thinking, "This sounds great, but I'm not exactly a financial whiz. Where do I even begin?"

Don't worry, I got you. Here are some ways to get started with automating your finances:

Here's the thing: lenders look for stability, and that means having your finances in order. Cashflow is the heart of your business, and it's extremely important to manage it with care by understanding what's going on. 

This includes having a business budget and understanding how you make money, how you spend it, and how you keep and grow it. In other words, you NEED to know your numbers and the financial health of your business!

A great way to do this is to invest in accounting software.

There are several benefits for having accounting software:

1. Streamlined finances and saved time -- Manual tasks like data entry, bill payments, and report generation become automated, freeing up significant time for business activities that bring in more moo-lah 🤑.

2. Improved accuracy and reduced errors -- Software can automatically categorize transactions, saving time and ensuring consistency.

3. Clearer financial insights -- Generate reports and gain insights into your cash flow, spending habits, and overall financial health.

4. Simplified tax preparation -- Accounting software facilitates categorizing expenses and income, making tax preparation a smoother process.

5. Scalability and growth potential -- Accounting software can handle increasing financial complexity as your business grows and scales.

Explore popular options like Xero, QuickBooks Online, or FreshBooks. Most offer features like automatic bill payments, expense categorization, and automated reports (since lenders often  ask for this).

This tip sometimes gets me trouble since doing this will essentially get and keep your business in debt. But, when it comes to getting the most out of automating your finances, there's nothing better than using a business credit card to do it.😉

Here's why swiping plastic (strategically) can be a game-changer for busy entrepreneurs:

1. Streamlined expense tracking -- Most business credit cards offer detailed online statements and transaction categorization. Say goodbye to manual data entry and hello to seamless expense tracking.
2. Reconciliation on autopilot -- With all your business expenses neatly categorized on your credit card statement, reconciliation becomes a breeze. Just download the data and import it into your accounting software. Trust me, your bookkeeper will love you.
3. Earn valuable points or cash back -- Many business credit cards offer generous rewards programs on everyday business purchases. Turn that office supply run into travel points or thousands in cash-back!
4. Boost your business credit score -- Responsible credit card use helps build a strong business credit score, which can unlock better loan terms and lower interest rates in the future.

Now I know all of this sounds great, but some people may think, "But, Jeri! What about the interest?" Good question.

The truth is, although interest rates on credit cards can be high and intimidating, it's nothing to worry about if you develop the habit of paying off your credit card in full each and every month. By doing this, you avoid paying any interest on your credit card swipes while still getting rewarded.

Business owners wear many hats, and managing cash flow can feel like a constant juggling act. Automatic payments and transfers can be a game-changer that frees up hours of your time and improve your financial health (and credit scores). Plus, it's so easy to do!

Start by:

1. Putting all of your bills on autopay -- This ensures you don't miss a payment and potentially ruin your credit or financial goals. I HIGHLY recommend using a credit card to setup your payments and score some cash-back and travel points.
2. Set up recurring transfers from your primary checking account to your savings account, operational expense account, etc. You can transfer money weekly, bi-weekly, or monthly. Just make sure you have enough money in your account to pay your credit card(s) in full each month to avoid interest.

Here's how I have my finances automated as a small business owner myself.