As a business consultancy that offers company closure services, we’ve come across every conceivable issue that can force SMEs into insolvency. Chief among the reasons that many fall by the wayside is an inability to keep cash flows healthy.
As such, we’ve compiled a list of some of the best cash flow management tools to help UK SMES keep track of their financial comings and goings.
Some of these will be more suited to a particular size or type of business, but we’ll try to cover as many bases as possible.
Best for forecasting
Float
CFOs, accountants, and owners digging deep into their finances will love Float’s forecasting depth.
Cumbersome spreadsheets can be ditched in favour of clear visuals that project future cash positions and help to identify potential shortfalls coming up.
Pros:
Great integration with Xero and other accounting software
Ability to create ‘what if’ scenarios that show how things could change if certain purchases are made or staff hired
Intuitive UI for non-accountants
Cons:
Not as comprehensive as some other options. Mainly a forecasting tool
Doesn’t support multi-entity consolidation, making it less useful for large businesses with more complex infrastructure
Best for jargon-free insights
Futrli
Not all business owners are au fait with the dizzying lexicon of the finance world.
If you’re similarly dazed by the likes of EBITDAs, PIK notes, and accordion agreements, you’ll likely appreciate this jargon-free tool created by Sage.
The simple-to-understand insights it provides makes this a great choice for accounts teams preparing reports for colleagues that lack a financial background too.
Pros:
Can forecast balance sheets, cash flow and P&L simultaneously
Good for complicated strategic plans over several years
Cons:
Can be a little tricky to set up initially
Best for small service-based businesses
Helm
Helm is another platform that attempts to make cash flow management simpler. Its intuitive interface uses a drag-and-drop timeline that’s easy to get used to. If you’re just looking for practical answers such as whether you can afford to hire somebody new in the short-to-medium term, then Helm is worth a look.
Pros:
The drag-and-drop timeline feature flattens the learning curve somewhat
Cons:
Focused on the next few months. Anyone looking for years of complex forecasting will be better served elsewhere
Best for multi-entity businesses
Calxa
If you need to track cash flows across many different sub-divisions, franchises, or charities, Calxa has you covered. It has a particular focus on budgets, making it a good choice for non-profits and charities too.
Pros:
Emphasis on budgetary restraints
Can forecast up to ten years ahead
Cons:
Could be a little ‘easier on the eye’. Dry and spreadsheet-like appearance.
Best for B2B invoice control
Fluidly
If you’re looking for a tool that handles credit control alongside cash flow forecasting, Fluidly might be of interest. Those that find their cash flows are regularly stretched by late invoices will find the dual focus particularly useful.
Pros:
AI learns who your worst payers are prioritises invoice chasing accordingly
Cons:
The heavily automated AI infrastructure makes it a little more difficult to manually enter changes
Best for micro businesses and new directors
Cash Flow Frog
Similarly to Futrli, Cash Flow Frog’s focus is on conveying its findings in as simple a manner as possible. If you’ve never used cash flow management tools before, this would make for an excellent introduction.
Pros:
Even complete novices can create a cash flow forecast in minutes
Cons:
Lacks the complexity and depth that larger firms might require
Best for scaling up
Agicap
However large your company grows, Agicap has the ability to scale up alongside it. Connecting directly to your bank accounts, it provides real-time changes and incredibly accurate figures as a result.
Pros:
Syncs to bank accounts
Good automation options
Cons
Cost may be prohibitive for smaller firms
Can take a while to set up
Best for presentations
Spotlight Reporting
If it’s your accounts team or CFO that provides your forecasts, Spotlight Reporting can make their life a little easier by creating presentation-ready reports and cash flow water charts.
Pros:
Handles multi-currency consolidations well
Cons:
Might be too much for smaller firms
Other options
Business insolvency expert, Ben Westoby adds that “some firms may be able to get away with the most basic forecasting features of accounting tools like Sage, Xero and Quickbooks, but if you can afford to, it can be very helpful to invest in a dedicated tool.
“Stretched cash flows cost businesses dearly. Anything that gives you the ability to see how different scenarios could affect your reserves could be the difference between success and closure down the line”.
Still having difficulties with your cash flow?
The wealth of tools available now means that it’s never been easier to track your company’s cash flow.
That doesn’t mean that it still can’t pose a problem though.
Late payments and unpaid invoices can stretch even the healthiest businesses to their limits. If you find your finances becoming uncomfortably tested, then it’s crucial that you act as soon as possible.
We have specialists on hand that can help you to create and implement effective growth strategies that take your business to the next level. Call us on 0800 060 8505, or email advice@forbesburton.com for a free consultation.
