Insight Blog
How to Onboard Employees So They Won’t Bounce in 2024
Onboarding is a critical journey during which new employees acquire the knowledge, skills, and behaviors necessary for seamless integration into an organization. It commences with administrative tasks, including paperwork and first-day orientation, typically managed by the HR department. Subsequently, role-specific training, such as shadowing a colleague and team integration, encompassing formal introductions and informal social interactions.
This phase of onboarding, typically overseen by the new employee's manager, facilitates relationship building, understanding of team dynamics, and a sense of belonging within the organization.
Assuming the responsibility of managing a new employee's onboarding process can be daunting, particularly if you are still navigating your own role. However, there are strategies you can employ to ensure that your new team members have a positive onboarding experience, setting the stage for their long-term success within your team.
Selecting an exceptional candidate requires a substantial investment of thousands of dollars and hundreds of staff hours. Honoring this investment and the individual must be honored by providing a considerate and effective onboarding experience. Explore these four key elements of a successful onboarding process to integrate into your organization seamlessly.
Understanding Employee Onboarding
Onboarding, often referred to in the human resources industry as organizational socialization, is the systematic process of introducing a newly hired employee to an organization. This crucial phase is vital in helping employees grasp the nuances of their new roles and job requirements, facilitating a seamless integration into the company.
The onboarding journey encompasses various activities, from the initial job offer to team training sessions. The duration of onboarding can vary significantly, ranging from a few weeks to a year. However, the most effective onboarding experiences typically extend over several months, aiming to instill confidence and competence in employees by the process's conclusion.
While there isn't a rigid rule dictating the duration of onboarding, thoroughness is key. Some companies opt for a brief onboarding process, lasting only a month or a few weeks. However, this approach risks overwhelming new employees with their responsibilities and impeding their ability to connect with the broader company culture.
Many HR professionals advocate for an onboarding process lasting approximately 90 days. Some even recommend extending this period up to a year.
This extended timeframe ensures that employees have the necessary resources to acquaint themselves with the company, internalize their training, and feel confident in fulfilling their job responsibilities as expected. A comprehensive and well-paced onboarding process sets the stage for long-term success and satisfaction for both the employee and the organization.
Importance of onboarding statistics: Understanding the importance of onboarding is underscored by compelling statistics highlighting its impact on employee engagement, productivity, and retention. According to studies, organizations with a well-structured onboarding process experience 50% greater productivity from new hires and achieve a 58% higher retention rate than those with inadequate onboarding practices.
Furthermore, 69% of employees are likelier to stay with a company for three years if they experience great onboarding.
These statistics emphasize how a thoughtful onboarding program contributes significantly to the long-term success and satisfaction of employees within an organization.
Onboard employees examples
Here are a few examples of how companies can onboard employees effectively:
- Welcome Package: Provide new employees with a welcome package containing company-branded items, an employee handbook, and a personalized welcome letter. This tangible gesture creates a positive first impression.
- Buddy System: Implement a buddy system where new hires are paired with experienced employees who can guide them through their first weeks, answer questions, and help them integrate into the team culture.
- Orientation Sessions: Conduct comprehensive orientation sessions that cover the company's history, mission, values, and organizational structure. Include an introduction to key team members and an overview of departmental functions.
- Digital Onboarding Platforms: Utilize digital onboarding platforms like AgilityPortal to automate administrative tasks, manage paperwork, and guide new hires through the onboarding process efficiently.
- Training and Development Programs: Offer training programs tailored to the specific roles of new employees. This ensures they acquire the necessary skills and knowledge to excel in their positions.
- Regular Check-ins: Schedule regular check-ins with new hires during their first few weeks to address any concerns, gather feedback, and ensure they are comfortable with their roles and responsibilities.
- Company Culture Initiatives: Introduce new employees to the company culture through team-building activities, social events, or virtual meetups. This helps them feel connected and engaged with their colleagues.
- Technology Orientation: Provide a technology orientation session to familiarize new hires with the tools and software used within the company. This ensures they can navigate digital platforms seamlessly.
- Clear Expectations: Set clear expectations regarding job roles, performance metrics, and career growth opportunities. This transparency helps new employees understand their responsibilities and align their goals with the company's objectives.
- Feedback Mechanism: Establish a feedback mechanism where new hires can share their onboarding experiences, suggest improvements, and express any challenges they may be facing. This input can be valuable for refining the onboarding process.
These examples showcase a mix of traditional and modern onboarding practices, emphasizing the importance of creating a welcoming and structured experience for new employees
What Are Onboarding Activities?
Onboarding comprises a series of distinct processes, and despite its integral role in welcoming new employees, there is no universally accepted definition. Opinions continue to diverge regarding the specific activities encompassed by the term "onboarding."
Among the myriad onboarding activities, several common elements play a crucial role in the comprehensive onboarding experience. These include:
- Job Offers: The initiation of onboarding often commences with the formal presentation of a job offer, signaling the official beginning of the employee's journey with the organization. This phase establishes the foundation for the ensuing onboarding processes.
- Salary Negotiation: Salary negotiations, integral to the onboarding process, reflect the mutual alignment of expectations between the employee and the organization. Clear and transparent discussions during this phase contribute to a positive and satisfactory onboarding experience.
- New Hire Paperwork: Completing new hire paperwork is a fundamental aspect of onboarding, involving the formal documentation required for employment. This includes personal details, tax-related information, and other essential documents necessary for HR and organizational compliance.
- Policy and Culture Training: Immersing new hires in the company's policies and culture is a pivotal onboarding step. This training not only imparts knowledge about the organization's values and principles but also fosters a sense of alignment and belonging among new team members.
- Job Training: Job-specific training ensures that new employees acquire the skills and knowledge essential for their roles. This targeted training phase contributes to the employee's successful integration into their designated responsibilities.
- Employee Handbook Training: Familiarizing new hires with the employee handbook is a crucial onboarding component. This document serves as a comprehensive guide detailing company policies, expectations, and essential information that aids in navigating the organizational landscape.
- Benefits Paperwork: Onboarding often involves the completion of benefits-related paperwork, ensuring that employees are enrolled in the organization's health, retirement, and other relevant benefit programs.
- Benefits Education: Beyond paperwork, educating new hires about the available benefits, including healthcare plans, retirement options, and other perks, enhances their understanding of the comprehensive package offered by the organization.
- Facility Tours: Guiding new employees through the physical workspace via facility tours provides them with a tangible understanding of their work environment. This fosters a sense of orientation and familiarity, contributing to a smoother integration process.
- Executive Introductions: Introducing new hires to executive leadership creates a sense of connection and demonstrates the organization's commitment to a welcoming and inclusive culture. These interactions may include meet-and-greet sessions or formal introductions, fostering a positive relationship from the outset.
- Team Introduction: Facilitating introductions to the immediate team is a cornerstone of onboarding. Building relationships with colleagues and understanding team dynamics contribute significantly to the new employee's sense of belonging within the organization.
So remember that onboarding encompasses a multifaceted array of activities, each uniquely acclimating new employees to their roles, the company culture, and the broader organizational landscape. A comprehensive and well-executed onboarding process sets the stage for a positive and productive employee experience.
The Employee Onboarding Process: How to Onboard Employees
Effective employee onboarding is a critical component of a successful talent management strategy. It goes beyond just introducing new hires to their roles; it encompasses a holistic approach to integrate them into the organizational culture, clarify their roles, and establish a foundation for long-term success. Here's a detailed breakdown of the key elements in the employee onboarding process.
1.Provide Information on Company Policies and Benefits
One of the initial steps in onboarding is to equip new employees with essential information regarding company policies and benefits. This includes a comprehensive overview of HR policies, codes of conduct, and an explanation of the benefits package. Clear communication about these aspects sets the groundwork for employees to understand their rights, responsibilities, and the support available to them within the organization
2.Provide Role Clarity
Ensuring role clarity is paramount for the success of new hires. During onboarding, organizations should provide detailed insights into the expectations and responsibilities associated with each role. This involves sharing job descriptions, key performance indicators (KPIs), and performance expectations. Clarity in roles not only enhances productivity but also contributes to employee satisfaction and engagement.
3.Facilitate Training
Training is a crucial component of the onboarding process. It involves both general training on company policies and specific job-related training. General training may cover topics like cybersecurity, workplace safety, and diversity and inclusion. Job-related training, on the other hand, is tailored to the specific skills and knowledge required for the new role. A well-structured training program accelerates the integration of new hires into their positions.
4.Induct into Organizational Culture
Organizational culture plays a pivotal role in shaping the work environment. During onboarding, it is essential to immerse new employees into the company's culture. This can be achieved through orientation sessions, introducing core values, and sharing anecdotes that exemplify the organization's ethos. A strong cultural fit contributes to employee satisfaction, reduces turnover, and fosters a positive workplace atmosphere.
5.Help Form Social Connections with Colleagues
Building social connections is a key aspect of onboarding that is often overlooked.
Encouraging new hires to form relationships with their colleagues promotes a sense of belonging and team cohesion. Activities such as team lunches, informal gatherings, or mentorship programs can facilitate social connections. A supportive social network within the workplace contributes to a positive employee experience and helps in the retention of talent.
A well-executed employee onboarding process is a strategic investment that pays off in terms of increased productivity, higher employee satisfaction, and improved retention rates. By addressing these key elements - providing information on company policies, ensuring role clarity, facilitating training, inducting into organizational culture, and promoting social connections - organizations can create a positive and impactful onboarding experience for their new hires.
Why is onboarding important for retention 2024
An inadequate onboarding experience can leave employees uneasy, perplexed, and demoralized.
According to a recent survey by Paychex, 52% of new hires express a sense of being undertrained post-onboarding, with small company employees (66%) and remote workers (63%) facing the greatest challenges. This deficiency significantly impacts productivity and retention. Another report reveals that 51% of employees would go "above and beyond" in their work if they had a positive onboarding experience. Conversely, a subpar onboarding experience can decrease employee engagement, costing businesses 18% of their employees' salaries.
The consequences of a poor onboarding experience extend to high turnover rates, with a staggering 50% of newly hired employees planning to leave their jobs soon, skyrocketing to 80% for those who feel undertrained due to inadequate onboarding. In contrast, 7% of well-trained employees are inclined to leave soon.
Despite the compelling evidence emphasizing the significance of effective onboarding, many managers and organizations struggle to get it right. A recent survey indicates that only 52% of new hires feel satisfied with their onboarding experience, with 32% finding it confusing and 22% deeming it disorganized. Remote workers face even greater challenges, with 36% finding the onboarding process baffling.
It is crucial for first-time managers to address these onboarding gaps to retain their team members and sustain overall productivity.
So, in a nutshell, Why is onboarding important for retention? It's crucial for employee retention as it sets the foundation for a positive work experience, fostering a sense of belonging and engagement from the beginning.
Understand Onboarding Challenges
Are you familiar with the saying, "The first impression is the best impression"?
Onboarding serves as the definitive first impression. It establishes the atmosphere for your new hire's entire career, influencing whether they become a positive brand ambassador or contribute to a negative Glassdoor review.
While not everything is entirely avoidable, you can be proactive.
Explore these typical issues that often hinder onboarding and hurt the overall employee experience.
Lack of Role Clarity
When new employees lack clear guidance on their roles and responsibilities, it creates a sense of uncertainty. They may struggle to understand their specific duties and expectations and how their contributions align with the broader goals of the organization. This ambiguity can lead to frustration and hinder their ability to engage in their work proactively.
Too Much Information Overload
Providing an overwhelming amount of information during the onboarding process can be counterproductive. New hires may find it challenging to absorb and prioritize the vast array of data, leading to confusion and potential cognitive overload. This, in turn, can impede their ability to apply the information effectively in their daily tasks.
Issues With Onboarding Content Access
Seamless access to onboarding materials is essential for effective learning. Difficulties in accessing content, whether due to technical issues or a lack of centralized information, can hinder new employees' progress. Limited access may result in delays in understanding crucial processes, policies, and expectations, slowing down their integration into the organizational ecosystem.
Old Outdated Manual Onboarding Processes
Relying on manual onboarding processes, such as extensive paperwork and administrative tasks, can be time-consuming and error-prone. This traditional approach not only consumes valuable resources but also introduces the risk of inaccuracies. Automating and streamlining onboarding procedures can enhance efficiency, reduce errors, and contribute to a more positive onboarding experience.
Tech Knowledge Gap
In today's tech-driven workplaces, a knowledge gap in essential tools and platforms can be a significant hurdle. If new employees lack proficiency in the digital tools integral to their roles, it can impede their ability to collaborate, communicate, and execute tasks efficiently. Bridging this tech knowledge gap through targeted training and support is crucial for ensuring a smooth transition into the digital work environment.
Improve Existing Onboarding Process
If your recent transition to a remote work environment has taken place, it's essential to revisit job descriptions and handbooks to incorporate remote work policies. This includes introducing more flexible schedules wherever feasible.
A remote onboarding plan necessitates a distinct set of priorities compared to the original plan, which was likely tailored for a traditional office setting.
If you haven't done so already, it's time to revamp your employee handbook to make it more digitally friendly.
Consider:
- Consolidating crucial policies into one PDF package alongside important forms or links for taxes and benefits.
- Utilizing hyperlinks for easy reference to regulations and resources.
- Incorporating multimedia to disseminate information effectively.
- Exploring dedicated employee handbook software for a more streamlined approach.
Onboarding a new remote team member provides an excellent opportunity to assess current onboarding processes and make necessary adjustments.
Consider the following:
- What does your existing employee onboarding plan include?
- How effective is your current onboarding process?
- What aspects have other employees found helpful or not useful?
- What elements are lacking in the traditional methods of helping employees acclimate?
- Has the shift to remote work influenced your workplace culture?
- What practices contribute to making all employees feel genuinely valued?
Factor In New Employee's Remote Work Style During the Onboarding Process
- Productivity and Overworking: Striking the right balance between productivity and preventing burnout can be challenging in a remote work setup. The absence of clear boundaries between work and personal life may lead to individuals overworking, impacting their overall well-being.
- Lack of Camaraderie: The sense of camaraderie that naturally develops in a physical office environment can be challenging to replicate remotely. The absence of casual interactions and spontaneous discussions may affect team cohesion and employee morale.
- Clear Communication of Policies and Procedures: Remote work requires effective communication of company policies and procedures. Ensuring that all team members have a comprehensive understanding of expectations, guidelines, and changes becomes crucial to maintaining a cohesive and compliant work environment.
- Managing HR Paperwork: Remote work often involves dealing with HR paperwork electronically. Establishing efficient systems for document submission, verification, and record-keeping is vital to streamline HR processes and maintain compliance.
- Video Conferencing Challenges, Including Fatigue: While video conferencing facilitates virtual collaboration, prolonged use can lead to fatigue. Recognizing the need for breaks, alternative communication channels, and strategies to combat virtual meeting exhaustion is essential.
- Lack of Motivation to Interact for New Employees: New employees, especially in a remote setting, may face challenges initiating conversations and building connections. Implementing structured onboarding programs that encourage interaction and mentorship can help integrate new team members.
- Poor Training Tools and Structure:Inadequate training tools and a lack of structured onboarding programs can hinder the seamless integration of new employees into the remote work environment. Providing comprehensive training resources and mentorship opportunities is vital for their success.
- Unavailability of Management:The physical distance in remote work may lead to a perception of management unavailability. Establishing clear channels for communication, regular check-ins, and accessible management can address this challenge.
- Lack of Immediate, Face-to-Face Connection:The absence of face-to-face interactions may result in a perceived lack of immediacy in addressing concerns or seeking feedback. Utilizing virtual platforms effectively and fostering open communication channels becomes crucial.
- Lack of Nonverbal Cues in Conversations:Remote communication lacks the richness of nonverbal cues present in face-to-face interactions. Encouraging the use of video calls and adopting clear communication practices can help bridge this gap.
- Lack of Scheduling Flexibility: While remote work is often associated with flexibility, some employees may face challenges in balancing work hours. Discussing and accommodating varying schedule preferences during onboarding can contribute to a healthier work-life balance.
So recognizing and actively addressing these challenges is crucial for fostering a positive remote work environment. Managers play a pivotal role in understanding individual work styles, promoting effective communication, and implementing strategies that enhance the overall remote work experience.
New Hire Onboarding Checklist
Every thriving company recognizes that the cornerstone of a seamless recruitment process lies in the effectiveness of its onboarding procedures.
The more meticulous the onboarding process, the smoother the assimilation of new hires into their roles, enabling them to gain a comprehensive understanding of job expectations and fostering a sense of camaraderie within the team.
A robust onboarding process not only benefits the employees but also serves the employer by ensuring enhanced job performance, increased operational efficiency, and a higher level of employee satisfaction, thereby boosting engagement and retention rates. In essence, a well-structured onboarding plan aligns the interests of all stakeholders involved.
Given the multifaceted nature of preparing a new hire for success, an onboarding checklist proves invaluable in ensuring that no essential elements are overlooked, especially during the hectic initial weeks.
Here are key considerations to incorporate into your onboarding process checklist template:
- Clear Job Expectations: Clearly communicate job responsibilities and expectations to provide new hires with a solid foundation for their role.
- Team Integration: Facilitate activities or introductions that foster a sense of belonging and connection with the team, enhancing the new hire's integration into the company culture.
- Training and Skill Development: Implement comprehensive training programs that equip new hires with the necessary skills and knowledge for their specific roles.
- Company Policies and Culture: Educate new employees on company policies, values, and culture, ensuring alignment with the organizational ethos.
- Performance Expectations: Clearly outline performance expectations and key performance indicators to guide new hires toward achieving success in their roles.
- Feedback Mechanism: Establish a feedback mechanism to encourage open communication and provide constructive feedback during the initial phases of employment.
- Mentorship Opportunities: Provide mentorship opportunities to facilitate the integration process and offer guidance from experienced team members.
- Resource Access: Ensure new hires have access to essential resources, tools, and information required for their daily tasks.
- Introduction to Company Tools and Systems: Familiarize new employees with the various tools, software, and systems essential for their roles to enhance efficiency.
- Performance Review Schedule: Outline a schedule for performance reviews to provide ongoing support, address concerns, and celebrate achievements.
Try by incorporating these elements into your onboarding checklist, you can create a comprehensive and systematic onboarding process that maximizes the success and satisfaction of new hires while contributing to the overall success of the organization.
Elements of an Effective Employee Onboarding Workflow
An employee onboarding workflow serves as a structured series of predetermined steps designed to introduce a new employee to the organizational environment and culture. A well-crafted and seamless onboarding process is paramount for organizations seeking to establish early engagement with their employees and provide a positive and streamlined onboarding experience.The onboarding journey encompasses a spectrum of activities, including new hire orientation, training modules, socialization initiatives, and more.
Key Elements of an Effective Employee Onboarding Workflow:
- New Hire Orientation:The onboarding workflow typically kicks off with a comprehensive new hire orientation. This session introduces the employee to the organization's mission, values, and overarching goals, fostering an early understanding of the company's ethos.
- Training Programs:An integral component involves the implementation of targeted training programs. These sessions equip new employees with the skills, knowledge, and tools essential for their roles, ensuring a smooth transition into their responsibilities.
- Socialization Initiatives:Beyond formal training, socialization initiatives are crucial for integrating new hires into the company culture. These activities may include team-building exercises, introductions to colleagues, and opportunities for informal interactions.
- Introduction to Policies and Procedures:Providing a detailed overview of organizational policies and procedures is essential. This step ensures that new employees are well-versed in the guidelines governing their conduct and performance within the company.
- Technology Onboarding:Familiarizing new hires with the various technological tools and systems used within the organization is vital. This facilitates a smooth adaptation to the digital landscape of the workplace.
- Mentorship Opportunities:Incorporating mentorship programs into the workflow offers new employees a supportive relationship with experienced colleagues. This mentorship aids in navigating the organizational landscape and provides a valuable resource for questions and guidance.
- Feedback Mechanism:Establishing an open and accessible feedback mechanism is key. This allows new hires to express concerns, seek clarification, and receive constructive feedback during the early stages of their employment.
- Performance Expectations:Clearly articulating performance expectations and key performance indicators (KPIs) helps set a benchmark for success. This step guides new hires in aligning their efforts with the organization's objectives.
- Resource Access:Ensuring that new employees have seamless access to essential resources, whether physical or digital, is crucial for uninterrupted workflow and productivity.
- Ongoing Support:The onboarding workflow should not be perceived as a one-time event but rather as an ongoing process. Providing continuous support, check-ins, and opportunities for further skill development contribute to sustained employee growth and engagement.
In essence, a meticulously designed employee onboarding workflow not only imparts knowledge but also cultivates a sense of belonging and purpose within the organizational framework. By incorporating these elements, organizations can optimize their onboarding processes, setting the stage for a successful and enduring employer-employee relationship.
Benefits of using an employee onboarding automation
Establishing a robust employee onboarding process is crucial to mitigate last-minute confusions and ensure compliance with regulatory requirements. An efficient employee onboarding software plays a pivotal role in streamlining this process, offering a range of benefits that contribute to a seamless and effective onboarding experience.
Key Advantages of an Efficient Employee Onboarding Software:
- Clearly Outlined Onboarding Template: An effective onboarding software provides a clearly outlined template, offering a structured framework for the onboarding process. This ensures that essential steps are systematically followed, minimizing oversights.
- Minimization of Paperwork Chaos: By digitizing onboarding documents and processes, the software minimizes the chaos associated with traditional paperwork. This not only enhances efficiency but also contributes to a more environmentally friendly and sustainable onboarding approach.
- Shortened Onboarding Lifecycle: The software is designed to expedite the onboarding lifecycle, reducing the time it takes for new hires to transition from recruitment to fully functional team members. This accelerated process enables organizations to capitalize on employee productivity sooner.
- Reduction of Manual Intervention and Human Errors: Automated onboarding processes significantly reduce manual intervention, minimizing the likelihood of human errors. This ensures accuracy in data entry, compliance adherence, and overall process efficiency.
- Lessened Workload for the HR Team: By automating repetitive tasks and simplifying administrative processes, onboarding software lessens the workload for the HR team. This allows HR professionals to focus on more strategic aspects of talent management and employee engagement.
- Consistent Experience for All New Hires: The software ensures a consistent onboarding experience for all new hires, irrespective of individual differences. This consistency contributes to a cohesive organizational culture and helps in delivering standardized information and training.
- Transparency in Process Flow: Injecting transparency into the onboarding process flow is a key feature of the software. This transparency allows both employees and HR personnel to track the progress of onboarding tasks, fostering accountability and clear communication.
- Memorable Onboarding Experience for Employees: By providing a seamless, efficient, and well-organized onboarding journey, the software contributes to a memorable experience for new hires. A positive onboarding experience sets the tone for employee satisfaction and long-term engagement.
Guidelines for Effective Onboarding Solutions:
To implement an effective onboarding solution, consider the following:
- Assess Your Organizational Needs: Identify specific onboarding challenges and requirements unique to your organization to tailor the software to meet these needs.
- User-Friendly Interface: Choose software with an intuitive and user-friendly interface to facilitate easy navigation and usage for both HR professionals and new hires.
- Customization Options: Opt for a solution that offers customization options, allowing you to adapt the onboarding process to align with your organizational structure and policies.
- Integration Capabilities: Ensure that the onboarding software seamlessly integrates with other HR and organizational systems, promoting a cohesive and interconnected approach to talent management.
- Security Measures: Prioritize the security of sensitive employee data by selecting onboarding software that incorporates robust security measures and compliance protocols.
By leveraging an efficient employee onboarding software and following these guidelines, organizations can transform their onboarding processes into a strategic asset that enhances efficiency, promotes compliance, and cultivates a positive and memorable experience for new hires.
Automate your onboarding with AgilityPortal
While automation is not a novel concept, AgilityPortal takes it a step further by offering the capability to automate employee onboarding. Although we are familiar with automated reminders and chatbots, creating an intuitive onboarding experience requires more. It necessitates engaging with your workforce to identify missing elements, areas for improvement, and opportunities for simplification to deliver a comprehensive onboarding experience.
AgilityPortal's employee onboarding software is tailored to meet your onboarding objectives. Whether you choose to create your templates swiftly or opt for our carefully curated selection, these templates are user-friendly, customizable, and empower you to provide prompt resolutions to your employees without compromising a positive experience.
AgilityPortal's employee onboarding software offers a sophisticated automation solution that goes beyond the ordinary, emphasizing user engagement and customization to deliver a comprehensive onboarding experience for both employers and employees.
1. Simplify your preboarding workflows
The pre-boarding phase initiates a few days or weeks before the new candidate commences their role.
Upon the candidate's acceptance of the job offer, our platform facilitates the automation of the employee onboarding process, streamlining various actions such as:
- IT Account Creation Notification: Automatically notifying the IT department to generate user accounts for the new employee.
- Welcome Email Dispatch: Utilizing our platform to automate the sending of a welcome email that elucidates company perks, culture, and policies. Crafting these welcome emails is effortlessly accomplished using our free email template creator.
- Welcome Package Dispatch Notification: Promptly notifying designated personnel to dispatch a welcome package to the new employee.
- Calendar Blocking Coordination: Efficiently preparing teammates by coordinating the blocking of their calendars in anticipation of the new team member's arrival.
- Preboarding Process Tracking: Utilizing the platform to track the progress of the pre-boarding process, ensuring a seamless transition to the subsequent onboarding stage.
This streamlined and automated approach to pre-boarding and onboarding enhances efficiency, reduces manual interventions, and contributes to a positive and organized experience for both the employee and the organization.
2. Instantly integrate apps
Communication platforms such as Slack, Teams, and Notion have revolutionized remote work by enabling seamless connectivity regardless of geographical locations. Enhance and streamline your communication processes by effortlessly linking individuals, fostering collaboration, and promoting a cohesive work environment.
When integrating apps like Microsoft Teams or Slack, the onboarding process becomes more efficient and engaging.
Through this integration, you can:
- Automate Onboarding via Slack: Automatically add new hires to dedicated onboarding channels, creating a centralized space for relevant discussions and information.
- Facilitate Healthy Conversations: Encourage meaningful conversations among new hires within the integrated platform, promoting a collaborative and inclusive onboarding experience.
- Send Gradual Information, Tasks, and Reminders: Seamlessly deliver essential information, tasks, and reminders to new hires in a structured and gradual manner, ensuring a smooth onboarding progression.
- Connect New Hires with Onboarding Buddies: Utilize Slack or Teams to connect new hires with their onboarding buddies, fostering mentorship and collaboration. Notifications can be sent to both parties to facilitate the connection.
- Schedule Orientation/Onboarding Meetings: Easily schedule and manage orientation and onboarding meetings within the integrated communication platform, ensuring effective communication and coordination.
On the flip side, consider the wealth of existing content within your organization, including company videos and documents. Leveraging these resources can enhance the onboarding experience significantly.
By seamlessly integrating communication platforms and utilizing existing content, organizations can create a collaborative and efficient onboarding process that transcends physical boundaries, fostering a connected and engaged remote workforce.
3. Integrate new hires faster with regular events
Alleviate the initial anxieties of your new hires by dedicating quality time to share a meal or coffee, either in person or virtually through platforms like Microsoft Teams or Zoom.
Facilitate spontaneous connections among colleagues by organizing casual meetups or walking meetings, providing an opportunity to build stronger workplace relationships and offering a refreshing break from screen-based interactions. These sessions foster meaningful conversations, contributing to enhanced team spirit, increased productivity, and improved mental well-being.
4. Setup checklist to keep employees on track
New employee onboarding checklist is a great way to keep new employees on track. Leveraging the AgilityPortal Setup Checklist is a strategic approach to keeping employees on track during the onboarding process.
This comprehensive checklist serves as a structured guide, ensuring that all essential tasks and requirements are systematically addressed.
From IT account setups to the dispatch of welcome emails and coordination of orientation meetings, the AgilityPortal Setup Checklist streamlines the onboarding journey. Its user-friendly interface facilitates easy navigation for both HR professionals and new hires, enhancing the efficiency and effectiveness of the onboarding process.
By employing this checklist, organizations can maintain a well-organized onboarding experience, fostering a positive introduction for employees and setting the stage for long-term success within the company.
5.Add quizzes for engagement
Incorporating quizzes into the onboarding process through the AgilityPortal Setup Checklist is a proactive measure to enhance employee engagement.
This feature adds an interactive element to the onboarding journey, allowing new hires to test their understanding of key information and concepts.
By integrating quizzes, organizations not only ensure that employees grasp crucial details but also make the onboarding experience more engaging and participatory.
This interactive approach not only reinforces learning but also encourages employees to actively participate in their onboarding, fostering a sense of involvement and contributing to a more memorable and impactful onboarding experience.
6.Get Feedback with Surveys
Integrating surveys into the onboarding process using the AgilityPortal Setup Checklist is a valuable strategy to gather feedback and enhance the overall onboarding experience.
By including surveys at key checkpoints, organizations can systematically collect insights from new hires regarding their onboarding journey.
These surveys provide a platform for employees to share their perspectives on the effectiveness of the onboarding process, identify areas for improvement, and express their overall satisfaction. The feedback obtained through surveys becomes a valuable resource for HR teams to continually refine and optimize the onboarding process, ensuring that it aligns with the evolving needs and expectations of new hires.
This iterative feedback loop promotes a culture of continuous improvement and responsiveness, contributing to a more tailored and successful onboarding experience for future employees.
7.Embed employee handbook and documents
The ability to embed documents directly into the onboarding process is a valuable feature of AgilityPortal.
This centralizes document management, making essential materials easily accessible in one location. New hires benefit from streamlined access to important documents, reducing the need for separate distribution and enhancing the overall user experience.
Embedding documents within the onboarding process contributes to compliance and record-keeping. It ensures that new hires review and acknowledge critical policies, agreements, and regulatory documents. This feature also facilitates easy record-keeping, supporting organizations in meeting compliance requirements and providing an audit trail.
Beyond operational benefits, embedding documents in the onboarding process has positive environmental implications. This approach reduces the reliance on traditional paperwork, aligning with modern practices that promote a paperless work environment and contribute to sustainability.
The benefits of AgilityPortal's Onboarding Module extend to time and cost savings for HR teams. By automating tasks and centralizing document management, the platform streamlines processes that would traditionally be time-consuming and resource-intensive.
Does automation take away human interaction?
Contrary to common misconceptions, automation does not lead to isolation from human interactions; instead, it creates additional opportunities for people to connect and foster relationships. When you choose to automate your onboarding process, routine tasks and inquiries are efficiently handled, regardless of whether employees work in a hybrid or remote setup.
As an HR manager in a growing organization, the repetitive onboarding tasks, such as documentation, reminders, and addressing common questions, can quickly become overwhelming. The pursuit of time-saving measures can inadvertently introduce inconsistencies, impacting the overall experience for new employees.
By opting for automation through AgilityPortal, the onboarding process becomes more streamlined, allowing new employees to be significantly more productive in their initial weeks. With less time spent on administrative tasks like paperwork, they can devote more time to meaningful interactions, whether it's meeting colleagues over coffee, exploring the office during tours, or engaging in valuable discussions between meetings.
Wrapping up
Inadequate onboarding processes can translate to heightened turnover rates. While the challenges mentioned earlier may seem formidable, they are not insurmountable.
The key lies in making a commitment to your hires, as their commitment to your organization follows suit. According to McKinsey, the productivity of new hires steadily increases with each year they spend in their roles. However, to retain these new employees as valuable assets, the initial focus should be on building them up.
It's acknowledged that certain challenges may arise unexpectedly and cannot always be predicted or prevented. Nevertheless, the crucial factor is the effort invested in establishing a sustainable onboarding program, incorporating feedback, and empowering new employees.
To create a sustainable program, reliance on two essential elements is paramount:
- Communication: Effective communication signals to new hires that the organization is dedicated to their success. Personal interactions are vital, but time constraints necessitate leveraging available tools.
- Automation: Automation, such as the capabilities offered by AgilityPortal, significantly reduces time spent on documentation. Visual documents created through tools like AgilityPortal underscore the organization's serious commitment to the success of new hires. These documents are not only easy to create but also to update, store, and share, ensuring a personalized onboarding experience for each individual.
In conclusion, the aim is to build a more robust onboarding program by taking advantage of tools like AgilityPortal. Start your journey toward improvement today by accessing AgilityPortal for a free 14-day trial.
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Setting up a new business is no walk in the park, and when it comes to financial support small business owners often struggle to find the help they truly need.
A good question is whether you are confident your small business can survive its first five years—or even the first year. According to the U.S. Bureau of Labor Statistics, 1 in 5 small businesses fail within the first year, often due to poor financial planning and lack of strategic support.
Starting a business in 2025 means navigating a rapidly evolving economy, rising costs, and tighter competition. While passion and innovation are essential, your financial plan will ultimately determine your success.
Even the most exciting ideas can fall apart without a clear strategy for managing cash flow, expenses, and funding.
This article will guide you through building a brilliant financial plan tailored for small business success in 2025.
Whether launching a new venture or refining your current operations, you'll learn how to align your budget with your goals, forecast more accurately, and gain the financial stability needed to grow.
With the right plan, you'll gain investor confidence, make smarter decisions, and future-proof your business for the challenges ahead.
What is a Financial Plan for a Business?
What is a financial plan for a business? It's a strategic tool that helps determine whether a business idea is financially viable and provides a roadmap to maintain long-term financial health.
A financial plan is a crucial part of any business plan, offering clarity and direction as the business evolves. It typically includes three core financial statements: the income statement, the balance sheet, and the cash flow statement.
Each of these sections comes with a brief explanation or analysis to help interpret the numbers.
Together, they provide insight into profitability, liquidity, and overall financial stability—key metrics every business needs to track.
Who Needs a Financial Plan?
Financial planning isn't just for the wealthy—it's a valuable tool for anyone looking to take control of their financial future.
Regardless of your income or life stage, having a structured financial plan helps you set clear objectives, stay focused, and feel confident about your path.
A personalized financial plan offers more than just guidance—it acts as a roadmap to help you navigate major life events and unexpected changes.
Whether saving for a home, preparing for retirement, or adjusting to new financial responsibilities, a solid plan ensures you're making informed decisions.
You'll find financial planning especially beneficial if you're:
- Buying your first home or upgrading your current one
- Experiencing a significant change in income or expenses
- Starting or growing a family
- Thinking ahead to retirement and long-term savings
- Organizing your assets through estate or legacy planning
A proactive approach to your finances helps you reach your goals and builds resilience, allowing you to adapt to life's curveballs with greater ease and security.
Understanding the Role of a Financial Plan in Business Success
If you're starting a new business and wondering what a financial plan is, it's more than just budgeting—it's a strategic roadmap that outlines how your business will manage income, control costs, and reach long-term financial goals.
A financial plan brings clarity and control to your operations by linking daily decisions to your company's vision.
The importance of financial planning for small businesses cannot be overstated. According to the U.S. Bureau of Labor Statistics, around 20% of small businesses fail within the first year, often due to poor financial management.
A solid financial plan can help avoid this fate by providing insight into cash flow, funding needs, and operational priorities.
So, what is a financial plan example?
It could include projected income statements, balance sheets, cash flow forecasts, expense breakdowns, and growth targets. These documents serve internal strategy and inspire confidence among lenders, investors, and stakeholders.
A good financial plan helps businesses:
- Manage cash flow more efficiently to avoid shortfalls
- Set realistic goals and map out scalable growth strategies
- Present a strong, credible financial position to stakeholders
Ultimately, a financial plan enables small businesses to stay agile, make informed decisions, and achieve lasting success—even in uncertain economic environments.
Why Is a Financial Plan Important to Your Small Business?
A solid financial plan not only boosts your confidence in managing your business but also gives you clearer insights into how to allocate resources effectively.
It reflects a commitment to responsible spending and demonstrates your company's ability to meet its financial responsibilities.
With a financial plan, you can assess how specific decisions may impact revenue and identify when it's appropriate to use reserve funds.
Also, a financial plan is a powerful asset when presenting your business to potential investors. It highlights how your organization manages expenses, generates income, and plans for growth.
Most importantly, it provides a clear picture of your current financial position and outlines what's needed—through sales or investment—to achieve key financial goals.
Financial Plan for Beginners?
1. Develop a Sales Forecast
A critical component of any business financial plan is the sales forecast—an estimate of the revenue your business expects to generate over the next three years.
Start by building a spreadsheet that outlines each quarter of your fiscal year. Include key columns for product or service names, unit prices, units expected to be sold, and projected revenue.
If your business is already up and running, review past sales reports to identify seasonal trends or growth patterns you can use to inform future projections.
For startups without existing sales data, begin by calculating your cost of production per item or service. From there, estimate how much you plan to sell based on market research, competitor benchmarks, or industry demand.
Not confident in your manual forecasting skills? There are plenty of tools and software solutions available that can help you automate and refine your sales projections with greater accuracy.
A sales forecast estimates your future revenue and is crucial for building a solid financial plan.
Here's how to create one:
- Set up a spreadsheet to track products, prices, and projected sales.
- Use past sales data to identify trends (if your business is already operating).
- Estimate unit sales and pricing based on market research for new businesses.
- Forecast monthly revenue for the first year, then annually for Years 2 and 3.
- Use tools like QuickBooks or LivePlan to improve accuracy.
- Compare your forecast to industry benchmarks to ensure it's realistic.
This helps demonstrate your business's potential profitability to investors and lenders.
A well-prepared sales forecast isn't just for internal planning—it also builds confidence with potential investors or lenders.
It demonstrates that your business has a clear growth trajectory and can generate consistent revenue, making it more attractive for financial backing.
2. Outline Your Business Expenses
After completing your sales forecast, the next step is to create a detailed breakdown of your business expenses.
This section shows investors that your business can realistically afford to produce its products or services and maintain profitability. Ideally, your total expenses should remain below your projected revenue.
Start by identifying all your business costs and categorizing them into fixed and variable expenses:
- Fixed costs remain consistent throughout the year—examples include rent, insurance, and salaries.
- Variable costs fluctuate depending on operations and sales volume, such as marketing, shipping, or raw materials.
While some costs like production or rent may be straightforward, others—like taxes or maintenance—may require estimation.
Your expense forecast helps assess financial feasibility and ensures you're planning for both predictable and unexpected costs.
3. Build a Cash Flow Statement
A cash flow statement outlines the movement of money into and out of your business over a specific period.
It's a key component of your financial plan, as it shows whether your company generates enough income to cover its operating expenses and obligations.
The goal is to maintain positive cash flow, which means more money is coming into the business than going out. This signals healthy financial management and ensures you can pay bills, invest in growth, and handle unexpected costs.
To create a cash flow statement:
- Use historical profit and loss records to calculate incoming revenue and outgoing expenses.
- If you're a startup, make realistic projections using your estimated sales and known expenses.
- Always account for potential payment delays from clients or vendors. Adding a buffer for late invoices helps you avoid cash shortfalls.
Being conservative and realistic in your estimates helps you prepare for real-world financial conditions.
A clear cash flow projection gives investors confidence in your business's financial stability and helps you stay in control of your financial health.
4. Create an Income Projection Forecast
An income projection, a profit and loss forecast, provides a forward-looking snapshot of your business's expected revenue, costs, and net profit over a specific period. It's a crucial part of your financial plan, especially when presenting to investors or lenders who want to understand your business's long-term viability and profitability.
This document includes your projected sales, the direct costs of producing those goods or services, and your estimated operating expenses. The result is a forecast of your expected net income—essentially showing whether your business will be profitable.
If your business is already up and running, focus your forecast on the upcoming year.
For new ventures, consider projecting income over two to three years to demonstrate sustainability and growth potential.
To build an accurate forecast:
- Use sales forecasts and expense estimates as the foundation.
- Base your projections on industry trends and historical data, if available.
- Factor in seasonal variations, economic conditions, and potential business developments.
- Consider using financial forecasting software or consulting a financial advisor for added accuracy.
A well-prepared income forecast builds credibility and can significantly improve your chances of securing funding or investor interest.
Download the free financial projections template excel for a great starting poin.t
5. Build a Forecasted Balance Sheet
A forecasted balance sheet offers a snapshot of your company's projected financial position by outlining what it owns (assets) and what it owes (liabilities).
This document is essential for investors, lenders, and stakeholders to evaluate your business's financial stability and net worth over time.
Assets represent everything your business owns that has value, such as cash, inventory, accounts receivable, equipment, real estate, and intellectual property. Liabilities include financial obligations like loans, taxes, unpaid wages, or outstanding vendor payments.
To create your forecasted balance sheet:
- Start by listing all expected assets, including cash balances, office equipment, inventory, property, and receivables.
- Next, outline projected liabilities, such as credit lines, loan repayments, outstanding invoices, or payroll obligations.
- Subtract total liabilities from total assets to calculate your projected equity or net worth.
A positive balance sheet—where assets outweigh liabilities—demonstrates financial health and signals to investors that your business is solvent and capable of meeting its obligations.
Conversely, if liabilities exceed assets, it may raise red flags about your ability to manage debt.
Having a clear and realistic balance sheet projection not only builds credibility but also helps you plan for future capital needs and operational investments effectively.
Here is a simple balance sheet template excel, feel free to use this financial projections template excel.
6. Identify Your Break-Even Point
Understanding your break-even point is crucial for evaluating the financial viability of your business. It represents the level of sales needed to cover all your expenses—where your total revenue equals total costs. Only after crossing this threshold will your business begin generating profit.
Determining your break-even point gives you a clear financial target and helps you make informed pricing, budgeting, and investment decisions. It also reassures potential investors that your business can become self-sustaining within a reasonable timeframe.
To calculate your break-even point, subtract your variable costs from the unit selling price, then divide your total fixed costs by that result. The formula looks like this:
Break-Even Point = Fixed Costs / (Unit Price – Variable Cost per Unit)
For example, if your fixed costs are $100,000, and each unit you sell brings in $50 in profit after covering variable costs, you'd need to sell 2,000 units to break even.
Most successful businesses break even within two to three years. If your projections show it may take significantly longer—say five years or more—it could signal the need to reassess your business plan or reduce operating costs.
Also consider including an exit strategy in your financial plan. This helps mitigate risks and outlines a path to minimize losses should your business not perform as expected.
7. Plan for Contingencies + (contingency plan template word)
Every business faces unexpected challenges—from sudden market downturns and supply chain disruptions to equipment failure or economic shifts.
That's why it's essential to build contingency planning into your financial strategy.
A contingency plan includes setting aside a financial buffer (often referred to as an emergency fund) to cover unforeseen expenses without derailing your operations. Many financial experts recommend having three to six months of operating costs set aside as a safeguard.
Beyond savings, consider preparing alternative revenue streams or flexible cost-reduction strategies you can implement quickly if revenue drops. This might include renegotiating vendor contracts, scaling back non-essential spending, or leveraging credit lines responsibly.
A solid contingency plan increases investor confidence and gives your team peace of mind—knowing you're prepared for the unexpected.
It's not just about weathering storms, but staying agile and resilient enough to pivot when necessary, keeping your business on track for long-term success. Download out free contingency plan template word.
5 Steps of Financial Planning
1. Define Your Financial Goals
Start by asking yourself: Where do I want to be in 5, 10, or even 20 years? Whether owning a home, retiring early, travelling the world, or funding your child's education, having a clear vision helps shape your financial plan.
Break down your aspirations using the S.M.A.R.T. method:
- Specific: Clearly state what you want (e.g., "Save for a down payment on a house").
- Measurable: Assign a number or milestone (e.g., "Save $30,000 in 3 years").
- Attainable: Make sure the goal is realistic based on your income and expenses.
- Relevant: Focus on what matters most to you and your long-term lifestyle.
- Time-Based: Set a target date for each goal to stay accountable.
Use a digital notebook or spreadsheet to list and categorize your goals into short-term (1–2 years), mid-term (3–5 years), and long-term (5+ years). This will help you prioritize where to start saving and how much to allocate monthly toward each goal.
A great way to boost your financial literacy is through online MBA finance programs. These programs offer practical, flexible education tailored to real-world business needs. Whether you're planning for growth or just managing your first year of revenue, sharpening your financial skills gives you a competitive edge and a better shot at long-term stability.
2. Assess Your Risk Tolerance
Understanding your risk tolerance is essential when creating a financial plan that suits your lifestyle and goals.
Risk tolerance is your comfort level with investment ups and downs—how much loss you're willing to accept in pursuit of higher returns.
Your tolerance depends on factors such as:
- Your age – Younger individuals can typically handle more risk since they have time to recover from market fluctuations.
- Your financial goals – Short-term goals often require safer investments, while long-term goals may benefit from more growth-focused strategies.
- Your income and savings – The more financial stability you have, the more flexibility you may feel when taking risks.
- Current economic conditions—Inflation, interest rates, and political stability can all affect how much risk you're comfortable with.
Use an online risk tolerance quiz or calculator to get a quantified score. This helps align your investments with your comfort level and expected returns.
Consider this score when choosing between conservative options like bonds, balanced mutual funds, or higher-risk investments like stocks or crypto.
Understanding your risk tolerance ensures your financial strategy is realistic, sustainable, and aligned with your peace of mind—even when markets fluctuate.
3. Analyze Your Cash Flow
A solid financial plan starts with knowing exactly where your money is going.
Cash flow analysis tracks the money coming into your accounts (income) and what's going out (expenses). This step helps you identify spending patterns and areas for improvement.
Start by reviewing your last 3–6 months of bank statements.
Categorize your spending into:
- Essential expenses - Rent or mortgage, utilities, groceries, insurance, transportation.
- Discretionary expenses - Dining out, subscriptions, shopping, entertainment.
Once categorized, subtract your total expenses from your income to see your net cash flow.
Use budgeting apps like YNAB, Mint, or Excel templates to automate your tracking. Set a monthly review reminder to stay accountable.
After this analysis, you may find non-essential costs that can be reduced or eliminated. Even small changes—like cutting unused subscriptions or reducing takeaway meals—can free up cash for savings, investments, or emergency funds.
Understanding your cash flow gives you control over your finances, prevents overspending, and ensures your financial plan is based on accurate, real-world data.
4. Protect Your Assets
Protecting what you own is a critical part of any strong financial plan.
Start by calculating your net worth—the total value of your assets (home, car, savings, investments) minus your liabilities (loans, credit card debt). This gives you a clear picture of what needs protection.
Once you understand your financial standing, evaluate your insurance coverage:
- Homeowners or renters insurance for property and personal belongings.
- Auto insurance with sufficient liability coverage.
- A Personal Liability Umbrella Policy (PLUP) for extra protection in case of major claims or lawsuits.
- Life insurance—either term (for affordable temporary coverage) or permanent (whole, universal, or variable universal life), depending on your long-term needs and family situation.
- Long-term care insurance to protect your retirement savings from healthcare-related expenses later in life.
Review your insurance policies annually or when your life circumstances change (e.g., marriage, new home, children).
Speak with an independent insurance advisor to ensure you're neither underinsured nor overpaying.
With the proper protection in place, you're shielding your financial future from unexpected events—and giving yourself peace of mind.
5. Evaluate Your Investment Strategy
Your investment strategy should align with your financial goals, timeline, and risk tolerance.
Begin by identifying your approach:
- Active Investing involves hands-on management, frequent trading, and efforts to outperform the market. This strategy demands time, expertise, and often higher fees.
- Passive Investing focuses on long-term growth by tracking market indexes (like the S&P 500), often through ETFs or index funds. It typically involves lower costs and less frequent trading.
- Define your investment goals - Are you saving for retirement, a home, or college tuition?
- Consider your time horizon - The longer your timeline, the more risk you may be able to take.
- Evaluate your current portfolio - Is it diversified? Are your investments aligned with your goals?
- Rebalance your portfolio regularly to maintain your desired asset allocation.
If you're unsure which path suits you best, consult with a financial advisor or consider a hybrid approach, where part of your portfolio is passively managed and another part actively managed.
Choosing the right strategy is not just about returns—it's about aligning your investments with your life goals and peace of mind.
Key Challenges Small Businesses Face When it Comes to Financial Planning
- Unpredictable Cash Flow - Many small businesses experience irregular income streams, especially in the early stages. This makes it difficult to forecast revenue and plan for future expenses. Late payments from clients or seasonal fluctuations can leave businesses scrambling to cover costs.
- Limited Resources and Budget - Small businesses often lack dedicated financial experts or advanced tools. With limited time, staff, and money, financial planning is either put on hold or handled by someone without formal training in accounting or finance.
- Lack of Financial Literacy - Many small business owners are passionate about their product or service but may not fully understand financial statements, forecasting, or budgeting. This can lead to poor decision-making and prevent the business from growing sustainably.
- Difficulty Accessing Capital - Securing loans or investment requires detailed financial plans and projections. Small businesses that struggle to create professional financial documents may find it hard to gain the trust of investors or lenders.
- Overestimating Revenue, Underestimating Expenses - A common trap is being overly optimistic. Overestimating how much revenue will come in and underestimating how much things cost can result in shortfalls and missed targets.
- Economic and Market Volatility - Changes in interest rates, inflation, or supply chain disruptions can derail financial forecasts. Small businesses are more vulnerable to external shocks, making contingency planning even more important.
- Scaling Without a Plan - Rapid growth without financial controls can be just as dangerous as stagnation. Businesses that grow quickly may overextend themselves, take on too much debt, or fail to manage increased operational costs.
Best Tools and Resources for Small Business Financial Planning
Here's a list of some of the best tools and resources for small business financial planning, including top-rated financial planning apps that help manage budgets, cash flow, forecasting, and more:
#1. QuickBooks
Best for: Accounting & financial reporting
A go-to tool for small businesses, QuickBooks helps with expense tracking, payroll, invoicing, and generating financial statements. It also offers forecasting tools and integrates with many other apps.
Why it's great: Easy to use, scalable, and trusted by millions of businesses.
#2. Xero
Best for: Online accounting & collaboration
Xero is a cloud-based accounting software ideal for small businesses that want real-time collaboration with bookkeepers and accountants.
Why it's great: User-friendly interface, strong financial reporting features, and great for managing cash flow.
#3. Wave
Best for: Free accounting and invoicing
Wave offers free invoicing, accounting, and receipt scanning tools. It's perfect for solopreneurs and freelancers just starting out with financial planning.
Why it's great: No monthly fee, intuitive layout, and ideal for basic financial needs.
#4. LivePlan
Best for: Creating business plans & financial forecasting
LivePlan helps businesses build professional business plans and financial projections. It's a great tool if you're pitching to investors or lenders.
Why it's great: Pre-built templates, industry benchmarks, and easy forecasting features.
#5. PlanGuru
Best for: Advanced forecasting & budgeting
PlanGuru is designed for in-depth financial analytics and 3–10 year forecasts. It's more advanced than most small business tools and ideal for growing companies.
Why it's great: Budgeting, forecasting, and reporting all in one platform with powerful analytics.
Wrapping up
Financial planning isn't just for big corporations—it's the secret weapon that helps small businesses thrive.
When you take the time to understand your costs, stay informed, monitor your cash, and invest in solid systems, you set your business up for long-term success. The earlier you start building that financial foundation, the stronger your business becomes.
You don't need to be a financial wizard to make smart choices.
You just need the right mindset, some good habits, and a commitment to staying proactive. With these ten steps in place, you'll be ready to lead your business with clarity, confidence, and control.
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Jill Romford
I am a digital nomad, lover of exploring new places and making friends.
I love to travel and I love the internet. I take pictures of my travels and share them on the internet using Instagram.
Traveler, entrepreneur, and community builder. I share my insights on digital marketing and social media while inspiring you to live your fullest life.
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