Insight Blog
Top workforce management companies in 2022
There will always be things to do regarding managing your workforce that are both tedious and time-consuming, regardless of the type of business you own. Companies lose time and money due to paperwork pileup, disorganized procedures, ineffective employee communication, and out-of-date time tracking and payroll systems.
When properly implemented, workforce management software may have a profound effect, helping streamline every facet of workforce management with a unified system and drastically decreasing inefficient, outmoded processes. In what way? Workers free to develop their full potential are more likely to contribute to the company's bottom line.
We analyzed hundreds of popular options and compiled our top picks for the finest workforce management tools to help you find the one that works best for your business.
Tips for choosing a workforce management company
When choosing a workforce management company, there are several factors to consider to ensure that you find a solution that meets the needs of your organization.
Here are a few tips to keep in mind:
It should help to enhance functionality
Choose a workforce management system with advanced features and functions, including planning and budgeting assistance, employee time and attendance monitoring, report automation, performance tracking, customer interaction tools, etc.
Think about what you'll use most often and base your software selection on that.
The design should be user-friendly
You can obtain all the information you need from a competent workforce management system, and you can utilize it on any device.
It should allow software integration
As a standalone solution, a workforce management system will inevitably fall short of meeting an organization's needs; therefore, it's important that it's able to work in tandem with other HR platforms to deliver a comprehensive set of features.
It must have reporting features
Think about investing in a workforce management system that can provide precise, real-time reports on things like job status, employee performance, customer feedback, account collection, etc.
Top workforce management companies
Companies that are serious about building a solid and productive workforce are increasingly turning to Workforce Management (WFM) systems. Because of this, more cutting-edge tech is showing up in commercial software.
There has been a rise in acquisitions made by pure-play vendors of smaller WFM providers to increase their capacity to supply cutting-edge, all-encompassing WFM solutions. The proliferation of cloud-based businesses is also predicted to contribute to a rise in mergers and acquisitions.
The best organizations for managing employees are as follows:
Agility Online
Agility employee portal is a comprehensive human resources system designed to bring your organization into the present. It is at the top of our list because AgilityPortal has received a collaboration software "Rising Star" award from a leading B2B Review Platform.
Its purpose is to get your staff involved to connect better, communicate, and work together. AgilityPortal is a alternative to Microsoft SharePoint, Teams and Meta Workplace that provides a safe and easy way to manage and share your company's sensitive data from anywhere in the world.
AgilityPortal can be used by any company or organization with 100 and up to 100,000 employees.
AgilityPortal helps businesses build remote offices. The platform provides a safe and convenient place for remote groups to get in touch with one another and work together on projects.
Managers now have the ability to keep tabs on operational expenses, keep an eye on productivity, and facilitate cooperation across sites, teams, and departments. Knowledge exchange, recognition and incentive systems, search tools, and more features are part of the package.
Ideal for: Deskless employees, SMBs, and even enterprise companies, you can get a free trial to test the software. Likewise, you can request a quote for a customized package.
You can check the pricing here
BambooHR
A complete employee lifecycle management solution, BambooHR is an HR information system. Easily onboard new personnel, streamline processes, approve requests with electronic signatures, generate paychecks, make changes to employee profiles, and more with a workflow designed specifically for your business. Additionally, BambooHR lets you keep tabs on your salary, bonuses, and other compensation in real-time. Remember that this isn't a one-stop shop, and integration may be a problem. The system shines for businesses with fewer than one hundred workers.
As an HR management solution, BambooHR provides a mobile app that gives employees and managers access to some of the most crucial functions in the field.
Downloading the app on a mobile device allows staff to make absence reports, request cover from other employees, track accomplishments, and stay in touch with the team from anywhere.
You can check the pricing here
NICE
Schedules, breaks, and shift changes can be easily monitored and managed thanks to NICE IEX Workforce Management solutions. The software's machine-learning features improve hiring, forecasting, scheduling, and day-to-day operations, and they're all tailored to the unique needs of digital channel management.
It's easy to adjust schedules on the fly to meet fluctuating needs, provide paid time off, and let workers know about potential overtime.
Request a demo to learn more about pricing options
Skedulo
Australian company Skedulo offers their eponymous workforce management software optimized for managing a team of mobile employees working in the field.
Skedulo is a cloud-based service that provides workforce management capabilities, such as scheduling and communication with remote workers and data analysis. Some of the primary features are job scheduling, dispatching, travel route optimization, messaging, virtual meetings, and a mobile app. Workforce capacity is increased, client outcomes are enhanced, and administrative burdens are reduced thanks to their solutions.
Request a demo to learn more about pricing options
inTime
The public's safety was a primary consideration in developing InTime's tools for managing the workforce. Organizations in the public safety sector may rely on InTime Solutions for all of their scheduling, timekeeping, and workforce management software requirements. Reduce the human effort, save money, reduce danger, and boost morale by automating repetitive tasks. Time and sick leave may be recorded easily, and alerts can be set up to notify managers of overtime or inappropriate scheduling requests.
Request a demo to learn more about pricing options
SAP SuccessFactors
Proven capabilities in basic HR and payroll, recruiting and onboarding, learning and development, performance and compensation management, workforce analytics and planning, and employee experience management are some areas where SAP's workforce management solution shines.
Request a demo to learn more about pricing options
Oracle
Oracle Workforce Management is a suite of modules designed to boost productivity and employee engagement. These modules are Time & Labor, Absence Management, and Workforce Health & Safety.
These simple, anywhere-accessible tools include a digital assistant that can be used to log hours worked on a project, submit sick leave, or clock in for a shift from the job site, even in the absence of cellular coverage. When legislation and policies change, embedded AI helps you continue paying employees appropriately by automatically sending modifications to payroll.
Request a demo to learn more about pricing options
Retain
Budgeting and forecasting, labor projection, scheduling, time tracking, skill tracking, and personnel lifecycle management are all simplified with Retain Resource Planning.
The information can be viewed in a conventional wallchart, making it simple to copy and paste timetables. Details are easier to make out when presented in various colors and shapes.
With this HR management software, you may generate completely customized reports to your requirements.
Bitrix24
According to its developers, Bitrix24 is a comprehensive system for managing projects with several collaborators in teams of any size. CRM, time tracking, reporting, Kanban board, Gantt chart, messenger, video calls, workflow automation, automatic task time tracking, and more features are included. As an administrator, you can access several features, such as sending reminders, rating users, generating reports on completed tasks, and much more.
Although it doesn't seem to be the greatest workflow management software, it does work with popular apps like Slack, MailChimp, Skype, and many others.
Request a demo to learn more about pricing options
Jibble
Using Jibble's workforce management system, you can quickly and simply see and manage team timesheets, generate custom reports and export data, receive personalized alerts about your team's performance, and keep tabs on employee metrics in preparation for annual reviews. You can export your timesheet data as an XLS file and then share it with your payroll provider or use it for further analysis.
Request a demo to learn more about pricing options
Connecteam
There is a no better all-in-one solution for managing a mobile or remote workforce than Connecteam. When it comes to managing a workforce, Connecteam thinks it's important that solutions are accessible, cheap, and straightforward to adopt, especially for mobile workers. Our comprehensive workforce management tools cover all the bases, from HR and communications to operations.
The advanced simplicity of the time clock allows for accurate tracking of working hours and the prevention of frequent abuses like "buddy punching" and other forms of time theft. Payroll services like Quickbooks Online and Gusto can be used in tandem with our workforce management system.
Use online tools like checklists, forms, and workflows to coordinate employee schedules and daily tasks. The app's interactive internal communication features, such as private and team chats, an employee directory, updates, surveys, announcements, and much more, ensure that you and your entire staff are always in the loop.
Request a demo to learn more about pricing options
What is a workforce management system?
A workforce management system is defined as an approach to personnel management that provides firms with comprehensive visibility into their operations and important business indicators.
This indicates that a methodical strategy must be used to establish workforce management within an organization. The primary goal of a WFM system is to automate and standardize this procedure so that workforce management is carried out effectively and efficiently.
A well-executed system rollout guarantees that businesses will follow through with the procedures outlined above, from collecting real-time data to analyzing it.
In addition, it can assist team leaders in better comprehending each member's strengths and weaknesses. And in doing so, enhance one of the most important features of a successful and lucrative business: assigning the appropriate personnel to each job.
The most effective workforce management systems adhere to well-defined procedures that streamline the most important aspects of managing a staff.
Before diving into the specifics, it might be helpful to define the "process" for this discussion.
Why should companies use workforce management software?
Consider implementing software designed specifically for workforce management if you're interested in streamlining your HR processes. Automation is always the best option when looking to increase output, eliminate unnecessary repetition, and reduce human mistakes.
Because workforce management encompasses such a broad range of tasks, numerous workforce management software options exist. To address the question of whether or not workforce management software is necessary, let's examine some of the important software types.
Benefits of using workforce management software
Use a human resource solution for talent acquisition and employee engagement, such as time tracking or scheduling software, a communications platform, a human capital management system, or any of several other HR-related tools.
Using software will assist you in the following areas regardless of the category:
Increase employee satisfaction
Without hardworking employees, no company would ever succeed. The quality of their work will suffer if they are unhappy in their jobs. If you have a good workforce management system, you can give your workers more autonomy. Likewise, you'll have little trouble conveying your thoughts and feelings to them. Human resources software will make it simpler for workers to check and alter their schedules, confirm shifts with a single click, request time off, and clock in and out of work.
Improve analytical performance
Spaces of all kinds require data management systems. Suppose you want to run a successful business. In that case, you need to be able to maintain tabs on how things are going in real time, check how actual results compare to projections, and assess whether or not your company is living up to your original goals.
As a result, HR professionals in charge of making sound, financially prudent decisions for their organizations must arm themselves with cutting-edge resources. Thanks to the system's automation, they will have access to all the data needed for the analysis of operations and more effective management.
Help to save time
Human resources managers need to block off a substantial amount of time each week to plan the work week. By automating this process with software, you can free up valuable time to concentrate on the operational side of human resources. Web-based solutions, which are included in most software packages nowadays, allow users to manage their work without being physically present in the workplace.
Improves customer service
With the use of workforce management software, you can assess employee effectiveness in all areas, including customer service. Human resources professionals can evaluate workers' customer communication and interaction skills using a set of predetermined indicators. Once recorded, these can be used in regular, periodic, and annual reviews of each employee's performance.
This system can simplify the process of comparing individual workers' output to some kind of benchmark. Those in charge of human resources can investigate complaints and address them before customers form negative impressions of the business.
Reduce the risk of noncompliance
Businesses need to keep records to prove to federal and state regulators that they are always meeting their legal obligations. Keeping such compliance records manually is time-consuming and prone to error.
It might also cost your business a significant chunk of money for even a minor violation. It can be done promptly and automatically via the workforce management solution. The system mitigates this threat while facilitating continued conformance with all applicable federal, state, and municipal regulations.
Conclusion
Automation, reduced overhead, and increased output are just some benefits businesses may get from the workforce management software. This helps them by utilizing more efficient management, monitoring, and organizing available human resources. There has never been a better time to implement a workforce management system in your company or organization.
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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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