This article was written in collaboration with OCBC Business Banking. All opinions expressed in this article are the independent opinion of DollarsAndSense.sg based on our research. DollarsAndSense.sg is not responsible for any financial loss that may arise from any transaction and readers are encouraged to do their own due diligence. You can consult our complete editorial policy here.
Frequently, new business owners find themselves wearing multiple hats in their business, such as performing HR and finance related tasks. Getting started seems like the logical thing to do in the beginning, saving you a lot of money during a time when you’re just finding your feet.
However, you cannot do this forever. Although you’ll save money at first, handling all the HR and finance work yourself can quickly become overwhelming once your business grows. And that’s not the worst either, because you also risk losing sight of growth, which will cost you a lot more in the long run.
Hiring knowledgeable people to help run your operations when you need more manpower is the smart thing to do. As logical as it may seem, one of the most common mistakes new business owners make is neglecting to hire a CFO even when they need one.
Read also : 4 things the ex-CFO of an SGX-listed company wishes new entrepreneurs knew about managing their company’s finances
Handing over the keys (and information) to your bank account to someone else can be daunting when you do it for the first time. Nevertheless, it is a necessary step for all businesses. At the same time, businesses do not grow overnight. So your CFO role may be filled by a part-time employee or by a single person at first.
This means leveraging technology will be crucial in protecting your company’s finances and helping your CFO do their job effectively. The business bank account you end up using will also determine the tools available to you.
In this article, we look at 3 ways you and your CFO can benefit from your business bank account. We take examples of OCBC Speedwhich is the online banking platform offered for the OCBC business bank account that DollarsAndSense is currently using.
Read also : 6 tips (via OCBC Velocity) we can use to run our business more successfully
#1 Tap Monthly Payroll Management Features to Batch Send Employee Salaries
One of the most misunderstood tasks every month would be to calculate how much you need to pay your employees. Often, these payments include not just their base salaries, but also any claims, expenses, and even additional payments such as commissions or OT salaries that your staff may have. In addition, you must pay both employer and employee contributions to the CPF.
Via OCBC Velocity, you can ask your finance manager to simplify your payroll management by adding employees to a pay batch. Once your finance manager has created your payroll batch, they can continue to add to it.
You or your financial manager just have to click on “Payroll”.
From here, you can retrieve your existing employee’s payroll batch by selecting “Load from list”. If you haven’t created one, you can ask your finance manager to start by entering the list of employees you pay each month.
If this is handled by your finance manager, you may want to retain the ability to perform final payment approval. This therefore means that while the CFO prepares the monthly payroll batch, you are the only one authorizing salary payments. You will receive a notification to verify and approve payments before the deadline.
Similar to creating templates for employees, you can also create templates for regular customer billing and/or vendor payments through OCBC Velocity.
Read also : Why open a business account with a bank?
#2 Create e-invoices (and keep track of invoices) for free
When hiring a CFO, you may also want to review how you manage your invoices. You can take advantage of OCBC Velocity to help you create and send electronic invoices. With electronic invoices, you no longer need paper invoices and you will never lose track of an unpaid claim.
Read also : E-Invoice VS Paper Invoice: What are the Differences Singapore Businesses Need to Know
Here are 4 simple steps to create an electronic invoice.
Step 1: Go to “Financial management”, and click on “Invoice overview: Sales”.
2nd step: Click on “Create an invoice”
Step 3: Create your invoice and click “Next” (note that you may need to add new customers and/or new products if you are invoicing a customer for the first time or selling a new product, otherwise you can use existing templates that you have already created.)
Step 4: Click “Save and send”, this will automatically download the invoice and pre-fill an email for you. You just need to attach the invoice on the email to your customer before sending it.
After clicking “OK”, a pre-filled email will open. You can edit this email so that it does not appear generic or spammy.
You can also use OCBC Velocity to create or upload any invoices your business needs to pay. Although it may take additional steps, you are consolidating your receivables and payables in one place. Also, with your CFO taking over this work, now is a good time to standardize how you monitor receivables and payables.
OCBC Velocity also connects you to Bill nowa nationwide e-invoicing method that facilitates the direct transmission of invoices in a structured digital format through local and international financial systems.
The advantage of creating your electronic invoices through OCBC is that the reconciliation process is also accelerated – so you don’t have to constantly match or guess the source of your payments.
By consolidating all your bills and invoices in one place, you can also take advantage of OCBC Velocity’s alerts system to track late payments or make an outstanding payment for invoices due within the month.
Later, you can also track customer payment habits to anticipate problems. This can guide you in making better trading decisions. For example, you can offer more favorable payment terms to good customers, or choose to take more money up front and/or offer shorter payment terms to less creditworthy customers.
You can also link your PayNow Corporate to embed PayNow QRs in your electronic invoices sent via PDF by email. This gives your business customers more convenient options for making payments and thus improves your ability to get paid faster. As the only bank to offer this service for free, OCBC helps your business adopt more digital solutions.
#3 Use data to stay in control of your cash position
By building a system to keep control of your cash inflows (and receivables) and your cash outflows (and debts), you can accurately forecast your future financial situation.
You can use the Business financial management tool on OCBC Velocity to view past and current cash flow position. There is no need to do manual calculations. Seeing your historical cash flow positions in a graph makes it more intuitive to identify a possible cash flow squeeze down the road. You put yourself in a better position to rectify potential cash flow problems before they arise.
If you anticipate cash flow constraints, you can request commercial financing options in advance.
You may also find that you have a very healthy cash balance. With this information at your fingertips, you can make better trading decisions. It could be making the decision to buy in bulk at higher discounts at short notice, or being confident that you can invest in equipment and machinery to improve operational efficiency as well as grow your company with new staff.
Equip your finance manager to get the most out of OCBC Velocity
Hiring a CFO should alleviate your routine but essential administrative tasks. This should allow you to think about your finances more strategically, making it a great time to improve your business finance management processes.
With OCBC Speed, you and your finance manager can take full advantage of the information and inputs that can be consolidated into one platform. This provides an inexpensive method to start your journey towards integrating more enterprise software solutions.
By retaining control to approve transactions that your CFO enters into the platform, you can do all of this without losing any security. You can also monitor your cash flow and future inflows and outflows. This puts you in a good position to anticipate problems and find solutions before they even arise.
To get the most out of your business bank account, you can also ask your CFO to join you OCBC Velocity Online Training Sessions. These are usually held once a month by OCBC and will allow them to quickly learn the ins and outs of OCBC Velocity. This is also extremely useful if you don’t have time to dig into OCBC Velocity functionality with your finance manager.
Read also : OCBC SME Index: How small businesses can use data to predict the direction of their industry