The 3 Financial Tools Every Business Needs

TL;DR

Relay

Streamlined banking for business success

Relay is a financial technology platform that simplifies banking for businesses by providing tools to manage finances, automate accounting processes, and streamline payments. It integrates with popular accounting software like Xero and QuickBooks, as well as payroll solutions like Gusto.

Introduction

Managing finances is a crucial aspect of running a successful business, yet it can be a daunting task for many entrepreneurs. In this video, we explore three essential financial tools that every business owner should consider using to streamline their financial processes, minimize stress during tax season, and achieve better financial management overall. Dave Swift, a seasoned entrepreneur and agency owner, shares his insights on Relay, a powerful financial technology platform that integrates with accounting software like Xero and QuickBooks, as well as payroll solutions like Gusto. By implementing these tools and following the Profit First methodology, business owners can gain better control over their finances and set themselves up for long-term success.

Intro [00:00]

Overview of Dave’s Toolbox Series

• Weekly show where Dave Swift discusses software he loves and uses in his agency
• Covers tools used on client sites, software for managing a six-figure agency, and personal productivity tools
• Aims to help entrepreneurs discover valuable software solutions

Importance of Financial Management for Businesses

• Tax season can be stressful for new and experienced entrepreneurs alike
• Proper financial management tools can simplify processes and reduce stress
• Starting now can lead to an easier tax season next year

Three Essential Financial Tools for Every Business

• Relay – A financial technology platform that integrates with accounting and payroll software
• Accounting Software (Xero or QuickBooks Online) – Essential for working with CPAs, tax professionals, or bookkeepers
• Payment Processing and Payroll (Gusto) – Streamlines client payments and payroll for contractors or employees

Relay That Overview [02:11]

What is Relay?

• Relay is a financial technology company, not a bank, but it provides bank-like features
• Integrates with a real FDIC-insured bank called Thread Bank
• Offers a user-friendly interface and powerful features designed for small businesses

Relay and Profit First Methodology

• Relay deeply embraces the Profit First methodology, a book on accounting for non-accountants
• Profit First recommends setting up multiple bank accounts for income, owner’s pay, operating expenses, profit, and taxes
• Relay simplifies the process of creating and managing these sub-accounts online

Benefits of Using Relay for Profit First

• Eliminates the need for in-person bank visits and potential awkwardness when setting up multiple sub-accounts
• Allows for easy creation of new accounts online
• Provides a clear overview of business finances, making it easy to track income and allocate funds according to Profit First principles

Profit First Setup [03:45]

Determining Target Allocation Percentages

• Profit First Calculator helps determine the allocation percentages for each sub-account
• The Profit First book provides detailed guidance on arriving at the proper percentages for your business
• Allocation percentages may vary based on industry and business size

Implementing Profit First with Relay

• All business income is deposited into the income account
• Twice a month (on the 10th and 25th), funds are distributed from the income account to other sub-accounts based on allocation percentages
• This process ensures that money is set aside for operating expenses, taxes, and profit

Automating Profit First with Relay’s Auto Transfer Rules

• Before Relay, manual calculations and transfers were required to implement Profit First
• Relay’s auto transfer rules feature automates the allocation process based on user-defined percentages
• Auto transfers can be scheduled weekly or monthly, simplifying the Profit First system

Benefits of Automating Profit First

• Saves time and eliminates manual calculations and transfers
• Ensures consistent allocation of funds to sub-accounts
• Helps business owners maintain financial discipline and avoid overspending

Other Relay Features [08:05]

Virtual and Physical Debit Cards

• Relay allows users to create virtual and physical debit cards for each sub-account
• Virtual cards can be used instantly for online purchases wherever Visa is accepted
• Physical cards can be mailed to users for in-person transactions

Receipt Scanner and Auto-Matching

• Relay offers a built-in receipt scanner that simplifies expense tracking
• Receipts can be scanned via the Relay app, SMS, or email
• The system automatically matches receipts to transactions, eliminating manual data entry

Team Management and User Permissions

• Relay provides team management features, allowing business owners to add team members with specific permission levels
• Financial advisors and CPAs can also be granted access to Relay for streamlined collaboration

Integrations with Popular Accounting and Payroll Software

• Relay integrates seamlessly with Xero and Gusto, enabling smooth data flow between financial tools
• QuickBooks integration is also available for businesses using that accounting platform

Multi-Business Support

• Relay allows users to manage multiple businesses within a single account
• Each business can have its own set of sub-accounts and financial data
• This feature is particularly useful for entrepreneurs with multiple ventures or subsidiaries

Relay Pro Features

• Relay offers a Pro plan for $30 per month, which includes additional features for larger businesses
• Auto-import bills from Xero or QuickBooks, centralizing bill management
• Multi-stage approval workflows for bills, enhancing financial control and accountability

Relay

Streamlined banking for business success

Relay is a financial technology platform that simplifies banking for businesses by providing tools to manage finances, automate accounting processes, and streamline payments. It integrates with popular accounting software like Xero and QuickBooks, as well as payroll solutions like Gusto.

Summary

In conclusion, Relay, combined with accounting software like Xero or QuickBooks and a payroll solution like Gusto, forms a powerful trio of financial tools that every business should consider using. By implementing the Profit First methodology with Relay’s user-friendly platform and automation features, entrepreneurs can gain better control over their finances, minimize stress during tax season, and focus on growing their businesses. Relay’s additional features, such as virtual and physical debit cards, receipt scanning, and team management, further streamline financial processes and promote collaboration. As a technology company rather than a traditional bank, Relay offers a refreshing approach to financial management that prioritizes user experience and efficiency. By adopting these tools and best practices, business owners can set themselves up for long-term financial success and peace of mind.