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Mastering Cash Flow with AI: The Lifeline for SMB Success

Keeping track of every dollar moving in and out of your business can be overwhelming, especially when you’re juggling so many other responsibilities. It’s no wonder that roughly one-third of business owners tout AI for its capability to provide better visibility into cash position and cash flow (remember that survey we mentioned earlier?).


With the right tools, you can use AI to enhance accuracy and save time on the following tasks:

  • Cash flow forecasting

  • Invoicing and collections

  • Expense-tracking


AI can also find ways to optimize cash flow by analyzing payment terms and inventory and suggesting changes. By negotiating better trade terms with vendors or using a just-in-time inventory system, you can add more cash to your bank account while still meeting your business needs.


AI’s real-time insights help you manage it all, which can help you create more financial stability and even avoid a cash crunch.


Late-paying vendors, unfavorable payment terms, and even seasonal business fluctuations can put SMBs into a cash crisis. AI tools can help you stay on top of late payers (without those awkward collections calls or emails) and also spotlight opportunities to negotiate for better terms. You can’t improve what you don’t track, and AI helps you automate the tracking aspects to spot patterns and make changes that can improve cash flow.


Can AI Give You a Competitive Edge?


AI accounting tools can help with cash flow management under normal circumstances. But AI marketing tools, surprisingly, can also help improve cash flow. By predicting market trends, tools that gauge customer sentiment and behavioral patterns can help you manage inventory, which will improve cash flow.


Adapt to market changes and even uncertainty faster than competitors to stay ahead of the pack.


“Okay, I see the advantage – but now what?


If you’ve become an early adopter — an “AI-evangelist,” if you will — you might find it challenging to get buy-in from superiors. Or, if you’re the one in charge, you might encounter resistance from your department heads.


First: Understand that most AI tools are incredibly accessible and user-friendly – even for beginners. Gen AI apps don’t require technical expertise to use them. (If you have some workers or colleagues who are still resistant, might we suggest getting them started with our AI Crash Course?)


We also recommend taking baby steps. Start with one app to assist in one facet of business. As your team begins to embrace the benefits, look for additional opportunities to streamline workflows with AI.

In Finance, AI Is Everywhere

AI is here to stay in banking, bookkeeping, tax prep, investing and all aspects of personal finance — much to the benefit of retail investors, small business owners, and everyone interested in getting a better handle on their budget. In fact, a recent study revealed that 69% of people are willing to use AI to help them manage their money, although 47% have deleted various personal finance apps because they were hard to manage or didn’t offer useful features.6


The trick is to find the AI apps that benefit you, whether that means trusting a robo-advisor for your investments or relying on your bank to spot fraud quickly using their AI algorithms.


At Top AI Tools, we’re dedicated to help you master AI before it masters you and to release that fear and recognize why AI is our friend. In a lot of cases, AI is simply running in the background and doesn’t need your intervention — let it do what it needs to do to provide the best experience.

When you’re using AI finance apps, you should apply the same best practices as you would with any online financial services:

  • Never login on a public network that is not secured

  • Use hard-to-guess passwords, biometric security, or a password manager to secure your accounts

  • Don’t share personal information (such as logins, your Social Security number, or your account numbers) on unsecured apps like ChatGPT


AI is becoming an integral part of finance, offering lots of exciting opportunities. By following best practices, you can keep your money and personal information safe while getting the most out of AI.

FEATURED PROMPTS:

AI Prompts for Money-Based Business Planning, Career Growth, and Financial Management

Business owners have access to a myriad of AI tools to aid in tax prep, bookkeeping, accounting reports, and more. But beyond this, your favorite AI-powered platform can also offer up valuable insights for money management tasks — whether it’s strategizing a business plan and budget, exploring stock investment opportunities, and brainstorming tax-planning strategies.


Here are some finance-related prompts you can use or customize.

1. Create a business plan to scale your business


Need help creating a business plan as a start-up or rapid growth company? First, you’ll want to input a description of your company and information that includes your revenue, profit margins, KPI, target market, goals, and timelines.


“I’d like you to help me create a business plan for my [stage] company in the [industry] field. I’m going to paste cash flow statements and other financial documents below, as well as links to my competitor websites. Once I’ve done that, please generate a business plan for one year.”

2. Discover educational opportunities to advance your career as a bookkeeper or accountant


Bookkeeping and accounting jobs are highly unlikely to be completely taken over by AI. Artificial intelligence can help you automate easy tasks, but the human touch will always be required to ensure accuracy and ethics. You can stay ahead of the game as a finance expert through education and training.


“What valuable courses, workshops, and conferences in the field of bookkeeping can help boost my expertise and understanding?

3. Help you choose the best methods and tools to manage finances as your business grows


As your company grows, you will undoubtedly face unique challenges.


“What are the best methods and AI-powered apps for effectively managing and tracking finances as a business expands?”

VOICES IN AI

“I think AI is the next evolution for banking — it will dominate apps and technology until the next iteration comes along, particularly in areas like customer service, fraud detection, and personalized banking.”


~ Top AI Tools CEO Brian Prince, in UseTech.com’s “How AI Will Change the Banking Industry?”


TOOLS & RESOURCES

Just as AI is helping individuals manage their money, it’s impossible to ignore the technology’s growing role in commercial lending. Whether you’re seeking funding as a start-up or you’re in a more advanced stage of growth, you might want to be aware of these programs that have been on our radar.


What we’re exploring…


Lama AI and Bridge Partner. Lama AI, an origination technology for the financial industry, recently partnered with Bridge, a digital platform that connected business owners seeking capital with a network of lenders. Through the partnership, Lama AI customers, which include banks and credit unions, can source business loan needs through Bridge.


What does this mean for SMBs? Potentially greater access to funding, especially in under-served communities.


Citi Adopts AI to Streamline Commercial Lending. Citigroup, one of the nation’s “Big Four” financial institutions, has entered into a strategic collaboration with AI-powered commercial lending platform Numerated, with the goal of making commercial lending more efficient and convenient for borrowers.


What does this mean for SMBs? Potentially faster processing times and more accurate financial analyses when you apply for a business loan through Citi.


EXPLORE: Lama AI and Bridge Announce Strategic Partnership | Citi Powers AI Lending via Numerated

What we’re reading…


If you’ve read this far, you’ve probably already reached the conclusion (just as we have) that using AI to streamline financial tasks is good for business.


But what about using AI to help you reach your personal or professional investment goals?

Our friends at The Penny Hoarder recently explored the difference between robo-advisors and AI-powered investing, and how to leverage either one to improve your odds of stock market success.


READ: Is AI-Powered Investing the Right Tool For Your Financial Goals?


What we’re watching…


You might know that the Top AI Tools team revels in science fiction and superhero movies, from “The Matrix” to the classics of the Marvel cinematic universe.


As summer winds down, it’s a great time to re-watch our favorites. And, of course, we can’t help but find parallels to the world we live in today.


In the movie “Iron Man,” Tony Stark's AI assistant, J.A.R.V.I.S., seamlessly manages complex systems — from running diagnostics on the Iron Man suit to controlling Stark Industries’ operations. J.A.R.V.I.S. is portrayed as a highly efficient and intelligent system that anticipates needs, manages resources, and executes tasks with precision.


J.A.R.V.I.S. is still, undoubtedly, sci-fi. But the underlying concept is becoming closer to reality for SMBs. AI tools in finance and operations manage complex tasks, such as forecasting cash flow, optimizing supply chains, and automating financial processes.


Just as J.A.R.V.I.S. enhanced Tony Stark's efficiency, AI can empower SMBs to operate more smoothly and make smarter decisions, helping them compete at higher levels. Now, if only AI could help us all look as suave as Tony Stark did saving the world.


WATCH: “Iron Man” (then… become an AI superhero with our Crash Course)

When you think about using AI in your business, don’t be afraid to think outside the box; chances are, you’re already using AI in more ways than you realize. Dive deeper into today’s financial apps to jump ahead of competitors.

LOOKING AHEAD: What aspect of AI in copywriting would you like to learn more about? (Hint, hint… that’s our next topic.)

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1 “Artificial Intelligence (AI) in finance - statistics & facts,” Statista Research Department, April 5, 2024.

2 “Invoicing Statistics,” Skynova, accessed September 2, 2024.

3 “AI In Accounting Market,” Mordor Intelligence, accessed September 2, 2024.

4 “BILL Survey Finds 85% of SMBs Are Enthusiastic About Using AI in FinancialOperations,” BILL, March 4, 2024.

5 “The State of Financial Automation,” BILL, accessed August 31, 2024.

6 “Origin’s State of Personal Finance Apps - 2024,” Origin, August 16, 2024.