Petr Marek, founder and CEO of Invoice Home, an invoice-generating platform designed for small businesses, freelancers and entrepreneurs.
It’s no secret that small businesses have been through a lot this year, especially financially. The uncertainty around tariffs and how that will impact businesses long-term, coupled with the overall rise in prices of goods, has made small businesses reevaluate spending.
However, the Q2 2025 Small Business Index, released at the end of June 2025, rose ever so slightly to 65.2, up from 62.3 in Q1 2025. The Small Business Index showcases a glimpse into small business owners’ perspectives on the latest economic and business trends. The Q2 Index showed optimism for both business health and cash flow, which is a step in the right direction for small businesses after what feels like many setbacks at the start of the year.
Fintech Makes Small Businesses Better
The fintech industry continues to empower small businesses with accessible, technology-driven financial tools that streamline operations, enhance cash flow management, and foster long-term growth in an increasingly digital economy.
How can digital fintech tools help? By automating routine tasks like invoicing, small businesses can reduce the risk of late payments. Automation takes the guesswork out of which invoices have been paid and which are late, which in turn helps alleviate cash flow issues. Even if you are experiencing delayed payments, you’re able to see where the issues are and can adjust in real time.
By leveraging a digital fintech solution, small businesses can uncover ways to improve cash flow, reduce administrative burdens and gain control over their financial health through a streamlined process.
Measurable Impact
Digital tools can have an incremental impact on small businesses’ cash flow and financial visibility. The primary reason is that a digital platform provides real-time access to everything. Utilizing reporting features on a weekly basis, for example, can provide visibility and insight into which payments are outstanding, how many days past due, etc. This information directly affects revenue, and frequent updates enable small businesses to adapt continuously, rather than waiting until the end of the month to make decisions. Identifying trends or issues throughout the month and having an overview at your fingertips means you can manage expenses better month over month.
Once you’ve made the decision to invest in digital tools, there are many questions, including first and foremost, what features will be most beneficial to your business? Ideally, digital tools should reduce manual tasks (and ultimately free up your time to focus on other tasks), so automation is something to consider.
Rather than what to look for, my advice is more about what to avoid. Overly complex platforms with features you don’t need for your business can become a burden rather than a benefit, and end up saving you less time than before. I also always recommend considering the mobile experience; many small business owners operate anywhere but their office, and having digital tools that are accessible anywhere is critical to keep admin work like invoices from piling up.
Lastly, any platform you consider should be customizable to meet your needs, both currently and as your business grows. Ask yourself, can this tool grow with my business?
Final Thoughts
While we wait to see what comes of potential policies and market changes, small businesses should continue to shift operations to meet the growing demands of customers, which include faster, digital payments as well as personalization and automation.
Small businesses should have open lines of communication with customers, and utilize automation tools to react quickly to customer requests. Using electronic invoicing and other digital tools, such as Buy Now Pay Later and mobile wallet options, will also greatly help improve cash flow and payment efficiency.
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