Benefits of Cash Tracking Software Over Spreadsheets | Loop


August 21, 2023·3min read

In running a successful business, keeping track of cash is important for financial stability and growth. As businesses expand and financial intricacies multiply, traditional spreadsheet methods for cash tracking reveal their limitations. The emergence of advanced cash tracking software has brought forth a new era of financial performance enhancement, accuracy, and operational efficiency. In this blog, we will explore the myriad benefits of leveraging asset-tracking software over spreadsheets, uncovering how this technology-driven approach can revolutionise cash management practices.


What is Cash Tracking?

Cash tracking involves the meticulous monitoring and management of cash inflows and outflows within a business. This encompasses the systematic recording of cash transactions, bank balances, and financial activities, all aimed at maintaining optimal liquidity and financial health. Effective cash tracking equips businesses with insights into their cash position, enabling informed decision-making and strategic financial planning.


How Does Cash Tracking Work?

Cash tracking is an ongoing, real-time process that involves continuous monitoring and recording of diverse cash-related transactions. These transactions span from incoming revenue streams, such as sales and receivables, to outgoing expenditures like supplier payments, employee salaries, and operational costs. By meticulously tracking these transactions, businesses maintain precise financial records, analyse cash flow patterns, and project future financial scenarios.


Why is Cash Tracking Important?

Cash tracking carries immense significance for businesses, driven by several compelling reasons

Ensuring sufficient cash reserves to cover operational expenses, capital investments, and unforeseen contingencies.


Accurate cash tracking provides the data necessary for making informed financial decisions, such as timing significant purchases, managing debt, and executing strategic investments.


Accurate cash tracking empowers businesses to create realistic budgets, forecasts, and financial projections, facilitating effective long-term planning and goal setting.


A clear understanding of cash positions helps identify potential liquidity gaps, enabling proactive measures to mitigate financial risks.


Cash Tracking Benefits for Businesses:

The transition from traditional spreadsheets to advanced cash tracking software presents a multitude of advantages that can significantly elevate financial management practices:


Enhanced Efficiency and Accuracy:

Cash tracking software automates manual processes, reducing data entry errors and minimising inaccuracies associated with spreadsheets.


Real-Time Insights

Tracking software offers instantaneous visibility into cash positions, enabling timely decision-making and mitigating the risk of overlooking critical financial data.


Seamless Workflow Integration

By integrating with data sources such as bank accounts and ERPs, cash tracking software streamlines data collection and processing, resulting in heightened efficiency.


Robust Reporting Capabilities

Advanced reporting tools generate comprehensive and accurate financial reports, offering valuable insights for comprehensive business performance analysis.


Optimised Cash Management

Cash tracking software empowers businesses to identify surplus cash, optimise cash allocation, and strategically plan funding or investment activities.


Cash Tracking Best Practices

Implementing effective cash tracking involves adopting best practices:


Regular Reconciliation

Regularly reconciling cash transactions with bank statements ensures accuracy and promptly identifies any discrepancies.


Automated Reconciliation

Leveraging software features for automated reconciliation minimises manual efforts and enhances accuracy.


Precise Categorization

Accurate categorisation of cash transactions enables businesses to analyse spending patterns and identify opportunities for cost optimisation.


Cash Forecasting

Utilising historical data and software forecasting capabilities predicts future cash flows, enabling informed decision-making.


Cross-Functional Collaboration

Fostering collaboration between finance, operations, and other departments ensures accurate cash tracking and reporting.


Best Cash Tracking Software

Several robust tracking software solutions cater to businesses of varying sizes and needs. Here are some top options:



A scalable solution that seamlessly integrates with multiple data sources, offers automated reconciliation and provides real-time cash visibility.



Xero’s cloud-based accounting software features cash tracking capabilities alongside other financial management tools.



Loop’s cash collection and tracking software enables businesses to seamlessly manage their finances and digitise cash payments. The software also works in conjunction with cash in transit services to allow you to track your cash assets. 


QuickBooks Online

QuickBooks offers cash tracking functionality, enabling businesses to manage finances and monitor cash flows effectively.


Wave Financial

Wave provides free accounting software with cash tracking features, making it a suitable choice for small businesses.



From heightened accuracy and real-time insights to streamlined workflows and comprehensive reporting, cash asset tracking software empowers businesses to optimise cash management, make well-informed decisions, and achieve financial stability. As the financial landscape continues to evolve, embracing technology-driven solutions like cash tracking software becomes pivotal for maintaining a competitive edge and ensuring sustained success. Loop can help your business reach that level of efficiency while also streamlining your processes. Talk to us to learn more.

Sign up with email for news and updates

Sign up with email to receive news, blogs and updates about Loop