How Digital Financial Management Helps Businesses Survive Crises

What Is Digital Financial Management?

Digital financial management is a service that lets you track income and expenses, issue digital invoices, process payments and handle reporting to the tax authorities -- all through an online interface and a mobile app. In Keep, reports and payments to the tax authorities are part of the recommended plan, with a personal accountant.

Instead of filing cabinets full of paperwork, platforms like Keep bring your documents and figures together in one place and let you focus on growing your business. Digital records reduce typing errors and make it easier to submit documents.

When every shekel counts -- especially during an economic crisis -- the ability to manage finances accurately and quickly becomes a significant advantage. Digital financial management helps keep your business afloat even when the waters are rough.

Going digital does not change the duty to keep records: books and documents are kept for 7 years from the end of the tax year, or 6 years from filing that year's annual report, whichever is later. Documents issued in Keep are produced as digitally signed PDFs, and it is worth keeping expense receipts in order from day one.

How Digital Financial Management Helps in Crises

When an economic crisis strikes -- whether it is rising interest rates or a sudden drop in sales -- the ability to make fast decisions based on accurate data becomes especially important. Here is how digital tools help:

• A clear picture of the business -- An income and expense dashboard shows what came in, what went out and which clients still owe you money.
• Time and effort savings -- Instead of dealing with paperwork, you issue invoices from your computer or phone and keep every document in one place.
• Claiming every deductible expense -- When you record each receipt during the year, it is easier to claim the deductible expenses that reduce your taxable income.
• Operational flexibility -- Card clearing, Bit payments and payment links help you adapt your business to a changing market.

A good first step in a crisis is to look at the last three months: how much came in, how much went out, and which fixed costs you have to pay regardless. The gap between income and fixed costs shows how much money is missing in a weak month, and the list of expenses shows where you can start cutting.

Ongoing Cash Flow Tracking

When an economic crisis hits, knowing exactly how much money you have and what payments are expected is like having a roadmap that shows you the way out. In Keep, the dashboard shows your income, expenses and profit for any date range you choose, on every plan, so you can make decisions sooner.

For example, Michal, a 31-year-old cosmetician from Yavne with a small home clinic, compared her income for the last few months in the dashboard while interest rates were rising and saw it falling. Instead of paying her product supplier early, she used the full payment term they had agreed, and got through the period without taking a loan.

Instead of finding out at the end of the month that things are worse than expected, digital cash flow tracking gives you an up-to-date picture of the income and expenses you have recorded. You can identify problems before they become critical and act accordingly.

Profit in the dashboard is not necessarily money in the bank: an issued invoice does not mean the client has paid, so check which documents are still unpaid alongside the profit. With business clients the law helps: under the Payment Terms to Suppliers Law, an Osek Patur, an Osek Murshe or a company must pay a supplier no later than 45 days after the end of the month in which the invoice was submitted, unless the contract sets a different date. When a business client pays later than that, you can point to the date the law sets.

Convenient Ways for Customers to Pay

When customers hesitate to pay during a crisis, digital payment processing lets you offer more convenient ways to pay -- such as a credit card, Bit or a payment link sent to the client -- which can increase the chance of getting paid on time.

Digital systems provide transparent reports showing who paid and when, allowing you to track cash flow in an organized way. For example, Dana Levi, 32, runs an online gift and lifestyle shop from her home in Rishon LeZion. During a market slowdown she started sending customers who order through social media a payment link for card or Bit payment instead of waiting for a bank transfer, and fewer orders were left waiting for payment.

The ability to offer convenient ways to pay is a real competitive advantage during times of economic uncertainty. Customers prefer businesses that make things easier for them, and you benefit from keeping the money flowing.

On a large project, a deposit at the start lowers the risk of financing the client out of your own pocket. It helps to write the payment terms into the price quote and send the client a payment request with a link, so they can pay by card or Bit instead of by bank transfer. In Keep, payment requests and card and Bit payment links are available on every plan.

Reducing Reporting Risks

Fines, interest and linkage charges for late or incorrect reports can become a heavy blow during a crisis. When all your documents and expenses are in one place, it is easier to prepare accurate reports and file them on time, which reduces the risk of fines. In Keep's recommended plan, a personal accountant handles reports and payments to the tax authorities.

For instance, Avi, a 37-year-old marketing consultant from Nes Ziona, is registered as an Osek Murshe. He noticed that an invoice he had issued from his old paper invoice book, before he moved to issuing documents in Keep, was missing from a periodic VAT report already filed. His personal accountant in the recommended plan corrected the report with the VAT office before any audit, and Avi paid the difference with the charges the law sets for late payment: linkage, interest and a late-payment fine. Because the error was caught early, those charges were smaller.

It helps to put your regular reporting dates in a calendar and agree with your accountant in advance who files what, and when. During a crisis, every unnecessary expense -- including fines -- is a blow that can be prevented.

A periodic VAT report that has already been filed is not corrected through the Tax Authority's self-service reporting system, which does not accept amended reports; the correction goes through the VAT office or the business's representative. The sooner an error is found, the smaller the linkage, interest and late-payment fine, because they build up from the original due date. Expenses have a clock too: input VAT on a supplier's invoice can be deducted only within six months of the invoice date, so it pays to record expense invoices soon after you receive them.

Tax Savings Opportunities

During a crisis, every shekel saved is profit. Digital tools help you record tax-deductible expenses throughout the year -- such as software subscriptions, advertising and equipment (usually claimed through depreciation over several years) -- so you can claim every expense you are entitled to.

Each shekel of deductible expense lowers your taxable income, and the tax it saves depends on your marginal tax rate and, for the self-employed, on National Insurance (Bituach Leumi) contributions. Noa, a 29-year-old freelance graphic designer from Tel Aviv, uploaded her receipts during the year, and her personal accountant in the recommended plan explained that her paid social media campaigns and design software subscriptions were deductible expenses she had not been claiming.

In Keep's recommended plan, you upload each expense in a click, as a photo or a file, with a personal accountant to guide you. Instead of sitting down at the end of the year trying to remember which receipts you kept, you already have every expense recorded in one place.

Not every work-related cost is deductible. Private and personal expenses are not, hosting local clients at a café or restaurant is not deductible at all, and light refreshments served at your place of business are 80% deductible. An expense without a document to prove it may be disallowed on audit, so it is worth keeping each receipt from the day you pay.

Financial Forecasts for Crisis Management

A good forecast starts with past data. When your income and expenses are collected in a dashboard, you can compare months and periods, spot seasonal patterns and plan for yourself when to invest and when to save.

Yoav, a technology consultant of about 40 from Ra'anana, compared last quarter's income in the dashboard with the same period a year earlier and saw a drop. With interest rates rising, he decided to postpone a large purchase of computer equipment so as not to strain his cash flow. Comparisons like this help you make informed decisions even when the market is unstable.

The ability to look ahead -- to know when a weak month is coming and when a strong one is expected -- allows you to plan expenses accordingly and avoid situations where you run out of money.

You can build a simple forecast yourself: take the income for the same months last year, reduce it by the drop you are seeing now, and compare the result with your fixed costs. If a gap appears, it is better to know about it two months ahead than in the month itself. A forecast is only accurate when the figures are complete, so every income and every expense needs to be recorded.

Getting Started with Digital Financial Management

The move to digital financial management does not have to happen all at once. You can start with small steps:

1. Bring your expenses together -- In Keep's recommended plan you upload receipts and expenses in a click, as a photo or a file, so all your figures are in one place.
2. Start with invoices -- Try issuing one digital invoice and see how easy it is.
3. Look at the numbers -- Checking income, expenses and profit in the dashboard regularly helps you understand where the business stands.
4. Fix regular dates -- Put your reporting dates in a calendar, along with a fixed day each month for checking cash flow.
5. Consult experts -- Even with digital tools, human advice can help with strategic planning.

For a clean switch, pick a clear start date, such as the first of a month, and from that day issue every document in one system instead of splitting between a paper receipt book and software. Documents you issued before stay valid and are kept as usual. In Keep, issuing invoices and receipts, payment links and the dashboard are available from the basic plan.

Tips for Staying in Control During Crises

To maximize the benefits of digital financial management during a crisis:

• React quickly to changes -- Use the income and expense dashboard to identify income drops and act immediately.
• Convenient ways to pay -- Card and Bit payments, including through a payment link, make it easier for customers to pay on time.
• Follow regulation changes -- Ensure your system is updated for changes like the VAT rise to 18% in January 2025 to avoid surprises.
• Plan from the numbers -- Comparing months and periods in the dashboard helps you plan investments or savings.

Frequent regulatory updates require businesses to be flexible, and digital tools help keep up with the pace. Digital financial management is like an anchor that helps keep your business stable during economic crises.

With an income and expense dashboard, card and Bit payments, organized expense records and accurate reporting, you can make decisions sooner and claim every deductible expense. In Keep, documents, payments and the dashboard are available on every plan, while expense uploads and reporting to the tax authorities through a personal accountant are part of the recommended plan.

One regulatory change worth knowing: as of October 2026, a tax invoice above ₪5,000 before VAT needs an allocation number from the Tax Authority, or the business client cannot deduct the VAT on it. The threshold has come down in steps, from ₪10,000 in January 2026 to ₪5,000 in June 2026, so check the current threshold before issuing a large invoice.

Frequently Asked Questions About Managing Finances in a Crisis

Keep Team

The Keep team creates guides and resources to help freelancers and small business owners in Israel manage their accounting, taxes, and finances with confidence.