Keeping up with business financials isn’t always easy, especially when you’re just getting started. It’s easy to mix up your personal and business accounts when you’re not sure how successful you’ll be. Sometimes, business ideas start out as hobbies and turn into full-fledged businesses. To make the most of your venture, you’ll need to have a good set of financial tools for business management.
Quickbooks might seem like a robust program when your business is just getting started. It’s easier to grow into an accounting program than to have to switch later. Make sure the program you use has a broad base of accounting tasks. It should also integrate with your POS software, credit card processing and tax software. Your accounting program should also give you options to create budgets.
Cloud-based accounting tools give you more flexibility than desktop software. You have access to your financial data no matter where you are. Plus, you can give your CPA access to your financials, which saves time during tax season.
Tools for the Billing Process
Making your billing process easier gets cash into your business quicker. Agile billing tools like Bill.com can get payments processed faster. You automate your billing cycle, taking the burden off your staff and customers. You can make payments through the platform and receive payments from customers. It’s Cloud-based, giving you the flexibility to approve and make payments from anywhere. It also syncs with accounting software.
Cash Flow Software
The cash flow of your business is often a much different picture than your bottom line. You can use a simple spreadsheet to calculate your cash flow over time. Avoid spending hours creating your own document and try Float.
Float is a cash flow software that integrates with your accounting system. It tells you how you’re doing against your budgets. You can adjust your spending when you notice a cash crunch coming. It’s like a future picture of your business.
Payroll Management Tools
Payroll can be an entrepreneur’s biggest headache after taxes. Be efficient with a payroll management tool that integrates with your accounting software. Look for a program that calculates state, local and federal payroll taxes to keep you on track. There are many programs available that will grow with your company and take this headache off your plate.
Today’s inventory management software has a number of solutions to save you time by closely tracking goods and order fulfillment. This software lets you set up alerts when inventory is low. It generates sales reports and manages your packing and shipping. Plus, you can easily find industry-specific tools that manage different types of inventory.
Expense Management Tools
Business expenses are often tax deductible. Little items, such as meals and parking, can add up over the course of a year. Instead of putting receipts in a file and hoping to sort them out every week, use a tool such as Spend or Rydoo. You scan receipts with your mobile device and enter additional information about the expense. Employees can also use these tools for reimbursement.
Customers want more options to pay for purchases, whether it’s Apple Pay or Paypal. Use the tools available to make sure customers can pay on the fly. If you do a lot of trade shows or fairs, you should consider a credit card payment option so you can take cards anywhere you do business.
Your website should also have robust tools that integrate with your shipping software. Avoiding any extra steps in data entry saves you or your staff time. Efficiency increases productivity.
Mileage Tracking Software
If you do any type of driving in your business, MileIQ can help you manage your mileage log. The software works in the background, tracking your miles on your smart device. You classify drives based on business or personal and add details to make expense reporting easier.
At 54.5 cents per mile as the current reimbursement rate, you might be losing a lot of money if you don’t report. An automated mileage log like MileIQ ensures you have documentation to prove your expenses. This is important to the IRS at tax time.
Keep Track of Your Finances
With these financial management tools for small business, it’s easier to maintain your books. Your business can maximize your profits and minimize expenses by staying on top of your finances. Although these tools may not eliminate your CPA, you may find that you’re not as reliant on your accountant.
Long-term stability and success of your business are dependent on your financials. Getting organized helps you track your goals and objectives. Staying organized keeps your business operating efficiently. You can look back and see where you’ve been. You can plan for the future by seeing where you’re going.
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MileIQ’s blog does not constitute professional tax advice. You should contact your own tax professional to discuss your situation.