Small-Business Planning Financial Software
- November 19, 2021
- Posted by: Scale My Hustle
- Category: Business Planning
The purpose of business is to make a profit after paying all expenses. This is a simple goal, but it is difficult to achieve without proper financial tools. Increasingly, profit margins are under attack from government taxation, employee expenditures and liability costs. To effectively track all variables, small-business owners need financial software tools.
The Benefits of Financial Software
In a small business, monitoring controllable expenses can make the difference between a profitable year and bankruptcy. Thanks to new technologies, tracking controllable expenses, employee payroll and other financial areas have never been easier.
Purchasing a financial software product can help you account for current controllable expenses, track inventories and provide reporting tools for instant feedback on how well business strategies are working. The software also helps manage current and predict future expenditures and sales automatically.
Key Features of Financial Software
All quality financial software products offer certain accounting and reporting features. Software products typically include a bookkeeping system that effortlessly tracks bills, invoices, state and federal taxes, and customer payments. A quality product will also offer various tools and reporting features that monitor financial progress throughout the year. Online banking is also a chief feature of a quality product.
Financial Software Add-Ons
Many of the top financial software products offer add-on financial and business products. The most common is a payroll accounting product, which computes and files all payroll and tax deductions, monitors timesheets and even does electronic funds transfers and check printing.
Other popular add-on software products include inventory, sales, customer management and credit card processing.
What to Look for in Financial Software
A small business should consider certain features when buying a financial software product. A user-friendly product is essential. Look for software that relies on automatic upgrades directly from the company. Tax and other business laws change regularly so software that is not upgraded will become obsolete quickly. Find out how often a company conducts its upgrades and whether it charges for them.
Review all of the product’s add-on features. As a business expands, new software features may be needed. A small business with employees will need a payroll software add-on. If the firm carries inventory, it may also want to purchase an inventory-tracking system add-on.
The Top Three Packages
QuickBooks is the most comprehensive business accounting product available. However, it is for the business professional who has had some experience with business accounting. This is a wonderful package for those companies that are expanding, have multiple employees, multiple locations or have slim profit margins. The reporting tools for this product help control expenses. QuickBooks offers a number of financial accounting packages including some that are business-specific.
Microsoft Office Small Business Accounting is a product designed to work seamlessly with the Microsoft office suite. This product is similar to QuickBooks, but it is best for smaller businesses with fewer than 25 employees. It is an easy product to learn, and it does have add-ons such as payroll. Emailing invoices, printing mailing lists and other business communication functions are similar to other Microsoft products.
For a small business with a single employee or a home-based business, Quicken Home and Business is a viable solution. It is not designed for business with employees, but it is an inexpensive accounting product for those who are just starting out.
Any product purchased needs to bear a resemblance to traditional accounting procedures. This will make it easier to transfer end-of-the-year information to outside accounting firms. Any small-business software product must offer some analysis based on a company’s financial data. The main reports that need to be included are transaction histories, check reconciliation and profit and loss.
Featured image: istockphoto
Article culled from smallbusiness.com