Best Finance Software for Small Businesses

Running a small business can be exhausting, and even the most comprehensive plan can’t foresee every hurdle. Most of the time, the problem boils down to the same thing: finances. Not just the ability to pay the bills, but also how to manage all finances correctly. Since 20% of small businesses don’t survive the first year, it’s important not to make any mistakes. That’s why using the right financial software is a good idea. Investing in software to run your taxes, payroll, expenses, and more means you’re far less likely to be hit by an unexpected fine. Not to mention the losses that can happen by not effectively managing your inventory. Fortunately, there are reasonably priced services that will help your business avoid costly mistakes and thrive in the future.

The Challenges of Managing the Finances of a Small Business

Anyone who sets up a small business knows that there are many challenges you have to face along the way – like taxes. It’s important for your business to stay tax compliant, but that’s incredibly difficult when you have to make sure you send all the right forms on time without making a single mistake. For example, it’s easy to mix up business and personal expenses or suffer from poor record keeping. Mistakes can result in large penalties, which make a huge impact on small businesses.

Similarly, unexpected issues can be costly when it comes to your cash flow, like fees or delays. Then there’s inventory management, where 46% of small businesses don’t even have a system to track goods – a sure-fire way to lose money and something software easily solves. But no matter how well you plan, you can never prepare for everything. So, to make sure you don’t become one of the many small businesses that fail, it’s vital to stay on top of all your finances by managing them efficiently.

Recommended Finance Software for Small Businesses

By taking advantage of the best financial software, small businesses reduce the risk of making expensive mistakes and avoid hours of stressful paperwork. But there are a lot of different solutions to choose from, so we’ve recommended some of the best to help your business thrive.

Accounting Software: FreshBooks

If you want to make money, you need to have your accounts in order. Paying top dollar for an accountant isn’t always practical, which is why online accounting software is so useful. You may also hear it referred to as cloud accounting software since everything is stored securely in the cloud and you can access it just by using a browser. Accounting software lets you handle all your incomings and outgoings in one place, allowing you to see exactly how your business is performing and understand your cash flow. One of the most comprehensive online accounting solutions is FreshBooks, which handles billing, invoicing, time tracking, and much more. The software goes beyond accounting with project management tools that enable you to invite employees, contractors, and clients to share files and communicate. There are also a variety of helpful integrations and a mobile app to get the most out of the software. Read our FreshBooks review.

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Tax Software: TurboTax

It’s important to get your taxes right, especially for small businesses where an incorrect tax return can result in large fines. Of course, the process is never easy, but tax software will have you filing your business’s tax returns like a pro. The software stays on top of any new tax laws and regulations, ensuring that you’ll never be caught off guard. Not only that, but the best tax software comes with great support, so if you have any issues, you’ll have expert advice to help you along the way. One example of that is TurboTax, which offers unlimited help from tax experts. The company is so confident in its software’s ability that if you’re given a penalty because of a TurboTax calculation error, the company will pay the penalty and any interest. So, you’ll never have to worry about W-2s, 1099s, or returns ever again. Read our TurboTax review.

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Virtual Bookkeeping Services: 1-800Accountant

When you’re running a small business, one of the last things you want to deal with is bookkeeping. But there are services that can save you the headache of dealing with all that yourself, not only saving you time, but also the potential cost of hiring a professional. Virtual bookkeeping services give you an accountant or bookkeeper to act on your behalf, ensuring all your business’s finances are in order. A virtual bookkeeper works according to your needs and ends up becoming a part of your staff. One great example is 1-800Accountant, which gives its users a dedicated bookkeeper they can easily contact via the dashboard, making you feel like your business has an extra member in their team. Your bookkeeper will keep all your important documents organized and ensure you’re doing everything right. They’ll even help you out if you’re behind on your books. Read our 1-800Accountant review.

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All-in-one Financial Services: FinancePal

Sometimes you may not want to rely solely on an app to keep track of all your financial procedures, preferring instead to trust real trained professionals. This is where FinancePal comes in – a comprehensive team of accounting and bookkeeping experts not supported by any software. In fact, FinancePal has the resources to help from the very beginning with its entity formation services. It can also keep your business in good shape with tips on avoiding inventory mistakes and staying compliant with employee payroll. But the best part of this service may be how it adapts to each small business, so owners don’t have to spend money on unnecessary services. After a quick 30-minute chat with a FinancePal representative, you’ll get a custom quote offering only the essential integrations at an affordable cost. Read our FinancePal review.

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International Money Transfer Service: Instarem

It shows that your business is healthy and growing when partners from other countries start entering the picture. Foreign business partners mean financial transactions overseas. And this is where Instarem comes in ­– a fast and completely transparent money transfer service. Registering may take some time, but after that everything goes smoothly. Signing up is completely free, and the services comes with no extra charges or hidden fees. You only have to pay for the actual transfers. Transaction fees are minimal though, and there are ways to reduce this cost through InstaPoints, earned when you join up, money transfers, and successful referrals. Exchange rates can be monitored as well with two rate alerts, for which you don’t have to pay a dime either. The company also locks exchange rates to the day of the transfer, making sure you don’t get unpleasant surprises when the money actually goes through. Read our Instarem review.

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Online Banking Platform: Relay Financial

When a business starts to do well, cash pours in. But costs begin to grow too. Small businesses often mistakenly use multiple banking services in an attempt to make their cash flow more transparent. But you can forget about traditional banking headaches with Relay Financial. This online banking platform allows you to manage all your finances in one place, while offering an easy-to-use interface and advanced protection. The advantages don’t stop there, as Relay Financial provides up to 50 debit cards and 20 checking accounts, which can be assigned to specific people and expenses. For example, you can control the access of the person in charge of deliveries to only access the deliveries checking account. Finally, the service is also handy when running various business endeavors, as all your companies can be managed from the same Relay Financial account. Read our Relay Financial review.

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Why Your Company Needs Finance Software

Every small business should invest in financial software, but of course not every startup has the capability to do so. For example, running payroll by yourself when you have just a few employees is a relatively quick (if tricky) process. However, as your business expands, this may end up taking hours and hours. At that point, the time saved by payroll software will more than recoup the investment.
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Indeed, time is often an issue for small business owners, and if you find that you’re spending what seems like forever staring at Excel spreadsheets to manage your cash flow or work out your taxes, then you’re ready to make the most of financial software. Accounting software that comes with inventory management is invaluable to avoid losses. As your company grows so too will your inventory, making it particularly important to know everything is in the right place.

Once you’ve invested in financial software, you’ll see all the benefits. Automating these processes means cash flow, payroll, and taxes will become a breeze.

Additional Financial Advice for Small Business

Financial software isn’t going to solve every problem a small business will face. If your company works remotely, then you’re going to need the right software to set up a home office, communicate efficiently, and keep your company data secure online. The right software can also help your team stay as productive as possible for maximum efficiency, and set up marketing campaigns to help your business get its name out there and perhaps not stay small for long.