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
Tax Software: TurboTax
Virtual Bookkeeping Services: 1-800Accountant
All-in-one Financial Services: FinancePal
International Money Transfer Service: Instarem
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.
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.
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.