It could be pretty challenging to handle the financial aspect of a small business. Entrepreneurs are expected to take care of everyday accounting and tackle issues with the IRS. They do not have any time for dealing with the manufacturing of goods or providing services. Thanks to technology, a host of cutting-edge tools have been introduced for saving time for small business owners regarding everyday financial tasks. For streamlining your entire financial management process to make sure that you get enough time and opportunity to perform your real job, examine some of the path-breaking financial tools that are just right for your small business.
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Consider Using a Competent Accounting System Such as QuickBooks
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It is of pivotal importance to have an efficient accounting system such as QuickBooks that is supposed to be a competent online financial tool that has gained phenomenal popularity in recent times. As per https://www.forbes.com, your accounting system must necessarily have expense tracking, invoicing, automation of billing, financial report generation, tax preparations, recurring payments, and even payroll processing. If your small business has certain unique requirements, ensure that your accounting system can cater to those needs.
QuickBooks is just right for tracking miles, creating invoices, managing your cash flow and expenses, and even examine your business’s profit and loss situation. QuickBooks is the best accounting software meant for small businesses. It allows instant access to vendor, customer, and even employee information. It generally comes with a free 30-day trial period.
All businesses must be strategic and extra careful about their cash. Cash reserves would be allowing small businesses to sustain and even survive despite tough times. In reality, effective cash flow management seems to be the deciding factor that determines whether a business would be succeeding or failing in the long run. As such, it is of utmost importance to have a robust accounting system that tells you about cash flow so that you could know when cash comes into and goes out of your account.
Keep Tracking Your Net Worth by Using Personal Capital
Experts believe that if you cannot measure your net worth, you simply cannot consider improving it. Fortunately, Personal Capital has made it easy to keep tracking your net worth, your spending, and even your portfolio allocation. Personal Capital is supposed to be a competent financial management app that helps users to connect seamlessly all their liabilities and assets to the app. Personal Capital would then be using an encrypted connection for reading and analyzing spending and demonstrating the spending in the useful bar and pie charts.
Now you could be successfully analyzing your asset allocation very much within your portfolio. Management of asset allocation across several platforms could be the toughest and most challenging aspect of contemporary investing. Fortunately, Personal Capital helps in making it immensely easier for you to keep constant track of your asset allocation irrespective of the number of accounts you are having. You must know your current net worth even when you are applying for loans for your small business from reputed lending organizations.
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Keep Track of Your Credit Using Credit Karma
You simply cannot ignore your credit score and in this context, you must realize that keeping constant track of your current credit score is supposed to be an overlooked aspect of financial management. You must understand that a good credit score and a flawless credit report are instrumental in obtaining a mortgage, refinancing student loans, and earning impressive credit card rewards. You must constantly keep track of your credit report for making sure that you do not encounter any identity threat.
Remember you have the right to claim one copy of your current credit report for free from the top three credit reporting bureaus every year. It helps you to understand ways to boost your overall credit score.
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Get Rid of Your Credit Card Debt with Debitize
Most of you would give up spending money once the balance in your checking account seems to be quite low. Different amounts would be considered low for different people. For one individual $100 would be low while for another person, $10000 would be considered low. Whatever it is, once you hit your low balance in your checking account, you would probably stop spending.
However, you generally do not apply the same logic while using credit cards. You could easily end up running up a huge balance without giving it a thought. If you are struggling to subtract or deduct your credit card outstanding bill from your checking account, you could start using Debitize. Debitize is an efficient app for deducting your credit card spending straightaway from your checking account as you spend the money. Debitize would also pay off your full credit card bill every month-end.
Chalk Out a Budget That Should Be Working With Every Dollar
Every Dollar seems to be an effective zero-based budgeting tool that you could use for free. A zero-based budget will be letting you meticulously account for each dollar of investing, saving, spending, and giving for the upcoming month. It is surely a powerful and effective way of getting a tight grip on your finances.
Every Dollar is the right app for use if you are compelled to live paycheck to paycheck, or if you need to pay off debt. Every Dollar is the right app managing your finance well as it boasts of more features as compared to other budgeting tools that come free. You could create ‘funds’ with the help of Every Dollar. Funds are an effective way of saving for irregular expenses such as vacations or car repairs, etc.
The only issue with Every Dollar is that you need to enter all transactions manually in your budget. It seems to be fine if you are managing your finances basically on your own. You could find it pretty exasperating to keep tracking your expenses. It is best to consider upgrading Every Dollar so that it could track expenses on your behalf.
Explore the option of debt consolidation via home mortgage refinancing, or if you are age 62+, you could also explore the option of a federally-insured HECM. This is a special loan for seniors that allow for you to borrow from your home’s equity without having to take on a structured mortgage payment. Reverse mortgages can be expensive so make sure to weigh both pros and cons before entering the agreement.
Conclusion
Taking care of all the financial aspects of your business could be a pretty challenging affair. Things could get complicated. It is best to consider using some of the cutting-edge financial tools that are easily available to you. Consider starting simple using a basic accounting system and then gradually scale your endeavors up or down as per the unique requirements of your company.
