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Ask the Entrepreneurs: 11 Tools to Easily Manage Business Finances

Ask the Entrepreneurs: 11 Tools to Easily Manage Business Finances


    Ask The Entrepreneurs is a regular series where members of those involved in the Young Entrepreneur Council are asked a single question that aims to help Lifehack readers level up their own lives, whether in a area of management, communication, business or life in general.

    Here’s the question posed in this edition of Ask The Entrepreneurs:

    What app or software helps make managing your business finances a breeze?

    1. Stay on Track With Indinero

    Bhavin Parikh

      The most important financial metric for most startups is monthly cash flow. Indinero lets us easily see how much we’re spending each month by category so we can budget for the coming months.

      Bhavin Parikh, Magoosh, Inc.


      2. QuickBooks Eases Things

      Eric Bahn

        Almost all small business accountants in the United States are familiar with QuickBooks. Thus, I recommend any QuickBooks product (although I like Online Edition the best) because it makes it easy for your to clean up books and collaborate with your accountant for tax time.

        Eric Bahn, Beat The GMAT

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        3. Outright Shows Everything

          I’ve got Outright set up to push notifications to my phone: every time I receive a payment, my phone goes ‘cha-ching!’ It’s a good noise to hear. On top of that feature, Outright can automatically pull in data from accounts and other apps, while putting everything together in a format that makes my CPA very happy. (Disclaimer: I write for the Outright blog, as well as using the app religiously.)

          Thursday Bram, Hyper Modern Consulting

          4. Go With Google Docs

            Google Docs is a great tool to manage business finances. It’s very powerful and simple to use which makes it a breeze to use.

            Ben Lang, EpicLaunch


            5. Pay Up With Square Up

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              Square Up is a great payment processing mobile app that makes accepting credit cards a snap and moves money quickly into my bank account.

              Benjamin Leis, Sweat EquiTees


              6. Microsoft Excel Is Still Relevant!

                It is the industry standard for spreadsheets for a reason. With a little training, you can run circles around any closed source software.

                Peter Minton, Minton Law Group, P.C.


                7. I Owe It All to Freshbooks

                  I’ve never been very good with money. In fact, at one point, I appeared on CNN as the poster child for those with shopping problems. But Freshbooks helps me keep it all together on the business side. I use it to track my time and my business expenses, send invoices (and followups), send out and receive estimates, and generate tax reports. And despite my history with money, it’s all a breeze.

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                  Steph AuteriWord Nerd Pro

                  8. Wave Accounting Saves Time

                  Josh Weiss

                    Wave Accounting is completely free and connects directly to your bank account. It automatically keeps track of all your spending for you. It’s a great product and a huge timesaver.

                    Josh Weiss, Bluegala


                    9. Sync With Mint.com

                      Although most people use Mint.com to monitor their personal finances, many business owners don’t take advantage of doing the same thing with their business accounts. Not surprisingly, Mint’s software works similarly with business bank accounts and credit cards, which makes it very valuable to manage budgets and overall spending.

                      Logan Lenz, Endagon

                      10. Stick With Shoeboxed

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                        I used to dread tax time, because my receipts were always a mess, and often nonexistent. Shoeboxed makes it incredibly easy to keep track of all of my receipts, and then import all of the data to sites like Outright, Mint, etc.

                        Sean OgleLocation 180, LLC

                        11. There Are Still ‘Human’ Applications…

                        Brent Beshore

                          I have this awesome human application called a Director of Operations. She handles all the accounting, financing, taxation, and regulation. It’s like magic. I’d highly recommend getting one. They can read between the lines on all those long-winded documents and keep you from wandering into trouble.

                          Brent Beshore, AdVentures

                          (Photo credit: Hands Managing Bank via Shutterstock)

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                          Trending in Money

                          1 How to Nix Your Credit Card Debt in Less Than 3 Years 2 Top 5 Spending Tracker Apps to Manage Your Budget Smart in 2019 3 How to Use Credit Cards While Staying Out of Debt 4 How to Use Debt Snowball to Get out from a Financial Avalanche 5 How Personal Finance Software Helps You Get More Out of Your Money

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                          Last Updated on April 3, 2019

                          How to Nix Your Credit Card Debt in Less Than 3 Years

                          How to Nix Your Credit Card Debt in Less Than 3 Years

                          Debt is never a fun thing to be in. But, there are many actions that you can take that will help you rid yourself of the burden of debt once and for all.

                          By coming up with a set plan, eliminating your debt can feel much easier than constantly thinking about it.

                          This post will provide some tips on how you can do this to help you nix your credit card debt in less than 3 years.

                          Hint: there are ways that are easier than you think.

                          1. Consider Consolidating Multiple Credit Cards If Possible

                          This may not be applicable to you, but if you have multiple cards – it is something to consider. Keeping up with multiple bills is time consuming.

                          It will depend on the balance you have on each. Consolidate ones you can but do not do it to the point that you get too close to the maximum limit. Also, it is ideal to pick the card with the lower interest rate.

                          Consider if there are any fees or alternatively, rewards, with transferring a balance to another card. Watch out for fees. Note that some cards offer rewards for transferring a balance to them. This is extra cash that can help go towards paying off your debt.

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                          Having one or two cards can make nixing your debt much simpler than keeping up with the balance of a bunch of cards. Keeping track of paying the minimum towards a bunch of cards is time consuming. Spend the time to consolidate instead to make the overall process simpler going forward.

                          My tip: Have one main credit card. Have a second one that you use for necessities – such as groceries or gas – that offers rewards for those purchases (a lot of cards do) and set the second one on auto-pay. You should be able to pay off a smaller amount on auto-pay if it is a necessity. If you think you cannot, then you may need to cut down a lot on expenses.

                          Why do I suggest doing this? Having one thing set to auto-pay is one less thing to think about. One less thing to waste time on. Same idea with consolidating to one main card. Tracking down too many is a hassle.

                          2. Try to Pay the Full Balance You Spent Each Month at the Very Least

                          You need to pay off the amount you are spending each month when that bill comes in. This is the amount you spent THAT month.

                          Do not let the debt keep accruing while you work on paying any unpaid debt that has accrued. It will become a never-ending battle. Try as best as you can to be current on paying for each month’s expenses when that month’s bill comes out.

                          If this is a strain, consider why. You may need to cut expenses. Or you may need to consider other cards. Or look at where this money is going.

                          3. Pay Extra When You Can – Every Small Amount Counts

                          This cannot be emphasized enough. If you are looking at a lot of credit card debt, it can look daunting, but each extra amount that you can put towards the debt will really add up – no matter how small it is.

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                          It does not just reduce the principal amount that you have left to pay off, but it reduces the amount that is collecting interest. You will always save money with that reduced interest.

                          4. Create a Plan on How to Pay Extra

                          Back to the main point, having this plan is giving you one less thing to think about.

                          This plan should be a plan that works for you. If it does not work for you, your spending habits, and your views on debt, then it will not be an effective plan.

                          For instance, if a set plan of an extra $50 (or another amount that you know you can afford) works for you, then do that. Set that aside every month and pay that extra amount. Treat it like a bill. Choose an amount that works for you and pay it like clockwork as though it was a bill you had to pay each month.

                          Little amounts will not nix it entirely, but they will help tackle it and having a set plan can make it less of a chore. Creating a new plan of how much to put towards it each month is an unnecessary added stress.

                          5. Cut out Costs for Services You Do Not Use

                          If you are signed up for subscriptions that you do not use because of some free trial or for some other reason, cut it out. Your overall financial position will look better.

                          In turn, that will make cutting your credit card debt easier. Look at your statements to find these expenses. If you do not use them, you may forget you are paying some unnecessary amount each month. Cutting it out can really add up in savings that you can put towards other needed expenses.

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                          6. Get Aggressive About It

                          Consider these points:

                          Depending on the interest and the level of debt, you may need to give up a few indulgences. For example, instead of ordering delivery or going out to eat, cook at home. Everything adds up.

                          Other things may be more of a sacrifice. It may be a trip you wanted to go on, or a daily latte habit you’ve picked up. In these instances, consider how important it is to you and if it’s worth the sacrifice. And if it is a costly expense, think whether you can wait to indulge.

                          Cutting an extravagant expense can really help make a dent in your overall debt. Try not to add to debt when you are trying to pay it off. It will be a never-ending battle. Make it less of a battle with these tips and it will feel easier.

                          Bottom line: Do what you can to make this process easier for you. Implement steps that do this. It takes time now, but will help overall. Also, keep track of your spending and paying down of your debts. Which is the next point.

                          7. Reevaluate Your Progress at Set Intervals

                          Doing a regular check-in can help you see your efforts pay off or maybe indicate that you need to give this a bit more effort. If you check every 3-6 months, it will not feel so much like a chore or feel so daunting.

                          By doing this, you will be able to better understand your progress and perhaps readjust your plan. Bonus: if you see it pay off, it will feel great to do this check-in. You will get there.

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                          Finally (and most importantly)…

                          8. Keep Trying

                          Do not get discouraged. Pushing it off will make it worse. Just keep trying.

                          Once your debt becomes lower, each monthly payment will reduce the balance more. Why? You are paying less towards interest. It will be a snowball effect eventually and it will become much easier to manage. Just get to that point. And know once you do, it will feel easier and motivating.

                          Start Knocking out Your Debt Today

                          The best way to eliminate debt is to get started right away. Begin by implementing the above steps and watch your debt just melt away. Try out some of the above strategies and see what works best for you. Soon you’ll be on your way to a debt free life.

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                          Featured photo credit: Pexels via pexels.com

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