Advertising
Advertising

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

        Advertising

        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

            Advertising

              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.

                  Advertising

                  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

                      Advertising

                        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)

                          More by this author

                          9 No-Brainer Ways to Track Employee Time Ask the Entrepreneurs: 12 Things Entrepreneurs Should Stop Doing Ask the Entrepreneurs: 9 Best Note Taking Tools Ask the Entrepreneurs: 12 Tips for Mastering Public Speaking Ask the Entrepreneurs: 9 Tasks You Should be Outsourcing

                          Trending in Money

                          1 The Best Ways to Save Money Even Impulsive Spenders Can Get Behind 2 How to Answer the Tough Question: What are Your Salary Requirements? 3 How Personal Finance Software Helps You Get More Out of Your Money 4 The Definitive Guide to Get Out of Debt Fast (And Forever) 5 35 Real Ways to Actually Make Money Online

                          Read Next

                          Advertising
                          Advertising

                          Published on November 20, 2018

                          The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

                          The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

                          The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

                          Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

                          In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

                          Why Your Past Prevents You from Saving Money

                          Are you constantly thinking about your financial mistakes?

                          If so, these thoughts are holding you back from saving.

                          I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

                          It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

                          For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

                          Advertising

                          How to Effortlessly Track Your Spending

                          Stop manually tracking your spending.

                          Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

                          When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

                          Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

                          The Truth on Why You Keep Failing

                          Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

                          Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

                          Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

                          If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

                          Advertising

                          Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

                          Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

                          1. Save more than 50% of your available money (after expenses)
                          2. Only buy nice things after saving
                          3. Automate your savings with automatic bank transfers

                          These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

                          How to Foolproof Yourself out of Debt

                          Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

                          So how can you separate yourself from the 60%?

                          By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

                          This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

                          For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

                          Advertising

                          Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

                          A Proven Formula to Skyrocket Your Savings

                          Having proven systems in place to help you save more is important, but they’re not the best way to save money.

                          You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

                          What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

                          Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

                          Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

                          During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

                          Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

                          Advertising

                          Transform Yourself into a Saving Money Machine

                          Saving money isn’t complicated but it’s one of the hardest things you’ll do.

                          By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

                          The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

                          Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

                          Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

                          What are you waiting for? Go and start saving money, the sky is your limit.

                          Featured photo credit: rawpixel via unsplash.com

                          Reference

                          Read Next