Entrepreneurs have a vision, an idea for making something different or better. This can often lead to great accomplishments. But pitfalls abound in business today. Perhaps finance isn’t your strong suit. Or you want more time to focus on the creative aspects of the enterprise. There are many budgeting services that offer help with financial budgeting. But what are their most important qualities? They are definitely not one-size-fits-all. How can you identify the best budgeting service for entrepreneurs? Focus on the features and capabilities each tool offers. The following features and capabilities may be needed to create and manage a budget for your business (and personal) expenses.
Ability to Track Your Cash Flow
The app should track cash flow. It may sound elementary, but it’s important! The number one reason new companies fail is lack of available cash. Business Insider statistics show 29% of small businesses fail due to lack of cash. 82% of small businesses experience significant cash flow problems. Cash for emergencies or exigent crises is vital for any new business. Budgeting apps make sure you’re always apprised of cash flow and upcoming bills. You Need A Budget (YNAB) is a great budgeting app. It uses the envelope system to make sure bills get paid. But there is a charge for the app.
Ability to Categorize Your Expenditures
Categorization of expenditures is vital to get an accurate picture of business activity. Proper categorization and timely updating tell you exactly where the business stands. Mint is an app with an extremely good reputation. Intuit puts out the well-known and respected QuickBooks and Turbo Tax, as well as Mint. So their understanding of proper income and expense categorization is excellent. And Mint is free.
Integration with Investment Tools
Some apps include a feature that puts funds into an investment account of your choice. This permits automatic, painless investment without effort. Personal Capital features budgeting tools and specializes in investment management. The budgeting tools are free. The investment advice is fee based.
Compatibility with Multiple Devices & Systems
All these apps are compatible with both Apple and Android devices.
Good Reputation and Performance Reviews
Seek expert advice. It’s always a good idea to do the research in areas you are not that familiar with. See what both established experts and ordinary users think about the different apps. Read the reviews of users, if possible. The Internet is a valuable resource if used wisely. The fact that Mint is backed by the maker of QuickBooks is a major plus. Personal Capital specializes more in investment. YNAB is a strong budgeting application. Forbes lists both Personal Capital and Mint among their top free choices. Mint is considered the best all-around budgeting choice for entrepreneurs by many.
Make Using a Budgeting Service a Top Priority
Expense is always a factor. Many of the best budgeting service apps are free. But some paid apps, like YNAB, can be worth it. It’s a high priority for the entrepreneur to be able to categorize and pay expenses on time. Credit is an essential resource for businesses, especially those in startup mode. The securing of a good source of financing, like the no doc business line of credit, is important. It is also very important to make sure all loans are repaid on time. The margin between success and failure can be razor thin. Accurate expense tracking and timely business payments are essential for the modern entrepreneur. Today’s competitive business environment makes securing the best budgeting tools vital.