5 Apps to Manage Finances for Your Small Business

5 Apps to Manage Finances for Your Small Business

A budget is telling your money where to go, instead of wondering where it went.” – Dave Ramsey

Back in college, it was one of many random quotes I heard from my professor. However, time flew by, and I started my own small venture. And only after facing a few financial setbacks in business, I understood the essence of this quote.

Frankly speaking, managing finances is not an easy task, especially when you’re single-handedly running the business. However, if it wasn’t for the finance tools/apps that helped me, I would’ve shut down my business in probably the first six months.

In this article, I’m going to share a few financial apps that I use to run my business. Besides keeping my business afloat when I faced financial troubles, the apps below are now helping my business thrive.

Also, before I start, there’s one thing you should know. These finance apps require an active internet connection to work. These tools may fetch real-time data from your bank accounts or credit cards. You may also require a top connection to generate financial statements. As for me, I’m currently subscribed to one of the high-speed Xfinity internet plans. Besides the finance apps that I use, my other online tools also work seamlessly on Xfinity’s Internet.

Best Financial Apps for Small Businesses

Xero

Platforms Available On: Windows, Mac, iOS, and Android.

Features

  • With Xero, you can create personalized invoices, and add a business logo, or payment terms.
  • Xero offers integration options with over 21,000 financial institutions. You can also import PDF bank statements directly to your Xero account.
  • The app lets you create customizable and digital purchase orders which you can convert into trackable bills.
  • Xero’s financial reporting software can provide real-time financial reports so you may easily monitor your business’s financial health.

Pricing

Besides a 30-day trial period, Xero offers the following plans:

  • Xero Early Plan for $1/mo.
  • Xero Growing Plan for $2.35/mo.
  • Xero Established Plan for $4/mo.

Disclaimer: Xero reserves the right to change pricing at any time.

Wave

Platforms Available On: Windows, Mac, iOS, and Android.

Features

  • Wave lets you manage multiple businesses from a single account.
  • You can upload unlimited receipts, and using Optical Character Recognition (OCR) technology, Wave can automatically place them in bookkeeping records.
  • Wave offers an interactive dashboard to keep a watchful eye on your business’s financial health.
  • Wave can send automated late payment reminders to vendors or customers.

Pricing

The following plans are offered by Wave:

  • Wave Starter Plan is free (excluding the 2.9% +$0.60 processing fee per credit card transaction).
  • Wave Pro Plan for $16/mo. (excluding the 2.9% processing fee per credit card transaction).

TurboTax

Platforms Available On: Windows, Mac, iOS, and Android.

Features

  • TurboTax offers step-by-step guidance, tax tips, videos, and how-to guides to file your taxes.
  • You can also get help from a tax expert or hire them to file your taxes.
  • TurboTax offers an AI-powered Intuit Assist to answer all your tax-related queries.
  • You can simply upload pictures of tax-related documents like a W-2 form, and TurboTax will automatically fill in the data in your tax return.

Pricing

TurboTax lets you file a 1040 form for free (if eligible). Also, TurboTax may only charge you if you file taxes via the platform. The cost of filing tax using TurboTax may also depend on the state you’re filing the tax for.

The following are paid plans offered by TurboTax:

  • TurboTax starts at $0 and goes up to $89 (This plan may be free if you qualify for a free federal return).
  • TurboTax Assisted starts at $39 and goes up to $169 (Tax expert’s help is included in the plan).
  • TurboTax Full Service starts at $89. (Final price may depend on tax documents included, tax expert files the tax returns).

FreshBooks

Platforms Available On: Windows, Mac, iOS, and Android.

Features

  • FreshBooks lets you generate customizable invoices where you can add due dates, automatic tax calculations, payment terms, and more. You can also add your business logo to make your invoices look more professional.
  • You can generate financial documents like trial balance, general ledger, balance sheet, etc. instantly with FreshBooks.
  • You can automatically reconcile your books by connecting your bank account with FreshBooks.
  • You can receive direct payments from customers via FreshBooks’ invoices, and this app will automatically maintain a record of payments received.

Pricing

Besides a 30-trial period, FreshBooks offers the following plans:

  • FreshBooks Lite for $7.60/mo.
  • FreshBooks Plus for $13.20/mo.
  • FreshBooks Premium for $24/mo.

QuickBooks

Platforms Available On: Windows, Mac, iOS, and Android.

Features:

  • QuickBooks lets you send invoices, record transactions, and modify financial reports in different currencies. You can also assign different currencies to different customers.
  • With QuickBooks, you can create custom financial reports for assets and liabilities to better understand your business’s financial health.
  • QuickBooks can monitor your inventory and update the real-time value of your stocked goods in the balance sheet.
  • With QuickBooks, you can generate custom invoices, and add VAT, discounts, payment details, and track their status.

Pricing

QuickBooks offers a 30-day trial period. Besides that, the following plans are offered by QuickBooks:

  • QuickBooks Simple Start for $9.50/mo.
  • QuickBooks Essentials for $14/mo.
  • QuickBooks Plus for $20/mo.
  • QuickBooks Advanced for $38/mo.

Bonus Section: How to Choose the Best Financial App:

Before winding up, I am going to share a few brief tips on how you can choose the best financial app for your business.

Features Required

Before choosing any financial app, determine what features you need to streamline your finances. It may be filing your business tax returns, generating financial statements, monitoring your business expenses, or other purposes. 

Pricing

Explore the financial tools/apps that are in your allocated budget. Chances are, you may find multiple apps within your budget, but shortlist those apps that offer the required features.

Data Security

Even though it’s not necessary, you may connect your bank accounts or credit cards with these financial tools/apps. So, it’s vital to ensure that the finance app you choose takes strong security measures to safeguard your financial data.

Customer Support

When choosing the financial tool/app, consider the quality of customer support it offers. So, in case of any issues with the tools/apps, you may easily reach out to them to get help.

Free Trial

Most financial apps/tools offer a free trial. I’d suggest before you make the final decision, try the app in the free trial period and explore its features. This way, even if the tool/app does not work out, you won’t lose any money.

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