Accounting can help small businesses succeed because you’re given visual insights into your financial health. Everything from cash flow to tax compliance can be tracked by a great accountant. But if you can’t hire a payroll department right away, use financial insight apps.
What are the Basics of Small Business Accounting?
There are three main areas of small business accounting: basic bookkeeping, tax returns, and financial reporting. If you’ve tried your hand at bookkeeping in the past, you already know that it helps you know if you’re making a profit or if you’re in danger of running out of money.
Filing your taxes becomes more complicated the more you earn. Staying on top of your finances will help you save up for income tax, employee taxes, and sales tax. Through tasks like financial reporting, you’ll gain access to cash flow statements, P/L statements, and balance sheets.
How Can Financial Apps Help Your Business?
Financial insight apps, like SoFi Relay, can make life easier for you because everything is automated. When integrated with your accounts and software, apps help with the following.
Financial Insight Apps Promote Financial Stability
When your business finances are in order, you’ll have an accurate view of your comings and goings. You’ll never wonder where your money went or why your accounts are more empty than usual because the app will notify you when you overspend or spend on items you shouldn’t’.
When you’re financially stable, you can create accurate forecasts for future expenses and revenue. Plus, stable businesses provide a more positive, consistent experience to clients.
Financial Insight Apps Make You More Efficient
Many startup owners have felt their stomachs drop after seeing their income statements. Since they didn’t have up-to-date data on their finances, they had to scramble to figure out what happened and why. Financial insight apps can give you this information, reducing your stress.
Accurate financial data does more than prevent heart attacks. Data also helps you time your business investments, so you can work more efficiently and deliver a better client experience.
Financial Insight Apps Improve Marketing Potential
Marketing mishaps are one of the top four reasons businesses fail. Financial hurdles, poor management, and ineffective business planning are the other two. Those are covered in our last points, but financial insight apps can also improve marketing potential by helping you save.
With more money in your pocket, you can pay for customer and competitor research, which helps you develop better marketing strategies. You’ll also be able to launch more campaigns.
How Can Financial Apps Help Boost My Finances?
By using the information you’ve gathered from the last sections, you can utilize financial apps to their fullest.
Here are a few ways financial insight apps can help get your finances in order.
1. Track Separate Accounts
Business owners should separate their personal and business accounts to make tax season easier, but managing two accounts definitely isn’t easy. Use financial insight apps to track and manage multiple accounts at once.
2. Separate Business Deductions
Since financial insight apps track everything, they can even separate business deductions, like travel or meals, automatically.
3. Create a Budget
You’ll always know how much you’re spending when you have a budget. Set parameters that cap your spending or allow for push notifications.
4. Know Your Tax Obligations
Your tax obligations depend on the legal structure of your company. However, all business owners have to save up to pay taxes to the IRS. You can set up automated transfers to a separate savings account, so you don’t spend it.
5. Check Your Business Credit
All businesses need credit to get a loan or other financial products. Financial apps let you check your score without it affecting your credit.
In the end, financial apps help you build better financial habits, which benefits your business.