Six Steps to Getting More out of Your Financial Planning Software
Balancing your budget can be a tricky task, but small business financial software has made things easier. With hand written ledgers and all sorts of other paperwork, it’s easy to see how errors are made. With the new financial planning software that’s now available, keeping track of your money is the first step to keeping control of your business. With these six basic steps to using your financial planning software, you’ll be more than ready to handle your finances.
1) Set Up Automatic Download Features
Automatic download features are an essential part of financial planning software. These features let you connect directly with your bank accounts online and pull the transactions into your program. This will save you time by not having to input each transaction manually. Most banks offer this service free of charge, but some may charge a small fee. Check with your bank when you sign up.
2) Make a Twelve Month Budget
Keeping track of what you’ve already spent is only part of using your financial planning software. Make a twelve month budget and see what you expect to spend. Make sure you budget for the unknowns as well (repairs, etc.) so that you will be able to see where your money should be at the end of each month. This will not only help you with your current financial planning but it helps you to plan for your financial future.
3) When You Receive a Bill, Input it Immediately
As soon as you receive a bill in the mail, input it into your financial planning software. It allows you to put in information such as what is due, how much and the due date. Then, when it comes time to pay that bill, your financial planning software will send you an alert letting you know it’s time to pay it so that your payments are never late. Utilizing accounting software online can streamline this process as well.
4) Review Your Data For Approximately Two Hours Each Month
Most financial planning software allows you to customize reports. Set up an hour sometime around the middle of the month as well as an hour at the end of the month. This will allow you to review your finances and stay on track each month. Compare each month’s report to the previous month to see if you are still on track with where you should be. Taking the time to review your data will assist you in making sure your finances are right where they should be.
5) See How Much Your Net Worth Is
Financial planning software will allow you to track your assets and liabilities over periods of time. This will allow you to see how much you are decreasing your debts and building your assets all at the same time. Setting spending goals will also give you a visual picture of where your company is at as far as revenue is concerned. Keeping an eye on this area with your financial planning software allows you to see the bigger picture for your company.
6) Complete an Income Tax Estimate
Sometime in mid December, you should use your financial planning software and prepare an income tax estimate. This will help you figure out how much money you’ll need to set aside for taxes when they come due. This way, you won’t be scrambling for large sums of money at tax time.
Putting it All Together
Financial planning software will definitely help you manage your company’s money in a more efficient manner. Taking the time to review your accounts and keep track of your budget is the key to making sure you are staying on track. Use your financial planning software to your benefit, and you’ll be amazed at exactly how much money you can save.