What Is Small Business Finance Software?

One of the best ways of staying organized and being ahead of the game in your business is the ability to track your books. Small business finance software can help you do just that! Financial software is a term used for a collection of programs that help you to manage the financial records of your business. These programs aid in managing the flow of transactions such as inventory, accounting, payroll, taxes, etc. In addition, to keeping tabs on your business financials, financial software for small business ensures that you comply with IRS regulations. It also helps to simplify your life by making those “daunting” accounting tasks less stressful. Additionally, you as the business owner are able to always have financial information at your fingertips in real time. This means that you ‘re constantly in the know of what’s happening in your business by staying abreast of the money that’s flowing in and out of your business.

The types of financial management software at your disposal are plentiful. Below is a list of the most common financial programs used in smaller enterprises:

Small business accounting software – a business management tool which keeps record of all accounting transactions. Provides the ability to manage invoices, bookkeeping, accounts receivables, accounts payables, inventory, payroll, financial reporting, all in one program. Some even have the capability of business budgeting and cash flow management as well.

Small business bookkeeping software – is software that helps you to effectively manage the financial tasks that you would perform in your business every day. This includes data entry of cash receipts, invoices to pay, sales and expenses tracking, banking and credit card transactions. Some provide the functionality of integration with your current accounting software.

Small business payroll software – provides the ability to manage employee payroll services. You can manage hours, taxes, tax compliance, direct deposit of employees’ pay and much more. Many can be integrated with your accounting programs.

Online Accounting Programs – provides the same functionality as other accounting programs, but in a secured web-based environment.

Small business tax software – software used for preparing and filing small business taxes. The more updated tax programs have step by step instructions and ask appropriate questions to ensure that you take advantage of every business tax deduction. Some also provide the functionality to incorporate your personal taxes.

Financial Software downloads – download software from the internet that will help in managing the finances of your business. Some are free and some are reasonably priced.

Consider simplifying your business finance and your life with small business finance software. You can save money, time, and frustration by moving to an automated financial management process utilizing software.

Small Business Finances – Accounts Receivable Factoring

As many people know, owning and operating a successful small business means keeping accurate and timely financial records. Why? Because your financial picture allows you to monitor your small business and determine its successes every month. Good record keeping also provides you with the information you need to evaluate the financial decisions that you’ve made.

Many small business owners think is that they have to hire an outside accountant to run their business. This is not necessarily true. Consider the fact that you could save money if you or someone in your company or family were to keep the books, rather than a costly outside accountant. An accurate set of financial records in-house will minimize costs of paying an accountant and enable you to have more control of your business finances.

For example, what if your clients are late paying you one month, and you need more money to pay bills? Then you would know right away that you might consider factoring, a solution that could provide funds in about 24 hours. Invoice factoring, or accounts receivable factoring, has been around for 4,000 years, but single invoice factoring is a great new way to provide short-term working capital for growth.

You might not always get paid right away for a product or service that you have already delivered, so factoring could be the answer. Today it is harder than ever before to secure alternative financing through banks or venture capitalists. Accounts receivable factoring, also known as spot factoring, is a fast way to turn your receivables into cash rather than waiting up to 90 days for an invoice to get paid the funds.

It works like this. A factoring company will take a long look at your client’s credit, instead of yours, then if approved, you will get paid in around 24 hours. Fees for this service vary. Factoring companies collect the funds from the customer.

Financial tips for operating a small business includes the fact that it is important to keep your records including canceled checks and other business documents in an orderly and safe place. It’s important to place your receipts in the proper categories during the year, so it will be easier at tax time.

Small businesses aren’t required to keep a formal set of books, but make sure you choose the best record keeping system. Here are a few more tips:

- Employee compensation records — make sure you keep tabs on what you pay your employees and when raises, bonuses or commission checks are due.
- Expense summary — keep records of your monthly business expenses.
- Bank statements — when you receive your statements every month, be sure to prepare a bank reconciliation document to help you balance your checkbook.
- Summary of receipts — keep a record of gross income that is totaled daily, weekly or monthly, and keep track of where the funds came from.
- Disbursements record — this is a check register or expense journal that shows payments of bills where you record all the transactions in which you paid out cash or checks.
- Asset purchases — keep a listing for equipment, vehicles, or real estate that is used in your business.

Changes For Business Finance and Working Capital Loan Programs

As business owners develop their small business loan plans for future financing and refinancing throughout the United States, there is an increasing awareness that there have been significant business finance changes that cannot be ignored. Some of these measures are likely to end up being permanent, and even the temporary commercial mortgage loan and working capital loan changes are expected to be in place for an extended time due to the severity of the current financial climate.

A reduction in commercial lenders as well as stricter standards for acquiring commercial loans and commercial mortgages has been the net result from business finance changes. Unfortunately there has also been no shortage of misinformation about the availability of commercial funding.

A significant reduction in business lending activity overall is perhaps the most dramatic change. This has been due to several events occurring almost simultaneously. Several major commercial lenders have gone out of business altogether. Many banks have stopped commercial finance lending while continuing consumer lending. Numerous business lenders have enacted stricter standards for the commercial financing transactions they are still willing to consider.

It remains to be seen how many changes will be permanent or temporary. But from a practical perspective, commercial borrowers are left with no choice but to adapt to the changing business finance environment. Business owners must be prepared to operate within a more complicated climate for commercial mortgage loans and small business loans regardless of how long the changes might be kept in place.

What should borrowers do about this? A primary option that business owners should explore involves looking beyond their local market area for help with commercial loans. To accomplish this, it should be helpful to contact a commercial financing expert operating throughout the United States.

In addition to fewer business lenders to choose from, there are two other significant changes which must be anticipated by business owners before seeking new commercial loans. First, more collateral for virtually all business finance funding is being demanded by many commercial lenders. Second, most lenders have cancelled or are about to eliminate unsecured lines of credit (usually called working capital loans) for many businesses.

One effective commercial financing strategy for overcoming the combined obstacles of more collateral, fewer lenders and reduced unsecured credit lines is to consider business cash advance programs based on future credit card processing transactions. This is proving to be one of the few sources of business funding that has not been adversely impacted by recent events. To learn more, it will be advisable to discuss the potential with a business finance expert who can provide advice about business cash advances as well as other small business financing solutions.

It is increasingly obvious that many banks will continue to modify their business lending programs in response to changing conditions. This means that another key change issue for working capital financing and commercial mortgages is the likelihood that more changes will be forthcoming in the near future.

To adequately prepare for future commercial finance changes that might (or might not) occur is a daunting task for a business owner. A commercial financing expert familiar with Plan B contingency financing for small business loans will prove to be a valuable resource for any borrower wanting to seriously deal with both current and future changes impacting the financial health of their business. By having a candid conversation with a commercial loan expert, business owners should be more capable of implementing an appropriate strategy for the vast changes which have recently occurred or are about to become effective for most business financing and working capital finance funding.