If you stick to a budget for your personal expenses, you are more likely to meet your financial goals. The same goes for your company. It’s just able to work more efficiently when you implement business budgeting systems and tools.
Having a budget for your business can help you better understand where your money is going. Understanding this will help you identify financial opportunities and concerns more quickly.
Read on to learn more about why business budgeting systems are needed and for a brief list of the best tools available today.
Why your company needs a budget
As the business owner, budgeting for your business can help you take your business to the next level. A better understanding of money in and out will help you make money decisions that are aligned with your business goals.
Benefit first, a book to help readers build better accounting systems in their company, offers practical advice on how to achieve financial success in a business. The key concept of the book is to replace the traditional business accounting formula (Sales – Expenses =) Benefit) and replace it with a formula that prioritizes profits (Sales – Benefit = Expenses).
There are many examples of the success of this business budgeting method. Business budgeting systems and tools can help you get the most out of your budget Profit First Method.
The potential benefits of a corporate budget are obvious. But getting started is the hard part. Fortunately, there are several business budgeting systems and tools that can help you create and manage your business budget with minimal effort. Let’s explore your options!
connected: How to run your personal finances like a business
Best business budgeting tools
Use existing systems and tools when setting up a budget for your business. You don’t have to start from scratch with so many budgeting systems and tools out there to help. Here is a closer look at the top business budgeting systems and tools available today.
The right bank account can be the best tool for small business owners. Novo is a technology company that has set up a bank account for small business owners, entrepreneurs and freelancers.
Not only is this bank account easy to open, there are no ongoing fees in your budget. Creating and managing invoices in this account makes it a useful option for any business owner.
As a budgeting tool, Novo can be very useful. You have the option to have funds in your account to pay for a scheduled expense or to cover your paycheck. These sub-accounts or envelopes can help you manage your business finances without wondering what cash is already in your account. And everything can be managed directly from your app or online.
The only downside to this business tool is that it doesn’t allow you to deposit cash or write a physical check. However, the money planning features in this account can outweigh the minor inconvenience.
Do you run a freelance business? Lili Bank could be the perfect account for you. The mobile bank is specifically designed to help freelancers manage their business more efficiently.
Lili is a helpful budgeting tool as it provides free reports on your business income. The reporting functions of the banking app are completely free. In this way, you can save on paying for another annual reporting software, as there is no monthly fee for working with Lili.
The great thing about this tool is that Lili automatically puts money aside for taxes and emergencies. You can set the amount you’d like to save each day on your tax liabilities and future emergencies. Lili will regularly take care of putting these savings aside.
When you open an account with Lili, you can manage everything directly from the app. There’s no online option, so it may not be suitable if you’d rather manage your finances from a desktop.
See all of our preferred commercial bank accounts >>>
3. QuickBooks Online
QuickBooks Online is one of the most popular budgeting systems for small businesses. The accounting system offers a variety of features to help you track your expenses, monitor your tax liability, and plan your expected cash flow with simple reports.
When considering QuickBooks Online, there are four pricing tiers to choose from:
- Easy start: $ 25 / month
- Basics: $ 40 / month
- plus: $ 70 / month
- Advanced: $ 150 / month
However, you can try QuickBooks for the first three months at a 50% discount. You can choose the level of QuickBooks that works best for you. However, the easy start plan is more than enough for new business owners. You can upgrade at any time if necessary.
You can use QuickBooks to send invoices and manage reports through your app. Also, this system is automatically synced with your bank account for easier life.
4. Wave accounting
If you like the idea of using QuickBooks but want a lower price tag, Wave Accounting could be a great solution. The accounting software is completely free to use. Although fewer features are available, all of the basics will help you manage your business.
You can bill quickly and monitor your business budget with free basic reports. The ability to sync directly to your bank account makes it easy to track expenses.
If you need more help, Wave can help you pay for additional services like bookkeeping. As a free business budgeting system, Wave Accounting is a useful way to get started.
FreshBooks is another popular business budgeting system that makes managing your corporate finances easier. In addition to the simple invoicing functions, you can use the time tracking functions and project management functions of FreshBooks.
To be able to work with FreshBooks, you have to choose from four plans:
- Lite: $ 4.50 / month
- plus: $ 7.50 / month
- bonus: $ 15 / month
- Choose: Custom pricing for complex business needs
Although Lite is the cheapest option, it is limited to 5 bills per month. Many companies have to opt for the Plus option, which allows you to bill up to 50 customers per month.
FreshBooks offers minimal expense tracking capabilities. However, it will glow in the billing area so you can accept multiple online payment options. When all you need is high quality mobile invoicing features, FreshBooks is a great choice.
As you select the right business budgeting systems and tools, take some time to examine what each option does. Look for a tool that makes sense for you and your business. With slightly different features offered by each budgeting tool, you can create a budgeting system that is tailored to your specific business needs.
Check out our favorite personal budgeting apps >>>