According to a survey by Turnaround Management Society, inadequate accounting practices, and faulty financial planning cause 36% of business failures. Whereas the use of money management software makes accounting and planning more precise and efficient. Moreover, the Association of Chartered Certified Accountants has found that detailed cash flow information makes your business more creditworthy and investable.
If you run a small company, the only money management tool you need is Google Sheets or Microsoft Excel. But once your business grows, expense report spreadsheet will not handle the increased amount of data, and the number of mistakes will increase.
Startups and established software providers
alike developed dozens of financial management applications for business owners. Quickbooks, Expensify, Xero, Square, InDinero are among the most popular expense managers for the Web in Europe and the USA.
When choosing the right timesheet and expense management software for your business, it is vital to consider multiple factors besides the cost, even if your budget is meager. Start with a demo or trial period, if it is available, and assess these parameters before purchase:
- Ease of use. Adopting a new expense manager for Windows or macOS should not disrupt your everyday processes.
- Customer service. Getting help if you run into problems when using the app should be smooth and comfortable.
- Timesaving features. If using software for expense processing takes more time than adding data to your spreadsheet, look for another app.
- Reporting capabilities. Financial management software should generate a variety of reports automatically or on demand and save you time on filling in the Excel expense report.
- Integration with third-party apps. If you already use accounting software or CRM, your new online spending tracker should be able to work with them, extract and integrate necessary data with minimal human input.
- Mobile access and mobile features. Expense app for iPhone and Android to go with a desktop or web application will allow you to review, edit, and update financial data on the go.
- Service limitations. Before purchasing any plan, read the fine print to learn about all restrictions applying to the number of users, customers, invoices, etc.
On the downside, mainstream business solutions are often complex and require deep technical skills to manage settings and training to teach personnel to handle the variety of features. As a result, these applications are not suitable for most small businesses.
If your budget allows it, creating a custom expense manager for Android, iOS or desktop is the best option, since it will meet your business requirements and solve specific problems your company faces. Developing a prototype will cost only $10,000
to $15,000, and once the app is in use, you can reap the benefits and invest more in upgrades.
Do you use software to manage business finances? Have you ever tried an expense manager iOS app? Share your experience and ideas for future articles in the comments and spread the word on social media. Check out our previous articles and subscribe
to be the first to read new posts on FreshCode blog.