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Financial management can be challenging for both new and seasoned small business owners. However, smart entrepreneurs know that proactive financial planning is a key to building and growing a successful small business. So if you’re feeling overwhelmed, what’s the solution?

Finding the right software! Financial planning software can take the headache out of tracking expenses, preparing budgets, and forecasting cash flow. Automated tools can quickly and accurately analyze profits, project future revenues, and identify opportunities to cut costs, giving small business owners the information they need to make better decisions. The right program can even help with income tax planning and compliance with state, federal, and local regulations.

With dozens of financial planning software options on the market, you may be overwhelmed when it comes to choosing the best option and knowing how to implement the change. In this article, we explain the different features, usability, and prices of several systems, so that every small business owner can find the financial planning software of 2024 that best meets their unique needs.

3 Key Takeaways

1. A variety of financial planning software exists; choose the right one based on your business’s unique needs.
2. Some financial planning software platforms may offer too many features and too much complexity for small businesses.
3. There are likely several platforms that will meet your specific needs at similar price points.

In this article:

• How to Choose the Best Financial Planning Software
• Top Financial Planning Software for Small Businesses in 2024
• Examining the Price with a Cost-Benefit Analysis
• Implementing the Right Financial Planning Software

How to Choose the Best Financial Planning Software

Choosing the right financial planning software depends on a company’s specific financial needs and goals. The right product will have a selection of features that closely align with the business’s mission, financial needs, and growth strategies. Some questions to ask yourself while shopping financial planning software may include:

• What other programs or systems does the business currently use that the software should be able to integrate with?
• Who will the primary users be?
• Would the company benefit from better budgeting software for small businesses? Are the featured functionalities too complex?
• What are the financial reporting requirements? How are they being met currently?

Another important factor to consider when choosing ERP Financial Management or any financial planning software is the current size and scale of your company. For example, a small business will benefit most from focusing on software that is easy to use and offers only essential financial planning features. However, if the business is growing, the right financial planning software will offer scalable solutions that allow users to add features and functions as needed.

The industry in which a business operates will also influence which financial planning software is best. For example, some industries, like manufacturing and service-based business, require special features or inventory management tools for retail accounting or project tracking. It’s essential to choose planning software that aligns with the industry-specific tracking and reporting needs of your business, so that you aren’t forced to purchase additional programs later.

Top Financial Planning Software for Small Businesses in 2024

With so many software options available, selecting the right one for your business can be difficult. Here are ten of the top financial planning software systems for small businesses in 2024:

QuickBooks Online

QuickBooks Online is a popular accounting software that is known for its user-friendly features, which include comprehensive financial planning tools, real-time financial analytics, detailed expense tracking, and robust reporting capabilities. Quickbooks Online appeals most to small and medium sized companies. They also offer tiered subscription plans, which start at just $30 per month and are customizable based on the selected features and number of users.

The pros: Easily integrates with other business software and tools, user-friendly, great customer support

The cons: Costs can quickly add up when adding advanced features or upgrading to higher-tiered plans

Xero

Xero is a cloud-based financial planning software that includes some great cash flow management tools and financial forecasting tools, as well as real-time reporting and expense tracking functionalities. Xero appeals to smaller businesses that work with multiple currencies or require complex integration features. There are three subscription plans to choose from, which range from $15 to $78 per month. Xero also offers customized plans for the user that has financial needs not met by the three basic plans.

The pros: Comprehensive integration capabilities, user-friendly interface, handles multi-currency accounting

The cons: Users have reported limited customer support options

FreshBooks

FreshBooks is expense tracking software that is designed for small businesses and freelancers. The product offers invoicing, time tracking, and financial reporting. FreshBooks currently offers four plans which range from $19 to $60 per month.

The pros: Easy-to-use mobile app, intuitive interface, excellent customer service

The cons: Limited advanced accounting features, does not work well for growing enterprises

Sage Intacct

Sage Intacct is another popular accounting software choice for medium to large businesses. Sage Intacct offers financial reporting, analytics, budgeting and forecasting modules, and easily integrates with other solutions. Each plan is customized, so pricing depends on the business needs.

The pros: Great customer support, highly scalable financial software for SMEs

The cons: Complex interface which typically requires a dedicated financial staff

Wave Financial

Wave Financial is a free accounting software offering, invoicing, payroll, and financial reporting. Wave appeals most to very small businesses and independent contractors that are interested in an inexpensive business financial management software. Services like accounting, invoicing, and receipt scanning are free, but additional services, like payroll and payment processing, are also available for a fee.

The pros: Free to use, offers basic accounting functionalities for small businesses and freelancers

The cons: Limited features and slow customer support

Zoho Books

Zoho Books is an online accounting program that offers tools for invoicing, expense tracking, and real-time collaboration. Small businesses, especially those already using Zoho products, benefit most from ZohoBooks. They offer four plans ranging from free to $60 per month.

The pros: Cost efficient, user-friendly, compliments other Zoho programs nicely

The cons: Limited advanced features for large or growing companies

NetSuite ERP

NetSuite ERP financial management software is a well-known comprehensive ERP system that features financial planning, inventory management, and e-commerce tools. It’s best suited for medium to large businesses already equipped with a dedicated financial staff. NetSuite ERP’s plans are custom built based on the business needs, so pricing varies, but typically starts around $999 per month and requires significant implementation costs. Businesses can choose from cloud-based financial planning or SaaS financial models.

The pros: Great for growing companies, customizable, integrates will with third-party apps and programs

The cons: Costly and requires trained users

Kashoo

Kashoo is another simple accounting software that works best for very small businesses. The product includes expense tracking software, invoicing tools, and financial reporting. Kashoo offers two different plans at $216 per year for small businesses or self-employed entrepreneurs and $324 per year for established businesses.

The pros: Affordable, easy to set up and use, good personal finance tool for entrepreneurs.

The cons: basic reporting functionality and limited features

Float

Float is a cash flow forecasting software that integrates well with QuickBooks, Xero, and several other accounting programs. It’s best for small businesses looking to improve cash management. Float offers plans starting at $59 per month, and increasing based on the number of users and features selected.

The pros: Excellent cash flow management, easily integrates with other software, user-friendly

The cons: Features other than cash flow forecasting require an additional purchase

Expensify

Expensify is a great expense management software for small to medium-sized businesses. It offers receipt scanning, expense tracking, and integrates well with other software. Expesnify offers several different plan, including a free plan. Additional plans start at $5 per month per user.

The pros: Easy-to-use mobile app, automated expense reporting

The cons: Can be expensive for users that require advanced features

Cost-Benefit Analysis

Choosing the right financial planning software will depend on your specific business needs, budget, and growth projections. Use our cost-benefit table to analyze which software best aligns with your business.

Implementing the Right Financial Planning Software

Financial planning software can streamline financial management processes and drive growth for your business, but many small business owners don’t know where to start. Implementing any new software into an organization of any size can be a pain. However, with proper planning and this concise guide the transition can be smooth.

1. Identify Your Business’s Needs: Examine the business’s current processes for bookkeeping, financial management, and reporting. Consider areas for improvement and prioritize tasks like invoicing, budgeting, forecasting, and cash management.
2. Choose the Right Software: Research several financial planning or cash flow management options. Choose products that meet most, if not all, of your business needs. Keep in mind factors like business size, scalability, and reporting requirements. While it’s hard to identify which platform has the best accounting software integration, you can easily find one that works well for you. For example, you’ll need an easy-to-use small business financial dashboard.
3. Prepare for Implementation: Before beginning the implementation phase, be sure to back-up any data that is not cloud-based. Create a timeline and plan for overseeing implementation and training staff on the new program.
4. Migrate Data: Carefully transfer financial data to the new software, ensuring completion. Once migrated, validate substantial data points.
5. Customize the Software: Tailor settings to fit your business needs. Build any reporting or invoicing templates and set user permissions.
6. Train Your Team: Provide comprehensive training to any team member that will interact with the software or need to review reports. Depending on the complexity of your accounting system, this may require different levels or types of training for key employees.
7. Monitor and Adjust: Regularly monitor the software’s performance, gather user feedback, and stay informed about new features being offered.
8. Utilize Support Resources: Reach out to the software customer support as needed and don’t hesitate to request additional training sessions down the road.

Conclusion

Investing in financial decision-making software is a great way to safeguard and grow your business. Choosing the right software and plan for your business will depend on many factors including size, scale, industry, tracking and reporting requirements, financial goals, and users’ preferences. Take time to research options, compare prices, and find a solution that helps your business remain competitive and financially healthy.

FAQs

What are the essential features of financial reporting software for small businesses?

Small businesses can benefit from cash flow management, budgeting and forecasting, real-time reporting and expense tracking. It is most efficient to choose software that integrates well with other business systems, like payroll or CRM software.

How much should a small business budget for financial planning software be?

Small businesses adding financial planning software should budget between $20 and $200 per month, depending on the desired features.

Can financial planning software help with tax preparation?

Yes, financial planning software can help prepare for tax season by tracking expenses and revenues so that they can easily be calculated and reported. Financial Planning software will also allow users to generate accurate and formal financial statements that can be digitally delivered or shared with a tax preparer or income tax software.

What are the common pitfalls when implementing new financial planning software?

The time it takes to implement the new software is the most common pitfall. Other challenges may include issues with integration or inadequate training.

How do I choose between cloud-based and on-premises financial planning software?

The industry you are operating in, the volume and sensitivity of financial data, and your budget will all influence which is best for your company. Cloud-based software is easier to access, has automatic updates, and costs less. On-premises software offers more security and requires an existing IT infrastructure.

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