Contemplating Your Own Business? Adequate Financial Software is a Must!
The idea of being the boss is probably grazed the minds of many folks. While climbing the corporate ladder from the very bottom to the very top is a possibility, the truth is that it could take a very long time, or may not even happen at all. Opting to forego the “corporate ladder” experience and seeing someone else's name on their w-2 form, many individuals are choosing instead to pursue a business of their own. Who knows? You could just end up being the next face on the cover of Forbes.
Let’s not get ahead of ourselves just yet though. A business is a serious endeavor; one that requires complete and total devotion, a concoction of blood, sweat, and tears. While the idea that a little blood, sweat, and yes, even blood, is all you need to start a business, nothing could be further. You see, most businesses won’t accept a vial of blood as payment (unless of course, they’re vampires), so this is where your money comes into play. Since businesses can easily thrust someone into prosperity as easily as it can vanquish you into bankruptcy and ruin, it is vital that you are careful with your money, meticulously planning how each dollar is spent.
Before doing any further financial planning, you might want to consider purchasing a few pieces of essential software, enabling you to not only be able to plan your business financially, but also to maintain your business once it is up and running. Ideally you want to have three pieces of software—payroll, accounting, and tax software.
Respecting the order in which they were listed, let’s start with payroll software. If you are planning on hiring any employees or even setting a salary for yourself, then this is where a good payroll program will come in handy. Depending on which software you opt to go with, you will be able to calculate your employee’s pay for a particular pay period based on the pay rate and number of hours. Not only that, but some programs will also allow you to print checks personally or set up a direct deposit payment. If you are providing employees with any health benefits or, say, a 401k plan, then your payroll software can help with that too.
Generally, your payroll software is but a pawn in the business-finance playbook. You see, a business is composed of more than just take-home pay. From total revenue, to equipment depreciation, to a simple balance sheet, a business can boast all sorts of financial obligations, payroll being another. Luckily, there are full-fledged accounting programs that can help you through all of it. Intuit’s QuickBooks is a popular accounting program utilized by small business owners and corporate professionals alike. Even homeowners are purchasing accounting software to help budget their monthly expenses. The best part is that most accounting programs can easily integrate other programs—including payroll programs—as well.
Lastly, you will need a good tax program backing you up, but you already knew that, didn’t you? Tax time comes around every year regardless of whether you have your own business, and considering that tax law is one of the largest pieces of literature in existence (the equivalent of 10 bibles), it is best that you have a good piece of tax software to help guide you through the ins-and-outs of tax legislation. If you are not careful, you could end up being the next unfortunate victim on the bad side of the IRS (Internal Revenue Service). Plus, owning a business only adds to the tax rules and regulations that fall upon you.
The best part about all three types of programs is that they can all be obtained fairly cheap. That should come as a bit of relief after you max out your bank account, credit cards, and life savings impulsively diving into business ownership.