4 Essential Startup Accounting Tools
The Essential Startup Toolbox shares a variety of low cost applications and materials around the web that entrepreneurs and new business owners can take advantage of. Read the last edition of this series here.
In the last edition, we recommended some methods for putting a marketing plan into motion and raking in the revenue. While the startup ship maybe figuratively sailing fast, the storm has yet to come.
The name of the beast is cash flow. Of the top 20 reasons for startup failure, poorly managed finances claim second place. It’s not such a surprise when one considers how much of a bad rep accounting gets. According to a survey conducted by TD two years ago, 44% of entrepreneurs and small business owners said they detested bookkeeping. As such, this edition of the Essential Startup Toolkit focuses exclusively on software and web tools for managing your business’ accounts.
A Quick Note About Professional Services
While the services listed here are useful for very small business, once a startup expands to include a significant number of team members and users, it will be necessary to arrange for the services of a professional firm. Over here at Extreme Accelerator, we offer operational support services that include payroll management, bookkeeping, and tax filing. You can learn more about our services here, and query info@extreme.tech.
That said, on to the list!
Quick Summary
Invoicing
Bad receivables seriously hamper business growth throughout all industries. Thus, reliably invoicing your clients is essential to staying positive on the balance sheets, and impressing investors.
Due is a web-based solution to your invoicing needs. The software creates simple customer payment notices and offers speedy payment options. Clients pay their bills in a variety of currencies (including Bitcoin!), then the money transfers to a secure online vault; the goal is a quick conversion of receivables to cash. All transactions are encrypted, may integrate with PayPal, and priority clients are auto-billed. The best element of Due by far is its simplicity and interface, setting up your first transaction is a breeze. Best of all, it’s free.
Receipts
When the taxman comes to town you’ll need to have your receipts. Usually, countless sheets of paper are naturally stuffed into envelopes, drawers, and pockets forgotten, but you’ll need at least 6 years worth of them archived according to regulations. Additionally, receipt tracking is imperative to understanding your cash flow and expenses. Shoeboxed is offered on a variety of devices and manages the secured scans and storage of your business related receipts. My favourite feature is that if you’d rather not go through your old backlog of receipts, you can mail them directly to the company and they’ll archive them to your account. As with Due, you can pick it up for free.
Getting Expensive
With Due you’ll be able to manage your receivables, and with Shoeboxed the receipts of the payments you’re making, but how do you bring it all together? Sage One will set you back $30 a month, and integrates with your bank and cards to track your transactions. Shoeboxed creates simple expense reports and income statements, giving you power over your cash flow. There’s a mobile app to edit information on the go, and the most valuable feature in the price range is to have unlimited users editing the books. The best feature for Canadian startups is how Sage One complies with Canadian taxation policies, as opposed to many other business accounting solutions that are U.S. focused.
Mayday it’s Payday
Venti matcha-peppermint-cinammon-mochas don’t pay for themselves, so distributing salaries will be another frequent task. Automation and intelligent software are key here, as you’ll need to crunch a lot of numbers, and comply with tax guidelines. Extreme portfolio company Wagepoint answers these concerns with a host of great features. It’s easy to set up, and can auto-approve frequent direct deposits. Additionally, there’s support to pay contractors and a simple pricing policy should you purchase the software. The best part, is that you can sign up for a 30 day free trial on their website.
That brings us to the end of the accounting section of this series. Follow us on social media, and subscribe to our newsletter for updates on new articles. Find the best in personalized support, by dropping us a message at info@extreme.tech for a quote on our comprehensive startup services.
