With one of the best small business budgeting software tools by their side, small business owners can reach their goals in no time.
Owning a business is a dream for many. But, the realization of this dream is a journey filled with various challenges. Budgeting is one of them, as it is one of the most crucial factors determining the financial health and hence, the success of a business.
Luckily, the IT industry has made available a wide selection of budgeting tools that can lend a hand in the appropriate allocation of resources. These tools or software can be leveraged to make some of the best budgeting decisions for businesses of all sizes.
Getting there, however, still requires you to make one important decision; choosing the best small business software out of all the options available.
What Will The Small Business Budgeting Software Do For You?
To understand how business budgeting software can prove to be useful, you need to first understand what it is.
Business budgeting software is a tool that helps businesses to automate the planning, forecasting, and management of their finances.
From simply providing spreadsheets and a dashboard to offering advanced planning tools for the automatic generation of financial statements (like cash flow reports, balance sheets, and P&L statements), there is a range of different facilities provided by business budgeting tools available out there.
Regardless of whether it is loaded with features or only has the essentials, the primary function of a small business budgeting software is to help you save time by reducing administrative work.
Over the years, small businesses are starting to increasingly rely upon cloud-based or online budgeting tools. One reason is that these are more affordable than their on-premise counterparts.
Aside from that smaller businesses also lack the IT staff and infrastructure necessary to operate the intricate on-premise software infrastructure.
Benefits Of Small Business Budgeting Tool
From keeping track of your expenses to running all financial reports, these tools can improve the efficiency of your business as well as streamline its workflows in many ways. The following are some of the key advantages of implementing the best online budgeting software for your small business:
- It eliminates the chances of errors that manual calculations can cause, improving the overall accuracy of financial management.
- It enables you to adhere to the business budget and remain on track with your financial objectives.
- It helps you foresee the slow months so you can avoid debts.
- It helps you identify opportunities so that you can make timely investments for the growth of your business.
The Best Budgeting Software For Small Business 2022
Fortunately, for any business or accounting expert that wishes for the automation of financial duties, there are several high-quality solutions available.
Whether you are looking for a more sophisticated option to perform an in-depth financial analysis or a simplified option that can still achieve what the best small business budgeting software is expected to achieve, you will always have an option that best suits your needs.
To help with the decision-making process, we’ve compiled a list of the 7 best small business budgeting tools we highly recommend:
1. QuickBooks Online
Our top recommendation for the best small business budgeting software is QuickBooks Online. While there is a common misconception about QuickBooks being purely accounting software, this tool can play a significant role in automating all the financial tasks of a small business.
The expense management and overall budgeting of a small business are made super convenient with the easy-to-use UI and dashboard of this amazing tool.
The most crucial feature of QuickBooks Online is its advanced reporting capabilities. Small businesses can create customized reports or use one of QuickBooks’ built-in options for reporting.
These options certainly make it simpler to produce P&L statements and other crucial financial reports. However, with hundreds of integrations, QuickBooks also attempts to make it convenient for you to personalize your software.
- Invoicing and timely payments
- Generating straightforward reports for better cash flow management
- Automatic calculation of sales tax
- Tracking expenses and revenues for better management
Pros of QuickBooks online
- Collaboration is facilitated by allowing multiple users.
- Two-in-one tool to help with budgeting as well as bookkeeping.
- Business and personal expenses can be kept separate.
- Multiple price points to suit small business owners.
- Commendable integration capabilities.
- Numerous online resources and professionals who can offer advice on QBO are available as it is the industry’s standard tool.
Cons of QuickBooks online
- Setting it up is a difficult and time-consuming process.
- There is a steep learning curve for those not having a background in finance.
Xero is another one of our top recommendations, known primarily as a cloud accounting tool, but also featuring some commendable in-built functions for small business budgeting.
Xero simplifies financial planning for small businesses, making the entrepreneurial journey a lot easier. Businesses and professionals can use this business planning software to ensure accurate budgeting and forecasting, expense management, timely payments of bills, etc.
It is a fantastic alternative for anyone who is currently using Xero as their go-to accounting software and needs to add some simple budgeting tools without having to learn anything new.
Its cost-effectiveness makes it truly the best small business budgeting software. You won’t have to pay anything extra for any excessive features that you may not even require at this point.
- Generates accurate accounting reports to keep track of finances.
- Bank reconciliation; bank and credit card transactions are automatically imported.
- Creates budgeting reports.
- Allows tracking and managing invoices and expenses.
- Inventory management.
Pros of Xero
- Simple and easy to navigate UI
- Allows for easy integration with various apps.
- No limit on the number of users.
- One of the best customer service.
- Excellent value for the price.
Cons of Xero
- Reporting options are very limited
- Not ideal for large businesses so users will have to switch as their business grows.
Although a newcomer to the industry, FreshBooks has also made it to our list of the best small business budgeting tool by offering an amazing blend of accounting and budgeting tools in a single platform.
For small and medium-sized enterprises that require only the basic tools for budgeting, FreshBooks is the ideal software.
Even for firms that handle project-based work, Freshbooks is great. You may use the software to track time, project performance, and profitability in addition to creating bespoke budgets for each project.
FreshBooks is available in four different editions: Lite, Plus, Premium, and Select. Lite and Plus versions are targeted toward freelancers and small businesses. Whereas, Premium and Select are directed toward bigger businesses.
- Creates simple invoices.
- Creates sales tax reports.
- Sophisticated time tracking and reporting for projects
- Allows the use of credit cards for payment
- Tracks expenses.
- Generates all types of financial statements
Pros of FreshBooks
- Easy to use even without prior knowledge of finance.
- Easy integration with other apps and services.
- Compatible with both Android and iOS.
- Affordable for small businesses.
Cons of FreshBooks
- Very basic tools; incapable of catering to complex budgeting needs by fast-growing businesses.
Float is another easy-to-use and highly recommended software for cash flow forecasting and budgeting. This award-winning solution allows its users to get a true picture of what their cash flows look like so that they can set budgets accordingly.
Not only does Float help in managing the daily cash flows, but the software is also designed to help you visualize your future cash flows. The clarity and forecasting ability offered by this software are the reasons it has earned it a spot on our list of the best small business budgeting software.
This software is particularly useful for small business owners who currently use basic tools, but plan to scale the business further with the help of some more comprehensive budgeting tools.
It integrates easily with various accounting and other tools like QuickBooks Online and Xero to provide a better insight into the company’s financial state.
- Financial reporting is made more understandable by visual reporting.
- Effective budgeting tools like cash flow forecasting and expense tracking help in making smarter financial decisions.
- Data drivers can gain insights into prospective cash flow by running “what if” scenarios.
- Enables you to make plans for up to three years in the future.
Pros of Float
- Seamless integration with Xero and QuickBooks Online.
- Simple user interface.
- Easy to set up.
- Data is automatically imported.
Cons of Float
- Relatively expensive for small businesses to afford.
- Does not offer a mobile app.
Yet another alternative worth getting recommended as the best small business budgeting tool is PlanGuru.
It is one of the simplest tools available that has helped simplify financial data organization and improved budgeting for innumerable small and medium-sized firms.
PlanGuru is a versatile yet, easy-to-use software. It offers numerous options for expense tracking, forecasting revenues, and creating comprehensive budgets.
With more than 20 forecasting techniques available, PlanGuru is renowned for its forecasting and analytics capabilities, making it simple for small businesses to plan their budgets and make projections up to 10 years in advance.
- Financial statements and ratios are automatically generated as per the built-in structure.
- Offers 20+ methods of forecasting.
- Enables forecasting with non-financial data
- Forecasting and budgeting for up to ten years into the future.
- Effective financial decisions can be made with the help of smart scenario analysis.
Pros of PlanGuru
- Easily compatible with software like Excel, Xero, and QuickBooks Online.
- Known for its scalability in setting budgets.
- A free trial is offered on the web as well as mobile versions.
- Offers both a cloud and a desktop version.
- Robust software support.
Cons of PlanGuru
- Reporting flexibility is insufficient.
- Users can only import up to five years of data.
The next software voted as the best small business budgeting software is Scoro. Combining the budgeting functionalities with a suite of other powerful tools, Scoro enables small business owners to manage their entire company with a single solution.
Integrating project management, CRM, and budgeting capabilities, Scoro has created a system where all of the company’s financial information is accessed easily from a single space.
You can manage project budgets, examine financial data, and manage resources and expenses all from a single dashboard. This enhances the project management capabilities of the software and makes it ideal for companies having a project-based model.
Scoro is known for its scalability and, therefore, is ideal for businesses of all sizes. Businesses that are currently small, but growing at a fast pace, will find it very helpful that all aspects are covered in a single platform.
- Fantastic tools for project management, CRM, and budgeting all in one place.
- Budget planning and cash flow forecasting.
- Financial reports are generated and analyzed.
- KPI dashboard enables setting and tracking KPIs alongside other important metrics.
- Allows users to set project-based budgets.
Pros of Scoro
- Provides a holistic view of the business.
- All business aspects can be managed using a single dashboard.
- Easy to integrate with other popular apps.
- The user interface is great.
- Team collaboration is made easier.
- Packed with some solid features.
Cons of Scoro
- Relatively more costly.
- The learning curve for novice users can be quite steep.
Last, but not least, is a budgeting tool called ‘Budget Maestro’ offered by a software provider called Centage.
Centage’s Budget Maestro is a cloud budgeting software that offers small business owners a perfect combination of tools for managing expenditures, budgeting, forecasting, and consolidation.
It is ideal for making forecasts with multiple variables, in contrast to popular bookkeeping software that strictly adheres to ledger activity. If your business needs to visualize different forecasts and budgets, this solution will let you compare and assess all the possible outcomes.
All in all, it is the finest software for anyone who seeks a comprehensive solution to automate their financial processes. Thus, small businesses can significantly benefit from it.
- Tracking and management of expenses.
- Standard payroll and asset management.
- All types of financial statements.
- KPIs and other effective tools for estimating and evaluating business performance.
- A complete toolkit for financial reporting, combined with “what if” scenarios that are simple to understand for investors.
Pros of Centage
- Integrates well with a variety of enterprise management tools.
- Intuitive interface
- Community-based learning and a wealth of online resources for help.
- Capable of generating unlimited “what if” scenarios.
Cons of Centage
- Setting up is complex.
- Pricing is quote-based which can be inconvenient and expensive.
- Finance pros who prefer spreadsheets may not find it appealing.
How To Choose The Best Small Business Budgeting Software
Small business owners may choose to work with spreadsheets as they set out on their entrepreneurial journey, but they face several limitations when it comes to forecasting and financial reporting.
They work wonders in the initial planning stage. However, as soon as soon as the focus is shifted away from generalization (during the ‘what-if’ scenario calculations), they instantly become insufficient. That’s exactly when the need for budgeting software arises.
However, you are unlikely to find a one-size-fits-all solution when it comes to choosing the best small business budgeting software. Depending upon the size of the business and its future goals, the feature requirement, affordability, and complexity in terms of setup and installation vary to a large extent.
Therefore, we advise considering your most crucial feature requirements and price points:
- Do you need integrations, or can you make do with customized financial reports and statements?
- Do you prefer basic software or scalable software?
The answer to all such important questions will lead you right to the software most suited to your business needs.
With so many options available in the market, it can be challenging to select and implement the best small business budgeting software. After all, the success of your business depends on it.
The scale of your operation, your financial situation, and your clientele are the key deciding factors of which software would make the most optimal choice for you.
We found QuickBooks Online to be the most effective budgeting tool overall for small businesses. Even if you disagree, we hope that by now you have a better idea of your available options and are a step closer to picking the best small business budgeting software for your growing ‘baby’.