Many wellness professionals dislike tracking the finances for their small business. If accounting was your passion, you might have set up an accounting company! Instead, your business represents the things you are passionate about. At the same time, no company, large or small, can overcome poor accounting practices.
As your company grows and the finances become more complicated, it can be well worth the price to have a professional advisor available to answer questions or manage the small business accounting. In the meantime, options for accounting apps online are abundant, with a dizzying amount of options, payment plans, and services that you might not need. Here are some tips on how to pick an accounting app when you are a sole entrepreneur starting a company as a wellness professional.
What are your needs?
What exactly does your accounting app need to accomplish? For some, a simple tool that tracks income and expenses is more than enough to get started. Others might have stock that needs tracked, ability to accept credit card payments, invoicing, billable hours tracking, or even help with payroll. The best option for you can be simplified to just the features that you need, with an options to grow as your needs change.
Zoho has an accounting component, among a wide range of other business applications that might be of use or interest to a wellness professional starting a business. Zoho is an example of a suite of tools where you can pick and choose what you need. Their tiered payment plans are also an example of the next criteria to consider, room to expand.
Room to Expand
Wellness professionals in their first year as entrepreneurs need very basic accounting services to keep track of expenses for tax time. Even though self-employed taxes are a little bit different than regular employee taxes, it doesn’t have to get very complicated.
But who wants their business to stay where it was in its first year? Most entrepreneurs plan to grow their business, expand their clientele, or just generally ways to make more money. A good accounting app with be able to meet you on your level and grow with you as your needs change.
Price is a driving component of every single decision you make as a small business owner. Those apps that “grow with you as your needs change” will also cost more money the more services you need. A tiered pricing model is generally a sign that you are paying for the services you need and not more.
When calculating price, remember that these apps are just the tool for you to do the work faster. You will still have to calculate the time it takes you to complete the accounting each week to truly get a sense of how much money your accounting costs. The right app saves you enough time to make up for the cost of the program.
For free programs, Wave is a relatively simple accounting app with a wide range of free features. Wave has a simple, pay-as-you-go fee structure for credit card services and payroll, which are optional and charged on as as-needed basis.
Although we only mentioned two apps above, there are truthfully a lot of apps available. Take the time to look at at least three different platforms to get a sense of what’s out there and what might be best for you.
Growing Into An Accounting Firm
Accounting apps are a great way to take charge of your finances in the early stage of your business. They are great when you need to be able to handle your accounting quickly because you’re busy with the day to day demands of building a small business from scratch. They are even great when your business starts to expand and change and you need a flexible solution.
But accounting apps can also be not-so-great. At a certain point in your growth, a dedicated tax professional becomes the only sane choice to make. See, when accounting apps have tiered pricing, you pay more as you need more services. When you need more services, your finances become more complicated. The more complicated your accounting is, the longer it is going to take you to accurately track the information you need to while making sure that you completely understand what you are doing. In short, as you begin to put longer and longer hours into accounting, the price of your tools rise as well.
It may seem like a dedicated accounting service might be out of range for your fledgling company now. As you grow, it won’t always seem so out of reach.