Financial Budgeting Software

Whether used for home or business, budget management software can be used to track financial transactions and create needed records and reports. Someone who only wants to keep track of household expenditures may get by with a customized spreadsheet or a simple program formatted similar to a check register. A large business with many employees will require financial budgeting software that is more complex. Programs are available to fit the requirements on both ends of this spectrum as well as all those in between. The cost of the programs will most likely reflect the complexity of the features that are included in the package. By identifying the needs of the household or business ahead of time, the savvy consumer can do comparative shopping either online or at large office supply stores to find the most appropriate program for the price.

With retirement accounts, credit cards, online bill paying services, and possibly multiple bank accounts, even household financing can be more complicated than in earlier times. Though it's easy to get caught up in a lot of bells and whistles, it's best to stay away from budget management software programs that have a lot more features than are needed for the required purpose. A program that requires wading through a manual the size of a major city telephone directory will probably end up not being used by the family's financial manager (usually known as Mom or Dad). Features that may be important to family money management will definitely include a check register to keep track of deposits and withdrawals into the checking account. Most of these will include budget categories and the capability to create different kinds of charts, such as pie charts or bar charts, that give a snapshot of the household spending. The program will probably show bill-paying alerts so that monthly due dates aren't missed. If the program can be linked to a bank account's online bill-paying system, the software will automatically update the check register as bills are paid. This is an especially convenient and time-saving feature.

If needed, the family can benefit from the added features of financial budgeting software that tracks investments and retirement accounts. A retirement calculator can help individuals know if their long-term savings will sufficiently fund the needed nest egg for post-work living. Many people look forward to retiring with more than enough money to meet household expenses and to have fun with their families. The golden years may be the time to start a new business or to travel or to spend a lot more time pursuing a hobby such as sailing or photography. By plugging in different variables and scenarios into a retirement calculator, the individual can gain important information about current savings levels and what other steps may need to be taken to reach monetary goals. Debt management features are also popular as people look for ways to lessen the amount of money they owe to others. Debt reduction and elimination features are available on many budget management software programs. These allow individuals to plug in amounts owed and interest rates. The program then analyzes the information and delivers a report that suggests an order for effectively paying off the debts. Some financial advisors suggest paying off small amounts first while keeping other accounts current. Others advise paying off higher interest credit cards first. Both methods have merit and individuals will need to make a decision based on which method they prefer in eliminating their credit card debts. An amortization schedule may be helpful for paying down auto loans and home mortgages earlier than the due date. The writer of Proverbs said this about debt: "The rich ruleth over the poor, and the borrower is servant to the lender" (Proverbs 22:7). The important principle is to eliminate debt as quickly and efficiently as possible.

Accountants, bookkeepers, and business owners have a whole different set of criteria when selecting financial budgeting software. Even the smallest company may need to track multiple income streams and numerous expense categories. For tax purposes, allowable deductions will need to be categorized separately from expenses associated with the costs of goods sold and capital expenses. A good budget management software program for a business should also have both accounts payable and accounts receivables ledgers and an organized, easily managed means for tracking both bill paying and receipts. A depreciation schedule may be needed for taking proper deductions for capital assets. A program may be needed to keep track of payroll and the proper deductions, as well as calculating hours for annual leave and sick days. Whoever is responsible for the company's finance, whether it's the business owner, a contracted accountant, or an in-house accounting department, will need to decide ahead of time what types of spreadsheets and reports will be needed. The economic health of the business depends on proper analysis of financial income and the ability to make accurate forecasts of future sales and expenses. All of these needs require more sophisticated features so the purchaser will want to determine whether some type of technical support or training is included with the purchase of such financial budgeting software programs.

Fortunately, both households and businesses can find a large array of programs that will enable them to take control of financial information. The key to selecting an appropriate program is knowing exactly what features are needed prior to making budget management software purchases and then comparison shopping for the best deals. After all, good money management begins with making good economic decisions.

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