Introduction

Most people do not start a business because they enjoy keeping track of receipts, entering expenses, following up on unpaid invoices, or figuring out where a charge from three weeks ago belongs. Unfortunately, those tasks still need to get done to keep your business running smoothly.

The good news is that a lot of the routine work that used to require sitting down at a desk can now be handled by apps. For individuals, self-employed workers, and small businesses, using the right accounting apps can save time, records can be kept organized and there will be a reduction in the amount of catching up that has to be done later.

That does not mean you need an app for every part of your finances. In fact, using too many programs can make things more complicated. The better approach would be to look at which parts of your accounting process take the most time or cause the most frustration, then find tools that make those specific jobs easier.

Here are several areas where accounting apps can make a noticeable difference.

Keep Your Books From Becoming a Monthly Project

For many small businesses, bookkeeping gets pushed aside because something else always feels more urgent. A customer calls. An employee needs something. A job runs late. An estimate needs to go out.

Accounting programs such as QuickBooks can help keep more of your bookkeeping information together as it grows. Bank and credit card activity can be brought into the system, invoices can be created and tracked, expenses can be recorded, and reports can be reviewed without maintaining several separate spreadsheets.

The mobile side of accounting software is also useful for business owners who are rarely sitting at a desk. If you purchase something while you are out, you can save the receipt. If you want to check whether a customer has paid, you can look it up. If an invoice needs to be sent, you may not have to wait until you get back to the office.

The biggest benefit is not necessarily saving hours in one sitting. It is avoiding the buildup of dozens of small tasks that eventually turn into hours of cleanup.

Deal With Receipts Before They Disappear

Receipts are easy to ignore when you only have one or two. The problem starts when one or two becomes a stack.

Paper receipts get lost, fade, end up in the wrong folder, or stay in someone’s car for months. Email receipts create a different problem because they can get buried under hundreds of other messages.

Receipt apps such as Expensify and Dext give individuals and businesses a way to save those documents when they receive them instead of dealing with them later. Take a picture, upload the receipt, and keep the information with your other financial records. This is especially helpful for businesses where several people make purchases. Instead of trying to figure out who used the company card at a particular store or what was purchased, the receipt can be submitted near the time of the transaction. It also makes life easier when your accountant or bookkeeper has a question.

A transaction labeled only with a store name may not tell them very much. Having the actual receipt available gives them much more information without requiring a string of emails back and forth.

Stop Trying to Rebuild Your Mileage at Tax Time

Business mileage seems easy to track until several months have passed. While you might remember visiting a specific client, you probably won’t recall whether the meeting was on March 8 or March 11, exactly how far you drove, or if you made another business stop on the way home.

Fortunately, mileage tracking apps like MileIQ record your drives automatically, allowing you to categorize business and personal trips later rather than relying on your memory. For contractors, real estate professionals, consultants, and anyone else who drives regularly for work, automatic tracking transforms an easily forgotten chore into a simple routine.

By spending just a few moments to review and swiping your trips, you can establish a small habit that prevents massive frustration at tax time.

Make It Easier for Customers to Pay You

Creating invoices is only one part of accounts receivable. Someone has to send them, keep track of what is outstanding, follow up with customers, record payments, and sometimes send the same reminder more than once. That is where invoicing software can take some of the work off your plate.

Programs such as QuickBooks, FreshBooks, and Wave allow businesses to create invoices and send them electronically. Depending on the program and setup, customers may also be able to pay directly through the invoice. For a small business, making payment easier matters. Every extra step a customer has to take creates another opportunity for the invoice to sit there.

Automated reminders are also helpful. Instead of going through your accounts receivable list and manually emailing every customer with an overdue balance, the system may be able to handle part of the follow-up for you. This does not eliminate the need to monitor unpaid accounts, but it can cut down on repetitive work.

Take Some of the Work Out of Payroll

Payroll becomes complicated quickly. Even a small staff can mean keeping track of hours, pay rates, deductions, payroll taxes, direct deposits, new employees, and filing requirements. Payroll programs such as Gusto are designed to bring much of that work into one system.

Rather than calculating everything manually each pay period, businesses can use payroll software to process employee pay, handle payroll tax calculations, maintain employee information, and manage other payroll related tasks.

Many payroll systems also connect with accounting software. That connection is important because it reduces duplicate work. If payroll information can move into your accounting records without someone entering the same numbers again, there is less opportunity for something to be missed or entered incorrectly.

For a small business owner who already has several jobs to do, payroll is one area where saving even an hour or two every pay period adds up quickly.

Do Not Forget About Personal Finances

Accounting apps are not only for businesses. Individuals can use many of the same ideas to keep their own finances organized.

Budgeting apps can help track spending. Receipt apps can keep records of important purchases. Mileage apps may be useful for people with self-employment or side income. Apps connected to bank and credit card accounts can make it easier to see where money is going without sorting through several statements. This can be particularly helpful for someone who has a regular job but also earns money through freelance work, online sales, delivery work, consulting, or another side business.

When personal and business activity start overlapping, keeping good records becomes even more important. You do not want to reach tax season with a year’s worth of transactions and have to guess which purchases were personal and which were business related.

Make Sure Your Apps Work Together

Signing up for too many separate apps that do not talk to each other is one of the easiest mistakes a business owner can make. You might find yourself using one program for bookkeeping, a second for receipts, a third for payroll, and a fourth for sending invoices. While using different tools isn’t a problem by itself, someone still has to manually move all that data from one place to another.

Before you add a new app to your routine, always check if it connects with the software you already use. For example, a receipt app that automatically sends pictures to your accounting software will save you hours of manual data entry. Similarly, a payroll system that links directly to your books prevents you from having to type the same numbers twice.

If your programs cannot communicate with each other, they actually create more work instead of making your life easier. Software integration might not be the most exciting feature to look at when shopping around, but it is usually the most important. Choosing tools that work as a team will keep your business running smoothly and save you from major headaches.

Start With the Part You Hate Doing

You do not need to completely overhaul your entire financial routine all at once. The best approach is to identify and target the single task that causes you the most frustration. By focusing on your biggest headache first, you can make immediate improvements without feeling overwhelmed by a massive change.

For instance, look closely at where your current routine breaks down. If you constantly lose track of receipts, focus on improving how you save them. If recording your driving mileage is a hassle, look for a tool that tracks it automatically. Additionally, when customers pay their bills late, or if running payroll takes up hours of your time, it is time to upgrade those specific systems.

When choosing accounting software, remember that more features do not always mean a better product. The right application for you is simply the one that solves the specific problems you face daily. You do not need a complicated program with dozens of tools you will never use.

Ultimately, technology cannot replace the need for accurate record-keeping or professional financial advice. However, the right tools can eliminate the repetitive, boring tasks that eat up your schedule. For an individual or small business owner who already wears too many hats, making finances just a bit easier is a great way to start.

Disclaimer

This article is intended for general informational purposes only and does not constitute legal, tax, payroll, or accounting advice. Payroll rules and tax rates may change, and the correct treatment depends on each business and employee’s circumstances. Employers should consult qualified professionals regarding their individual situation.