Best Budgeting Software

What is Budgeting Software?

Budgeting software helps in creating, managing, evaluating, and updating the budget of organizations or businesses. It estimates expenses, sets a guideline, and regulates payments.

Any manual process in business is highly vulnerable to human error. Budgeting is a highly data-driven process. The slightest inaccuracy, oversight, or error can render even the most elaborate budget strategy ineffective. Business budgeting software automates most repetitive tasks related to budgeting and forecasting to minimize human intervention and drastically reduce the scope of error.

Budget management software automatically issues reminders to users whenever they are required to make any data entries. They can also automatically import data from other accounting, ERP, and HRM applications. Not only does this save time, but it also ensures that the data remains uniform and consistent across all systems. Therefore, data is collected promptly with as little human intervention as possible.

Budgeting and forecasting activities generally require much collaboration and coordination among different individuals within the organization. This becomes especially cumbersome in a manual process. Budget management software can facilitate easy collaboration. The budgeting or the approval process can be standardized to organize the entire process and improve communication. They also come with budgeting tools that allow users to create hypothetical forecasts. They come equipped with features that allow users to factor in things often overlooked, such as inflation. Therefore, budgeting and forecasting solutions can help businesses prepare better for the future and make informed decisions as they formulate their budgets.

What are the Benefits of Business Budgeting Software?

There is a clear winner when it comes to manual and automated budgeting. Here are some of their benefits-

1. Accuracy

   Budgeting involves sensitive data and numbers and is an error-prone process. Errors can make the most strategic budget plans invalid. A reliable online budgeting tool or a money management app can automate most of the tasks so that minimal human effort is involved in the budgeting process, yielding accurate results.

2. Swift and User-friendly

   When repetitive manual tasks are automated, resources are no longer required to spend hours and hours pouring over Excel sheets, consolidating them, and sharing them. Budget management apps enable users to retrieve historical data within minutes. They also enable users to manage and amend the budget easily without requiring a complete reworking. This saves much time and effort and simplifies the process.

3. Consistency

   Online budgeting tools and money management apps store data in a consistent format irrespective of the source. They can import data from other systems, ensuring the data is uniform across all the platforms.

4. Improved Forecasting

   Most budget management apps come equipped with superior forecasting capabilities. These programs can use complex algorithms, permutations, and combinations to sift through vast historical data for the most accurate results.

What to Consider When Choosing Budgeting Software?

Here are some things that you must consider when you want to choose the best budget software for your requirement

1. How user-friendly is the system? Can anyone use the system, or will you need skilled resources?

2. How smart is the forecasting system? Does it factor in things like inflation and other hypothetical scenarios?

3. How many users does the system allow? How does it facilitate collaboration? Does it allow collaborators to communicate with each other on the system itself?

4. How does the system enforce deadlines?

5. How compatible is the system with other finance, accounting, and HRM applications?

6. Will using the system saves costs in the long run? Is the price reasonable?

7. How does the system use past data? 

8. What kind of reporting and analytics can be expected?

9. How secure is the system?

10. What kind of customer support is offered by the vendor?

The most important goal when running a business is to bring in revenue. It is easy to get caught up in the spending, however. There are office costs, marketing fees, and merchandise purchases. If you are not careful, you can spend more to run the business than you bring in from consumers. Human error accounts for a lot of mismanaged monetary assets. You may forget to add something to the list or allow an emergency. Budgeting software can help to keep you on track.

Of course, you must choose the right budgeting software for your business needs. This is something that can vary from one business and individual to another. There are various factors you need to consider when it comes to purchasing the right software, and taking the time to do this means you will be able to get the maximum benefit from the software you purchase or download.

When looking at different types of budgeting software for your business, one of the things you need to consider is the features and ease of use. The last thing you want is complicated and frustrating software, so look for something simple yet effective. Another thing you need to consider is the price of the software, as you need to ensure that the price fits in with your budget. You can also get free versions of budgeting software, although these are often more basic than the premium versions you pay for.

It is also well worth looking at reviews of the software you are considering for your business, as this will make it easier to determine whether you are making the right choice. You can look at consumer reviews online and make a more informed decision about the software you choose for your business. You can then be certain that you have the right product for your specific needs and benefit your business the most.

1. Tells you when to Quit

   Budgeting software is a calculator tailored to your personal needs. You can set spending limits and set up notifications. You can be notified of the situation when the spending is at a certain amount. This allows business owners time to assess the situation before they exceed the allotted amount. Changes can be made to accommodate the spending trend each month. Those in charge can also halt spending privileges when something looks wrong. When you are aware of problems early on, there is a better chance of coming up with a viable solution.

2. Allows for Collaboration

   One main reason a company budget goes awry is that too many people are involved with the assets. One department may purchase without consulting the other. There may not be room in the budget for two purchases. A large company can go into debt quickly if there is unauthorized spending. The people spending the money may never be in the same room or even in the same city. Budgeting software allows different users to log on and view the current budget state. They can also add the number of purchases into the system. This allows everyone to be aware of the budget situation.

3. Go Back in Time

   Budget software is a great way to compare budgets over several years. You can look back at years when your spending was more in control and find out what was different. You can also look at years that resulted in debt to learn from your mistakes. It is also helpful to have a record of the budget for your business for each year. If you are ever audited, you can easily prove your spending habits. Patterns and increases in production costs can also be traced. When you spot a negative trend, your business can be saved from a financial disaster. 

What Type of Business Needs Budgeting Software?

Budgeting is a sensitive activity, no matter what the scale. The exercise may not differ much across the industry. However, we can all agree that the priorities of one organization may not quite match the other. Therefore, their requirements for budgeting software may differ from each other. Here is how the size of the organization can inform one's decision when they are in the market for budget software:

1. Small Businesses

   Small businesses would, first and foremost, require money management software that is easy to use. They may not have individuals skilled in finance and accounting to manage the activity. Small business budgeting tools must, therefore, be very user-friendly. While budgeting is important for small businesses, they may not require elaborate forecasting tools as they do not generally have much historical data.

2. Mid-Size Organizations

   An area that most growing organizations struggle with is forecasting. Growing organizations are usually at a critical juncture where how they forecast can drastically impact their future. They cannot afford to overlook anything and must consider all the possible factors that may impact their future. They cannot afford to get carried away and make any overinvestment.

3. Large Organizations

   Due to the sheer scale of operation, budget and forecasting become very complex activities in larger organizations. They tend to have multiple types of expenses and various sources of revenue. They have a huge number of employees and many departments. Therefore, they need money management software capable of handling such a huge operational scale.

Best Budgeting Software Tools to Manage Your Finances

1. You Need A Budget aka YNAB

   You Need A Budget has developed a cult following in recent years and claims to have helped many users get out of debt. It has an easy-to-use and flexible system. What makes it work is a simple but effective philosophy: every dollar has to be accounted for. You give every dollar a job – from living expenses and investments to vacation and education. It allows you to sync your bank account or enter transactions manually.

   Pricing: 34-day free trial; $83.99 annually; students get the first year free

   Available on: Web, The App Store, Google Play, Windows

   Pro Tip: The savings goals and debt payoff feature help you to attain true financial stability.

2. PocketGuard

   Can’t keep yourself from overspending? This app can help. It does what its name suggests – guards you against splurging on things you don’t need with money you don’t have. PocketGuard links your financial accounts and tracks your spending throughout the month. You can set spending limits on each category. The app will notify you when you’re close to the limit, reminding you that you are committed to controlling your spending in that area.
   
   Pricing: Free; Premium version (PocketGuard Plus) costs $3.99 per month or $34.99 annually

   Available on: App Store, Google Play

   Pro Tip: PocketGuard tracks recurring expenses and helps you find better deals.

3. Personal Capital

   Personal Capital has a greater focus on tracking and analyzing your investments. It analyzes your investment classes for free and lets you know which funds cost you the most. You link all your accounts on the app to get a complete overview of how each of your investments is doing. Its free money-tracking dashboard can be used to track other expenses as well. The optional paid features include expertized financial guidance, portfolio management, and financial planning. Even without the paid features, you can still do a lot with the app's free version.

   Pricing: Free; the Price of paid services depends on your net worth

   Available on: Web, The App Store, Google Play

   Pro Tip: The Retirement Planner feature lets you plan and manage your retirement fund effectively. For free!

4. Splitwise

   This one’s not a complete budgeting app, but it’s still handy. Splitwise is a nifty app that helps people track how much they owe to friends and colleagues and vice versa. It makes sharing expenses on outings, meals, events, etc, easy to track by logging in each transaction. It keeps a total over time so that you can pay back the money in a large payment rather than keeping track of every small amount or forgetting to pay it back. It also has email reminders for when a shared expense is due or when you must pay someone back. Neat, right?

   Pricing: Free

   Available on: The App Store and Google Play

   Pro Tip: Splitwise has a ‘spinoff’ app, Plates, dedicated solely to splitting your restaurant bills!

5. TurboTax

   An Intuit offering, TurboTax is a consumer-friendly tool for filing your taxes. It makes filling in the tax information easy, you can do it by importing your W-2 form information or just taking a picture of the form. For a short-term fix, a free version is a good option, especially if you only need to file your 1040A or 1040EZ.

   The paid version, like Personal Capital, connects you with a CPA or other expert to help you maximize your returns.

   Pricing: Free up to 5 returns; Paid plans start from $39.99 per return

   Available on: The App Store, Google Play, Windows Store

   Pro Tip: Get maximum deductions by staying updated on changing tax laws through the Tax Reform section on the TurboTax website.

6. Mint

   Mint is a highly popular budgeting app. It takes your bank and credit card information to analyze your income and spending trends. It then points out the areas where you can spend less to improve your finances. You can set alerts for bills and upcoming payments to avoid unnecessary late fees. It also analyzes your credit score for free and gives you tips on how to improve it. You also get notified in case of unusually large spending or suspicious transactions.

   Pricing: Free

   Available on: The App Store and Google Play

   Pro Tip: Track your spending trends over time and by the merchant to see where you spend the most.

7. Hopper

   This last one is for the Globetrotters. Or for anyone who likes good deals on flights and hotels. It claims to have saved 30 million travelers $1.8 billion to date.

   If you like to travel, but get stressed out at the thought of planning, from when to go to which flight to take, then Hopper is for you. It helps you to plan less and travel more. It predicts prices for hotels and flights with 95% accuracy, up to one year in advance. You can see the price predictions for each period of time and decide when the best time to make your trip. It will notify you automatically when booking your hotel or flight is the best time.

   Pricing: Free

   Available on: The App Store and Google PlayPro Tip: The Hopper website has a section dedicated entirely to travel tips, which can be useful when putting together that spur-of-the-moment trip.