Budgeting Software Key Terms

Save time and money by letting software do the math

Small business owners are often tasked with many jobs. The small business owner must sometimes act as Chief Executive Officer, Chief Financial Officer, Director of Marketing and Human Resources Manager simultaneously. Using the right budgeting software can greatly reduce the number of hours spent analyzing marketing strategies, evaluating business assets and payroll duties. By implementing the correct budgeting software, business owners can utilize more of their time in growth opportunities, such as sales and product development.

 

Excel Integration

Many of the newest versions of budgeting software allow the user to import Excel files to the application or to use the software as an Excel spreadsheet. Microsoft Excel is a common software application that many people are able to use for budgeting. Allowing the end-user to integrate Excel spreadsheets makes budgeting software accessible to a wide range of users.
Try: Invensys Process Systems (IPS) SIM4ME Portal allows the program to be used as an Excel spreadsheet, whereas MapleSoft allows easy import and use of Excel spreadsheets within their software.

Payroll software

Payroll software allows businesses to simplify payrolls by calculating tax withholding, creating tax documents and generating pay checks. Users may also use payroll programs for budgeting taxes and track possible tax deductions.
Try: Intuit Online Payroll automatically calculates each employees earnings and withholding once the user enters hours for the employee. Intuit payroll software allows the user to generate pay checks or pay through direct deposit. Additionally, Online Payroll allows the user to calculate taxes for the business and pay online.

Valuation

Assigning value to any earnings or investment is a useful tool in budgeting software. Determining the growth of an income or potential value of an asset impacts how an item is factored into the business plan or budget.
Try: Cougar Software offers budgeting software valuation strategies with customizable calculations for method of direct or possible income.

Forecasting capabilities

Budgeting software allows the user to quickly review overall and upcoming trends in their business to best allocate resources in preparation of future opportunities. For example, data regarding the past purchases of a customer may allow the user to make predictions on the future needs of that customer. Likewise, reviewing the success of failure of past promotions may allow the user to adjust marketing for future promotions to make better use of marketing efforts.
Try: A detailed description of the benefits of using forecasting to analyze promotions, client purchases, efficient staffing methods can be found at SAS Institute.

Key Assumptions

Key assumptions, or budget assumptions are the predicted values and costs built into each budget, such as the expected revenue of an asset. Other budget assumptions factor in the anticipated cost of maintenance or repairs and bonuses or incentives promised to employees. Budgeting software will automatically calculate any key assumptions assigned to the budget by the user.
Try: The human resources consultant group, Mercer LLC offers examples of key assumptions that are expected to be analyzed more intensely in the current market. XLerant Solutions lists some of the key assumptions that can be easily programmed into the XLerant budgeting software currently available.

Bookkeeping software

Bookkeeping software maintains ledgers of client and vendor activity. This information is used to keep up-to-date with vendor payments and client invoices. Bookkeeping software is also an efficient tool for tracking and maintaining proper inventory.
Try: Intuit QuickBooks Pro is the most popular bookkeeping software for small businesses. QuickBooks offers many of the same functions as other budgeting software including tracking finances and generating tax documents.

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