So you’ve taken the leap and started your own small business. Well, let’s be honest, your business is so small that by SBA standards, it’s considered a micro-business (<5 employees &/or needs <$35k of seed capital). However, you still have all the challenges of any other business owner and effectively managing your business finances is right at the top of the list.
The choice between using a good old-fashioned spreadsheet or modern software is a personal one, but if you decide to use software, the number of choices increases tremendously. There are the old standards QuickBooks & Peachtree. There are also some new choices such as FreshBooks. In this blog post, I’d like to recommend a slightly different solution for the very small business with the overworked & overwhelmed entrepreneur who might be doing all she can to just find new clients for her new business. Consider using Mint.com for your business.
Disclaimer: I love all things Intuit. So much so, I’ve been a QuickBooks Certified Pro Advisor since 2011. Mint.com was recently purchased by Intuit. That said, let’s talk about why I think it’s a viable option and how to use this handy tool.
Mint is a well-known online tool for managing your personal finances. With a little fore-thought and planning, it can also be used for tracking business finances. Below are several reasons to consider using the tool:
It’s FREE!
The online tool is available for no charge to the end user. How? Sponsors & advertisers foot the bill. Financial institutions pay to have a captive audience to which they can make product suggestions like credit cards, loans and insurance. If you don’t mind the advertisements, it’s worth a look-see.
View all your accounts in one place:
Once you sign up for a Mint.com account and set up your accounts, the software will do most of the hard work for you. You provide your login credentials and the software will update your information by syncing or downloading the transactions that have come through each account. You can set up credit cards, loans, and bank accounts in Mint.
Create and manage basic budgets:
Mint will provide you with a list of typical categories and allows you to set up your own categories as well. It will memorize most of your transactions by the vendor name and automate much of the categorization. You do have the ability to change individual categories as needed. After categorization and based on historical information, the software will create a basic budget to get you started. You can manipulate these budget categories once you familiar with how your finances trend month to month.
Set Reminders:
Mint will help you remember when to pay bills that you’ve set up with normal bill dates. It will even send text/email reminders to your mobile device to help you remember you have an upcoming payment. So, say goodbye to late fees!
The software has mobile apps for Android, iPhone, & iPad. So, when you’re not tethered to a PC, you can still check in and have the same information as if you were sitting at your desk in front of your PC. This is one of my favorite features!
Here are a couple of recommendations to get the most out of using Mint.com for your micro-business:
1. Use a different log-in than the one you have for your personal accounts. This allows you to keep your business finances separate from your personal finances.
2. As always – don’t mix business and personal transactions in the same accounts! This goes for credit cards and bank accounts. Keep it clean – you can thank me later!
3. Don’t set it and forget it. Check in with the software regularly. The software updates when you log in, so do so at least weekly or bi-weekly so when you’re in a hurry for information, it doesn’t take as long to get down to the facts.
4. Don’t expect Mint to produce a full set of financial statements. If you need these reports, you’ll still have to generate them yourself, upgrade to a meatier accounting software or have an accountant prepare them for you.
So there you have it! Overall, Mint.com is a good alternative for a micro-business owner who has limited time and/or limited needs for expensive or hard to grasp accounting software. As your business grows and/or the financial reporting needs of your company changes, begin to research other options. Until then, why not keep it simple?
Kemberli Stephenson is The Profit Sherpa & works with rapid growth women entrepreneurs, speakers, coaches, authors, small business owners, entertainers, etc. She helps those who are looking to impact their bottom line, increase profit margins and grow a successful business. Kemberli helps entrepreneurs rapidly increase profits by helping individuals and companies chart a course to the summit, discover their danger zones and blind spots, and develop and implement profit strategies that will grow as your organization grows. Follow @Profit_Sherpa on Instagram for daily tips and motivation for entrepreneurs.