Setting The Record Straight: The Advantages Of Using Personal Finance Software

Contributed by Jennifer Goldman

Are your closets stashed full of shoe boxes brimming over with receipts? Is your checkbook ledger full of scrawled figures that are nearly impossible to decipher? If so, personal finance software may be the answer for you. Personal finance software can help stay on top of your finances in an organized way, without all the messy paperwork. Not only can personal financial software enable you to accurately and easily track your expenses, it can also help you budget, pay your bills on time, and even identify investment opportunities. In fact, these are just a few of the many ways that personal financial software can simplify and enhance the management of your finances.

It’s no wonder that personal finance software programs are flying off the shelves! What’s more convenient than being able to view all of your financial records in one place, presented to you in the format of your choice? With banks adjusting their online banking systems to coordinate with popular personal finance programs, performing financial transactions, as well as tracking those transactions, is becoming easier and quicker than ever.

One of the great things about modern personal finance software programs is that they’re designed to be user friendly. They use common sense logic that is easily understandable to the layman. And many come with a built in tutorial or refer you to a free online training course that teaches you how to maximize use of the program’s features. So you don’t need a degree in accounting to operate a personal finance program. Who knows, once you’ve purchased the right software program for you, you may even decide you don’t need an accountant after all.

Even if you’re a business owner, you can use a personal software program that monitors accounts payable and receivable, and even simplifies the payroll process. You can also use it to create income statements and balance sheets. Some software programs even recommend cost-saving procedures based on your financial records. So, investing in one of these programs could actually save you money. Think of all the money you’ll save on stamps alone if you’re able to use your program to pay bills electronically.

In addition to saving you money, some financial planning software programs can even assist you in making money, by helping you identify how much you can afford to invest, and advising you on sound investments.

Personal finance software programs can save you time as well. For instance, certain programs will even balance your checkbook for you! All you have to do is enter the proper figures. Some programs will even allow you to download your bank statement—that means even less work for you.

If you’re a business owner, time is money, and the organization of your financial records is crucial to the everyday operations of your business. Clients and affiliates expect you to have this information on hand, so you can hardly afford to be without a software system that pulls it all together for you—customized calculations and all—at the touch of a button. Personal finance software programs can also help you maintain accurate, up-to-the-minute records, aiding in the elimination of costly errors by allowing you to track invoices and stay on top of shrinkage/profit loss.

Here are some tips on purchasing personal finance software:

• Decide what purposes you will need the program to serve. Are you looking to budget, keep track of your personal expenses, identify investment opportunities, or manage the finances of a small business?
• Find a program that performs all related tasks. Ask friends for recommendations and view product reviews on the Internet. You can also check for product recommendations in consumer guides or technology-themed magazines.
• Comparison shop. Compare prices and features side by side in order to ensure that you get the most function for your money.
• Choose a program that comes with a tutorial, provides a Web address for online software training, or offers a “help” feature so you can get some clarification if you find yourself stumped.
• Also, make sure the company that produces the software provides contact info in case you’re in need of technical support.
• Look for a program that is compatible with updates or add on features so the software doesn’t become obsolete within a short period of time.

About the Author:
Jennifer Goldman is a freelance writer, editor, and proofreader living in Denver, Colorado.

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