Whether you are a solopreneur, a start-up team or an established business, the basics of accounting is something every savvy business owner should know – Wave is one of the apps we love!
Tracking is essential!
Keeping track of expenses, invoices and business projections is my least favorite part of being a business owner, and the fear of doing taxes and bookkeeping was one of the most daunting aspects of starting a business. Like any good entrepreneur, I knew I needed help in this area.
Hire a CPA
Why We Love Wave App
Wave is a (mostly free) digital accounting and invoicing system that links directly to your bank account and helps you sort expenses and revenue into relevant tax-friendly categories. Generating balance sheet reports, looking at income by customer, or seeing transactions by vendor are a cinch. Looking at the data in Wave’s reports helped me realize that I was spending way too much in bank fees so I saved some money after comparison shopping. It also helped me balance my time and write better proposals when comparing that with actual time spent on a client account.
When I did my taxes on my own, Wave was great because I could take pictures of all my receipts with the app and automatically load them into categories like “travel expenses” or “meals and entertainment” (parking around Chicago and spending lots of time in coffee shops means I had lots of those).
When I hired Michael, I was able to easily add him under a separate username (side note: Michael’s favorite feature is being able to attach receipts to transactions regardless of physical location. This is one of many reasons we get along), and set permissions for him according to our agreement. He likes Wave because it “allows smaller clients to better understand their business by giving them access to monthly and quarterly reports, instead of only completing their books at tax time. This allows business owners to react more quickly to financial trends in their business and make tax preparation less expensive.”
Now, I log in monthly for a few minutes to double check categories and verify expenses in Wave, and run reports when I have a question. Wave is a big time saver and thus definitely falls under the “apps I love” category.
The one thing missing from Wave is easy mileage tracking. So far I’m sticking with the old pen-and-paper-in-the-car method. Luckily Michael doesn’t mind.
Michael Caramagno is a licensed CPA and the Principal at Caramagno & Associates. He enjoys helping start ups, entrepreneurs and other business owners relieve financial stresses so they can focus on growth. Follow him on Twitter @CaramagnoCPA.