What is Wave Accounting?

This is the first in the ongoing series on finance software. I really like Wave Accounting and feel that everyone should try it.

Wave accounting began in November of 2010, and has begun to grow since with thousands of new small businesses signing up monthly. If you are unfamiliar of exactly what wave accounting is and how it can be beneficial to your small business this article takes and in depth look into Wave Accounting.


So what is Wave Accounting?

Wave accounting is a free to use accounting application that was created specifically for the small business owner. When you are a small business owner it can be too expensive to hire an accountant to handle all the tedious tasks of paperwork and making sure everything is in order. However it can also seem difficult and time consuming for you to do it yourself. That is where the beauty of wave accounting comes into play. With wave accounting it handles all this work for you. Just think of no more entering data, no extra time used. All of your purchases and income can be tracked with the wave accounting application. Instead of typing everything into your account over and over again you can enter in the information once, and have the transactions imported into Wave accounting safely and automatically.  All your expenses are also categorized and itemized by wave accounting for you.

This is not to say that you can not use Wave for setting and maintaining a budget for individuals rather than businesses. It is robust enough for a  business, yet simple enough to personal finances.

What is the best benefit of Wave Accounting?

Wave accounting is absolutely free! All of this work done for you and free of charge, you cannot ask for anything better. You may wonder how wave accounting as great as a program it is can be absolutely free, well the secret is really no secret at all. Advertising is the key element in the free program. When you log into your wave account you will see special deals from many advertisers listed. These deals can help you save money when you may need to make a purchase with your business as well. So they not only help you to save money by supplying you with a free service to help with your accounting needs, but also help you to save money on many purchases you may make with your business anyways.


Now you may be wondering what the disadvantages to this program are.

There are no merchant accounts with this software, as well as any time tracking or time sheets available as well. Sometimes the categorizing of invoices can be difficult, as you cannot import your customer or vendor records into Wave Accounting.


Wave Accounting is a new company and new program. There are a lot of advantages to the software such as the free price tag, quick entry available, and double enter accounting. However remember with any new program it can only get better in the future when more issues are worked out, tweaked and fixed. Since wave accounting is free it definitely doesn’t hurt your wallet to give it a try and see how you like it. You may actually be surprised by the results.

Setting and Maintaining a Budget.


In today’s times it can be increasingly difficult in maintaining a budget you set. Prices are increasing at an alarming rate on almost everything we purchase and frequently. This is why it is more important than ever to utilize an online budget calculator to follow and maintain so we are not fully decreasing our finances. Throughout this article we will explain to you how to set a budget and actually be able to stick with it.


One of the ways to look at a budget is that it is a necessary evil, we don’t like having one, but we must have one to survive and not become broke. A budget is the best and only way to get a handle on your spending and have it be used how you actually want it to be.


In order to create a budget you must follow a few steps completely.

  1. Figure out exactly how you are spending your money now
  2. Take a look over your current spending trend and set realistic goals that will also take into account long term financial goals.
  3. Find a good software program for budgeting that you understand how to use. Don’t go too fancy, the simple programs can help you greatly.


Once you have taken the first few steps in creating a budget there are a few other things you may want to consider. First because you will be constantly monitoring your spending habits, it is important not to drive yourself crazy with watching where money is coming and going. Take a look over how many times you are hitting up the ATM. The ATM generates and added fee that can end up adding up.


Now it’s time to review more of your spending habits

Maybe not the funniest part of a budget, but you really need to address your spending habits. If you find that you are going over more than your income covers, then chances are you are spending some on luxuries, rather than necessities. Take a look over what you really need versus what you can actually live without, and try eliminating the unnecessary luxuries in your life.



One of the least talked about aspects in setting up a budget. Try tithing yourself to help save money. Set a goal to spend no more than 90% of your income, this way you can put 10% of your own income in savings to save up for future purchases or emergencies.


Last but not least, set realistic budgeting goals

Don’t expect yourself to start off with unrealistic expectations. It’s just not that simple with budgeting. It is important to learn how to set realistic goals for yourself and cut corners where you can cut them. Don’t try to strip yourself of all your entertainment as well, just keep it simple and affordable. Knowing where you stand financially is a gift. It allows for all sorts of great things to happen, such as buying a property off the plan (or in the pre-sale stages) and getting a discount.


Having a budget can help many people drastically in the end. However it is always not so easy and simple to stick to in the beginning  but in time with determination and motivation you can have a realistic budget that works for you and your family.

Simple Tips for Keeping Organized Finances



Keep your personal finances organized, otherwise it is easy to let them get out of control. If you find yourself in this position, you have to be willing to take the necessary steps in order to get back on the right track. Below I will give you some advice on turning your finances around and something you can be proud of.

Do not fall victim to credit repair organizations that claim they can improve your credit history. Such a practice is absolutely illegal, and these companies can run off with your money, and won’t do a thing to actually help your credit score.  Everyone’s credit history and situation is unique to that person, to guarantee success would be a fraud and no one should make this promise.

Make sure you get those most out of your flexible spending account. It can help pay for medical and daycare bills, and can cost less money in the long run because of tax-free funding. Flex spending accounts permit you to place pretax dollars into an account to pay for these types of expenses. Just make sure you keep good records for tax time!

Keep an envelope with you at all times when you go out. Use this to store all of your receipts and business cards. Keep them around so that you have a paper trail. Your receipts can be used to compare statements in the event you are charged twice for a transaction.  Credit card statements are great for this as well, but sometimes we want to use cash instead.

An emergency fund can be created by having a set amount of money from each paycheck put into a separate savings account. If you have the money automatically transferred to a savings account, you won’t miss it.  Some finance professionals will tell you to keep 3 months of income saved, some will tell you 6 months, I say you should have at least a year in this economy.

Keep track of your available funds in your account(s).  When I was young I fell victim to overdraft fees more often than I care to admit.  Keeping your spending in check is a no-brainer, but balancing your checkbook can save you a ton of hassles and money as well.

Most of these tips seem pretty self-explanatory, but it never ceases to amaze me how little people heed this advice.  Stop worrying about debt snowball strategies and credit repair companies, and start paying attention to simple ground rules of personal finance and you will be just fine