Business Valuation Software: Why CPAs & Business Owners Need It

As companies grow and evolve, their value does as well. That’s why businesses have books to keep track of every detail from cash balances to inventory to receivables. This also means that it’s harder and harder for new investors to trust that a publicly traded company is worth what it appears to be on paper. Think Elon Musk and Twitter!

Business valuation software can help your CPA firm in coming up with an accurate EV valuation process; this will reduce your audit time and risk while increasing accuracy and credibility as well. Read on for more details about how Valuation Software can help you succeed in today’s challenging market conditions.

What is business valuation software and what does it do?

Business valuation software is an accounting tool that assists your firm in coming up with an accurate EV valuation process. This will reduce your audit time and risk while increasing accuracy and credibility.

The use of software can help your CPA firm in different ways. It can be used to identify the real value of company assets, produce a more efficient audit process, handle the risks associated with new acquisitions, and more.

There are three steps to the EV process, which include a book value calculation, asset and liability accounting, and market value estimation.

1. The first step is establishing where the company’s assets are valued based on their market or book value.
2. The second step is where the company’s liabilities are valued in order to account for how much an owner can be expected to pay for its shares in cash.
3. The third step of the EV process is where market value estimation takes place. This is when you apply assumptions about the future to estimate the company’s true equitable share price.

Benefits of Using Business Valuation Software

Accuracy

One of the most important benefits of using valuation software is that it helps increase the accuracy of your valuations. When you have access to historical data and current market trends, you can be confident that your valuations are accurate.

This is especially important when valuing businesses for tax purposes. The last thing you want is to undervalue or overvalue a business and end up paying more (or less) in taxes than you should.

Time Savings

Another benefit of using valuation software is that it saves you time. Rather than spending hours gathering data and trying to make sense of it all, you can let the software do the heavy lifting for you. This frees up your time so that you can focus on other important tasks. In addition, by using software to value businesses, you can reduce the likelihood of human error.

Cost Savings

Another benefit of using business valuation software is that it can save you money. If you are paying someone else to value businesses for you, then using the software can help reduce your costs.

If you are valuing businesses yourself, using the software can help save you time (which is money). Additionally, by using valuation software, you can be confident that your valuations are accurate, which can save you money in the long run.

The Top 10 Best Business Valuation Software on the Market Today

There are many valuation software programs on the market that can help with the valuation process. We've outlined the top 10 best business valuation software on the market today.

EquityNet

EquityNet helps businesses find investors and raise capital. A business, startup, or entrepreneurial venture can raise capital through angel investors and funding groups. EquityNet works off a flat-fee model with no added commissions and allows a company to raise capital of $100k to $100M.

Additionally, EquityNet ensures that all investors are accredited and do not promote non-accredited micro-investment and business valuations. There are 20,000 plus investors available and seeking opportunities to invest in a company looking to raise capital.

To get started with EquityNet you create your free account and company profile complete with your funding requirements so that EquityNet investors can learn about your business. You'll then be asked to optimize your business plan using their technology. They state a business plan optimized through them is 10x more likely to get funded.

Once the above is complete, you'll be able to browse investor profiles and engage with them, share your business plan and contact angel investors who are looking for opportunities to invest.

EquityNet Pricing

EquityNet offers a free plan called Starter. They also offer two paid plans, a DIY Premium plan for $299/month and a full-service option for $2,990/month. It may seem pricey off the bat but considering the opportunity it creates, the price is worth it for companies that need to raise capital and do not have other options available.

Advantages of EquityNet include:

• Built-in business valuation tool
• Patented analytics tools
• World-class business benchmarking technology
• Ability to raise capital for your business more efficiently than other means
• Ability to screen business investment projects

Valutico

Valutico software provides a way to estimate the FMV of your company. The program also provides information on how to sell your company and what type of buyers or investors may be interested in buying it.

Valutico offers many features which are useful for businesses with complex processes and systems. For example, the software allows users to set up accounts for multiple locations to view revenue and use a single account when creating estimates. This helps companies save time and money by not having to re-enter data from different locations.

The software offers many ways for businesses to customize reports according to their needs and use existing templates. Setting up reports is simple; click on one of the pre-defined template options from the program’s drop-down menu, edit as needed, and start generating reports.

Advantages of Valutico include:

• Provides access to market data from leading financial data
• Create different business plan scenarios and benchmark against peers
• Fifteen-plus evaluation methods, secure and reliable
• Provides many ways for businesses to customize and export reports
• Provides a comprehensive business appraisal

GrowGrade

GrowGrade is a business valuation website offered for free courtesy of M&T Bank. With GrowGrade, you get an honest evaluation with no strings attached. M&T Bank is transparent about the tool they offer and the value that it brings to users.

You can also connect with M&T Bank for a more comprehensive business valuation or to obtain more information about valuation methods and your business value.

Advantages of GroGrade include:

• Easy to use and provides an accurate business value
• Affordable and is a great tool for small businesses
• Provides valuable insights into your business's worth, which can help you make informed decisions about selling or investing in your company
• Gives you the ability to monitor business value over time, so you can see how it grows and changes.
• Helps you negotiate better terms with potential buyers or investors since you'll have a clear idea of what your business is actually worth
• Is private and confidential, so your personal information remains safe and secure

GrowGrade may be a good option if you are looking for a starting point. However, if you are looking for something more advanced with more features, then you probably want to look at the software options rather than business valuation services.

BizEquity

BizEquity is a cloud-based valuation software that offers users 3 different ways to value their businesses – through an online questionnaire, by uploading financial statements, or by speaking with a certified business appraiser. There are two paths once you land on the website, one for advisors and one for business owners.

BizEquity is one of the most popular valuation software programs on the market today. And it's easy to see why—BizEquity offers a wide variety of features that make valuing businesses quick and easy. Perhaps most notably, BizEquity allows users to value businesses in just a few minutes.

In addition to its speed, BizEquity is also known for its accuracy. That's because BizEquity uses real-time data to value businesses. This gives users access to the most accurate information possible, ensuring that they can make sound decisions based on up-to-date data.

Advantages of BizEquity include:

• One of the most popular valuation software programs on the market today
• Offers a wide variety of features that make valuing businesses quick and easy
• Allows users to value businesses in just a few minutes
• Uses real-time data to value businesses

ValuAdder

ValuAdder is another top choice when it comes to business valuation software programs. What sets ValuAdder apart from other programs is its focus on flexibility. With ValuAdder, users can customize their valuations to fit their specific needs. Financial professionals trust ValuAdder for its reliable market data and business valuation approaches.

In addition to its focus on flexibility, ValuAdder is also known for its comprehensive approach to business valuation. With ValuAdder, you can access information on over 100 different factors that can affect the value of a business. This makes ValuAdder an ideal choice for CPAs who need to be able to consider all of the different variables that can affect their valuations.

Advantages of ValuAdder include:

• Flexible valuation customization
• Comprehensive factor analysis
• Valuation support for small businesses and enterprises
• CPAs can consider many different variables affecting valuation
• User-friendly software interface
• Cost-effective business valuation software program

ValuSource

ValuSource is an online business valuation software for companies that want to determine a fair-market value for their company. ValuSource can help you value your company by comparing it to publicly traded companies and private companies of similar size and industry.

You can use ValuSource with the free version of the software or you can upgrade to the premium version of the software if you need more features. ValuSource Business Valuation Software is one of the most trusted business valuation software in the market today.

The ValuSource website provides a step-by-step guide on how to get started with the valuation software. It also includes an introduction video for those who are not familiar with what ValuSource is. ValuSource is currently available as a free version and a premium version of the software. The difference between the two versions is that the premium version includes features like creating custom workflows, exporting your data, and customizing your valuation reports.

MoneySoft

MoneySoft Business Valuation Specialist is an award-winning business valuation software with many features that you can use to help determine the fair market value of your company. MoneySoft helps you calculate a company’s value by taking into account factors such as industry, profit/loss, cash flow, earnings, and more.

There are various ways in which you can get started with MoneySoft business valuation software. You can download a free trial or purchase a one-year, single-user subscription for $795, which saves you $200 off the retail price of $995. The full version of MoneySoft comes with an auto-renewal price of $595/annually.

MoneySoft business valuation software efficiently calculates a company’s worth without spending too much time on the task. It also makes it easier for companies to evaluate their investment options and compare potential changes in their company’s value.

Equidam

Equidam business valuation software is a specialist business valuation software used by business valuers, corporate finance advisors, and private equity firms for business valuation.

The valuation software is flexible and gives complete control to businesses with respect to the data they want to provide. This means you can choose which information is pertinent for your appraisal and drill down on that level instead of seeing everything at once.

Equidam's software provides detailed financial statement information and allows businesses to easily present their financial history if needed. Businesses usually find it challenging to present their financial history because there are so many different accounting standards, regulations, and formats. However, it is important because it will show how a company has grown over time as well as any changes in its cash flow or profitability over time.

Establishing this history will also allow investors, lenders, or other stakeholders to look at a company’s past performance when making decisions about future growth potential. This ensures all parties involved have access to comparable information when making an investment decision or loan application.

ValuTrax

ValuTrax offers a subscription based model for business valuations. The plans all come with a 14-day free trial. The month-to-month plan is $29, and the annual plan is $299. The software uses traditional brokerage valuation methods and focuses on small businesses.

The information you provide to start is based on a 13-step process. The software allows professionals to determine the value of a business in a “typical asset sale, according to the ValuTrax website.

ValuTrax can pay for itself, with the reports generated, often being able to be sold for much more than the cost of the software.

Business Valuation Solutions

Business Valuation Solutions is an online business valuation service that uses the DCF method to value businesses. They offer 3 different package options starting at $129 per month and going up to $349 per month depending on the number of valuations you need per month and whether you want access to their online training library or not.

Business Valuation Solutions is a great option for businesses that need to value their business on a monthly basis or for those that want access to an online training library. Their service is simple to use and provides accurate valuation methods.

Advantages of Business Valuation Solutions include:

• Simple to use and provides accurate valuations
• Offers three different package options to choose from
• The online training library is a great resource for learning more about business valuation methods

How to choose the right business valuation software for your needs

Just like you have to choose the right business valuation software, you need also to choose the right company for your needs. Whether it’s a software-based service or one that is completely cloud-based, your needs should dictate which option is best.

The option that best suits a few factors will determine you. The financial data available to you, the market methods used to evaluate the data, and the overall valuation methods employed by the software or service. Some financial professionals will prefer a do-it-yourself approach, while others will want the experience of an expert.

The benefits of using business valuation software

An accurate EV valuation will help your firm create a solid plan for long-term success. It’s not enough to just have the software. You need to be able to use it effectively and have multiple valuation methods available to you. With enterprise value software, you can make the process quick, easy, and cost-effective.

A well-documented system of workflows makes it a breeze for your team to understand the processes involved and apply them appropriately. This is an important part of keeping your CPA firm efficient and profitable in today’s market conditions.

How to get started with business valuation software

To get started with business valuation software, you need to input the information from your financial statements and start the process. Enterprise Value Software can help your CPA firm come up with an accurate EV valuation process; this will reduce your audit time and risk while increasing accuracy and credibility.

Another great benefit of valuation software is that it helps you avoid manual errors while carrying out complicated calculations; there are so many different variables involved in valuing companies that automation makes the process easier and faster for those involved.

Finally, BV software takes away some work from accounting staff by automating tedious processes like running models or consolidating multiple financial statements into one report (a single template).

Business Valuation Software Wrap-up

Business valuations are complex and require CPAs to be well-versed in many different topics. In order to provide accurate valuations, CPAs need access to the latest tools and software and valuation methods that best fit the business types they need to value.

Business valuation software provides many benefits, including accuracy, time savings, cost savings, and more. By using valuation software, CPAs can be confident that their valuations are accurate, saving time and money in the long run.

There are many different things to consider when choosing a valuation software program. However, if we had to narrow it down, we would say that there are three primary factors: speed, accuracy, and ease of use. All three of these factors are important when choosing a solution; however, depending on your specific needs, some may be more important than others.