Accounting software performs all the financial and operational tasks for business and manages the financial status of businesses.
By Rajesh Gupta
Entrepreneurs are the single-handed driving force behind most SMEs. He/she has to manage the entire business process from purchase, sales, billing, accounting, filing taxes, client handling and whatnot. All this demand ample time, efforts, and precision as a minor mistake in these processes can turn out to be disastrous for a business. SMEs often have limited capital and workforce that makes them adopt automated solutions to ease their business process. Consequently, more and more SMEs are adopting such solutions. According to the market research, which ran a survey for over 3,000 organizations, all were looking for reliable accounting software. 37 per cent of these organizations were new buyers. Fortunately, the market has a variety of reliable accounting software to resolve such an issue. Accounting software performs all the financial and operational tasks for business and manages the financial status of businesses. SMEs primarily get extremely beneficial with such software solutions in the following ways with its features.
- Government should pay 'administration' fee to small businesses to offset increasing compliance costs
- Budget 2020: Banned since 2018, cryptocurrency market seeks clarity on regulations from FM Sitharaman
- Budget 2020: Healthtech businesses want FM Sitharaman to focus on preventive healthcare; suggest steps
Managing Accounts: The prime task of accounting software is to take care of the accounts. It helps SMEs in managing their payable and receivable, cash/bank balance, shows all the liabilities, expenditures, revenues and assets in a particular time frame. It also enables them to recognize the status of their current and future cash flow. For example, if an entrepreneur enters his bill along with customer invoices and due dates, the system will generate insightful reports to ensure whether the business has enough receivables to pay future bills or not.
Inventory Management: Inventory management is a crucial aspect of every SME. Accounting software makes stock management better and more efficient by monitoring it digitally. These quality solutions can track inventory of products along with providing the latest details on the stock in hand and ageing stock. Such solutions can automatically track stock even when orders for products are processed. A fascinating aspect of accounting software is that it can predict when the business is likely to get short on stock so it can order required items in advance.
Manages Invoices and Bills: This is another critical part of any business. Generating tax complaint invoice with accurate pricing and calculations is most crucial as any lapse in this might lead to huge losses. Accounting software assists its users by generating accurate invoices swiftly. This also assists SMEs to manage and regulate their finances efficiently. SMEs can even ask customers to make speedy payments which usually delay their payments, hence, minimize losses. Therefore, advanced accounting software offers reliable information on receivables while boosting business profit.
Statutory Compliance: The government of India has levied multi-layered indirect taxes, and the process of paying these taxes is indeed complex and dynamic. Courtesy to the accounting software which assists entrepreneurs to apply taxes in transactions accurately and file tax returns in time. These solutions provide all statutory reports (GST, TDS & TCS) and help in generating GST Summary, e-return, etc.
MIS Reports and Analysis: MIS reports are an integral part of every organization as it helps them to organize, examine data and information to provide information effectively and timely. What if accounting software helps you with such facilities as well? This feature of accounting software manages cash flow, fund flow, ratio analysis, sales/purchase analysis, etc. The businesses not only get assistance in making budgets but also receives a forecast of potential future incidents.
Manages Payroll: Apart from business finances, accounting software manages workforces as well. The term payroll includes much more than a list of employees and what they are paid for. It also consists the tax information and submission with legal requirements. Accounting software solutions streamline the entire payroll process of a business efficiently as it serves multiple purposes. Along with the tax-related process, it also takes care of their wages, monetary compensations, bonus, and more.
Customer Management: Apart from selling to existing customers, SMEs need to acquire new customers regularly and retain existing customers by providing them with timely services. Accounting software also helps in managing pre-sales and post-sales activities. It covers inquiry management (from receipt to closure) and supports management which includes items warranty / AMC tracking.
The prominence of accounting software is on an upsurge. Advanced accounting software is rapidly emerging in the market to assist MSMEs and other enterprises. These software solutions help businesses to make their accounting and other business processes easier, timesaving, precise and cost-effective. Advanced accounting software assists organizations in completing even the complex processes like filing GST, managing multiple branches, data validation, etc. efficiently. Specifically, SMEs, where the entrepreneur manages most of the tasks, accounting software makes the weeks-long tedious process more manageable and shorter.
(Rajesh Gupta, Co-founder & Director, BUSY (Accounting Software). Views expressed are the author’s own.)