It is a known fact that ‘Entrepreneurship is hard’ yet most people want to dabble with entrepreneurship at some stage in their lives. The tricky part lies in the execution since it involves connecting the relevant dots for converting the idea into a tangible business. The right type of accounting software can come handy at every stage in the business, as it helps in keeping a close watch on the financials.
Once you enter into the world of business, you should develop a know-how about the basic accounting rules since it helps in the long run. Financial viability and performance are the key indicators of how the business is doing. The best accounting software is easy to use, scalable, and has features that let you deep dive into the nitty-gritty of the business performance.
What is Accounting Software
In simple terms, accounting software is a solution that is used by business owners, accounting professionals, and bookkeepers for managing accounts and processing transactions.
Accounts payable, accounts receivable, billing/invoicing, inventory management, bookkeeping, general ledger, etc. are some of the core modules in any accounting software. Small business owners should also choose the right accounting software, since it provides them with better visibility about the business performance.
First-time business owners should know about the basic accounting rules for real account – Debit is what comes in and Credit is what goes out. You can associate Debit with Deposits and Credit with Withdrawals. You should know about real account, nominal account, and personal account. Whether you are an owner of a technology business or running a shop, knowing the basic accounting rules is essential.
How to the choose the best accounting software
The decision to choose the business accounting software can turn out to be tricky since there is no dearth of accounting softwares and you can get confused in choosing the one that suits your requirements. You can select the best-suited accounting software by following the rules mentioned below:
India centric approach
Many large multinationals that have cracked the international market are eager to be a part of the India growth story. They might have tweaked their existing features to make it suited for the India market.
On the other hand, companies like Tally Solutions have immense understanding about the Indian market. Through their experience and expertise, they know about the issues faced by business owners in India.
Hence, it is recommended to go with a solution like Tallyprime since it is developed by keeping Indian businesses in mind!
Automation and Report generation
Good accounting software are good in automating accounting tasks so that your employees can work on other critical tasks. Automation also reduces errors that might occur due to manual interventions.
For keeping a track of the financial performance of the company, the accounting software should be able to generate reports that give detailed insights into P&L (Profit and Loss), Cash-flow, ratio analysis, and more. These reports will be helpful in keeping the business in good shape.
India-centric business accounting software will let business owners create GST compliant transactions with ease.
You should be able to generate e-way bills and file GST returns by uploading the data in the JSON format.
Optimum Inventory Management
Stock Management can be a huge hassle for businesses if it is done in a manual way or maintained in different excel sheets. Using accounting software that also provides the features of inventory management helps in managing stock in a comprehensive way.
It helps in getting better visibility about stocks across different godowns. Effective inventory management can fix over and understocking problems for businesses. Business owners and godown managers can get deep-level insights on item-wise profitability, moving of the goods from (and to) the godown (or warehouse), and more.
These detailed reports help business owners in understanding the usage trends, thereby planning future investments in a much better way.
As the software deals with keeping a track about business transactions, utmost importance should be given to security of the data. Only authorized personnel should be access the information using the accounting software.
Accounting software by Tally Solutions is not only secure but also highly scalable. Hence, it is suitable for use by small businesses as well as business conglomerates.
Choosing the right accounting software is important for smooth functioning of the business. Tallyprime is best suited for Indian businesses since it is designed keeping the Indian business community in mind and can be scaled to suit your business needs.