Inour previous blog, you read about how the clutter of spreadsheet is hampering business growth for small business owners across the country. Let’s move further into the topic and talk about how new technologies are here to make the business journey of entrepreneurs easy, fast and enjoyable.
Today, simple yet important activities such as banking have made their way to the online world.
It’s technology that has enabled me to reach out to the audience of business owners and accountants such as you and help simplify your business processes by my blog posts.
If you’re a small business owner then you may be looking for processes that will make your business efficient and let you manage your money better. Technology is the answer to all your major business needs. Most businessmen make use of smartphones, tablets, and social media, but now it’s time to use this technology to take your business to the next level by including it in your accounts and financial process. When you take up technology like accounting software then it can save you much time and allow you to focus on other aspects of your business.
If you’re looking for accounting software in India, then ensure that you look for one that can track your transactions and can produce a sufficient financial output. It should also allow you to file taxes online; it should provide you with reports like annual financial statements, tax return information and monthly reports.
In the end, the accounting software should be able to analyze the profit margin and efficiency levels of your business. When you are provided with the right information, you will notice that your operations begin to improve and grow.
Unfortunately though, a fair section of small businesses in India are still falling behind and haven’t been able to adapt to new technology, partly because of unawareness and skepticism.
Due to this, they still manually work on their accounting and consequently suffer from a stagnant growth.
Let’s take a moment to break down an accounting cycle for a small business. More or less, it would be including the following steps:
From the first look of it, this might not seem very difficult. But when the business truly expands and there are thousands or millions of transactions in a day, the situation dramatically changes.
And if the business do not adapt to new technologies to streamline these steps, even a little mistake or inaccuracy can cause a major failure in the system.
Weare glad you asked that. It means you want your business to excel and grow. Fortunately for you, the solution is simple: Your business needs an online accounting solution that fits all your small accounting needs like invoicing and tax filing to the large ones, like inventory management.
Traditional manual accounting is a tedious process requiring accountants to spend copious amounts of time mathematically checking numbers in the company’s accounting information. Simple mistakes such as transposing numbers or entering information into the incorrect column could create significant errors.
Online accounting systems allow accountants to process more information than before by creating accurate financial reports. Because of its efficiency and ease of use, online accounting systems also allow you to improve inventory control and payment collection, saving time and improving cash flow. Accountants can potentially spend less time looking for errors and more time analysing information for decision purposes.
The cloud is one of the most secure ways to store data. For example, using cloud software, if your laptop is stolen or gets crashed, no one can access your data since it’s only you who have a login to the online account.
In the event of a natural disaster or an on premise theft, having all your accounting data on the cloud means business productivity doesn’t need to be affected. As long as you have access to any computer or mobile device connected to the internet, you’re up and running.
In addition to this, if you invite your accounting team or investors or other decision makers to view your accounting data, you can control the level of access. This is much more secure than the old-fashioned way of emailing your files or sending out a USB stick with your data on it.
Filing taxes is one of the crucial activities for any business, more so now, because of the introduction of GST. Today each and every business owner conducting in India has to register themselves under the Goods and Service Tax laws.
After which they are expected to send out invoices that contain the details prescribed by the government, upload monthly transactions to the GSTN portal, and file multiple returns every month. All these steps simply imply that it is impossible in the current day to handle all of this in manual books.
Online accounting is the right way forward. Not only it allows for GST compliant invoice generation for transaction level compliance but it also helps in generating easy to understand error reports and ultimately filing accurate tax returns.
Hopefully, you are aware of the benefits that come with cloud accounting systems. Once you have done your research and got all your data in place then it’s time to invest in the best accounting software for your company. Ensure that your accounting software includes features like ability to file GST return online and file taxes online.
You will find many results when you look for cloud accounting software, but not all of them will deliver the results that your business needs. So, the best way to find out if the software works in your favor is to review the system yourself. In the end, ensure that you choose accounting software that will boost your company’s profit margin.
Worry not readers! While you could still continue to perform the above mentioned tasks manually, doing so would be both time-consuming and costly and error prone.
Modern technology is changing the nature of accounting, across all business sizes and types. It’s time to sign up with a cloud accounting solution and enjoy a hassle-free & error-free accounting experience.