What is Accounting?
In Simple words, Accounting means recording the day-to-day transactions of a business.
Need of Accounting?
Most of the business activities are done to get profit from the business. We regularly see how much profit we have gained from our business. To know how much profit we have gained from our business we record all day-to-day business transactions.
What is Accounting Software?
Accounting software is used to maintain all day-to-day business transaction records. These records then give different types of reports such as Financial Reports, Accounting Reports, Inventory Reports, MIS Reports, Statutory Reports & Payroll Reports. Some of the important reports which are very important to know the position of business are Outstanding Receivables & Payables, Sales & Purchase Registers, Tax Payment, Bank & Cash Balance, Fund & Cash Flow, Cash Flow Projection, Stock Valuation, etc.
Need of Accounting Software in India?
In India, many businesses are still using printed stationery to record day-to-day transactions. Some businesses use excel sheets or word files to create bills. This is an unorganized system where the data is not stored in the proper place. Multiple people & processes are involved to get simple reports and to know the financial position of the business.
Now there is a need of having proper accounting software to increase efficiency, productivity, and growth of the business. Proper accounting software will stop manual, duplication & time-consuming work.
Points to remember before buying the right Accounting Software.
Consider the below points before buying accounting software. Price is not the only factor that needs to be taken as an important point while purchasing the accounting software. There are many points if ignored may cost you more.
Take a software demo on your real data.
Involve accountant(s) or user(s) in taking decisions.
Check whether the software is compatible with Chartered Accountant (CA) software.
Ask in your business network who are already using accounting software.
Should be user-friendly to employees & management.
Check important reports – Accounting, Inventory, Statutory (GST & TDS), Payroll, Banking, Financial statements & MIS.
Discuss Software overall cost i.e Price, Implementation, Training, Annual Support, Free offers & Customization cost at the time of finalization.
Discuss recurring costs or renewal costs.
Compare with other accounting software on Google to get a better idea.
Check reviews of accounting software before buying.
Check no. of years of software in the market.
Check no. of users using the software.
Read terms & conditions for after-sales support also take email for future reference.
Ask if Industry-specific customization can be done.
Check whether it is on the cloud or on-premise.
Select the right software partner who will install, train, implement and give after-sales service for your software.
Top 5 Accounting Software in India
1. Tally
2. Busy
3. Marg
4. Quickbooks
5. Zoho etc.