Managing a business is already a stressful and pressurising job role where you work 24/7 x 365 days. When you add in managing the finances and doing them with a detail oriented eye – it definitely gets overwhelming especially if you are not from that background.
This is why accounting software has become so essential and necessary for Indian startups, freelancers, shop owners, agencies, retailers and MSME’s.
Key Takeaways:
- While you are choosing the most apt accounting software for your company, go for one that supports GST billing, invoicing and inventory management altogether.
- Cloud based accounting platforms are also worth exploring because they give you real time access, automation and management.
- Choosing the right software will save you time, efforts, reduce errors, simplify tax filing and overall improve business decision making.
Why do small businesses need accounting software?
Small businesses initially can manage their funds easily because they are just starting out and the finances are easy to manage. But as they continue scaling, their expenditures, costs and cash flow changes and becomes more complicated. That is when they need a professional or a software to help them.
Such softwares basically help businesses with:
- Reducing human error
- Saving time, energy and money
- Improving GST compliance of the company
- Generating reports instantly instead of doing them manually
- Tracking payments and expenses
- Simplifying tax filing
Which accounting software in India should you choose for your small business?
Before you start a business, you focus a lot on its intricacies, right? What should the domain name be, what should the investment be, registering for GST and MSME and more. So, why not do the same for your accounting software?
GST compliance
Registering for GST and being GST functional is one of the biggest priority for you if you are a new startup. A good accounting software for your small business in India will always support your:
- GST invoices
- GSTR filing
- E invoicing
- Tax calculations
- And, input tax credit tracking
Invoicing:
A good accounting software should also ensure that it helps businesses with personal invoices because they:
- Improve the credibility of your business
- Track payments
- Automate reminders
- And, manage recurring billing for you
Inventory Management:
So if you are a wholesaler, retailer or a manufacturer, you need inventory tracking. This definitely includes:
- Stock monitoring
- Purchase management
- Warehouse tracking
- Reorder alerts
A good accounting software for small businesses within India will help you manage and track your inventory everyday.
Cloud Access:
If you choose a cloud accounting software, then that will allow you and give you access to your data remotely from anywhere in the world.
It will also help you and your accountants to collaborate well together by unifying and providing uniformity within the app.
You can also monitor your finances in real time – especially when you are on a break or a vacation and want to just check how the day-to-day is going.
What are the Best Accounting Softwares for Small Businesses in India?
For you to choose the right one, here is a detailed breakdown of which softwares are the best:
Tally solutions:
It is the best option for those who want traditional accounting, GST management, wholesalers and manufacturers as well.
It is also the most widely used accounting software platform within India. If your business is MSME registered and you want to work very closely with your chartered accountants, then you cannot go wrong with this software.
Advantages:
- It has very strong accounting features
- It is widely accepted by the most accountants
- It is reliable
Limitations:
- The UI/UX can feel outdated to a lot of new startup owners
- Since it has so many features, it takes time adjusting and getting accustomed to it.
Zoho Books:
This is apt for all those who are starting a startup as freelancers, agencies and service businesses because it is modern, easy to administer and understand and it also follows GST compliance features.
It gives you expense tracking details, bank reconciliation, client portal, inventory management and integration with the Zoho ecosystem as well.
Advantages:
- It is easy to use
- It gives cloud based accessibility as well
- You will get strong automation along with it
- The mobile app is easy to use too
Limitations:
- If you want to access advanced plans, it will require paid plans
- Some businesses might not be well suited because they need advanced options than what this provides.
Vyapar:
Is it a great accounting software for small businesses in India – especially for those who are small retailers, shop owners and have micro businesses.
It is affordable, simple and the mobile app is so easy to use with almost no confusion.
Advantages:
- It is beginner friendly
- It has affordable pricing
- It has a simple interface
- And it is very useful for local businesses
Limitations:
- Unfortunately, there are very limited accounting features on this
- There are fewer integrations compared to larger platforms
Busy accounting software:
It works really well for heavy businesses and GST intensive operating businesses. That is why it is so widely used amongst traders, distributors, wholesale businesses and FMCG businesses as well.
Advantages:
- It has a strong inventory control
- It gives good GST support as well
- The report detailing is great
Limitations
- The interface may be a bit too technical
- There is a learning curve for beginners
QuickBooks:
For those businesses that need an international accounting system and integration – QuickBooks is a great option. It is known for its automation, reporting and third party integrations altogether.
It gives you access to expense tracking, payroll support, invoices from global distributors, inventory management and financial dashboards.
Advantages:
- It has a strong automation system
- Excellent reporting
- It has a large integration ecosystem so it is easy to understand
Limitations:
- The price for this is quite high, more than the other softwares.
- You might not like it if you want more GST focused local tools.
Which one is better – Cloud Accounting or Traditional Accounting Software?
| Feature | Cloud Accounting | Traditional Desktop Software |
| Access | anywhere | Single device |
| Updates | automatic | manual |
| Collaboration | easier | limited |
| Security | Cloud backup | Local storage |
| Internet required | Usually yes | Not always |
To eep up with technology, cloud accounting is definitely better and more accessible for your small business.
