How Accounting Software Can Benefit Next-Gen MSMEs

Small business accounting

Starting a small business can be an immense undertaking. There are numerous tasks to handle, from retaining talents to managing payroll, client services, and more. Managing all of these tasks can be daunting, particularly if you’re using outdated traditional methods. Most Micro, Small or Medium-sized Enterprises (MSMEs) find it challenging to handle their finances, which is where accounting software comes in. By streamlining your accounting operations, you can maximize your time to focus more on innovation and improving the quality of your products or services. In this blog, we will discuss all the benefits you can get using the best accounting software for small businesses.

How Accounting Software Can Help MSMEs:

Small-scale businesses make up 96% of industrial units in India and are crucial contributors to the Indian economy. These smaller businesses account for 40% of overall industrial production and 42% of all Indian exports. As of December 2022, there were approximately 1.28 crore registered MSMEs employing 9.31 crore people, of which 2.18 crore were women. Accounting software can help these businesses in many ways.

Inventory Management:

Inventory management can be a difficult undertaking for small business owners. When you rely on old spreadsheets to keep track of your stock movements, the process can be error-prone and slow. You may effectively streamline inventory procedures such as accounting, recording item details, creating item reports, and tracking them by employing cloud-based accounting software. It also allows you to keep tabs on SKU codes, create bundles, and track your item with its serial or batch number.

Billing and Invoicing:

Accounting software offers several advantages, one of which is the automated generation of GST-compliant invoices and bills. By integrating good accounting software with GST compliance, you can eliminate errors and go paperless. You can also automatically mark invoices as paid or sync them with your bank account, without the need for manual tracking. This simplifies the payment process and facilitates efficient financial management. Additionally, you can create recurring profiles for orders placed by existing customers, which automatically sends invoices, or add payment terms and conditions to invoices to inform customers before they make payments.

Secure Cloud Storage:

Keeping the data of all your financial transactions in one secure place is crucial for any business. Manual records are usually prone to errors and can be lost. It’s important to get yourself an accounting software that offers various features to keep your data safe and secure. Having cloud-based accounting software can help keep all your data in one cloud storage, eliminating the possibility of any data losses.

Financial Reports Creation:

As your small business grows, it’s important to check your profits and losses regularly. To evaluate your business’s financial performance, you need comprehensive accounting software that comes with many built-in features to generate periodic reports. Accounting software offers a framework that can easily prepare various financial reports such as profit and loss reports, balance sheets, cash flow reports, L statements, and more. Additionally, it can automate complex manual and routine tasks seamlessly, boosting overall work efficiency. This can free up time and effort and enable you to make more informed decisions.

Accurate and Error-Free:

Most accounting errors happen due to keeping manual accounting sheets using outdated systems. Accounting software can help MSMEs enhance their financial accuracy through its dynamic features, making data errors a thing of the past. It can provide accurate calculations without having to remember all those complex Excel formulas. Reposts can be created using real-time data, making it impossible for any errors to exist.

Keeping Track of Expenses:

Start-ups require a lot of investments. Therefore, it’s necessary to keep a close eye on your expenses to ensure that you are not overspending. Monitoring your expenses can also provide you with valuable insights into your cash flow. Accounting software offers features to keep tabs on your expenses, including your tangible and intangible expenses. You can also categorize, record and upload receipts, and store them in your cloud storage. This way you can get a clear view of the areas where you are spending more.

Scalability and Flexibility:

As a small business owner, managing multiple finance software can be a hassle. As your business expands, it becomes more crucial to have a centralized system where you can store all your financial data and streamline your processes. Accounting software can be your ultimate solution as it provides the scalability that your business needs. More importantly, you can integrate your existing system and enjoy more flexibility in your work processes. You can effortlessly manage your stock levels, sales, customer base, financial transactions, and payroll without any inconvenience.

There are many accounting software for small businesses available in the market, so it’s important to find the best accounting solution that fits all your business requirements. It’s better to go for a cloud-based accounting software with GST compliance that can offer you the security and scalability your business needs. If you looking to streamline your financial tasks, then WrkPlan accounting software can empower you and your start-up by boosting your work efficiency. Want to know more about our WrkPlan accounting software? Give us a call at 1-800-120-2449 or sign up for a free demo.

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