Online accounting for start-ups is necessary for successful take-off. It is best to establish accounting method in the company at the beginning. Maintaining account helps to keep track of company and crucial for preparing Balance Sheet, Profit Statement, MIS, GST forms and Income tax returns filings.
We also often hear from start up their struggle to organize various documents, follow up for payments with clients and how to do online accounting.
We will guide you about the various software options available which are used by various single person start-ups to big corporate with low cost budget.
1. Microsoft Excel for start-ups
Suggested for small business with having:
1. Number of sales invoices less than 20 per month.
2. Expenses invoices less than 50 per month.
3. Business is less than 10 lakhs yearly
4. Not registered under GST.
Single person or small start-ups can easily manage the records of the company in Excel. And at the end of year get accounts reconfirmed by accountant.
PDF invoices should be saved month wise folder – April to March.
Within that folder, it is suggested to keep two folders for every month – Receipts (Sale) and Payments (Purchases/Expenses). Copy of bill or invoices should be saved in organized manner, preferably date wise.
Export bank statement in excel format and add “Remark” column detailing Name of party and Nature of transaction.
Consultant Charges are Rs 5000-6000 per annum.
1. Sales invoices are less than 100 per month
2. Expenses invoices are around 200 per month
3. Business is less than 40 lakhs yearly
Benefit – User Interface is easy and being cloud based software, accounts can be accessed from anywhere. Owner can themselves learn and operate this software.
One month free trail is given by Quick books.
If company is GST registered then accounting should be done on monthly basis.
Problem – Less popular in India and In-house accountant is difficult to find and employ.
Software charges – Rs 400 per month.
Consultant charges if appointed goes to around Rs 3000 per month
For medium to large business, a dedicated accounting software like Tally is suggested.
Large number of expenses and payment transactions can be handled easily.
Tally helps to maintain data systematically with all kind of MIS generated automatically.
Frequency should be daily so that track of accounts are not lost.
Outsourcing helps owner to focus on business, expertise of professional in TDS and GST is helpful.
Tally can now also be accessed remotely for doing online accounting.
Consultant Charges range from Rs 5000-10000 per month.
Software charges – Rs 21240/- one time.
However, free version is also available without online connectivity.
Even small business in India do their accounting in Tally because Tally is made more of Indian accounting based and Quick books are CRM based International software.
We understand that entrepreneur have expertise more in their business domain rather than in accounting. We therefore suggest outsourcing accounts and book-keeping of the company so that owner can focus on the core business activity.
Dropbox is cloud based software, used to store files over the cloud and access from anywhere. It’s a better version of Google drive. Further, one can synchronize the files over various computers like LAN. Many offices instead of configuring local LAN download and sync files using Dropbox.
Easily access your team’s work from your computer, mobile device, or any web browser. It’s free till 2 GB, which is sufficient for small offices. Particular files and folder can also be shared with consultant or team member.
Very important for every small business, even you can connect mobile with dropbox. So if you made some expenses – click a photo on mobile and save it to dropbox. Automatically it is loaded (sync) to your laptop and also shared with your consultant.
5. Khatabook for vendor management –
Khatabook is a mobile app which develops a digital ledger app for entrepreneurs to help them manage their business credits. All details of credit-debit for any number of customers are ready and handy on your phone.
It automatically sends a payment reminder to its customers, enabling customers to keep track of all their transactions and payments. With Payment reminders feature, an automatic SMS is sent to your customer every time a transaction is recorded – for FREE. High transparency with faster repayments is good for business.