To succeed, businesses need to track and maintain finances typically. Accounting is not just about keeping track of credits and debits but a much wider term than that. Bookkeeping, payroll, auditing ledgers, tax preparation, and finance management are some parts to make the wide accounting and finance sector.
According to a report by IBIS World, 2021, the market size of accounting services is $120.6 billion. Also, the report stated the average growth rate of accounting services as 1.3% per year from 2017 to 2022. It has transformed the way businesses carry out their daily accounting tasks from manual bookkeeping to e-accounting.
These activities play a critical part in monitoring the expenditure and income for running the business effectively. Organizations are increasingly recognizing the potential of accounting software in the industry.
With the help of cloud-hosted accounting applications, organizations have discovered a more efficient and quick way to manage tasks like maintaining audits, tax preparation, banking, and payrolls. Another report by Flexi, 2021 stated that the reach of cloud-hosted accounting solutions will reach $4.25 million by 2023. The report also reveals that around 58% of businesses prefer to use cloud accounting solutions.
Today, so many accounting software are available in the market. Different accounting tools offer different sets of abilities at different prices. But finding the perfect one out of them that satisfies your needs efficiently is a tough job.
Don’t worry, we have shortlisted some widely emerged software that has made the competition tough for the market leaders. Also, we have also highlighted some important points to consider before deciding on the perfect fit for your business.
But first, let us understand what accounting software actually is and how it helps businesses to grow.
Accounting software is a computer application used to record and process organizations’ financial data. The latest accounting systems focus on making the process more automatic rather than manual under the guidance of human resources. Therefore, helping accountants to save 90% of the energy they put into matching the data from here and there.
Modern accounting software assists accountants in recording and broadcasting a firm’s fiscal transactions. Furthermore, it provides detailed tracking of every last spent and reduces the chances of human error.
The new-age accounting platforms are rapidly gaining momentum with the arrival of GST in India. The urgency of the software vendors to implement the latest tax structure gave rise to a lot of accounting software tools across the country.
Similarly, many providers popped up with different accounting software claiming to be the best. Some of them are free while some offer certain abilities only. The trend for digital accounting software applications has begun hugely in India and there is no doubt about it.
In the end, every software is best in its own way if it delivers the skills your business requires. To best understand the most suitable accounting software for your business, we have compiled a list of widely used accounting tools to help you find. Furthermore, this article also discusses in detail the pros and cons of the best accounting software and its impact on the productivity and efficiency of your business.
Which business doesn’t like to save a few bucks on the side, huh? Most business accounting software helps you do just that! By automating administrative tasks and core calculations, you won’t have to devote valuable resources or outsource finance management to a financial expert.
A study conducted by Flexi, 2021, stated that the utilization of cloud-hosted accounting software helps to reduce operating costs by 50%. In addition, enterprises that have shifted to cloud-based accounting software have witnessed a 15% increase in their revenue.
One of the most reputed accounting software for beginners includes Tally. Since it is so popular many well-known brands (over 11 lakh businesses) in India use this for daily accounting operations. It is an advanced accounting solution developed by Tally Solutions Pvt. Ltd, a Bangalore-based IT solution company.
This windows based non-cloud accounting software is designed using TDL language and provides a simple yet powerful framework to accountants. Bookkeeping, inventory, reporting, statutory & taxation, and auditing are some of the major functions that this software supports.
Another reputed cloud-based solution, Zohobooks has helped businesses to deliver greater efficiency at lower costs and increased security. This modern software integrated with banking systems enables you to discover ways to gain deeper insights into business, get more control over financial operations and plan for future growth.
Zohobooks offers country-specific editions which enable the software to handle taxes differently. To clarify, the base currency will update and relevant financial specifications will be followed. Hence, making it super convenient to work with vendors around the globe.
Marg acts as an amazingly simple and fastest accounting software for small businesses. It has the ability to handle multiple customers by allowing them to hold current invoices. In the end, it gives organizations a complete solution to manage everything from purchase planning to balance sheet. A key inventory and accounting software to easily maintain inventory and accounts offer a smoother transition into GST.
With thousands of reports and setups, the users can filter the reports as per the requirement. Users can also maintain accounts and export them in an excel sheet without compromising security.
Busy accounting solution comes at the second position of the most used accounting software in India. It provides an integrated business accounting tool for micro, small, and medium businesses. The software comes with three primary versions that can be used by both single and multiple users according to the requirements.
If you want the most advanced software for small businesses, Quickbooks online offers the best choice. Popularly known for its bookkeeping software, it gives a range of accounting and finance tools. It comes with the most varied reporting section among various accounting platforms.
The tool provides a much easier way to set up and use, only by acquiring some knowledge of formulas. It’s a double-entry accounting system that automates most processes, saving a lot of time. Conclusively, it offers all the features businesses would need including paying bills, inventory tracking, and services.
myBillBook offers a popular GST billing and modern accounting platform for small businesses to effectively manage their daily processes. With this customers can create customized GST invoices and non-GST invoices within seconds and share them easily with the clients.
Furthermore, the app generates critical business reports that help owners to make effective business decisions. In the end, this complete billing & accounting solution is designed to ease the lives of business owners by bringing technological capabilities directly to their mobile phones.
Realbooks provide a very popular method to store and manage critical financial data securely. The feature-packed cloud-based software helps businesses simply do things with accuracy. It helps businesses make better financial decisions with its highly effective payroll and inventory management.
Above all, its document attachment feature has helped businesses to replace the physical method of filing documents. It’s a GST-compliant real-time data management software that comes with API integration as well.
Vyapar offers another widely used GST-compatible invoicing and accounting solution for small businesses. It’s a free and simple-to-use platform built for the needs of every businessman. You can majorly utilize it to manage GST bills, complete orders, generate GSTR reports, track payments/expenses, and maintain your inventory.
Besides, you can also use this to customize invoices and collect payments online. Moreover, it helps you to manage your business with or without prior accounting knowledge.
One of the best accounting software in India to help small businesses effectively manage their finances, inventory, billing, and services. It offers an effective solution for product billing and inventory management.
The software is widely used in industries such as retail, distribution, and timber. Users can easily customize the platform according to their needs
Reach provides the best accounting software application designed to help small to medium-sized businesses. It gives businesses a one-place solution to manage all their financial accounting operations effectively. Therefore, providing businesses with an effective method to plan and analyze data in a very convenient and organized manner.
Furthermore, it comes with a strong automation tool that has the ability to maintain multiple accounts at once. In the end, the software comes with a great support team.
In the end, you always have the option to custom-make your own accounting software app completely based on your organization’s wants. Many IT solutions like CronJ help businesses to develop the best accounting software with ultimate features.
Gone are the days when the accounting software market was handled by a monopoly player. Modern needs have boosted the demand for the best accounting tools in the industry. Certainly, today’s accounting software not only helps businesses in bookkeeping but also helps to improve their analytics and decision-making part.
However, again the confusion lies in selecting the most reliable software based on your business needs. Every best account software has its own pros and cons and that is what makes it good or bad for one’s use. So, how do you find the perfect one for your needs? Well, it’s simple. You need to prepare a quick checklist of some points. I have prepared some quick tips for you to keep in mind before decking your best accounting software in India.
The very first thing you should do before deciding on accounting software is to list down your accounting needs. For instance, if you simply want the application to send invoices or for managing expenses, etc. Or do you want your application to handle more complex tasks like inventory management or payroll management? Figure out your essentials this will help you to understand and compare the core competencies of the highlighted tools.
Most of the software cost depends on the basis of the number of users utilizing it. The cost usually depends on a per-user or per-company basis. Select the software based on your requirement and the budget you have for the software. You should understand the power required to maintain the accounting tool.
Some accounting tools might seem economical but come with a lot of hidden costs. For example, every time they add an upgrade, you have to pay additionally for the features to access. Understand the policy of the software so that you don’t get any surprises at the end of the day. Try to look for software that focuses on providing the latest version.
Accounting solutions with high learning curves have lower adoption rates. Always choose software that you and your team can easily use or easily learn to use. This is because you don’t want to spend a lot of time learning the software.
For instance, if you choose complex software, firstly you have to put additional effort into training the team to use it which will take both cost and time. Secondly, the chances are that you might not be able to fully utilize its abilities due to its complex nature. The advanced features might get unutilized too.
A quick tip: Always ask for a free trial. This will give you an idea about the implementation of the tool.
Security should be one of your major concerns before deciding on the best accounting software. Certainly, accounting deals with critical data that needs to be safeguarded at any cost. Initially, the data used to be stored on hard disks and servers. But today, the emergence of cloud storage has taken over the process completely.
Flexi, 2021 report says that a total of 61% of accountant professionals prefer to use cloud-hosted accounting solutions above premise accounting software. In addition, unlike hard disks or servers, cloud storage helps businesses to back up their data automatically.
The right accounting software would be able to handle all your present and future business needs. In simple terms, it should stop you from growing your business. You need to put the effort in to find the service that will support your business growth too.
To give an example, if today your organization just wants to share invoices with clients and track expenses, you should not just focus on these features solely. Instead, you should also keep your long-term needs in mind that would come as the business grows.
A quick tip: Look for software that would allow you to update as the business grows.
It’s not economical to switch the software every time you face a glitch. Hence, look for software that comes with a reliable support team. It’s equally important to review the support service of the software. It should allow you to actually speak and communicate your issues to the desk where they can help you to resolve the issue.
A quick tip: You can also check for help videos on Youtube or other channels to resolve the issues.
The 2021 report by Account Today says that by 2026, the global market for accounting software will be worth $11.7 million. By now you have seen the list of the most popular accounting software in India. The accounting software stated above will help you narrow down the confusion of major accounting tools. You can totally rely on this shortlisted software as these are the majorly trusted accounting tools ruling the market.
Most of these accounting tools were either cloud-based or windows based and not the usual traditional DOS-based system. You simply need to focus on the requirements you want the tool to scale your business. In this article, I have provided a tested list of the best accounting tools you can trust for your practices. Also, I have tried to cover all aspects before choosing the best accounting software in India. Finding the best accounting software is just a step away from you.