Accounting software is a type of application software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, journal, general ledger, payroll, and trial balance.
Technology has revolutionized the domain of accountancy and finances the world over. Gone are the days when accountants and finance departments would drown behind heaps of files and folders and management would lose their sleep over financial reporting. Most basic accounting concepts can now be applied with the use of software. With new breakthroughs in technology, businesses now have access to the best accounting software that makes their work much easier in terms of recording and reporting. Note that accounting software is also embedded with the rules of accounting.
The Busy Accounting Software
Busy is an integrated business accounting software for micro, small, and medium businesses.
The Busy accounting software has more than 3,00,000 licenses sold worldwide and is easily the leader in the Indian market. It offers excellent features, custom-made for Indian businesses. It offers services in the following domains:
- Multi-currency financial accounting.
- Multi-location inventory management.
- Material production or bill.
- Purchase or sales quotations.
- Sales or purchase order processing.
- Complete user-configuring invoices.
- Letters or other documents with user-configuring option.
- GST invoicing and reports.
- Tax documentation and reporting.
- Support in MIS report and analysis.
Busy is a very useful and effective software widely used in financial accounting.
Top Free Accounting Software
Accounting software India has to be tailor-made and incorporated with key accounting terms. This is the basic premise on which they are created and marketed. This is keeping in mind the varied nature and scale of businesses that operate in this diverse country. Here, anybody can be a business person, and the market allows it. Thanks to technology, the ease of doing business in India has increased, especially in the last decade or so. You can now use technology to even analyze your profit and loss accounts.
Top Performing Accounting Software
While there are many options for you to choose from, here is a curated list of top-performing accounting software to make your job easier:
Considered the best accounting software in the USA, this is the brainchild of Intuit Inc. You can opt for the Indian version of the software to capture your daily transaction records, billing activities, and invoice generation. The software is also available in a mobile-based application, further facilitating accounting at your fingertips.
Tally ERP 9
This is the most commonly used accounting software in India. Developed by Tally Solutions Pvt. Ltd., this has been the best accounting software in India for over two decades. The software eases processes of accounting, payroll, and inventory, among its other benefits:
- Accounting management services.
- Application, data, and security management services.
- Budget controls and connected capabilities.
- Integrations, extensions, and modifications.
- Manufacturing services.
- Sales and purchase management.
- Tax liability processes.
Unlike the previous two software, this one is a cloud-based application that can be used online. The data that you enter is encrypted and securely stored in the cloud, which can be accessed from anywhere, even on the go. It offers services in:
- Banking integration.
- Database management including backup and restoration.
- HR services.
- Payroll management.
- Inventory management.
- Ease of multi-user login.
- Integration with online services of your bank.
Marg Compusoft Pvt. Ltd. is the parent organization that owns this software. Its USP is the Marg billing software that directly delivers transactions into the GST portal and automatically files returns. Needless to say that it is a GST integrated and compliant accounting software. Among its user advantages, here are top ones to consider:
- Easy and fast billing processes.
- Automatic reconciliation with the bank of your choice.
- Barcode management.
- Efficient and best-in-class reporting.
- Auto calculation of GST or VAT owed by the company.
Yet another cloud-based application, Zoho Books offers a double-entry bookkeeping system that enables automation and less consumption of time. Other features include:
- Mobile app facility.
- Customer portal.
- Credit card processing.
Many people consider this the best free accounting software in India. With its 100% free and secure accounting tools, Wave is one of the best web-based accounting software solutions available in the market today. Its main features include:
- Automated billing.
- Invoice generation.
- Regular tracking of both paid and unpaid transactions.
This is an award-winning, web-based accounting software, specially made for small and medium businesses. The interface for end-users is one of the best there is and it offers the feature of a double-entry bookkeeping system as well.
The USP of this software that all business operations are clubbed together in one software, thus allowing the business owner to track and manage everything from one place.
Merits and Demerits of Accounting Software
Just like everything in life, there are pros and cons to using accounting software. Technology, specifically, is known to be fallible. Thus it is important for you to consider important factors like pricing, data plan, security, and customer service before opting for accounting software.
No software or accounting method is fool-proof. Therefore, accountants, finance professionals, and small business owners need to have an open mind and try as many different accounting methods and software before deciding on the one that best suits them.
Advantages of Accounting Software
- It is time-saving. Compared to manual bookkeeping, the use of accounting software is much more efficient and can save a lot of time that can otherwise go into design strategy for businesses. Accounting software allows simultaneous execution of front end business documentation and back end transaction recordings.
- It facilitates easy recording, reporting, and interpretation of financial statements. Accounting software can help managers to easily refer to business transaction data that is stored electronically, instead of manually going through heaps of documents. This allows for immediate course corrections and risk mitigation plans for the foreseeable future.
- Accounting software facilitates easy management of the cash flow account and expenses. It provides adequate support to log bills and expenses, that can be easily referred to with the click of a finger.
- It is an easy solution for those who are not well-versed with accounting systems. It provides the necessary training to the user for familiarizing themselves with the interface, thereby reducing the scope of errors.
- It offers hybrid solutions. With the advancement of technology, accounting software is being made available at lower prices. This is a boon for small businesses that also look for some of the features of mid-market and high-end accounting software.
Disadvantages of Accounting Software
- The use of technology can lead to loss of data or service. A business that relies solely on accounting software for managing its finances, may face work disruption that can last for a day or even a month. This is due to inaccessibility to online data that is stored only in the mobile or web-based software app.
- The data stored in accounting software and managed electronically can also be problematic and inaccurate. After all, the data has to be entered manually. Thus, even the technology is dependent on a human intervention which has to be perfect for the data stored in the app to be correct and valid. This problem can aggravate if the business of the finance department has a tendency to only review final reports and data analysis.
- Customization can cause downtime if not done properly. Most businesses use generic accounting software, which they then modify as per their specific business needs. This process requires a meticulous approach and immense attention to detail. You cannot afford to miss a single step while configuring the system based on your firm's requirements.
- Accounting software can be costly to maintain, customize, and purchase of hardware. Add to this, the cost of training your employees to use the software properly. While the initial set up might be free or entail a very small expense, the expenses incurred in the long-run tend to multiply.
- The question of online security always remains a concern for business executives while deciding to shift to online accounting software. Although all the data stored on the cloud is encrypted, there is no dearth of hackers who can manipulate these data for illegal use.
It is thus imperative to do thorough research before jumping into an investment for accounting software. While it has its pros, not considering the cons might prove to be costly for your company in the long-run. Having said that, there is no denying that accounting software takes you way beyond spreadsheets and piles of paperwork. While the latter is very helpful in maintaining records, they can prove to be cumbersome at times.
Accounting software minimizes the time taken to record, report, and analyze financial data, which in today's fast-paced business environment is a top priority. It does not matter whether you are a corporation or a start-up. When it comes to efficient financial reporting and documentation, rest assured with accounting software.