Month: February 2021

Accounting has always been one of the essential parts of running a business, be it large or small. To help manage this, accounting software was introduced. Most online accounting software acts as a ledger that consolidates the records and process of all accounting transactions under one roof. As good as that sounds, does it aid in business growth?

Here are 10 ways accounting software helps do just that.

Performance analysis

Without having your business first analyzed, creating a good management policy is impossible. Depending on the financial records that have been accumulated, a person can check to see where money was spent and how advantageous were certain investments in the long run.

Saves time

Accounting software, especially cloud-based accounting software, helps in reducing any extra costs that may be incurred and saves time which can be used for something else. This is because accounting software not only helps businesses track their financial data but also helps in managing their credit notes and even invoices.

Law compliances

Any account that has been kept in a systematic order is only beneficial to a business. In some cases, it could help them overcome any unexpected changes made in taxations or legal compliances. Though as an accountant may be aware, owning good accounting software would come with updated taxation settings.

Financial updates

It isn’t easy to remember details that are related to the financial world. This is mainly because there is too much to remember, and more only gets added as the days go by. With the help of online accounting software, these details get accumulated and added on for handy reference.

Creating budgets for managing operations

With the help of cloud-based accounting software, it is easy for any business to create a good budgeting system without any issues. A good business always ensures that a balanced budget is made in case of any emergency expenses that arise or even for future revenues.

Reduced overall costs

Accounting software and overall cost reduction are always linked. This is because the software is basically doing the job of three or four people. With this, any extra costs that would initially go towards administration and even payroll are significantly reduced.

Manages cash flow

Problems that are related to cash flow are often seen as one of the biggest issues that businesses face. The use of online accounting software helps the business come up with new ways to combat the issue of cash flow.

Increase efficiency

Due to its ability to manage any and all accounts transactions, accounting software helps increase the efficiency of a business as all the necessary information is in one place. As accounting calculations are often difficult, this software ensures they are made with no hassle.

Security and protection

The financial data of any company is considered to be it’s the holy grail. That means it cannot fall into the wrong hands. Cloud-based accounting software acts as a safeguard that protects this data. This way, the data is safe, and an extra copy is made available whenever required.

Maintaining customer relationships

In the financial world, the relationship any firm has with its clients is extremely important. With accounting software, any delays and mishaps that could have happened can be avoided. This increases business reputation and credibility.

In many cases, the financial world is something that keeps changing. More often than not, it is difficult to keep up with them. However, online accounting software helps reduce the burden in certain situations, giving a business enough breathing room to focus on other areas that could potentially lead to immense growth.

8 Effective Inventory Management Techniques for 2021

Inventory is a crucial aspect of a business that involves purchasing, producing, and selling goods. It is essential to regulate and keep a check on the inventory for a profitable business experience. Both small-scale and large-scale companies can profit from keeping a check on the inventory. Inventory control software helps in growing businesses by focusing on stored items for production.

What is inventory management?

Inventory management is a technique by which businesses can keep track of the inwards and outwards stock-flow in their warehouses. It lets the companies plan their sales and purchase according to the inventory stock quantities. It is a systematized approach to manage raw materials, tools, finished goods, and unfinished goods in the inventory.

How does inventory management work?

Inventory management keeps a check on the stocks when it moves from the suppliers to the company warehouses and finally to the customers. It ensures efficient use of the items and helps plan future sales. It also helps in controlling the demand and supply chain of the business. A good inventory control software helps keep a record of the inventory systematically. It tracks the availability of the stock for its optimal usage.

Why is inventory management important?

Manual stock accounting can be stressful and can create confusion. Inventory management is less time-consuming and helps maintain a smooth flow of work without any misinterpretations. It improves consistency and increases customer satisfaction. It automates the workflow and provides detailed reports of the stocks such that the company is not out of stock or overstocked. Software companies like Ankpal offer the
best inventory management software that helps your company grow with reliable services.

Inventory is one of the most valuable and largest assets for businesses. Inventory management software provides financial aid to the companies as it keeps a check on the cost of buying, producing, maintaining, and selling the goods during the accounting period. It also manages to identify and track the expired products, and the items returned to the inventory. It enhances value management and reduces the chances of misinterpreting item quantity.

Common inventory management techniques for 2021

It is vital to track the stocks for the smooth functioning of your business. Many popular innovative techniques of inventory management can improve the flow of capital and regulate company sales. Some of the methods are listed below.

• Just-in-time (JIT) inventory

JIT inventory, as the name suggests, means keeping only that much stock in the storage as is needed for production.

• ABC inventory analysis

This technique divides the inventory items into value-based categories A, B, and C that makes it easier to track them.

• Dropshipping

In this technique, the companies outsource the products from a third party. The requirement of the warehouse gets reduced as they don’t take it from their inventory.

• Lean manufacturing

This technique aims to reduce the waste during manufacturing and increase the cost accounting to the customer needs.

• Batch tracking

Batch tracking is a technique used to keep a check on the set of goods produced together. It gives a prompt about the expiration of a particular batch of products, allowing businesses to avoid losses and plan sales.

• Safety stock inventory

In this technique, the extra stock gets purchased as a safety measure to cope with the misinterpreted forecast or change in demand.

• Economic order quantity (EOQ)

EOQ technique uses a formula to ensure the purchase of the right number of stocks required for the productions.

• Minimum order quantity (MOQ)

MOQ is the calculated minimum quantity of inventory stock required to purchase at one time for producing an item.

Five key stages of inventory management

• Purchasing: Raw materials get purchased for production.
• Production: Manufacturing of final products.
• Holding stock: Storing raw materials and finished goods.
• Sales: Selling the products in exchange for payments.
• Reporting: Recording the profits and quantity sold.

Efficient inventory management techniques adopted by businesses help them track their unfinished and finished items. The best inventory management software helps to control the expenses, which can increase the profit margin and leave businesses with enough capital to expand their business. Furthermore, with an efficient inventory system, enterprises can also meet client deadlines and make their customers happy with their service.

Invoicing is the primary step of receiving payment–an invoice is made for every service or product sold and supplied. As most of the transactions are now happening digitally, transactions are also not being recorded in books. So the companies have adapted to the financial technologies (card payment, e-transfer, and online payments) to contain error invoicing and overdue accounts payable. SMEs (Small and Medium-Sized Enterprises) benefit a lot from the best billing software, especially in terms of quick gains.

What is billing software?

A simple billing software tool is used to automate invoice generation for services and goods rendered. The integrated programs create a list of services and products and their costs following the tax calculations and send them to the respective beneficiary. With this smart technology, business owners can create invoices using customizable ready-to-use templates.

What does billing/invoice software do?

The best billing software will save you the printing and postage costs, streamlines business workflow, and reduces deadlines through unified invoice processing. Billing software enables you to access your financial data from anywhere, anytime. They remove the need for additional setup for the process of billing and payments. Such software comes with multi-currency capability allowing you to accept payments in foreign currencies. You can also create reports and export data through PDF files, which are shared directly through emails.

Benefits of using billing software

Invoicing operations are the key to enabling businesses to get paid on time. Ideal billing software will handle your invoices operations and benefit your business in the following ways:

• Saves time and money

Creating and sending the invoices electronically saves you time. It also eliminates the need for manual work, saving money.

• Minimizes disputes and human errors

Billing software removes the need for manual work, which, in turn, eliminates human errors and minimizes disputes.

• Automates accounting and payment reminders

Automating financial and accounting processes will help you in increasing the efficiency of the overall business workflow.

• Establishes brand identity

The customizable ready-to-use templates in the billing software enable you to modify and insert your business icons or brand logos on your invoices. Branding becomes easier this way.

• Quick invoice creation

With billing software, you can create, customize, and personalize invoices quicker. It allows your customers to pay you immediately as they receive their invoices.

• Environment-friendly

With electronic operations, the need for maintaining books and the use of paper for creating invoices is removed, making the entire process environment-friendly.

• 24/7 service

You can access the features of online billing software anytime. It allows you to perform necessary operations whenever required.

• Professionalism and modernity

The modern billing software allows you to create and send the invoices in time without any errors, helping you stay professional.

• Provides security

With the billing software, all the operations are performed electronically, and your data is stored online. It removes the risk of losing paper invoices and valuable information.

• Strengthens customer relations

Billing software enables you to create invoices instantly and process the data accurately and save it online, which makes hassle-free customer service possible. It builds the trust of your customers and strengthens their relationship with your business.

• Ensure accurate information

With the billing software, you don’t have to depend on aging reports and spreadsheets which need manual updates. It enables you to perform your business operations only with accurate data.

Thus, using billing software is the best way to handle all your business financial operations. It eliminates the need for a dedicated finance team and enables you to perform all the required invoice and billing operations anytime, anywhere, and in return, saves you time and money. Start increasing your business growth and profits with the best billing software!