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Zoho Books

A Slackers Guide to Bookkeeping-The Lewbowski Way

by Sanjeev Archak Sanjeev Archak No Comments

Doing your books isn’t exactly a fun activity. You could be a slacker or a hardworking person, but there are definitely other entertaining things for you to do. So, we have come up with a slackers guide to bookkeeping.

Use technology to make it easier

Keeping track of receipts/bills is hard. You are likely to lose most of them. So use some simple tools which will make your life easy. Try using:

Cam Scanner:  A great way to digitize your receipts. Take a snap and store them forever. Also, don’t forget to send it to your accountant.

Zoho Expense: Lets you create expenses, store receipts. This also has an optical scanner for scanning receipts that you upload. You can skip entering details manually.  

De-clutter your business

Technology to the rescue again! Choose a software like Zoho Books to do the heavy lifting. Use automated workflows to send invoice reminders, get notified when a customer pays. Connect your bank accounts to auto-match receipts & payments with invoices. These will save a lot of time.

Separate your Business & Personal Expenses

Ancient wisdom says don’t mix business with pleasure. Therefore separate your business & personal expenses. For starters open a business bank account. Have all your business expenses & revenues in this account. You can always draw money from this account as salary or reimbursement. 

Make it a Habit

In between all the fun you are having, take some time out to do bookkeeping. Bring all your smartness to fore at least once a week. Check for vital signs like cash flow, unpaid invoices & vendor bills, payroll and taxes. 

“This is a very complicated case, Maude. You know, a lotta ins, a lotta outs, lotta what-have-yous.” — The Dude

Be the Dude and let Integra Books to do the heavy lifting. We will pair you with an expert and a software. 

(PS: If you are a hard-working, diligent person, we are sorry we wasted your time. Here is something for you too)

 

Cloud Accounting Software

by Sanjeev Archak Sanjeev Archak No Comments

Internet has changed the word in indescribable ways. With the advent of cloud computing all products and services are now hosted on the cloud. Cloud computing enables access to data from any device or any place.Rapid penetration of internet has made access to data easy and quick. Most businesses are now on the cloud so why should accounting be an exception? A recent report estimated the accounting software market to reach US$ 20,408 Mn by  2026.There has been steady shift to cloud based accounting software from desk top software.As businesses become more mobile, they will move away from on premise accounting software.

 

In this post we shall read  how cloud accounting can transform your business. Here are some reasons to move your accounting to cloud:

1.Automation

Desktop accounting is a manual process. This requires sales invoices,expense entries, bank and cash entries to be entered manually. In a cloud based software one can:

  1. Set recurring invoices for sales
  2. Set recurring bills for expenses
  3. Integrate expense management software with books of accounts
  4. Sync bank accounts,credit cards,payment gateways for automated matching
  5. Create workflows to streamline processes

These features are absent in a desktop environment.

2. All teams on one Software

Cloud based application empowers services organizations to manage

  1. People
  2. Projects
  3. Financials
  4. Customer
  5. Vendors

in one integrated application. Desktop bases software is designed to do only accounting. This means that the finance function becomes a silo, distinct from the rest of the business.

3.Accessibility

All you need is internet connection. Internet penetration is increasing in India and data costs are cheapest in the world. Your accounting software can be accessed from a PC,tablet,mobile phone or any other device. This allows teams to work remotely.

Desktop based software is installed on a machine and remote access is not possible unless one brings the machine along. This rules out remote working.

4. Customization

Cloud based accounting software are very flexible. An user can customize:

  1. Sales invoices based on customer requests
  2. Emails to be sent to vendors/customers
  3. Financial reports
  4. Integrate with third party apps

Desktop bases systems rarely integrate with other applications.Hence customization options are limited.

5.Data Backup

All data rests on the cloud. Data is backed up off site and secured by high tech systems.  If your computer crashes,is broken, you can access your data from another device.

Desktop software requires manual back ups. If your dedicated accounting computer breaks down then data,if not backed up, is lost. This can cause huge damage and downtime.

6.Security

A recurring question when it comes to cloud is “How secure is my data”?. Relax. All the cloud based accounting software’s use state-of-the-art encryption to secure data. You do not need an IT department to host and administer these applications. User access can be regulated and can be changed on demand.

Desktop software requires that local machines be protected from viruses and unauthorized access. Login credentials have to be kept confidential.

7.Updates

In cloud based software you are always using the most current version.The software is automatically updated for changes in tax laws or any other upgrades. Installing updates in a desk top software is forced when there is a migration. Bug fixes or other upgrades require a new version to be purchased.

So there you have it, seven reasons why you should move your accounting to the cloud.  Integra Books uses Zoho Books, cloud based accounting software to provide accounting services. Integra Books can help you migrate from into Zoho Books. Get in touch with us today to put your accounting on the cloud and empower your business.

Key fundamentals to Effective Accounting

by Sanjeev Archak Sanjeev Archak No Comments

Accounting can be tedious work,however it helps you get more organized,brings more clarity and allows you to work more efficiently. In a day and age where business is cut throat competition,financial insights could be the game changer for your business. In many instances it could even be your competitive advantage.Without accounting, you’re driving blind like a car without knowing how much fuel is left in the tank. Proper book keeping gives you sight of what’s happening both internally and externally.

In this guide, we’ll break down the basics of accounting, we’ll show you why it is critical and the seven key steps to setting up and optimizing your own accounting process to help you get on the fast lane past your competition.

What is accounting?

In simple words, accounting is the process of tracking of all your company’s financial transactions, so you can see clearly where your business is spending money,where your revenue is coming from and which tax deductions you’ll be able to claim.

Why does accounting matter?

Accounting provides answers to critical questions viz

1.Is my business profitable?

Profit matters.Profit is the most critical measure of a business.It keeps your business ticking.Well kept books of accounts will always provide the correct answer to this critical question.

2.Are my operations cost effective?

You may be able to see your bottom line by glancing at your bank balance, but ups and downs in your account are also telling a story.Are sales up? Are my operations costs too high? Who knows? Paying attention to your financial statements is a great way to get to know the story of your business

3.Are my operations cost effective?

Taxes. There is no escaping from taxes. Well kept books of accounts will help you legitimately claim deductions. The more information & supporting documents your CA has, the better tax return will be.

4.Will I get loans?

If you need financing of any kind, having well-kept books gives lenders or investors a clear idea of your business’s current financial state and allows them to make financial projections about your company’s ability to pay off loan in the future.

Where to Start?

You probably are thinking that these tasks are easy and doable.However, from our experience working with multiple business, unpreparedness is precisely the problem that gets them drowned when everything seems to be fine and running smoothly. It then suddenly hits you like a Tsunami out of
nowhere.Here’s a few steps you can follow to help ensure you have the basics sealed tight and functioning for your advantage.

Step 1: Separate your business and personal expenses

It is critical to separate business finances effectively. In fact, we would suggest to permanently separate them from your personal finances.

If you are running a limited company (Pvt Ltd or LLP or Public Ltd) there must be distance between your personal and business finance.A corporate company is distinct legal entity different from the promoters.The law requires that finances of company be tracked separately. 

Plus, you’ll want to pull your hair out when it’s time to reconcile bank statements, you have to hunt down the receipt for lunch to remember if it was a personal expense or a client meeting.

Step 2: Choose a bookkeeping system

There are two main accounting methods: single entry and double entry.It is a matter of picking the system that’s right for your business and applying it consistently.

Single-entry is a simple system that might work for you if your accounting is straightforward. Entries are recorded one time, as either an input or output If you are doing your own accounting, this is the approach you are likely to take.

Double entry is much more complex, but also more detailed and effective. At first, all transactions are entered into a journal and then each of them entered into the ledger twice, as a debit and credit. If you are a corporate entity in India, you will be required to maintain your books under the double entry system mandatorily.

Step 3:Choose an accounting method: cash or accrual

If you are using cash accounting, you only record transactions when money has exchanged hands. So if you billed a customer you will not enter it till your customer has paid you.

Under the accrual method, you will record the income when you bill the customer,rather than waiting for them to pay you.

If you are a corporate entity in India, you will be required to maintain your books under the accrual system of accounting.

Step 4: Organise and store your documents

At tax assessment time, the burden on you to show validity of all of your expenses, so keeping supporting documents like receipts and records is crucial. Income tax law in India requires you to maintain the documents for a minimum of 8 years. It is smart to use cloud based software like Zoho Books or other such software to store receipts so you don’t have to deal with smudged receipts.

Step 5:Make it a habit

It’s easy to fall behind on your accounting when you’ve got other things happening. To stay on track, try setting a finance date with yourself once a month to get it done. If you do happen to fall behind, Integra Books can help you get caught up in no time.

There you have it, basic steps to make the foundation of your accounting processes strong and effective for your business’s advantage. Accounting is complex but with a strong foundation, you’ll be equipped to race past competition and ensure you are always on track to profitability.

In this new age of technology why should accounting be cumbersome and boring? Let the experts at Integrabooks help you.