Author: Pradeep Khanna

Vianet achieves 40% improvement in business processes & up to 50% cost savings using EnKash Olympus

Post author By Pradeep Khanna
Post date September 14, 2023

“We encountered significant challenges in our Accounts Receivables processes, as everything was handled manually, from sending reminders to managing outstanding invoices. However, with the implementation of EnKash’s Olympus, we experienced an outstanding transformation as our processes became fully automated. The results were remarkable: a substantial reduction in man-hours invested, achieving 100% accuracy in accounting and auditing tasks, and witnessing an impressive 40% improvement in overall process efficiency. Moreover, this automation led to significant cost savings.”

Deep Sehgal, Founder & CEO, Vianet

Customers and Cash are the two ‘Cs’ of business that keep it going. A deficit of either two will not allow any business to prosper in the long term. While customers were not a problem for Vianet, a Pune-based electronics distributor, cash from customers became a problem.

Let us dig deeper to understand the challenges faced by Vianet and how EnKash Olympus, a full-stack platform designed for startups & small to midsize businesses, helped them resolve this once and for all.

Vianet’s Process Before Adopting EnKash Olympus

The account receivables team manually handled collections from their customers. The team had to repeatedly communicate with their customers for collections, creating friction in their rapport. This constant and tedious process was an add-on task to the daily work. They had to send out multiple reminders verbally and on calls to the customers, but payments were still not cleared on time.

As a result, this led to a huge surge in outstanding payments for them, which by any means is not good for businesses. These outstanding invoices created a gap in the business as they needed more cash flow to clear payments for their vendors, take up new orders, and invest it further for new products.

Challenges faced by Vianet:

Managing account receivables processes manually: Investing their time, energy, and resources, they were doing tasks with human intervention, leaving scope for manual error.
Sending multiple reminders to customers: This can hamper their customer relationship in the long run, as customers don’t want to be bugged.
A huge surge in outstanding payments: They were not able to procure more products because of their outstanding invoices.
Collection delay: Payment collection for them became a pain and a common practice, making it a norm.

Vianet adopted EnKash Olympus

A comprehensive product for managing business payables, receivables, reconciliation, audit, and analytics, Olympus was adopted by Vianet to streamline its business finance processes.

After implementing EnKash Olympus, Vianet significantly enhanced its communication with customers.

Solutions by EnKash Olympus:

Zero human intervention: The platform automated delivery of timely payment reminders to debtors, eliminating the need for manual interventions.
Convenient payment & streamlined approach: These payment reminders included AR collection links, enabling customers to settle their dues conveniently through payment modes of their choice, giving them greater flexibility and convenience.
Working capital management: EnKash Olympus helped improve the payment process and helped Vianet manage its working capital crunch effectively.
Minimal delays: Vianet’s accounts receivable cycle was enhanced after adopting Olympus, as it accelerated the receipt of outstanding payments with fewer delays.
Enhanced efficiency: This automation led to a more efficient accounts receivable management system for Vianet.

Features of EnKash Olympus:

Maximum efficiency with 100% accuracy in accounting and auditing processes
More than 40% improvement in the business processes
Cost savings of up to 50%
No additional effort is required to dispatch invoices
Manual and automatic reminders can be sent based on the importance of customers
The platform allows customers to make payments via multiple payment modes based on their preferences
Automation of processes has resulted in a reduction in man-hours spent on receipt entry and bank reconciliation
DSO is available to identify regular payment defaulters to ensure timely collection and better working capital management

“One of the key benefits of Olympus was gaining real-time visibility of our Daily Sales Outstanding (DSOs), which became an interactive feature. This real-time insight into our receivables greatly improved our decision-making capabilities. We have unlocked a new efficiency level in our receivables processes, streamlining operations and ensuring smoother financial management.”

Deep Sehgal, Founder & CEO, Vianet

EnKash – Among CNBC’s Top 200 Fintech companies

Post author By Pradeep Khanna
Post date September 8, 2023

A comprehensive list of the world’s top 200 Fintech companies has been released by CNBC in partnership with Statista, an independent market research firm. This list includes the names of all those fintech companies that are tech-enabled and are contributing to innovation in finance-related products and services.

The fact that fintech business performance in different fields can’t be compared side-by-side made them divide these companies into nine different categories across neo-banking, digital payments, digital assets, digital financial planning, digital wealth management, alternate financing, alternate lending, digital banking solutions, and digital business solutions. These companies under these categories were judged based on the total number of users, volumes, revenues, and total funding raised.

The research firm analyzed more than 1500 fintech companies over 10,000 data points, including company websites and news articles. They even prepared a scoring model based on key performance indicators.

The scoring model was divided into two parts – 40% for general KPIs and 60% for market segment-specific. Companies with the highest scores in the market segment made their name on the list.

EnKash has been listed among the world’s top 200 fintech companies under the Digital Business Solutions category.

The companies listed under the Digital Business Solutions category are providing financial solutions for businesses ranging from accounting to finance to human resources and fraud.

Over the years, we have seen the finance sector move towards digital. According to industry experts, this inclination is bound to increase in the future, and that’s why it has become inevitable to look for solutions for all possible threats online. The need to have platforms that can help companies deal with their own cost is crucial.

EnKash, as a fintech company is providing a platform to all small and medium-sized enterprises to manage their business finances better. It is a one-stop solution for accounts payable, receivable, reconciliation, expense management, and rewards and recognition. The platform intends to take away all the unnecessary burden of managing business finances from these companies and manage it on their behalf, saving them time and money and enabling them to develop innovative solutions in their respective industries.

Industry News Trending Topics

RBI Permits Pre-Sanctioned Credit Lines through UPI

Post author By Pradeep Khanna
Post date September 5, 2023

The Reserve Bank of India (RBI) has allowed pre-sanctioned credit lines to be used for UPI transactions.

This announcement is a result of the proposal made in April this year that focused on the scope of UPI to be expanded by transfer from credit lines at banks.

Earlier, only the amount deposited in the account could be used for UPI transactions. After this announcement, credit lines can be used for transactions involving UPI.

At present, one can link savings accounts, overdraft accounts, prepaid wallets, and credit cards with UPI. But from now onwards, credit line as a funding account can also be used for UPI transactions.

In a circular on ‘Operation of Pre-Sanctioned Credit Lines at Banks through UPI,’ the RBI said that the inclusion of credit lines as a funding account will expand the penetration of UPI.

The RBI also said, “Under this facility, payments through a pre-sanctioned credit line issued by a Scheduled Commercial Bank to individuals, with the prior consent of the individual customer, are enabled for transactions using the UPI System”

The release further added, “Banks may, as per their board approved policy, stipulate terms and conditions of use of such credit lines. The terms may include, among other items, credit limit, period of credit, rate of interest, etc.,”

This move will not just help banks but also business owners and customers who are in need of instant payments.

Enabling UPI transactions with pre-sanctioned credit cards will help reduce the cost of such offerings, allowing unique product development for the Indian market.

With a wide range of features, UPI is currently handling 75% of the retail digital payments volume in India. Its system has been designed to develop features that are aligned with the country’s digitization goals.

Currently, UPI transactions are possible between deposit accounts at banks, occasionally intermediated by pre-paid instruments including wallets.

In August alone, the UPI transactions crossed the 10 billion mark, followed by 9.96 billion in July and 9.33 billion in June.

Growth Guide Payables

Types of GST in India – CGST, SGST, UGST & IGST

Post author By Pradeep Khanna
Post date August 29, 2023

The comprehensive indirect tax GST was introduced in 2017 to replace the various indirect taxes in place, like excise duty, value-added tax (VAT), and other similar charges. A destination-based tax, GST, is charged on goods and services supplied. GST aims to simplify and make it a single tax system, which eases the way businesses handle this.

What are the different types of GST in India?

There are four main types of GST, which include Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), Union Territory Goods and Services Tax (UGST), and Integrated Goods and Service Tax (IGST).

Central Goods and Service Tax (CGST)

The central government charges tax on the transaction involving goods and services intrastate. This tax is levied alongside the SGST or UGST, as the case may be, where the revenues collected as taxes are split into two halves and shared equally between the state government and central government.

State Goods and Service Tax (SGST)

This refers to the tax a state government levies on the transactions involving goods and services within the state. This tax includes elements, including purchase tax, luxury tax, entertainment tax, and more.

Union Territory Goods and Service Tax (UGST)

This is similar to the SGST but applies to union territories instead of states. It is the same as the state-related GST and supersedes all other taxes like luxury, entertainment, etc.

Integrated Goods and Service Tax (IGST)

When transactions related to goods and services occur between states, then IGST applies to these transactions. This tax also applies to the import and export of goods. The revenue that this tax generates is shared between central and state governments.

The payment of GST on time is of great importance to any business. Failure to do so can result in penalties and statutory compliance issues. Often companies face issues retrieving the amount to be paid from the portal and then going through the process of making the challan, checking it, and getting the approvals internally to make the payment.

That is where a smart spend management platform like the one we offer to our customers at EnKash helps you. You can set maker, checker, and approver levels within the tax payments module so that once you retrieve the amount to pay, you can get the requisite approvals in place.

Moreover, you also have various payment options to complete the payment via the portal. Once the payment is completed, your finance system is update.

FAQ

What is the full form of CGST?

The full form of CGST is the central goods and services tax, which has been brought to supersede all the indirect taxes the central government had in place. These taxes were applicable to goods and services that were moved intrastate.

What is the full form of IGST?

IGST stands for integrated goods and services tax, which is one of the 3 components that form the goods and services tax (GST). It is applicable when goods or services move interstate.

What is the full form of SGST?

This translates to state goods and services tax, which is part of the state goods and services tax 2016. The tax applies to goods and services traded within the state and is deposited in the state government’s account.

Who collects the CGST amount?

The central government collects the CGST amount. GST applicable on transactions will be divided into the state GST and central GST.

Who collects the IGST amount?

Integrated goods and services tax will go to the central government.

Who collects the SGST amount?

Once again, the goods and services tax will be divided between the relevant state and central governments.

Who collects the UTGST amount?

Since Union territory goods and services tax is the same a SGST but applicable to union territories, the division will follow the same pattern as the SGST.

What is the use of a GST calculator?

As the name suggests, the GST calculator will help you determine the final price of a product or service before and after taxes and how the division of taxes to state and central governments will occur.

What is GSTIN?

It is the unique identification number that is assigned to each taxpayer. It consists of 15 digits and is assigned to business entities or individuals at the time of registration completion under the regime.

Boosting E-Rupee Payments: RBI Harnesses UPI Infra

Post author By Pradeep Khanna
Post date August 29, 2023

The Reserve Bank of India (RBI) has set an ambitious goal to increase e-rupee payments by leveraging the existing United Payment Interface (UPI) infrastructure. With a target of raising daily Central Bank Digital Currency (CBDC) transactions from 10,000 to 10 lakh (one million) by the end of the year, the RBI aims to combine the advantages of cash anonymity and digital transaction convenience, driving the widespread adoption of e-rupee payments across India.

Understanding the E-Rupee’s Progress and Challenges

Since its pilot launch on 1 December 2022, the e-rupee has gained significant traction among retail users. As of June, the e-rupee app has been downloaded by approximately 13 lakh users, while around 3 lakh merchants have started accepting CBDC payments. However, the limited number of merchants accepting CBDC has hindered the growth of e-rupee transactions.

Promoting Interoperability for E-Rupee Payments

To overcome the challenge of limited merchant acceptance, the RBI has instructed banks to enable the interoperability of UPI QR codes for e-rupee payments. This means that any merchant accepting UPI payments can also accept CBDC payments. By promoting interoperability, the RBI aims to eliminate concerns about merchant onboarding and expand the reach of e-rupee payments to a wider user base.

Partial Interoperability Achieved

As per available data, 13 banks authorized to handle CBDC have achieved partial interoperability. This accomplishment allows QR codes to be scanned and connected to CBDC wallets whenever they are accessible. With this development, the infrastructure supporting e-rupee payments is becoming more robust and user-friendly.

Ambitious but Feasible Target

RBI Deputy governor believes that the target of 10 lacks CBDC payments is an achievable goal, considering the current volume of UPI transactions, which stands at 31 crores. While the target is undoubtedly ambitious, it serves as an important benchmark to evaluate the impact and implications of CBDC adoption in India.

CBDC and Existing Payment Systems

The Deputy governor emphasizes that CBDC does not compete with existing systems like UPI. Instead, the survival of any payment system depends on the value proposition it offers to users. CBDCs possess unique advantages, such as enhanced security, reduced transaction costs, and quicker settlement times. By leveraging these benefits, CBDCs can complement existing payment systems like UPI, providing users with additional choices and improved financial services.

Use Cases for Digital Currency

Digital currencies serve two primary use cases:

Firstly, they can remove friction in cross-border transactions, addressing the inefficiencies and costs associated with traditional methods. Institutions like the Bank for International Settlements (BIS) are actively exploring CBDCs to streamline cross-border payments and enhance international financial interactions.
Secondly, digital currencies can be programmed for specific purposes. This programmability enables the implementation of smart contracts, conditional payments, and other automated features. By utilizing digital currencies, various sectors such as supply chain management, trade finance, and social welfare programs can benefit from increased efficiency, transparency, and accountability.

Countering the Threat of Stablecoins

The need for a domestic digital currency to counter the potential threat posed by stablecoins. Stablecoins are cryptocurrencies that are pegged to the value of traditional fiat currencies like the US dollar or euro. As stablecoins gain popularity, they can pose risks to monetary stability and financial sovereignty. By introducing a CBDC, the RBI aims to maintain control over the monetary system and ensure the stability of the Indian economy.

Conclusion

The RBI’s proactive initiative to increase e-rupee payments with the help of UPI infrastructure demonstrates its commitment to fostering digital payment adoption in India. By promoting interoperability and leveraging the existing UPI ecosystem, the RBI aims to enhance the accessibility and convenience of CBDC transactions. As digital currencies gain momentum globally, India’s proactive approach positions it at the forefront of the global digital payments landscape. The successful implementation of e-rupee payments can pave the way for a more inclusive, efficient, and secure financial ecosystem in the country.

FAQs

What is the goal of the Reserve Bank of India (RBI) regarding e-rupee payments?

The RBI aims to increase daily Central Bank Digital Currency (CBDC) transactions from 10,000 to 10 lakh (one million) by leveraging the existing United Payment Interface (UPI) infrastructure.

How has the e-rupee progressed since its introduction?

The e-rupee has gained traction among retail users, with approximately 13 lakh users downloading the app as of June. Around 3 lakh merchants have also started accepting CBDC payments.

What is the RBI doing to address the limited merchant acceptance of CBDC?

The RBI has instructed banks to make UPI QR codes interoperable for e-rupee payments, allowing any merchant accepting UPI payments to also accept CBDC payments.

How many banks have achieved partial interoperability for CBDC transactions?

Based on available data, 13 banks authorized to handle CBDC have successfully achieved partial interoperability, allowing QR codes to be scanned and connected to CBDC wallets.

How does CBDC relate to existing payment systems like UPI?

CBDC does not compete with existing systems like UPI. Instead, it complements them by providing additional choices and improved financial services.

What are the primary use cases for digital currencies?

Digital currencies have two primary use cases: removing friction in cross-border transactions and programming for specific purposes, such as implementing smart contracts and conditional payments.

How does the RBI plan to counter the threat of stablecoins?

The RBI aims to maintain control over the monetary system and ensure the stability of the Indian economy by introducing a domestic Central Bank Digital Currency (CBDC).

What are the implications of the RBI’s initiative for e-rupee payments?

The RBI’s proactive approach positions India at the forefront of the global digital payments landscape, fostering a more inclusive, efficient, and secure financial ecosystem in the country.

Growth Guide

Best Accounting Software in India for Businesses in 2023

Post author By Pradeep Khanna
Post date August 25, 2023

Managing finances is a critical aspect of any business, and in today’s digital age, using the right accounting software can make all the difference. From small startups to large enterprises, accounting software has become an indispensable tool to automate financial processes, improve accuracy, and boost efficiency. In this blog, we will explore the top 10 accounting software options available in India, catering to businesses of all sizes and industries.

What is accounting software?

Before diving into the list, let’s briefly understand what accounting software is. Accounting software is a tool designed to streamline financial tasks, such as bookkeeping, invoicing, payroll processing, reporting, and more. It allows businesses to record, track, and manage their financial transactions in a systematic and organized manner, reducing the likelihood of errors and providing valuable insights into the company’s financial health.

What are the top 10 accounting software in India?

Accounting Software	Best Suited For	Starting Price	Free Trial Period	Multi-currency Support	Structure	Mobile Application
Tally	Small to large businesses	Varies based on the plan. Starts at INR 4,248/Year (Excluding GST)	Free Trial for 7 days	Limited support	On-premises software	Available, with integration for smoother processes
Busy	Small to medium-sized businesses	Varies based on the plan. Starts at INR 3600 per year (Excluding GST)	30-days FREE Trial	Yes	On-premises software	Available for remote access
Zoho Books	Small businesses and startups	Varies based on the plan. Starts at INR 8988 per year (Excluding GST)	Free Plan available for businesses with revenue <25 Lakhs per annum	Yes	Cloud-based software	Excellent mobile app
Vyapar	Small businesses and startups	Varies based on the plan. Starts at INR 3399 per year (Excluding GST)	15-days FREE Trial	No	On-premises software	User-friendly mobile app
Giddh	Small to medium-sized businesses	Varies based on the plan. Starts at ₹800/year (Only for CA, CS & NGO)	15-days FREE Trial	Yes	Cloud-based software	Cloud-based accessibility
Marg	Specific industries, offline support	Varies based on the plan, Starts at ₹ 8991 per year (18% GST Extra)	No Free Trial Available	Yes	On-premises software	Available
Intuit QuickBooks	Small businesses	₹14,877/year	30-days	Yes	Cloud-based software	Yes
RealBooks	Small businesses and startups	Varies based on the plan. Starts at INR 6000 Per User Per year	Free Plan available for Single User	Yes	Cloud-based software	Yes
AlignBooks	Small to large businesses	Varies based on the plan. Starts at INR 2500 per year.	Limited free plans for education and certified professionals (3 years)	Yes	Cloud-based software	Yes
Zenscale	Small businesses and startups	On-demand	No Free Trial Available	No	Cloud-based software	No

Tally

Tally, a renowned name within the Indian business community, stands as a cornerstone in the realm of accounting software, providing a versatile suite of features that cater to businesses of all scales. Ranging from fundamental bookkeeping tasks to sophisticated financial reporting, Tally’s capabilities make it a vital asset for managing financial processes efficiently.

Features:

Invoicing: Tally offers a robust invoicing feature that simplifies the process of creating and managing invoices. Businesses can customize their invoices, including details such as taxes, discounts, and payment terms.
Inventory Management: Efficient inventory management is vital for businesses dealing with products. Tally’s inventory management feature allows users to track stock levels, manage purchases and sales, and generate reports on stock movement.
GST Compliance: Given the importance of Goods and Services Tax (GST) in India, Tally ensures seamless GST compliance. It assists in generating GST invoices, filing returns, and reconciling tax data.
Bank Reconciliation: Tally streamlines the often-time-consuming bank reconciliation process. Users can match their bank statements with the records in the software, ensuring accurate financial records.
Payroll Processing: Managing employee payroll becomes simpler with Tally. It facilitates the accurate computation of salaries, and statutory deductions, and generates pay slips.
Financial Reports: Tally empowers businesses with an array of financial reports, including balance sheets, profit, and loss statements, and cash flow reports.
Customizable Dashboards: Tally’s customizable dashboards enable users to personalize their interface, showcasing the most relevant data and insights at a glance.

Pros:

User-Friendly Interface: One of Tally’s standout features is its user-friendly interface. Its intuitive design makes it accessible to users with varying levels of accounting expertise.
Robust Functionality: Tally’s versatile functionality is adaptable to diverse business needs, making it suitable for small enterprises, large corporations, and everything in between.
Extensive Community Support: Tally’s widespread use has led to a vast and active community of users and experts. This means that troubleshooting and seeking assistance are relatively easy tasks.
Regular Updates and Improvements: Tally keeps pace with changing business requirements and evolving regulations by consistently rolling out updates that enhance its features and keep it compliant.

Cons:

Limited cloud-based capabilities: One notable drawback of Tally is its limited cloud-based capabilities. While the software can be accessed remotely, it primarily operates as on-premise software, which might not align with the preferences of businesses seeking entirely cloud-based solutions.

Why Choose it?

Tally’s long-standing reputation, combined with its comprehensive feature set, makes it an exceptional choice for businesses in need of a reliable and efficient accounting solution. One of the best accounting software in India, it integrates seamlessly with various tools and systems. Notably, the integration with EnKash provides an additional layer of convenience, assisting businesses in efficiently managing their financial operations.

Price:

Tally offers various plans to suit different business needs.

Best Suited for:

Small to large businesses.
Those looking for comprehensive accounting and GST compliance.
Businesses in need of easy integration with EnKash for smoother accounting processes.

Integration:

Integrating Tally with Olympus, an industry-first full-stack platform for business payments, empowers businesses by giving them a seamless solution to optimize their cash flow management. This integration can enable financial data to flow effortlessly between Tally’s robust accounting capabilities and Olympus’s efficient and easy-to-manage software. Businesses can ensure that their accounts payable, receivables, invoices, and expenses are synchronized in real-time, enhancing accuracy and enabling comprehensive cash flow monitoring. This unified platform can benefit businesses by simplifying financial tracking, reporting, and decision-making, ultimately leading to improved financial health and streamlined operations.

Busy

In the landscape of Indian accounting software, Busy emerges as a prominent player, distinguished by its user-friendly interface and robust feature set. Designed to cater to businesses of varying sizes and industries, Busy has garnered a reputation for its efficiency and effectiveness in managing financial operations.

Features:

Multi-Company Management: Busy facilitates the management of multiple companies within a single software instance. This is particularly advantageous for conglomerates or businesses with multiple divisions.

GST Billing and E-Filing: Busy aids businesses in navigating the intricacies of GST regulations in India. It offers seamless billing and e-filing capabilities, ensuring compliance with tax regulations.
Inventory Management: Robust inventory management is pivotal for businesses dealing with products. Busy’s inventory management feature enables users to track stock levels, manage purchases and sales, and generate detailed inventory reports.
Barcode Support: Businesses dealing with physical inventory benefit from Busy’s barcode support, which enhances accuracy and efficiency in inventory management.
Cost Centers and Categories: Busy empowers businesses to allocate expenses and revenues to specific cost centers and categories, providing a detailed view of financial performance.
Flexible Voucher Numbering: Busy’s flexible voucher numbering system allows businesses to customize voucher numbering patterns according to their preferences and accounting practices.

Pros:

Easy to Use and Navigate: Busy is renowned for its user-friendly interface, making it accessible to users with varying levels of accounting knowledge.
Real-Time Synchronization: Busy offers real-time synchronization across multiple users and devices, ensuring that financial data is up-to-date and accurate.
Multi-Currency Support: Businesses engaged in international trade can benefit from Busy’s multi-currency support, simplifying transactions and accounting for foreign exchange fluctuations.
Mobile App for Remote Access: The availability of a mobile app extends the convenience of accessing and managing financial data remotely, adding a layer of flexibility to business operations.

Cons:

Limited third-party integrations: One notable limitation of Busy is its limited third-party integration capabilities. While the software offers a robust set of features, businesses seeking extensive integration with other tools may face constraints.

Why Choose it?

Busy is an ideal solution for businesses that value simplicity and efficiency in their accounting operations. Its intuitive design, coupled with its range of features, makes it a suitable choice for businesses looking to manage their accounts effectively without getting lost in complexity. However, for businesses with specific requirements for extensive integrations, exploring other software options might be necessary.

Price:

Busy offers different pricing plans based on the number of users and features required.

Best Suited For:

Small to medium-sized businesses.
Those who prioritize user-friendly interfaces and real-time sync.
Businesses not requiring extensive third-party integrations.

Zoho Books

Within the domain of business software, Zoho Books emerges as a key player thanks to its rich set of accounting capabilities and integration within the Zoho suite. Positioned as part of the popular Zoho software ecosystem, Zoho Books stands out for its feature-rich offerings that cater to businesses of diverse sizes and industries.

Features:

Automated Bank Feeds: Zoho Books streamlines the tedious task of manual data entry by offering automated bank feeds. This feature facilitates the synchronization of bank transactions directly into the software, ensuring accurate and up-to-date financial records.
Online Invoicing: Zoho Books simplifies the invoicing process by enabling businesses to create and send professional invoices online.
Expense Tracking: Businesses can easily track and categorize expenses using Zoho Books. This feature allows for efficient monitoring of costs and enables better financial decision-making.
Time Tracking: Zoho Books extends its functionality to time tracking, which is particularly beneficial for businesses that bill clients based on hours worked. This ensures accurate billing and enhances project management.
Project Accounting: With its project accounting capabilities, ZohoBooks allows businesses to associate income and expenses with specific projects, offering insights into the profitability of each endeavor.
Financial Reporting: ZohoBooks empowers users with a range of financial reports, such as balance sheets, profit and loss statements, and cash flow reports. These reports aid businesses in making informed financial decisions.

Pros:

Seamless Integration with Other Zoho Products: Being part of the Zoho suite, Zoho Books seamlessly integrates with other Zoho applications, creating a holistic business ecosystem that enhances efficiency.
Excellent Mobile App: Zoho Books’ mobile app allows users to manage their finances on the go. This feature is particularly useful for business owners and professionals who require remote access to their financial data.
Multi-Currency Support: Zoho Books supports transactions in multiple currencies, making it suitable for businesses engaged in international trade.
Affordable Pricing: Zoho Books offers competitive pricing plans, catering to the needs of both small businesses and larger enterprises.

Cons:

Limited inventory management features: While Zoho Books offers a wide range of accounting features, its inventory management capabilities are somewhat limited compared to specialized inventory management software.

Why Choose it?

Zoho Books has made its name in the list of best accounting software as an attractive choice for businesses for several reasons. Its integration within the Zoho suite creates a seamless experience for users who are already utilizing other Zoho products. Additionally, the well-designed mobile app, multi-currency support, and affordability further bolster its appeal. ZohoBooks is especially suitable for businesses seeking a reliable cloud-based accounting solution that balances feature richness and cost-effectiveness.

Price:

Zohobooks offers flexible pricing plans based on the number of users and features required.

Best Suited For:

Small businesses and startups
Users of other Zoho products
Businesses in need of an affordable cloud-based solution.

Vyapar

Vyapar has established itself as a noteworthy accounting software solution specifically designed to cater to the unique needs of small and medium-sized businesses. With a focus on simplicity and efficiency, Vyapar empowers businesses to manage their financial operations with ease.

Features:

Invoicing and Billing: Vyapar provides businesses with the tools to create professional invoices and bills. Users can customize invoice templates, include details such as taxes and discounts, and efficiently manage billing cycles.
Inventory Management: Managing inventory is crucial for businesses dealing with products. Vyapar’s inventory management feature helps users track stock levels, manage purchases and sales, and generate reports on inventory movement.
Expense Tracking: Vyapar simplifies expense tracking by allowing users to categorize and record expenses accurately. This feature helps businesses monitor their spending and make informed financial decisions.
GST Compliance: Given the significance of GST in India, Vyapar ensures businesses stay compliant with GST regulations. It assists in generating GST invoices, filing returns, and maintaining accurate tax records.
Mobile App: Vyapar’s mobile app extends the convenience of managing finances on the go. Users can access crucial financial information, create invoices, and track expenses using their mobile devices.

Pros:

Easy-to-Use Mobile App: Vyapar’s mobile app is known for its user-friendly interface and intuitive design. This mobile functionality enhances accessibility and convenience for business owners who are often on the move.
Simplified GST Filing: Vyapar streamlines the complex process of GST filing by automating various aspects of the compliance process. This helps businesses avoid errors and penalties related to tax filings.
Inventory Management with Low Stock Alerts: Vyapar’s inventory management feature includes low stock alerts. This proactive notification system ensures that businesses never run out of essential products and can plan their restocking strategies effectively.

Cons:

Limited scalability for larger businesses: While Vyapar is well-suited for small and medium-sized businesses, it might have limitations in terms of scalability and advanced functionalities required by larger enterprises.

Why Choose it?

Vyapar shines as an optimal choice for small businesses and startups seeking a straightforward and efficient accounting solution. Its focus on user-friendliness and core features, such as invoicing, expense tracking, and inventory management, caters to the essential financial needs of these businesses. The mobile app simplified GST filing, and low stock alerts add practical value. For businesses looking to manage their finances without the complexity of more robust accounting solutions, Vyapar offers a viable and cost-effective option.

Price: Vyapar offers both free and premium plans, making it suitable for businesses of different sizes.

Best Suited For:

Small businesses and startups
Those in need of an intuitive mobile app
Businesses seeking a cost-effective solution for GST compliance.

Giddh

Giddh emerges as a dynamic cloud-based accounting software that is engineered to foster seamless collaboration and accessibility in the realm of financial management. With a focus on real-time reporting, collaborative features, and user-friendly functionality, Giddh stands out as a solution that empowers businesses to navigate their financial operations with agility.

Features:

Real-Time Financial Reporting: Giddh empowers users with real-time financial reporting, offering a comprehensive view of their business’s financial health. This feature enables informed decision-making based on up-to-the-minute insights.
Inventory Management: Effective inventory management is a cornerstone for businesses dealing with products. Giddh’s inventory management feature facilitates tracking stock levels, managing purchases and sales, and generating detailed inventory reports.
Tax Management: Giddh simplifies tax management by aiding businesses in navigating complex tax regulations. It assists in generating accurate tax reports and ensuring compliance with tax laws.
Multi-Currency Support: For businesses involved in international transactions, Giddh’s multi-currency support is invaluable. It streamlines currency conversions and enables accurate accounting across different currencies.
Bank Reconciliation: Giddh includes bank reconciliation capabilities, ensuring that business transactions match bank statements accurately and maintaining accurate financial records.
Integration with Payment Gateways: Giddh’s integration with payment gateways facilitates seamless payment processing and reduces the manual effort required for recording transactions.

Pros:

Cloud-Based Accessibility: Giddh’s cloud-based architecture ensures that users can access their financial data from anywhere with an internet connection. This accessibility is particularly beneficial for businesses with remote teams or those needing on-the-go management.
Collaboration with Team Members and Accountants: Giddh enables smooth collaboration between team members and external accountants.
Customizable Dashboard and Reports: Giddh allows users to personalize their dashboard and reports, tailoring the software to their specific business needs and preferences.

Cons:

Tough to learn and hands-on: Some users might find Giddh to have a steeper learning curve compared to more straightforward accounting software. Its advanced features require a certain level of familiarity and hands-on experience.

Best Suited For:

Giddh is an excellent choice for businesses looking for a cloud-based accounting solution that promotes collaboration and accessibility Giddh stands as an attractive choice for businesses that prioritize collaboration, real-time insights, and cloud-based accessibility. Its advanced features, such as real-time reporting and multi-currency support, cater to businesses looking for a comprehensive financial management solution. While Giddh might demand a learning curve, the rewards are substantial for businesses that are willing to invest time and effort into mastering its functionalities.

Price:

Giddh offers different pricing plans based on the number of users and features required.

Best Suited For:

Small to medium-sized businesses
Those looking for collaborative and cloud-based accounting software
Businesses seeking integration with payment gateways for streamlined transactions.

Marg

Marg has established itself as one of the top accounting softwares in India for its robust functionality and industry-specific solutions. Tailored to cater to the unique needs of various sectors, Marg software is celebrated for its ability to streamline complex financial operations while providing specialized solutions.

Features:

Invoicing and Billing: Marg software simplifies invoicing and billing processes by offering customizable invoice templates, efficient management of billing cycles, and integration with GST regulations.
Inventory Management: Marg’s inventory management feature is vital for businesses dealing with products. It enables users to track stock levels, manage purchases and sales, and generate comprehensive inventory reports.
Barcode Support: The barcode support feature enhances efficiency in inventory management, allowing businesses to accurately track and manage their stock using barcode scanning technology.
Payroll Processing: Marg facilitates accurate and streamlined payroll processing, helping businesses efficiently calculate salaries, deductions, and generate pay slips.
GST Compliance: Given the significance of GST in India, Marg software ensures businesses remain compliant with GST regulations. It assists in generating GST invoices, filing returns, and managing tax-related data.
Mobile App: Marg’s mobile app extends the convenience of managing finances on the go, empowering users to access crucial financial information and perform tasks using their mobile devices.

Pros:

Industry-Specific Solutions: Marg software sets itself apart by offering tailored solutions for various industries. This ensures that businesses receive software that caters specifically to their sector’s unique requirements.
Customizable Reports: The ability to generate customizable reports allows businesses to extract insights that are pertinent to their operations, facilitating informed decision-making.
Multi-Lingual Support: Marg software supports multiple languages, making it accessible to businesses across different regions and language preferences.
Offline Support: Marg software’s offline capabilities ensure that businesses can continue to manage their financial operations even without a constant internet connection.

Cons:

UI/UX could be more modern: Some users might find Marg’s user interface and user experience to be less modern compared to some other accounting software options.

Why Choose it?

Marg software stands as an optimal choice for businesses seeking industry-specific solutions that cater to their unique requirements. Its extensive range of features, including invoicing, inventory management, and payroll processing, aligns with the diverse needs of businesses. Additionally, the software’s support for multiple languages and offline capabilities enhances its practicality. Marg software is particularly valuable for businesses looking to align their financial operations with their sector’s specific demands.

Price:

Marg offers different pricing plans based on the number of users and features required.

Best Suited For:

Businesses in specific industries such as retail, distribution, and manufacturing
Those seeking offline capabilities in addition to online access
Businesses with multilingual requirements.

Intuit QuickBooks

Intuit QuickBooks stands as a trailblazer in the realm of accounting software, renowned for its powerful functionality, intuitive interface, and comprehensive range of features. As a well-established and respected name in the industry, QuickBooks has earned its reputation for catering to businesses of all sizes with its versatility and ease of use.

Please note Intuit’s QuickBooks products and services are no longer available in India after July 1st, 2023.

Features:

Online Invoicing and Payments: QuickBooks simplifies invoicing by enabling businesses to create and send invoices online. This includes features such as automated payment reminders and online payment gateways for streamlined transactions.
Expense Tracking: QuickBooks empowers businesses to track expenses accurately, aiding in budgeting and financial decision-making.
Inventory Management: QuickBooks’ inventory management feature enables businesses to track stock levels, manage purchases and sales, and generate comprehensive inventory reports.
Bank Reconciliation: QuickBooks streamlines bank reconciliation by matching transactions from bank statements with records in the software, ensuring accurate financial data.
Financial Reporting: QuickBooks offers an array of financial reports, including balance sheets, profit, and loss statements, and cash flow reports, providing a comprehensive overview of financial health.
Multi-Currency Support: For businesses engaged in global transactions, QuickBooks’ multi-currency support simplifies accounting across different currencies.

Pros:

User-Friendly Interface: QuickBooks’ intuitive interface makes it accessible to users with varying levels of accounting knowledge, ensuring ease of use.
Strong Reporting Capabilities: QuickBooks’ robust reporting capabilities offer detailed insights into business performance, enabling informed financial decisions.
Integration with Numerous Third-Party Apps: QuickBooks’ extensive integration capabilities allow businesses to connect with a wide range of third-party applications, enhancing its functionality and adaptability.
Excellent Customer Support: Intuit QuickBooks provides strong customer support, assisting users in troubleshooting issues and maximizing software utilization.

Cons:

Higher Pricing for Some Users: While QuickBooks offers a comprehensive suite of features, some users may find its pricing to be relatively higher compared to other accounting software options.

Why Choose it?

QuickBooks is an optimal choice for businesses seeking a powerful and user-friendly accounting solution with robust functionality. Its seamless integration capabilities, strong reporting features, and intuitive design cater to various business needs. QuickBooks’ wide range of third-party app integrations further enhances its adaptability and practicality.

Price:

QuickBooks offers different pricing plans based on the number of users and features required.

Best Suited For:

Small to medium-sized businesses
Those in need of strong reporting capabilities
Businesses requiring extensive integration with third-party apps.

RealBooks

RealBooks emerged as a cloud-based accounting software that focuses on simplifying financial management for businesses. In a landscape where efficiency and accessibility are paramount, RealBooks aims to offer a user-friendly experience while providing essential accounting features.

Features:

Invoicing and Billing: RealBooks facilitates the creation and management of invoices and bills, simplifying the billing process for businesses.
Expense Tracking: Efficient expense tracking is crucial for financial control. RealBooks aids businesses in categorizing and tracking expenses, ensuring accurate financial records.
Inventory Management: Businesses dealing with products benefit from RealBooks’ inventory management feature, allowing them to monitor stock levels, manage purchases and sales, and generate comprehensive inventory reports.
Tax Management: RealBooks simplifies tax management by assisting businesses in navigating tax regulations, generating accurate tax reports, and ensuring compliance.
Multi-Currency Support: RealBooks supports multi-currency transactions, catering to businesses involved in international trade.
Mobile App: RealBooks extends accessibility through its mobile app, empowering users to manage their finances on the go.

Pros:

Cloud-Based Accessibility: RealBooks’ cloud-based nature ensures that users can access their financial data anytime, anywhere with an internet connection.
Simple and Intuitive Interface: RealBooks’ design prioritizes simplicity and ease of use, making it accessible to users with varying levels of accounting knowledge.
Affordable Pricing: RealBooks offers cost-effective pricing plans, making it an attractive option for businesses seeking value for their investment.

Cons:

Some Users May Miss Advanced Features: Businesses seeking advanced features available in other accounting software might find Realbooks relatively limited.

Why Choose it?

RealBooks presents itself as an attractive choice for businesses seeking a cost-effective accounting solution with essential features and cloud-based accessibility. Its intuitive interface ensures that users can efficiently manage their financial operations without the need for extensive training. While it might lack some advanced features, RealBooks caters to businesses with basic financial management requirements.

Price:

RealBooks offers flexible pricing plans based on the number of users and features required.

Best Suited For:

Small businesses and startups
Those seeking a straightforward and affordable cloud-based accounting solution
Businesses in need of basic financial management tools.

AlignBooks

AlignBooks emerges as a robust accounting software solution designed to cater to businesses across a spectrum of sizes. With a focus on providing comprehensive financial management tools, AlignBooks aims to empower businesses with the resources they need to navigate their financial operations effectively.

Features:

Invoicing and Billing: AlignBooks simplifies invoicing and billing tasks by offering customizable invoice templates, efficient billing cycle management, and integration with financial regulations.
Inventory Management: The inventory management feature enables businesses to monitor stock levels, manage purchases and sales, and generate detailed inventory reports.
Payroll Processing: AlignBooks streamlines payroll processing, facilitating accurate calculations of salaries, statutory deductions, and generating pay slips.
Financial Reporting: AlignBooks empowers users with a range of financial reports, including balance sheets, profit, and loss statements, and cash flow reports, offering comprehensive insights into financial health.
Tax Management: The tax management feature assists businesses in managing tax-related tasks, ensuring compliance with relevant regulations.
Bank Reconciliation: AlignBooks aids businesses in reconciling bank transactions, ensuring that financial records match bank statements.

Pros:

Multi-Currency Support: AlignBooks’ multi-currency support is advantageous for businesses engaged in global transactions, simplifying accounting across different currencies.
Secure Data Encryption: AlignBooks prioritizes data security by implementing secure data encryption, safeguarding sensitive financial information.
Scalable for Growing Businesses: AlignBooks’ scalability makes it suitable for businesses with growth aspirations, ensuring that the software can accommodate expanding financial needs.
Mobile App for On-the-Go Access: The mobile app extends the convenience of accessing financial data and managing operations remotely, enhancing flexibility for business owners on the move.

Cons:

More customization needed: Some users might find that AlignBooks could benefit from more customization options to tailor the software to specific business needs.

Why Choose it?

AlignBooks presents itself as a versatile choice for businesses seeking comprehensive financial management solutions. Its array of features, including invoicing, payroll processing, and inventory management, cater to diverse financial needs. AlignBooks’ multi-currency support, secure data encryption, and scalability enhance its practicality for businesses with varied requirements.

Price:

AlignBooks offers different pricing plans based on the number of users and features required.

Best Suited For:

Small to large businesses
Those needing multi-currency support
Businesses looking for scalable accounting software.

Zenscale

Zenscale emerges as a cloud-based accounting software solution that places simplicity and ease of use at the forefront of its design. Tailored for businesses seeking straightforward financial management without the complexities of advanced features, Zenscale aims to streamline accounting operations through an intuitive interface and essential tools.

Features:

Invoicing and Billing: Zenscale simplifies invoicing and billing tasks by enabling businesses to generate invoices and bills with ease.
Expense Tracking: Accurate expense tracking is essential for financial control. Zenscale aids businesses in recording and categorizing expenses for improved budgeting.
Inventory Management: Zenscale’s inventory management feature facilitates tracking stock levels, managing purchases and sales, and generating essential inventory reports.
Financial Reporting: Zenscale provides businesses with essential financial reports, including balance sheets and profit and loss statements, aiding in understanding financial health.
Bank Reconciliation: Zenscale assists businesses in reconciling bank transactions with financial records, ensuring accuracy in financial data.

Pros:

Intuitive User Interface: Zenscale’s user interface prioritizes ease of use, making it accessible to users with varying levels of accounting knowledge.
Easy Setup and Navigation: Zenscale’s setup process and navigation are designed to be straightforward, minimizing the learning curve for users.
Secure Data Storage: Zenscale prioritizes data security by ensuring secure data storage and safeguarding sensitive financial information.
Affordable Pricing: Zenscale offers budget-friendly pricing plans, making it an attractive option for small businesses and startups.

Cons:

Limited advanced features for larger businesses: Zenscale’s simplicity might result in limited advanced features that larger businesses might require for their complex financial operations.

Why Choose it?

Zenscale stands as an optimal choice for small businesses and startups seeking a budget-friendly accounting solution that emphasizes simplicity. Its intuitive user interface and straightforward setup cater to users looking for an accessible solution to manage their financial operations. While it might lack the advanced features required by larger businesses, Zenscale’s focus on essential tools and cost-effectiveness align well with the needs of small-scale operations.

Price:

Zenscale offers different pricing plans based on the number of users and features required.

Best Suited for

Small businesses and startups
Those prioritizing a user-friendly interface and easy setup
Businesses seeking an affordable accounting solution.

Conclusion:

Accounting software selection is critical for effective financial management. Best accounting software options listed above cater to businesses of all sizes, offering a diverse range of features, pricing plans, and integration possibilities. Before making a decision, carefully assess your business needs, budget constraints, and integration requirements to find the perfect fit for your organization. By adopting the right accounting software, you can streamline your financial processes, stay GST-compliant, and make well-informed business decisions for long-term success. Whether it’s Tally’s seamless integration with EnKash or the cloud-based accessibility of Zoho Books, each software has its unique advantages to offer. Invest in the best accounting software for your business and witness the transformation it brings to your financial management.

FAQs

What is accounting software, and why is it important for businesses?

Accounting software is a digital tool that helps businesses manage financial tasks like bookkeeping, invoicing, payroll, and reporting. It’s essential as it enhances accuracy and efficiency, and provides insights into a company’s financial health.

What are the key features to look for in accounting software?

Essential features include invoicing, inventory management, expense tracking, financial reporting, and GST compliance. Cloud-based accessibility and integrations with other tools are also crucial.

How can Tally benefit businesses as an accounting software?

Tally is a renowned accounting software offering features like invoicing, inventory management, payroll processing, and GST compliance. Its integration with EnKash’s Olympus simplifies expense management, leading to streamlined cash flow tracking and informed decision-making.

What advantages does EnKash’s integration with Tally offer for cash flow management?

EnKash’s integration with Tally enables seamless synchronization of financial data between Tally’s accounting functions and Olympus’s expense management system. This synergy provides accurate cash flow monitoring, real-time expense tracking, and improved overall financial management.

How does cloud-based accounting software like Zoho Books benefit businesses?

Cloud-based solutions like Zoho Books offer accessibility from anywhere, automated bank feeds, and online invoicing. These features improve collaboration and data accuracy, particularly for remote teams.

Which accounting software is suitable for small businesses and startups?

Vyapar, Giddh, and Zenscale are ideal choices for small businesses and startups due to their user-friendly interfaces, cost-effective plans, and simplified financial management features.

What accounting software is recommended for businesses requiring multi-currency support?

AlignBooks and Giddh offer multi-currency support, making them suitable for businesses dealing with international transactions and multiple currencies.

How does integration with payment gateways enhance accounting software like Giddh?

Giddh’s integration with payment gateways allows seamless transaction recording and real-time updates of financial data. This enhances accuracy and speeds up financial reconciliation processes.

Can accounting software cater to industry-specific needs?

Yes, software like Marg offers industry-specific solutions, making them an excellent choice for businesses in sectors like retail, distribution, and manufacturing.

How can accounting software contribute to improved financial decision-making?

Accounting software provides accurate real-time financial data and reports, empowering businesses to make informed decisions, allocate resources effectively, and plan for growth.

How can Tally be integrated with Olympus through EnKash?

EnKash’s integration facilitates a seamless data flow between Tally’s accounting features and Olympus’s expense management system. This integration ensures synchronized transactions, invoices, and expenses in real-time, streamlining cash flow tracking.

What advantages does integrating Tally with Olympus offer?

Integrating Tally and Olympus via EnKash enhances overall cash flow management by automating data transfer between both systems. This synergy simplifies expense tracking, financial reporting, and decision-making for businesses.

How does the Tally-Olympus integration enhance financial accuracy?

The integration reduces manual data entry by automatically syncing financial data between Tally and Olympus. This minimizes errors, ensures consistency, and provides accurate insights into a company’s financial status.

Payables Receivables

What is Cash Flow Management? Why Should You Know About It?

Post author By Pradeep Khanna
Post date August 18, 2023

Financial stability is a key factor for the success and longevity of any organization. One of the most crucial aspects of financial management is cash flow management. Understanding and effectively managing cash flow is essential for a business’s smooth operation and growth. Let’s learn more about ‘what is cash flow management’, its benefits, components, strategies, and how to overcome challenges for a secure financial future.

What is cash flow management?

Cash flow management refers to the process of monitoring, analyzing, and optimizing the inflow and outflow of cash within a business. It involves tracking the movement of cash in and out of the company to ensure there is enough liquidity to cover operational expenses, meet financial obligations, and fund future investments.

Well, understanding ‘what is cash flow management’ is very important for your business to grow! Keep reading for a better understanding about its benefits!

The benefits of cash flow management

Improved financial stability: Effective cash flow management software offers a clear picture of a company’s financial health, enabling proactive decision-making. It ensures that the business has enough funds to cover day-to-day expenses, debt payments, and emergencies, reducing the risk of financial instability
Enhanced planning and budgeting: By understanding what is cash flow management, businesses can manage budgets, set realistic financial goals, and plan for growth. It allows for informed investment decisions and helps identify areas where expenses can be optimized, or revenue can be increased
Timely debt repayment: Cash flow management software helps ensure sufficient cash is available to meet debt obligations on time, thereby maintaining a good credit rating. Prompt debt repayment improves the company’s reputation and increases its ability to secure favourable loan terms in the future

So, while you have got a fair idea of ‘what is cash flow management’ and its benefits, learn about its components too!

Components of cash flow management

Cash inflows: This component includes revenue from sales, loans, investments, and any other sources of cash entering the business,
Cash outflows: These comprise expenses such as employee salaries, rent, utilities, inventory costs, loan repayments, and taxes. Understanding and managing these cash outflows is crucial for maintaining positive cash flow.
Accounts receivable and payable: Managing accounts receivable ensures timely collection of payments from customers, while efficiently managing accounts payable process ensures on-time payment to suppliers, avoiding any disruptions in the supply chain.

What is cash flow – a very common question asked has been of interest to everyone! But making sure that you understand the strategies for the same is very important.

Strategies for effective cash flow

Cash flow forecasting: Developing accurate cash flow projections based on historical data and future expectations allows businesses to anticipate potential cash shortages or surpluses. This enables proactive measures to be taken, such as adjusting expenses, seeking additional funding, or negotiating better terms with suppliers.
Streamlining accounts receivable: Implementing effective invoicing and collection processes, offering incentives for early payment, and promptly addressing overdue accounts can accelerate cash in flows.
Optimizing accounts payable: Negotiating favorable payment terms with suppliers, taking advantage of early payment discounts, and regularly reviewing expenses can help manage cash outflows more efficiently.
Maintaining adequate reserves: Setting aside cash reserves for emergencies or unexpected events is crucial to mitigate the impact of unforeseen circumstances, maintaining business continuity

While you have made a strong understanding of “What is cash flow management?”, It is time to learn about ways you can overcome the challenges that come hand in hand.

Overcoming challenges and planning for the future

Seasonal fluctuations: Businesses experiencing seasonal variations in revenue need to carefully manage their cash flow during lean periods by planning ahead and building reserves during peak seasons.
Market volatility: Economic uncertainties and market fluctuations can significantly impact cash flow. Diversifying revenue streams, maintaining strong customer relationships, and having contingency plans can help navigate such challenges
Long-term growth: As businesses grow, managing cash flow becomes more complex. Monitoring cash flow regularly, investing in scalable infrastructure, and seeking expert advice can aid in sustaining growth without compromising financial stability.

Conclusion

“What is cash flow” has been a consistent question among businessmen today. Cash flow is a fundamental aspect of financial management that directly impacts a business’s survival and growth. Understanding and effectively managing cash flow enables businesses to maintain financial stability, make informed decisions, and plan for the future. You can use cash flow management software with us to track cash inflows and outflows, optimizing accounts receivable and payable, and implement cash flow forecasting, businesses can ensure they have enough liquidity to meet obligations and seize opportunities.

Overcoming seasonal fluctuations and market volatility challenges requires careful planning and diversification. Businesses can achieve a solid financial foundation for long-term success by prioritising cash flow management and implementing sound strategies. While you understand “what is cash flow ?”; you can always get in touch with our experts for fintech-related solutions.

FAQs

What is cash flow management, and why is it essential for businesses?

Cash flow management is monitoring, analyzing, and optimizing the inflow and outflow of cash within a business. It ensures there is enough liquidity to cover expenses, meet financial obligations, and fund investments. This leads to improved financial stability and informed decision-making.

What are the benefits of effective cash flow management?

The benefits of cash flow management include:

Improved financial stability by proactively managing funds,
Enhanced planning and budgeting for growth and optimization, and
Timely debt repayment to maintain a good credit rating.

What are the components of cash flow management?

The components of cash flow include:

Cash inflows from sales, loans, investments, etc.
Cash outflows such as salaries, rent, inventory costs, etc.
Managing accounts receivable and payable for timely bill payments.

What are some strategies for effective cash flow management?

Strategies for effectively managing cash flow includes:

Cash flow forecasting based on historical data and future expectations,
Streamlining accounts receivable for faster collection,
Optimizing accounts payable for efficient cash outflows, and
Maintaining adequate reserves for emergencies.

How can businesses overcome problems in managing cash flow?

Businesses can overcome challenges in cash flow management by:

Planning ahead and building reserves during seasonal fluctuations,
Diversifying revenue streams and having contingency plans for market volatility, and
Monitoring cash flow regularly and seeking expert advice for long-term growth.

How can cash flow management software help businesses?

Cash flow management software allows businesses to track cash inflows and outflows, optimize accounts receivable and payable, and implement cash flow forecasting. It helps ensure sufficient liquidity to meet obligations and make informed financial decisions.

Payables

A Guide to the Accounts Payable Process

Post author By Pradeep Khanna
Post date August 18, 2023

Efficient cash flow management is the cornerstone of financial success for any business. One crucial aspect of this process is the effective management of accounts payable. The accounts payable process encompasses all the activities related to paying the company’s debts and obligations to vendors and suppliers.

This blog will explore the fundamental principles and strategies for optimizing your accounts payable process, ensuring a smooth and sustainable cash flow for your organization.

Understanding the accounts payable process

The accounts payable workflow process involves several stages, from receiving invoices to making payments. To achieve efficiency, it is essential to comprehend each step thoroughly. The process typically starts with receiving supplier invoices for the goods or services. These invoices must be reviewed and validated for accuracy, completeness, purchase order and contract compliance.

Once verified, the invoices are recorded in the ap accounting system, and payment terms are set. The timely recording is crucial as it enables better cash flow forecasting and minimizes the risk of late payments and penalties. Afterwards, the invoices are scheduled for payment, and their due dates are tracked to ensure timely execution.

Setting up effective accounts payable systems

Efficient accounts payable systems lay the foundation for smooth operations. Businesses can opt for automation to streamline the process, reducing manual errors and increasing productivity. Advanced software can automate invoice processing, data entry, and payment schedules, freeing up valuable time for the finance team to focus on more strategic tasks.

Additionally, setting up a robust vendor database helps maintain accurate records and facilitates faster communication. Regularly updating contact information and payment preferences of vendors allows for seamless interaction and minimizes payment delays.

Effective invoice management

Effective invoice management is a critical aspect of optimizing the accounts payable workflow process. This involves creating a well-defined process for handling incoming invoices promptly. Encourage suppliers to submit electronic invoices to reduce paperwork and processing time. Electronic invoicing also provides better transparency, reducing the likelihood of disputes or misunderstandings.

Implementing a three-way match system can help ensure accuracy and prevent fraudulent activities. This system involves cross-referencing the purchase order, goods receipt, and invoice to verify that the received goods or services match the terms of the agreement. This process ensures you only pay for legitimate transactions, reducing the risk of overpayments or duplicate payments.

Streamlining approval workflows

The approval workflow is a crucial stage in the accounts payable process, directly affecting the payment timeline. A streamlined approval process can significantly reduce processing time and minimize the risk of delayed payments. Define clear approval hierarchies, promptly ensuring that each invoice is routed to the appropriate stakeholders.

Consider implementing electronic approval systems that enable remote approvals and real-time tracking. This not only expedites the approval process but also increases accountability and transparency.

Payment optimization and vendor management

Payment optimization involves strategically managing payment terms to maintain a healthy cash flow. Negotiate favorable payment terms with suppliers, such as extended payment windows, early payment discounts, or vendor financing options. Properly managing payment terms can help improve working capital and preserve liquidity.

Vendor management is equally important. Cultivate strong relationships with key suppliers by ensuring timely payments and open communication. Regularly review vendor performance to identify improvement opportunities and negotiate better terms for long-term partnerships.

Conclusion

Efficient cash flow management is essential for any business’s financial stability and growth. The accounts payable workflow process is crucial in maintaining smooth cash flow operations. Businesses can achieve a streamlined accounts payable process by understanding the intricacies of this process, setting up effective systems, and managing invoices. We are a spend management platform that can assist you in streamlining approval workflows and optimizing payments and vendor relationships becomes very easy.

Automation and technology continue to play a significant role in enhancing efficiency and accuracy in accounts payable. By embracing these innovations, organizations can focus on strategic financial planning and decision-making, ultimately driving success and profitability. Remember, a well-managed accounts payable process is a stepping stone towards achieving sustainable financial health for your business.

FAQs

What is accounts payable and its importance in cash flow management?

Accounts payable is the process of paying debts to vendors and suppliers. Efficient management of accounts payable ensures a smooth cash flow, vital for financial stability.

How can businesses set up effective accounts payable systems?

Businesses can set up efficient systems using automation for streamlined processes and maintaining a robust vendor database for seamless communication.

Why is effective invoice management crucial in accounts payable?

Effective invoice management involves handling incoming invoices promptly and implementing a three-way match system to prevent errors and fraud.

How can businesses streamline approval workflows in accounts payable?

Clear approval hierarchies and electronic approval systems expedite the approval process and enhance transparency.

How do payment optimization and vendor management contribute to cash flow management?

Strategic payment terms and strong vendor relationships improve cash flow, working capital, and overall financial health.

How do automation and technology enhance efficiency in accounts payable?

Embracing automation and technology enhances accuracy and efficiency, enabling businesses to focus on strategic planning and success.

Expenses

How Can Spend Analysis Help in Effective Cost Management?

Post author By Pradeep Khanna
Post date August 18, 2023

In today’s competitive business landscape, cost management plays a crucial role in the success and sustainability of any organization. Controlling expenses and optimizing spending are essential for maintaining profitability and driving growth.

One effective tool that can significantly contribute to the cost of spend management tools is — Spend Analysis. By thoroughly examining expenditure patterns and identifying opportunities for improvement, businesses can make informed decisions to reduce costs and enhance their bottom line. Going further, we will explore how spend analysis can help in effective cost management, its key components, analyzing expenditure patterns, driving cost reduction initiatives, and future considerations, and conclude with the importance of this practice.

Understanding Spend Analysis

Spend analysis is collecting, cleansing, categorizing, and analyzing procurement data to gain insights into an organization’s spending habits. It provides a comprehensive view of all expenditures across various categories, such as goods, services, and suppliers, including direct and indirect costs. The main objective of spend analysis or spend control is to identify opportunities for cost reduction, streamline procurement processes, negotiate better contracts, and enhance overall operational efficiency.

Components of Spend Analysis

To perform an effective spend analysis, several key components need to be considered:

Data collection: Gathering data from various sources, such as financial records, purchase orders, invoices, and contracts, is the first step. This data should be accurate, comprehensive, and easily accessible

Data cleansing: Ensuring data accuracy and consistency is vital. This involves removing duplicates, standardizing descriptions, and correcting any errors or inconsistencies in the data

Data categorization: Categorizing expenditures into meaningful groups enables better analysis and identification of spending patterns. Common categorization methods include supplier segmentation, spend control category classification, and purchase type classification

Data analysis: Using advanced analytical techniques, such as data visualization, statistical analysis, and trend identification, to uncover insights and patterns within the expenditure data. This analysis helps identify areas of excessive spending, supplier consolidation opportunities, and potential cost-saving initiatives

Analyzing Expenditure Patterns

One of the primary benefits of spend analysis is gaining a deep understanding of expenditure patterns. By analyzing historical spending data, organizations can identify trends, anomalies, and areas of high expenditure. This analysis helps pinpoint cost drivers, such as excessive spending on specific suppliers or categories, redundant purchases, or inefficient procurement processes.

Furthermore, spend analysis enables organizations to compare spending across different periods, business units, or geographical locations. This allows for benchmarking and identifying best practices within the organization, promoting cost-saving initiatives, and driving improvements in procurement processes.

Driving Cost Reduction Initiatives

Spend analysis provides valuable insights that can drive cost-reduction initiatives across various areas:

Supplier rationalization: Identifying and consolidating suppliers can save costs through volume discounts, improved negotiation power, and reduced administrative efforts. Spend analysis helps identify opportunities for supplier consolidation and assess supplier performance based on factors such as pricing, quality, and delivery.

Contract optimization: Organizations can identify areas for negotiation and renegotiation by analyzing contract terms and conditions. Spend analysis helps identify contracts that are up for renewal, uncover opportunities for cost reduction, and ensure compliance with contract terms

Demand management: Understanding expenditure patterns helps identify areas of excess demand or inefficient resource allocation. By promoting awareness and implementing demand spend management tools and strategies, organizations can reduce unnecessary spending and optimize resource allocation

Process efficiency: Spend analysis allows organizations to identify bottlenecks or inefficiencies in procurement processes. By streamlining processes, eliminating redundancies, and implementing automation, organizations can achieve cost savings and improve operational efficiency

Future considerations

As technology advances, spend analysis is evolving to provide even more significant benefits for effective cost management. Some future considerations include:

Artificial intelligence and machine learning: Utilizing AI and ML algorithms can enhance spend analysis by automating data collection, cleansing, categorization, and analysis processes. These technologies can uncover complex patterns, predict future spending trends, and provide real-time insights for proactive cost management

Predictive analytics: By combining historical spending data with market trends and external factors, predictive analytics can forecast future spending patterns and help organizations proactively plan cost-saving measures

Supplier collaboration: Collaboration platforms and supplier portals can facilitate closer relationships with suppliers, promoting transparency, efficiency, and joint cost-saving initiatives

Conclusion

Spend analysis is a powerful tool that enables organizations to manage costs effectively by gaining insights into expenditure patterns, driving cost reduction initiatives, and enhancing overall operational efficiency. By leveraging the components of spend analysis and analyzing expenditure patterns, businesses can identify areas of excessive spending, streamline procurement processes, and negotiate better contracts.

Moreover, future considerations such as AI and ML, predictive analytics, and supplier collaboration promise to take spend analysis to new heights, revolutionizing cost management practices. With spend management platforms like EnKash, implementing a robust spend analysis process can provide a competitive advantage. It can also pave the way for sustainable growth in today’s dynamic business environment.

FAQs

What is spend analysis, and how does it contribute to effective cost management?

Spend analysis involves collecting, cleansing, categorizing, and analyzing procurement data to gain insights into an organization’s spending habits. It helps identify cost reduction opportunities, streamline procurement, negotiate better contracts, and enhance operational efficiency, all contributing to effective cost management.

What are the key components of spend analysis?

The key components of spend analysis are data collection from various sources, data cleansing to ensure accuracy, data categorization for meaningful insights, and data analysis using advanced techniques like data visualization and statistical analysis.

How does spend analysis help identify cost drivers and improve spending?

By analyzing historical spending data, spend analysis helps identify trends, anomalies, and areas of high expenditure. It pinpoints cost drivers such as excessive spending on specific suppliers, redundant purchases, or inefficient procurement processes, enabling better spending decisions.

How does spend analysis drive cost reduction initiatives?

Spend analysis supports cost reduction initiatives through supplier rationalization, contract optimization, demand management, and process efficiency. It identifies supplier consolidation and renegotiation opportunities, reduces excess demand, and streamlines procurement processes.

What are the future considerations for spend analysis in cost management?

The future of spend analysis includes leveraging artificial intelligence and machine learning for automation and complex pattern recognition. Predictive analytics will forecast spending trends, while supplier collaboration through platforms and portals will enhance transparency and cost-saving opportunities.

How can spend management tools like EnKash benefit cost management through spend analysis?

Spend management tools like EnKash offer robust spend analysis capabilities, providing insights for identifying cost-saving opportunities, streamlining procurement, and improving profitability in today’s dynamic business environment.

Growth Guide Payables Receivables

Transformative Product by EnKash Delivers 40% Process Improvement and 50% Cost Savings for Beta Customers

Post author By Pradeep Khanna
Post date August 11, 2023

EnKash’s Olympus is an Industry-first product enabling businesses to achieve financial excellence. Let us take you through this product that has been designed keeping the needs of startups, small and mid-market enterprises (MMEs) in mind.

Before that, it is vital to know that Olympus is an outcome of understanding the needs of businesses and bringing solutions to empower them.

Challenges faced by small and mid-market enterprises

Effective management of cash flows plays a pivotal role in ensuring financial stability for any business. Large enterprises have successfully resolved their cash flow challenges by leveraging ERP solutions and accessing banking solutions to automate their entire value chain around payable, receivable & reconciliation. Startups, small and mid-market businesses’ resource constraints restrict them from adopting advanced products. These businesses encounter distinct challenges when it comes to handling financial processes efficiently.

One significant factor contributing to these challenges is the lack of cost-effective & plug-and-play products in managing accounts payable and receivable. None of the products in the market can solve these challenges holistically. Businesses rely on multiple high-cost providers to get the right kind of accessibility.

From delayed payments to cumbersome invoicing procedures, inefficient collection mechanisms, and limited resources for receivable management, small and mid-market businesses grapple with various issues that can hamper their ability to optimize cash flow, meet financial obligations, and drive sustainable growth.

The creation of “Olympus” platform stems from the extensive experience and expertise accumulated by the team and founders over the course of several years in understanding the challenges faced by businesses that the banks or other software providers do not serve well.

What makes Olympus a Holistic Product?

Olympus is a cutting-edge product specifically tailored for startups and small to midsize businesses to automate and streamline their accounts payable and receivable. With its “plug & play” integration capability and DIY mode, Olympus seamlessly integrates with existing accounting and enterprise resource planning (ERP) software without disruption.

This powerful technology stack empowers businesses with enhanced efficiency and 100% accuracy in accounting and auditing processes. It eliminates laborious manual tasks by automating transaction entries, bank reconciliation, payment management, collection management, expense tracking, and invoice management. Businesses can achieve remarkable process improvements through its user-friendly interface, resulting in substantial cost savings of close to 50%, as reported by our current beta customers.

One of the standout features of Olympus is its ability to mitigate risk and fraud in business transactions. While Olympus excels in accounts payable, its unique selling proposition lies in its robust receivables management feature.

Key Features of Olympus

Why choose Olympus?

Here are some of the valid reasons:

It intends to make businesses independent by giving them access to digital payments at a cost-effective price
It automates finance-related operations like AP, AR, and reconciliation and accelerates growth by offering efficiency, transparency, and flexibility
It supports startups & small to midsize businesses by integrating their existing systems and accounting software to offer a seamless experience
Designed for businesses, this industry-first product works with zero manual intervention
It can function as a standalone platform if needed
It allows multiple modes of payment for maximum convenience
It only onboards validated buyers & suppliers and can auto-flag whenever a mismatch occurs
It provides real-time data that can help make quick financial decisions

Businesses can function smoothly only when payables, receivables, reconciliation, audit, and analytics all work in the same direction to produce desirable results.

Let’s know how Olympus can become the binding force of all these different functionalities and change the game for you.

Role of Olympus in Accounts Payable

It onboards digitally validated vendors and suppliers seamlessly
It captures all the data from the invoices accurately & syncs back
It verifies all the payment-related paperwork, helping reduce manual intervention
It makes bulk payments in a single click giving real-time updates

Role of Olympus in Accounts Receivable

It monitors receivables with their due-dates
It creates automatic payment reminders to ensure customers pay on time
It enables the timely dispatch of invoices
It offers options like bulk collect and quick collect to accelerate collections
It has the ability to embed payment links in the invoices with multiple payment options

Role of Olympus in Reconciliation

It captures data from all sources to reconcile
It helps reduce work hours, ensuring that all records are updated
It maintains complete transparency across functions with accurate data
It showcases inconsistencies in the payable and receivable functions

Role of Olympus in Audit

It checks and approves hierarchies in the system with a few clicks
It auto-creates electronic records of the payment process for easy retrieval
It makes statutory payments on time via the portal
It provides a clear trail of all the stages in any transaction at any time
It supports customers, vendors, and other stakeholders with timely documents

Role of Olympus in Analytics

It empowers different teams to create bespoke dashboards with updated data
It gives real-time updates to manage funds better and decide wherever cost-cutting is required
It highlights areas of data that need improvement for business growth and improvement
It offers intelligent insights which can contribute to decision-making

Olympus can bring efficiency and transparency to your business without hampering your existing setup. Customers using Olympus at its pilot stage have reported a 40% improvement in their processes with 50% cost savings overall.

They have also reported mitigating risk and fraud in their business transactions as Olympus validates buyers and suppliers and raises the issue whenever there is a mismatch between the data.

In conclusion, Olympus is a game-changing product for startups and small to midsize businesses.

If you want to experience the freedom of payment handling, come under the parasol of Olympus today!

Olympus

Freedom

Xpenz

Loyalty Lounge

Olympus

Payables

Receivables

Freedom

Corporate Cards*

Virtual Cards*

Integrated Cards*

DIY Card Module

Spend Control

Xpenz

Budgets and Advances

Hierarchy and Controls

Reimbursement

Policy and Approval Flows

Scan and Drop Receipts

Loyalty Lounge

Employee Rewards

Brand Voucher

Channel Incentives

Offers

Products

Olympus

Freedom

Xpenz

Loyalty Lounge

CardX

About Us

Resources

Blog

Videos

Press Release

Media Coverage

Payables

Receivables

Corporate Cards*

Virtual Cards*

Integrated Cards*

DIY Card Module

Spend Control

Budgets and Advances

Hierarchy and Controls

Reimbursement

Policy and Approval Flows

Scan and Drop Receipts

Employee Rewards

Brand Voucher

Channel Incentives

Offers

Vianet’s Process Before Adopting EnKash Olympus

Challenges faced by Vianet:

Vianet adopted EnKash Olympus

Solutions by EnKash Olympus:

Features of EnKash Olympus:

What are the different types of GST in India?

Central Goods and Service Tax (CGST)

State Goods and Service Tax (SGST)

Union Territory Goods and Service Tax (UGST)

Integrated Goods and Service Tax (IGST)

FAQ

What is the full form of CGST?

What is the full form of IGST?

What is the full form of SGST?

Who collects the CGST amount?

Who collects the IGST amount?

Who collects the SGST amount?

Who collects the UTGST amount?

What is the use of a GST calculator?

What is GSTIN?

Understanding the E-Rupee’s Progress and Challenges

Promoting Interoperability for E-Rupee Payments

Partial Interoperability Achieved

Ambitious but Feasible Target

CBDC and Existing Payment Systems

Use Cases for Digital Currency

Countering the Threat of Stablecoins

Conclusion