Guide to Switching to Online Accounting Software

With the world advancing rapidly, everything in corporate companies is shifting to an online forum. And the finance industry is one of the top industries to evolve alongside this transformation. Although moving instantly from offline mode to online mode can be a daunting task but that is the requirement of the modern system. With every company relying on the accounting department, they need the latest and best accounting software in India to manage cumbersome tasks.

The key to deciding on online accounting software in India requires you to identify the requirements of your business. Do not jump on whatever looks attractive; do thorough research before opting for one accounting software. Below is the guide explaining how to switch to online accounting software in India.

Here are ten steps for a smooth transition to Online Accounting Software

Step 1-Your chart of accounts

The fundamental step is to determine the profit loss and balance sheet. If your business does not have the right layout, there will be no correct performance evaluation. Therefore, starting by mapping out what income, costs, assets, and liabilities you want on your balance sheet and sales report would be best. Now, all this begins by getting your chart of accounts up to the mark.

Step 2-Cut-off date

Make sure to choose the right time for the transitioning phase. Ideally, the end of an accounting quarter or financial year is the most appropriate time. Ensure there is enough time for software transition as per the size of the business. The training and complete transition may take a few months before the proper functioning begins.

Step 3-Clean up the records

Inadequate or useless data can cause problems during the transition phase. If there are any errors in the code or data, do the clean-up before starting afresh. Now you can either fix the issue yourself or call an accounting expert for the best project accounting.

Step 4-Shut down the old system

Once you finish the earlier phases, shut down the old system. Complete all your invoicing and the back reconciliations before closing off everything. If you are satisfied with the process, begin migrating to the accounting software.

Step 5-Match the old system & tax return

Before moving ahead, run a trial balance of the old system for the last financial year. Then, compare these figures from the tax return to the latest financial year. If there are differences, manage them yourself or call an expert in the accounting field.

Step 6-Migrate what is important

The next crucial step is to make the transition in the correct order. First and foremost, start with your chart of accounts, add contacts (clients and suppliers), staff and payroll details, and inventory information. Again, the best accounting software will make this migration effortless because of its various features.

Note: Introducing OneStop Accounting Software

Step 7-Make the tough decision

One of the crucial decisions is whether to import old data or start afresh. Unfortunately, the old data might not be compatible with the new accounting software. Get help from your accounting manager to avoid any mishaps. Do not undertake the task yourself because handling historical data can be a delicate process.

Step 8-Final check

Undergo a final check and see if any data is left to transfer. The balance sheet, profit loss, trail balance, unpaid sales, and purchase report must be similar in the old and new systems. Once you clear up all discrepancies, you are ready to go live. 

Step 9-Connect the bank feeds

Once you are ready with your online accounting software, ask your bank feeds to bring the bank transactions. These transactions must be from the migration date onwards. If unsure how to perform this step, ask your bookkeeper to assist with the problem.

Step 10-Final check

It is advised to run both systems parallel for some time. It could take weeks or months to settle down with the new accounting software system. The timeline may also differ depending on the size of the company. However, running the two systems simultaneously will allow you to run the diagnostic and analyze the results effectively.

Note: Benefits of OneStop Cloud-Based Accounting Software

Conclusion

As times advance, accounting software for small businesses or even large one is essential for every business’s exponential growth. However, there are many challenges that an organization can face after the final installation – for instance, security issues, understanding of the new application, data breaches, etc. You can tackle these problems by constantly working on learning the latest accounting software in India. Take control of your growth today.

Note: Cloud Accounting Software- Future of Financial Management

Bookkeeping/accounting is tedious and creating financial reports through the traditional ways is quite displeasing. To make the process easy, small and medium-sized businesses or even individual owners should opt for cloud based accounting software also known as online accounting software. It makes all the accounting processes smooth, easy, faster, and accurate and saves a lot of time.

BENEFITS OF CLOUD BASED ACCOUNTING SOFTWARE- ONESTOP

  1. GST COMPILATION – Compiling GST with every transaction is a lot of work, so is often ignored by many.  This leads to a lot of pending work but with onestop cloud-based accounting software, GST is applied to every invoice seamlessly and is synced with the GST portal.  Hence a lot easier and makes you anytime ready to file a return.
  2. AUTOMATION – When accounting is done manually or on the traditional software, you need to chase the invoices now and then. But by using cloud based accounting software, the whole process becomes a lot easy as one stop cloud based accounting software automatically generates notifications for invoices as well as sets the reminders from time to time or at regular intervals. In addition, one does not need to keep track of debtors. For example, combining payroll applications with the software will automatically generate the pay slips.
  1. WORK FROM ANYWHERE – For Online accounting software you just need an internet connection and the financial and accounting statements of the organization can be accessed anywhere- be it your home, the office, or any other place. Indeed, there is no need of maintaining spreadsheets or installing the software. Just log in to the account from any device like a mobile, laptop, computer, etc. and you can look at the financial statements/reports anywhere.

Also Read: OneStop Accounting Software for Small Businesses

  1. VALUE FOR MONEY AND ENERGY – Instead of appointing an accountant or paying a huge sum for the installation of accounting software, onestop cloud-based accounting software helps you to distribute the cost monthly, thus helping you in managing the cash flow of the organization. It also saves human efforts and errors thus saving a lot of energy by simplifying things.
  1. EASY TO USE – Online accounting software is specially designed keeping a layman in mind. OneStop Accounting Software is quite easy to use and guides you at every step. Therefore, one does not need special knowledge in accounting and finances to maintain the financial records of the organization. Anyone can use this software and can understand various reports and statements.
  1. ACCESS TO MULTIPLE USERS – The Cloud based accounting software let you provide access to multiple users. In an organization where work is done with the efforts of multiple people, and the same information is needed by different people, online accounting software helps. It makes the process quite hassle-free. A person just needs to add multiple people to the account and information is ready to be used by them.
  1. IMPROVED AND UPDATED INFORMATION – Automation of bank feed in the billing software helps in keeping the records and maintaining the track of the organization’s balance sheet in real-time. One can view updated reports and charts to glance at the current business finances.

Also, the onestop online accounting software is constantly updated by the in-house developers that you don’t need to call someone or do large efforts for its update, which saves time, money, and lots of human effort.

  1. SECURITY – The cloud-based accounting software saves data on a highly secured cloud server and is constantly backed up. So, even if the computer or main device gets destroyed or crashed, there is no need to worry as every single detail is saved on the cloud. Also, there is no fear of the data being hacked as the data is highly secured on a cloud server.
  1. EASY COORDINATION – By sharing the account details with your accountant, you can easily coordinate the day-to-day update in the finances. Also, you don’t need to call the accountant at the end of the year and give information at the end with lots of pending work and workload, as your financial books are maintained regularly.
  1. VIEWING REAL-TIME DATA – One Stop Cloud based accounting software links you and your business bank accounts and keeps you updated with the inventory, sales, and expenses regularly. That means you can view the data in real-time.

Read: How Online Accounting Software is better than Excel

These are just a few of the benefits of OneStop online accounting software and they are enough to make you shift from all those traditional methods of accounting to cloud-based accounting software. Overall, online billing and invoicing software simplify the process and makes the work easier and more pleasing. Also, saves pendency and a lot of time.

Why online accounting software is better than excel
Why online accounting software is better than excel

Excel for bookkeeping is the easiest option, as it provides all the free tools, one needs to keep track of personal finances, income, and expenses. However, is manually plugging in your day-to-day business transactions really the best option? No! Thankfully, there are plenty of accounting softwares available that can automate the bookkeeping process and
can save your time. Moreover, if the accounting software is cloud-based or online accounting software, it is like a cherry on top.

The online accounting software provides you with a personalized and customized solution to manage business finances.

Reasons to use Online Accounting Software over Excel

Excel spreadsheets can only be used, for basic accounting like tracking your income and expenses, organizing and categorizing transactions, and keeping up-to-date records of the invoices you send to clients. However, for all this too, you need a template that includes a transaction sheet, a chart of accounts, and an income statement sheet. 

Moreover, one needs to manually input the data, which is a time-consuming process. In addition, it is difficult to keep track of, all transactions, particularly if your business expands. Therefore, the best is to invest in online accounting software.

The Online accounting software makes accounting easy and error-free.  It provides professional and personalized assistance, as well as insights into your business performance. Here are some of the benefits that make cloud-based accounting software a better choice than excel.

Cloud-Based Accounting Software Over Excel

  1. Excel Is Complicated than Accounting Software – Excel sheets are complicated. There are hundreds of formulas in excel and they are not easy to execute. Moreover, entering these formulas manually leaves a high chance of error. Whereas in accounting software this work is automated making accounting error-free.
  2. Excel Sheets Have No Audit Trial -Excel sheets can be edited multiple times and there is no historical record of the one who has made changes and when the changes were made in it. Also, hunting down information about a transaction that has taken years ago in it is a task. So, all these can lead to mismanagement of companies’ valuable data and the loss of millions before even, you know it.

Whereas in online accounting software, a business can provide access to the designated users, and whenever anyone makes any changes the whole history is recorded. So, minimum chances of fraud and losing valuable data.

3. Making Excel Sheet Is Time Taking – Time is money! That is the fundamental rule of business. And, putting all transactions, and information in the correct format in excel or spreadsheet according to the company’s financial needs, making it error-free, working on formulas and calculations requires a lot of planning and time. Also, the accountant should have mastery of excel to improve the record-keeping of invoices and expense reports. Therefore, maintaining all transactions in excel is tedious and time-consuming. Whereas, the online billing accounting software helps in easy accounting, and one can get all the estimated results quickly.

4. Low Compatibility– Managing accounts in excel /spreadsheets means having a different sheet for each account and having a massive amount of data like that can lower the system performance. Sometimes, this can even lead to system breakdown. Moreover, an excel sheet does not integrate a few applications like inventory management, so you need a different platform for that. Whereas in online accounting software, data is on the web or cloud. So, system performance is never hampered. Also, billing and inventory management is integrated into cloud-based accounting software.

5. Excel Is Not For Collaborative Work – To make future business plans and forecasts, yearly financials reports, budgets, and expenses, businesses need to compile data from different departments. And, all this data is shared via mail, in an excel sheet. Each excel sheet has the personalized touch of an employee who has designed the sheet, which makes it difficult for other employees to take over the sheet and understand the thought process of the sheet’s design. So, consolidating data of all these sheets is quite time-consuming work, and every time one needs to go back and forth which looks similar.

Whereas in online accounting software, the designated people and department can enter, the details timely and the reports can be generated automatically anytime. Why you should use Online Accounting Software? In the above-mentioned list, we have discussed the pros and cons of using excel and online accounting software in business and how they can impact the business. Even, a small mistake in accounts can cost you millions. So, to make sure your business grows without error, business accounting software is a must.

Benefits of OneStop online accounting software

Read more on tips and processes to choose an accounting software online here.

  1. Cloud-Based Accounting– Cloud-based OneStop accounting software is easier to access from anywhere in the world. You can check real-time data and even make required changes through a shared system. Also, you can sync and integrate data from multiple devices.
  2. Automated Billing Procedure -The accounting software has an automated billing feature, so it decreases the scope for error. As the quote goes by “to err is human” and that is why machines do not make mistakes. The computerized automated billing process decreases mistakes and the workload on the accounting team.
  3. Range of Features- Online accounting software can make automatic invoices, inventory management, and purchase contract.
  4. Compatible and User-Friendly- The analysis reports, expense and annual financial reports, and charts can be easily made with accounting software. OneStop accounting Software has easy to use interface, so anyone with basic knowledge of accounting can easily manage their financades. Also, you can manage the accounts even on your smartphone on the go.

Conclusion

In this article, we have listed enough reasons why businesses should use online accounting software over excel. No doubt, excel is free for managing the accounts of a small business but an online accounting system has several more advantages over it. Additionally, it also helps you to analyze and grow your business.