How to Keep Your Business Accounts Simple and Effective

Running a small business is tough, especially when it comes to managing your accounts. Many business owners feel overwhelmed by terms like "profit and loss", "GST returns", and "cash flow". But don’t worry! In this article, we’ll break down some simple ways to manage your business accounts using billing software and accounting software to grow your business.

1. Why Should You Manage Your Accounts?

Managing your accounts using accounting software helps you keep track of how much money is coming in and going out. It shows you whether your business is making a profit or a loss. Here’s why it’s important:

• Better Decisions: Knowing where your money is being spent helps you make better business decisions.

• Saves Time: Proper billing using billing software helps you to create GST invoices and other taxes easily, saving you time and stress.

• Business Growth: Understanding your profits and expenses helps you plan for business growth and expansions.

2. Start with a Simple Accounting System

You don’t need to be a Chartered Accountant (CA) to manage your books. Start with something simple:

• Keep a Record of Sales and Expenses: Every time you make a sale, record it on software. Similarly, whenever you spend money on business expenses, record it.

• Use Billing Software: Many local businesses are switching to billing software like Vyapar App. It helps you easily record sales, track expenses, and even generate GST invoices. Plus, you don’t need any special accounting knowledge to use it!

3. Understand Basic Terms

Let’s break down some common terms that every business owner should know:

• Profit and Loss: Profit is what remains after subtracting all expenses from your sales. If expenses are more than sales, it’s a loss.

• Invoice: An invoice is a bill you send to your customers when they buy something.

• GST: Goods and Services Tax (GST) is a tax you need to charge on your sales. If your business is registered for GST, you also need to file GST returns regularly.

• Cash Flow: This is the amount of cash (money) your business has at any given time. It's important to ensure you always have enough cash to run your business smoothly.

4. Regularly Check Your Accounts

It’s a good habit to check your business accounts regularly. Set aside some time at least once a week to review:

• Sales: How much have you sold this week?

• Expenses: What were the major expenses?

• Payments Due: Do any customers still owe you money?

Doing this will help you catch any issues early on and avoid any cash shortages.

5. Filing GST and Other Taxes

If your business is registered under GST, you need to file your returns on time to avoid penalties. Accounting software can help you generate GST-compliant invoices, and some even remind you when it’s time to file your returns. If you’re unsure about taxes, consult with a local tax advisor or your CA.

6. Tips to Keep Your Business Financially Healthy

Here are some simple tips to keep your business finances in good shape:

• Don’t Mix Personal and Business Money: Always keep your personal expenses separate from your business expenses.

• Save for Emergencies: It’s always good to have a financial cushion to handle unexpected expenses.

• Keep an Eye on Your Stock: Use software or a notebook to track your inventory. This helps prevent overbuying or running out of stock.

Conclusion

Managing your business finances doesn’t have to be complicated. With a bit of discipline and the right tools, such as billing software and accounting software, you can easily keep your accounts in check. Remember, the more organized your accounts are, the better decisions you’ll be able to make for your business’s future growth.

Start today with small steps, and soon you'll be managing your business accounts like a pro!

Article written by

Yashwant  Lalaseri

Sr. Marketing Executive

Vyaparapp.in

Simply Vyapar Apps Pvt. Ltd.