As you read this, there would be someone setting up a small business in some part of the world. More small business equates to more competition, which means business owners of this age, need to spend as much time as they can get on planning and orchestrating their business process- to be successful. While most of the work in a normal business environment can be delegated to someone, most business owners would want to keep their accounting to be transparent and visible to them at all times. Besides the business owner, the financial advisors and the accountant would need access to the company's financial facts at all times. With desktop accounting applications, the access to the data is in most ways restricted to people who are within an office network. Online accounting software, like Zoho Books, lets you carry your financial data across the globe. Providing access to your accountant or financial advisor at the click of a button.
In double entry accounting systems, a group of accounts is used to categorize all your financial transactions. The single thumb rule is that each transaction entered should show the total debits being equal to the total credits. When you see your bank statements and the way debits and credits are worked out in your accounting software, you may feel that it is reversed. But that isn't the case. Your statements carry the summary of transactions from the bank's perspective; for instance, a credit of $1000 into your bank account will be recorded as a debit in your accounting system. The bank statement however, will show a credit of $1000. The reason for this is that, to you, the bank account is an asset while to the bank, your account is a liability. So a debit into your account, would credit the bank's liability account. If you have trouble understanding, debits and credits, don't worry we have you covered on this one. Zoho Books automatically works out the debits and credits based on your selections. So you won't need to worry over which accounts you will be crediting and which accounts you will be debiting.
For Zoho Invoice users, as your business grows the natural course of progression, we perceive for you, is a move over to full-fledged accounting. But the big question is how ready are you for accounting as against just only invoicing. The answer is simple, need is the key to making the choice. Answer the questions below and you'll know it yourself.
If you said yes to all or most of those question, then your move to Zoho Books is inevitable. In any invoicing software you capture how money comes into the business in the form of your invoicing and how you spend money in the form of your expense. The missing piece here is, where you route the money coming into your business or your income and the money moving out of your business or your expense, isn't captured in invoicing. While accounting software do exactly that, when there's a sale you can route the source of your income to the Sales account. Similarly when there are expense you can associate that expense to a specific account, like Internet Expense or Telephonic Expense. This just means more visibility into your business funds.
For the benefit of Zoho Invoice users, we provide a simple migration option. This works at the click of a button. The migration tool sets up a brand new Zoho Books organization with your data, settings and templates in it.
If you are working between two different physical locations of your business, Zoho Books can become a single unified place where all your business transactions converge. If you've ever wondered, what happens if someone is accessing the same form?, the answer is simple, Zoho Books saves entries made by all users, the latest being what you will see. Small business owners are ambitious and often have very less time at hand. We understand that boggling your mind completely with your accounting isn't the route you'll choose. While most of your accounting is handled simply by entering your day to day transactions into Zoho Books, you must reach out for assistance from an accountant for specific parts like posting entries to balance your accounts, generating and analyzing reports and of course at tax time. Zoho Books makes it extremely easy for you to share your accounting data with your accountant. All you have to do is simply invite your accountant as a user onto your account.