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Online Accounting Software Small Business Accounting

Accounting Software for Manufacturing Businesses

Essential functions of accounting software 

Running a manufacturing business is no easy feat and is very challenging to manage. With lots of uncertainties in the demand, production difficulties, fluctuating of raw material pricings becomes very tedious to manage production effectively without affecting profitability. It is very important to keep accurate track of production costs and understand which products are making profits and which ones are not making enough revenue. Fortunately there are modern accounting apps like myBooks which makes it very easy to manage manufacturing business with limited resources. These apps not only makes it seamless to manage your books but also help in manufacturing aspects of your business. 

myBooks functions for Manufacturing Business 

One of the primary aspects of the manufacturing business is the production itself. It involves the actual production of goods. It is very important to record the raw materials consumed, production costs involved in the production to accurately determine the cost of produced goods.   

Production Orders 

myBooks lets efficiently manage and accurately determine production costs with the production order. It is a very simple transaction to document the raw materials consumed and production costs incurred. Finished goods produced and costs of the produced goods will be automatically calculated with this information. Additionally, inventory management is directly integrated with production orders, it will automatically keep track of inventory stock for raw materials and finished goods. Further, it is possible to manage batch/lot of serial numbers for produced goods. 

Selling & Procurement 

Selling produced goods and procuring raw materials is critical to any business, not just the manufacturing business. myBooks manage this efficiently with the least amount of time required to manage them. You can create sales orders, deliveries, Invoices with a click of a button. While creating these documents, you can accurately determine the stock available for these materials once sold, inventory will be reduced and pricing will determined based on the FIFO( First-in First-out ) Stock movement. Similarly procuring goods for the business is also very easy. You can create purchase orders and purchase bills to procure from your vendor. Once bills is created, inventory will be automatically increased based on the purchase bill. 

Profitability Tracking 

Primary business for-profit business is of course profitability. myBooks will let you easily manage the profitability of the manufacturing business by automatically capturing costs involved in the transactions and determine the profitability of every sale. For every sales automatically calculates the cost of goods sales automatically you can run the order profitability report to automatically determine the gross profit of the orders. Additionally, you can also run the profit & loss by-product, you can accurately determine the profits of every product that has been sold and identify the most and least profitable products. Also, you can profit & loss report by the customer as well.  

As you can see myBooks lets you manage every aspect of your manufacturing business additionally it also manages regular aspects of accounting like expenses, reporting, etc with the least amount of time. myBooks is designed to be used by busy business owners with little or no training required. Check out myBooks for your business today with a free trial. 

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myBooks

How to Manage Price Lists in myBooks

Simple Effective way to managing pricing list for various scenarios 

Pricing lists are ways to provide custom pricing for products and services based on scenarios like seasonality, bulk quantity, etc. Remembering the different pricing options and billing them may be manageable for a tiny business, but as the business becomes bigger, it becomes next to impossible to manage pricing without a systematic way.  

Keeping a list of pricing and referencing it the old school way is equally cumbersome and tedious to manage. With modern billing apps, it is very easy to manage pricing lists quickly and easily. It is possible to maintain different pricing scenarios effortlessly, furthermore while creating invoices these pricing lists will be automatically applied without any need for manual intervention.  

Pricing can be applied for following scenarios in myBooks 

  • Contact Group/Category-based pricing – This will apply for pricing when contact belongs to a specific category like wholesale/ retail. Additionally, you can keep separate pricing for specific contact as well.  
  • Item Group/Category based pricing –  This will apply different pricing when the billed items belong to a specific category or group 
  • Time – If you want to provide special pricing for the festival season you can do so by applying a time filter  
  • Quantity – When the billed quantity exceeds a certain limit you can apply this pricing.  

Also, note you can combine these scenarios to apply the pricing as your business requirement may require. Please see the screenshot below from myBooks.  

Pricing Specification 

Next, it is very easy and seamless to specify the actual pricing itself.  You can apply the pricing based on markup or markdowns or actual whole amounts themselves. Additionally, along with pricing, you can also specify the discount that should be along with pricing itself.  

Markups or Markdowns 

Instead of specifying the pricing for each item in this pricing list, you can just apply markup or markdown on the existing sales price. For eg, when the quantity sold is above 100 units you can apply a 10% markdown on the retail price etc. Similarly, markup can also be applied based on the filter criteria that you specify. This method is easy to set up instead of individually specifying the item prices. 

Whole Amounts 

Another way of applying price is by providing the whole amount for each item for which price list is applicable. This method is useful when you want to price with a specific amount for the pricing condition. For eg Corporate clients can have specific amounts based on the agreed pricing. This method will be useful for those scenarios.  

Additionally, it is possible to provide discounts for both types of pricing methods. The discount will be automatically applied on Invoices when the condition is met. In addition to this, you will also see what pricing applied whiling the amount.  

So as you can see myBooks makes it very easy to manage pricing list for variety of business scenarios simple and easy, further incase you want to disable a price list temporarily you can easily do so with a simple switch in the pricing list. As a business owner, you can provide flexible pricing for your customer easily and seamlessly. Please sign-up myBooks today, Click here for helpful resources on pricing lists. 

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myBooks Online Accounting Software

Inventory Management with myBooks

Learn more about the inventory management capabilities of myBooks 

myBooks has fully functional inventory management built right inside accounting software, you will not need a separate app or software to manage your inventories. Stock movement will be captured seamlessly inside myBooks. Additionally, it has FIFO(First-in First-out) costing method for inventory stock automatically. You will get accurate costing details for stock movements. Read further to understand the complete functionality of myBooks inventory management.  

Setting up Inventory 

Setting up Inventory is very easy inside myBooks. While creating your products or items inside myBooks, You can set a flag to automatically track inventory. Additionally, you can also set opening balance stock quantity 

Also if you have a lot of opening stock, you can easily upload them through a file upload.  

Goods Receipt 

Managing inbound inventory is seamless with myBooks. Whether you procure or produce your inventory, tracking your inbound stock is very easy. For eg, if you are procuring stock from an outside vendor, you can easily create a purchase bill, with the inventory stock and price you are purchasing it for. myBooks will automatically increase the quantity in hand in addition to that. It will also track the purchase price of that stock with accurate FIFO costing.  

In case you are producing the stock in-house, you can easily create a production order to track the produced inventory. Select the raw materials consumed for the inventory and manufacturing cost involved in the production. Also, enter the finished goods produced, myBooks will automatically calculate the cost of the finished good and also increase the stock quantity in hand.  

Goods Issue 

Also, outbound stock movement is also effortless to track with myBooks. You can create deliveries or invoices with deliveries to record the stock movement outward. While creating invoices, myBooks will automatically show the stock in hand. Additionally, it will also accurately calculate the cost involved in the sale, you can see the actual profit for each invoice that you are selling. Further, you can also create standalone deliveries without invoices to track the outbound stock movement.  

Stock Adjustments 

myBooks additionally have inventory adjustment functionality to adjust the stock easily to update lost or expired inventory. You can create inventory adjustments for stock increase or decrease easily in myBooks inventory adjustments. 

Inventory Reports 

It will be like flying blind without details reports to keep track of inventory. myBooks offers robust reporting capabilities to track Inventory. It has an inventory summary report and inventory details report. 

Inventory Valuation Summary 

This report shows the inventory stock balance as on a specific date, also the value of the inventory stock as per the FIFO method.   

Inventory Valuation Details 

Inventory valuation report will show the detailed stock movements with cost and sales price over the period of time. You can track when the inventory was purchased or produced and when it was sold also at the price.  

As you can see you can manage your entire inventory seamlessly with myBooks and track the inward and outward movement of stock as you make the transaction without any separate effort to track the inventory. Additionally, the profitability of inventory stock sales also could be tracked easily with FIFO costing method built right inside myBooks. Please try out myBooks today! 

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Online Accounting Software Small Business Accounting

Best Alternative for Vyapar Accounting App

Check out the best alternative option for Vyapar accounting app in PC, iOS and Android 

First Vyapar is a good accounting app available as desktop accounting software and mobile accounting app on Android. However, it is not yet available in iOS and Web versions. Check out here best alternatives for Vyapar Accounting App. We evaluated on parameters whether it is available on all platforms like Web, Android, and iOS. Also, the app should support inventory management, full sales, and purchase transactions in addition to that it should be cost-effective and affordable to be managed by small and medium businesses. 

myBooks 

myBooks accounting app is an excellent accounting solution for small and medium-sized businesses. First, it is completely online software so you can access it anywhere and anytime. Additionally, it has excellent mobile apps for android and iOS App. Further, it supports multiple users to operate the account with different access levels, So you can provide access to create billing for billing users without exposing sensitive data. Also, it comes full inventory management, estimates, purchasing transactions all from a single application. Making it an excellent alternative for Vyapar accounting app for platforms in iOS, Android, and PC. myBooks is very affordable for even very small and micro businesses, making it the most viable alternative for Vyapar accounting app. Read more about myBooks accounting app and why it is an excellent alternative Vyapar App. It is very easy to use and can be used by business owners and other staff without training or accounting background. It has a very good user interface which is very easy and fun to use. It has advanced features like pricing lists, customized user roles, etc. It is cloud-based accounting software with no need for additional backup. It integrates with payment providers to receive online payments. Additionally, you can connect your bank for easier to fetch your bank transactions and reconcile them against myBooks.  

Tally 

Tally accounting software is also a good accounting solution. It is one of the most-used accounting software in India. It has fully functional desktop software with mobile add-ons. It supports inventory management and other accounting functions. However, it requires good knowledge to operate the software. Often accounting degree or prior training is required to operate the software. Additionally, the user interface is complicated or outdated compared to other modern cloud accounting software. The further frequent backup may be required to avoid data loss due to system crashes.  

Zoho Books 

Zoho books is a very good cloud-based accounting software and a good alternative for the Vyapar app. It is available for web, Android, and iOS. It supports all functions of accounting, sales, and purchase for small and medium businesses. However, it is very expensive compared to other accounting options available in the market. Zoho books also integrate with 3rd Party apps like payment gateways and banking etc.  

Our recommendation will be to try out myBooks, it is the best value for the money and has all the best features required for small and medium-sized businesses. Check out myBooks for a free 30 days trial here.  

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Business Budgeting

HOW THE ART OF BUDGETING IN BUSINESS ACCELERATES GROWTH

The business world has an appeal, unlike any other sector. For this reason, people all over the world are taking it up as an occupation and never have they ever regretted it.

There are individuals from the service class, who have decided to establish a business on the side.

Some people have willingly left their six-figure salaries to start their business, making it their full-time occupation.

Then there are the people, become envious of the business minds because they did not have the confidence themselves to take that leap.

I am sure you must be able to relate to at least one of these scenarios, either yourself or through someone in your acquaintance.

Have you ever wondered why?

There are a few reasons;

  • The businessman earns much more than an employee.
  • The businessman can decide what his establishment will progress into in the future.
  • The businessman has more control over the operations than an employee.

Zeroing in on control, the control over the finances and the budget of a business is one of the most critical aspects of business management.

Let us scrutinise this concept.

What is Business Budgeting?

You must be familiar with the term budget.

The household budget is a concept that is followed by every adult.

Why do we follow it? It is because it helps us to manage the expenses and establish a set pattern for our spending, which in turn makes our financial situation better.

If a person can do it and can have a semblance of financial stability along with it, then don’t you think a business should have it as well?

If you think so, then you can consider yourself wise.

Business budgeting works on the same principle as household budgeting. It helps the business in planning every minute detail of its expenses, monthly, bi-annually or annually.

The thing to remember about a business budget is that it is flexible. It can accommodate surplus and deficits and anything unexpected.

Budgeting for a business can be altered at any time. The business owner has to keep in mind that the alteration is necessary and not just done for the sake of it. The latter would ruin the purpose of the budget.

How does it Help a Business?

Coming to the benefits of a budget, there are too many even to count. So I won’t also try to. However, I will tell you the three most significant ways business budgeting helps the owner.

  • Avoids Unnecessary Expenses

The prime benefit of a budget is that it helps the business and its owner in avoiding any and all expenses that can be avoided.

This would be better understood with an example.

Suppose there is a hospital, which has a budget of a million pounds for half the year. It cannot go beyond that level of expense.

Since hospitals today flourish on innovating cutting edge technology, the head of the hospital is bound to get a lot of requests for innovations and their funding.

Even though the head knows that all of the pitches for improvement in the hospital’s ability to treat patients are worth considering, he cannot accept all of them.

If he does, he will go through the half-yearly budget in a single month.

Therefore, a budget constraints the spendthrift in all of us, which in turn ensures the business does not suffer losses.

  • Ensures You Always have a Safe Amount

Through business budgeting, you and your business will always be prepared to deal with any unforeseeable events and not let them be catastrophic for you.

It is because a shrewd and well thought out budget will always include a contingency fund. This fund holds a significant proportion of money that;

  • can be used in a financial crisis;
  • can be used to pay for the expenses that the budget did not include;
  • and can also be used to pay for unexpected mechanical failures.

At present, this fund has become the Holy Grail for businesses and governments alike.

If you are thinking about the size and scale of the contingency fund, let me make the decision easy for you.

The British Government sets its contingency fund at 2% of the total budget; do you think your business should follow the same strategy?

  • Accommodate the Needs of Every Department

Lastly, budgeting will never allow room for any shortages in any of the areas of your business.

It is a well-known fact that a business has varying aspects, ranging from designing and manufacturing to marketing and sales.

All of these departments have different requirements in terms of expenses. So, they would require different amounts to be allocated through the budgeting process.

If you have ever seen a government budget, you will find that depending on a country’s needs. The various ministries are given different amounts.

Healthcare, education, infrastructure and defence are usually assigned more funds because they are priority sectors.

Similarly, for a business working capital, which is responsible for the day-to-day operations of the business, is prioritised over all the other departments.

Consequently, the business operations work smoothly without any glitches.

Winding Up

Now, all I want to say is that making and following a budget is hugely pivotal in modern times.

When a business is managing its finances properly, everything else will start falling in line quickly.

The consequence? The business owner will have only one focus then, and that is to make the business grow to exponential heights.

Let me end by saying that budgeting is so important that it can convert loans for unemployed into a lucrative venture. Do I have to say anymore?

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Small Business tips

5 important COVID-19 lessons for startup owners to get crisis ready in future

“A big business start’s small” – Richard Branson

Truly said by Richard, in order to get big, a business owner has to make some small smart steps that can take his business towards success. Well, these steps can only be considered to be in the right direction if the leader of the company has made all his research and learned from the lessons taught by the market and its survivors.

 

Looking at the current situation, when all the conventional businesses have come to a halt and are facing downtime due to COVID-19 lockdown, there are still some ventures having a swift flow in their business revenue. Well, these are the enterprises that have foresighted to be prepared for such situations and took some preemptive measures by learning from the past economic history.

 

Analyzing these businesses and studying the changing market scenario, below are some lessons curated for the small business owners to help them make their startup stronger enough to deal with such critical situations in the future. 

Business learnings for startup owners from COVID-19 pandemic 

  • Digitization is the basic business need

With the government imposing social distancing orders on the citizens, the only businesses having an online presence are the ones having hope for their business to at least earn or keep themselves operational in one or the other way. Taking about the e-commerce market or apps like food delivery or grocery deliveries, these niches are the ones that took over the market and the only reason behind it is the online availability of their business and the easy access to their services. 

 

Taking this as a note for the newbie owners, making the right investment in the digital infrastructure indeed becomes important for better survival in the future market. Try to focus on making an online presence of your business through marketing, making your services available to people irrespective of their geographic location by developing an app, or a website or uploading your products to online stores. 

 

  • Flexible business plans 

It’s very important for a business to have a plan and a business model, as that is what defines the base of business operations and goals for its workers. But as there is no fixed formula to success, there is no assurance that the same business models would work in every situation and time. 

 

Defining a flexible business model that could be mold based on the situation and would help make the business more profitable than before is what we call smart business planning. 

 

Learning from the example of Zomato, the food delivery app has reformed its business model based on the COVID-19 lockdown situation and has added grocery delivery and other essential delivery services to keep up the business rotation as the delivery of food was currently not operational. The exceptional thought of the Zomato team is a thriving representation of their flexible business model which helped them survive even during the crisis. 

 

  • Re-skilling the workforce in a different environment 

The workforce is an asset to any business. In order to make any business stronger, it’s essential to make sure that the team working behind it is ready to work in any situation or environment. 

 

The lockdown made many businesses and their employees to work from home and adopt a way of working they have never experienced before. Taking the lesson from the difficulties that these businesses face in terms of coordination and productivity, it’s a hint for the upcoming business owners to enact such training programs for their employees which help them work under any critical environment.

 

Doing this, the employees working with the company will develop such skill sets and practice which help them continue with their work irrespective of the situations around and keep the business moving. 

 

  • Forecasted disaster plan

Well, this is something every business owner should add to their list while planning to start their business. Disasters and uncertainty are a part of today’s lifestyle, so accepting it as a new normal, a business owner should always have a separate plan for situations like today. 

 

Whether it’s about money, employee welfare, business failures, or natural destruction, having an action plan for it could help the business owner to make quick decisions as per the thoughtfully created disaster plans. This would also help them to face lesser drawbacks due to the conditions in comparison to what they could have faced in the absence of such plans. 

 

Following this, many SMEs are achieving 90% business productivity even in the pandemic, as they have already calculated their challenges and have planned for the necessary solutions whether in terms of technical support or employee wellness.

 

  • Best opportunities come during the crisis 

Have you ever noticed that our mind works faster in the time of trouble? Yes, the changing situations make a person think about the alternatives to do the work to maintain his/her existence. This is the period which makes us aware of the problems we would have never thought of otherwise and carve out some innovative solutions that could change the business’s future. 

 

Talking about the current crisis, the new delivery solutions like drone delivery and the surging new app features for contactless delivery services are a symbol of the innovations that have evolved due to critical situations around the world and are acting as a solution to the problems that people are facing during these hard times. 

 

So it’s a tip for the startup owner, to always look at the crisis as an opportunity to learn or develop something new and implement it for the business and community welfare.

 

Summing Up

Building a company from scratch is indeed a task where even experienced entrepreneurs strip down, as the only thing that can help these aspirant startup owners is perseverance, innovative thought, and the continuous lessons for the outer world. 

 

The above-mentioned pointers are real learnings for a newbie owner. Planning and working while keeping these factors in mind can prove to be very beneficial for any business owner and his team to fight against any odds like the COVID-19 epidemic in the near future. 

 

Author Bio:

James Vargas is an experienced business expert, consultant, and manager at Get Everything Delivered, startup consulting, and team building services. He has 1.5-decade corporate experience and is tailoring the best project delivery and team training practices to the businesses and startups to generate great revenue for their business.