You're running an online business, but your accounting is still manual! In Bangladesh, the number of digital entrepreneurs is not insignificant. In fact, there's a growing concern that more businesses are still maintaining accounts manually using books, diaries, or ledgers. However, running an online or e-commerce business means you need to keep pace with technology. Therefore, in the digital age, there is no alternative to using accounting tools or digital ledgers for managing online business accounts.
If you have a small or medium-sized business that you are running online, where and how should you keep your business accounts? Why should small businesses use an online accounting app for managing their accounts? Which accounting software is most suitable for online business accounting in Bangladesh? We will explore the answers to these questions in today’s discussion.
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Is it possible to keep online business accounts manually?
In the competitive world of online business, staying and succeeding depends on your hard work and the effective use of technology. Simply managing your business accounts in any manner will no longer suffice. It is crucial to maintain accurate records of all transactions on a single platform, easily and promptly. The significance of this straightforward statement is substantial. Here—
Easily managing business accounts means -
Managing business accounts should be so straightforward that you can do it comfortably without feeling pressured. This means moving away from chaotic handwritten ledgers or manually updating spreadsheets on a computer or cloud-based system. Instead, the process should be streamlined and organized, allowing you to maintain accurate records effortlessly.
Managing business accounts in less time means -
For managing daily online business accounts, a few clicks or taps will be sufficient. You can say goodbye to spending hours with pen and paper, calculating and recording accounts manually.
Managing business accounts in a timely manner means -
The benefits of instant or real-time online business account input and data usage include: You can update all your accounts anytime from your mobile device. There's no need to wait until the end of the day to update your accounts at home, in the store, or at the office.
Accurate records of all transactions means -
Maintaining accurate records of business transactions such as purchases, sales, profits, losses, and outstanding amounts, along with expenses like operational costs, delivery charges, VAT, taxes, and discounts. This means that all transactions related to your business will be accurately recorded on a single platform. You should avoid relying on complex or estimated representations of your business’s financials and focus on having precise and comprehensive records.
Meeting all these demands in managing online business accounts is indeed a significant challenge. In today’s business environment, you’re involved in so many aspects that traditional ledger books are no longer feasible. This is where digital ledgers or accounting software become essential. They are no longer just an additional tool but a strategic step towards business success.
Online Business Dynamics and Accounting Solutions
We all know that there are several differences in managing and accounting for an online business compared to traditional small or medium offline businesses. These differences make accounting apps even more necessary. By examining the specific aspects of online or e-commerce business management and financial transactions, it becomes clear why an accounting app is crucial for online businesses.
Today, doing business means being digitally and virtually active:
Small and medium online businesses are often not managed by physical shops, stores, or offices. Online businesses can be managed virtually from anywhere.
For example, many people run their businesses solely through a Facebook page. Others create websites for their businesses and connect them with various social media platforms to buy and sell products or services. Additionally, some individuals manage their businesses both through physical shops or stores and online.
Therefore, one thing is clear for online businesses: your digital and virtual presence is more crucial than your physical presence. That’s why you need to increase the use of digital tools like accounting software to become more digitally active.
In most cases, online businesses operate 24/7:
Online shops or stores are not restricted to the 8 AM to 5 PM hours; they are usually open 24/7. Customers can place orders, make payments, pay in advance, return payments or products, and inquire about product information at any time.
Therefore, there may be a need to update accounts at any time. This is where accounting apps become essential. Opening a ledger and writing entries manually at any moment is not a practical solution.
Incorporating Delivery Charges:
Every online transaction involves factoring in delivery charges, a complexity not commonly found in traditional businesses. An effective accounting app should seamlessly integrate these charges, ensuring accurate profit determination and financial transparency.
Crucial Role of Stock and Inventory Management:
The importance of stock and inventory management in business is immense. Orders from customers are based on the available stock or inventory, and in some cases, advance orders can be taken if inventory is well-managed. Imagine having an accounting tool or app on your mobile where you can view and update product stock or inventory with just a few clicks. It would streamline your operations and make inventory management more efficient and accessible.
Honestly, this is what you need! You can’t maintain these records with pen and paper, and even if you do, it will be incomplete.
Customer and Supplier Engagement:
Maintaining contact information for customers and suppliers, and regularly communicating through various channels, is considered a core aspect of business. While you may use multiple methods for this, having the contact details of your active or regular customers is particularly crucial. Keeping these contacts in one platform and updating them through an accounting app is the best solution.
Handling Product Returns and Re-orders:
Distinct from traditional retail, online businesses often face product returns and re-orders. Managing these processes manually, whether in writing or through spreadsheets, proves impractical. Accounting apps offer a straightforward solution, allowing seamless edits and updates to all accounts.
Diverse Payment Methods:
Online transactions involve varied payment methods, including half payments, full payments, or cash on delivery. Managing these diverse transactions requires meticulous record-keeping. An accounting app serves as a comprehensive repository, safeguarding customer records and transaction notes.
In conclusion, relying on manual methods for online business accounting is no longer viable. The evolving landscape demands sophisticated accounting apps or software that cater to the diverse needs of online business management and financial transactions. The question now becomes: which accounting app or software best addresses these specific requirements?
The best app for managing business accounts HishabPati
HishabPati is a bookkeeping software or app specifically designed for small businesses. The HishabPati app is available in both mobile and web versions. By installing the app on your mobile, you can update your business accounts from anywhere at any time. The app also works in offline mode, allowing you to input business accounts regardless of the situation.
The HishabPati app offers all the features needed by small or medium online business owners. The app can be downloaded for free, and its basic package is also available at no cost. If you find the basic package useful, you can opt for a subscription at an affordable price. To understand why the HishabPati app stands out for managing online business accounts, keep reading - 7 Benefits of Online Business Accounting in HishabPati
Don't wait, start using accounting apps now!
Most small or medium-sized entrepreneurs in this sector are not using bookkeeping software to manage their business accounts! This is somewhat disappointing for the growing e-commerce sector. However, the continuous record-keeping of transactions and employment has opened new horizons for Bangladesh's digital business era. While the rest of the world has embraced accounting software and tools to keep business accounts at their fingertips, why should you fall behind?
Choose an accounting tool or app today based on the scope and nature of your business. download the 'HishabPati' App and Make your online business more dynamic.
