Best Accounting Software in India – 2020

The object of this post is to help you choose the right accounting software for your business.

Content

• What is Accounting Software?

• Why do I need an Accounting Software?

• What are the types of Accounting Software in the Market?

• Which are the Top 8 Accounting Software in India?

• What is the tentative price of Accounting Software in India?

• How do I decide which accounting software is best for my business?

The need of accounting software has now become more necessary than ever as the tax laws have become more complex, Bookkeeping has been mandated by the government and the companies strive to get all their work done sooner, better and get better business. There are a number of accounting software that are coming up in India and hence we decided to do some analysis on which could be the best and the most ideal fit for your business.

What is Accounting Software?

Accounting software is an application that helps you keep track of your receivables and payables in business, helps you understand your profitability, and provides you a statement of affairs so that you can make the right financial choices for your business.

Why do I need an Accounting Software?

Apart from helping you understand your financial progress and make some key decisions, Many Tax Authorities have also made it mandatory to keep the books of accounts in order and hence it becomes even more important to use accounting software.

What are the types of  Accounting Software?

There are two types of Accounting Software.

• Desktop Accounting Software

• Cloud Accounting Software

Desktop Accounting Software is standalone Accounting Software and are good to use if you only have one user using the software from one computer. Aka, Only your accountant who enters data into the computer and all other processes are manual.

Which are the Top 8 Best Accounting Software in India?

The following list of Best accounting software for small businesses.

• Reach Accountant

• Xero

• Tally

• Zoho Books

• Quickbooks

• Vyapar

• Busy Accounting

• Marg

Choosing the right software is a big challenge for businesses as the software should be business-specific and have all the features that help in managing the activities of the business smoothly and effectively. Let us discuss each software in detail 

1. Reach Accountant 

Reach is the only Accounting software which suits 21 business end to end. It is customized cloud-based software that can be used instead of multiple software as it has a number of functions integrated into it. Since it is cloud-based there is no investment to be made on expensive hardware. It has all the accounting features, inventory management, invoicing, customer management, reminders, Mobile App, Whatsapp, etc. The features of the Accounting software are

• Dashboard

• Inventory

• CRM

• Billing & Invoicing

• Repair management

• Accounting & Tax management

• Purchase management

• Multi-currency

• Multi-branch

• Mobile App 

2. Xero Software

Xero is a small business accounting software that has all the features that can help to grow the business. It automates all the tasks which enable them to get the accounting done faster. The main functions in the software are it automatically categorizes all the bank transactions and gives a real-time picture of the exact cash flow. The reports generated are very useful and also the reminders help in getting the payments easily. 

The features of the software are 

• Inventory

• Invoicing

• Payroll

• Multi-currency

• Quotes

• Reporting

• Purchase management

• Project management

• Mobile App 

3. Tally ERP 9

A tally is software that grows with you. It can help in managing multiple companies. It can help in getting things done fast and easily. The main features of the software are 

• Invoicing and Accounting

• Inventory

• Reports

• Cash flow management

• Taxation 

4. Zoho Books

Zoho is an affordable cloud-based accounting solution for small businesses. It manages your finances, automates business workflows, and helps you work collectively across departments.

The features of the software are

• Invoicing

• Estimates

• Billing

• Inventory

• Banking

• Customer management

• Purchase / Sales management

• Projects

• Reporting

• Mobile App 

5. Quick Books 

Quick books is a modern accounting management tool that helps to manage the business. The software is equipped with powerful invoicing features, payment reminders, sales, and inventory tracking, auto banking resolution, and easy navigation interface. 

The features of the software are

• Accounting

• Invoicing

• Mobile App

• Multi-user

• Free unlimited support

• Time tracking

• Cash flow management 

6. Vyapar Software

Vyapar is well-known accounting software for small businesses. It has all the features required by the business which can automate the activities and help the business owner focus more on the development of the business. 

The features of the software are 

• Accounting

• Invoicing

• Inventory management

• GST

• Bank and Cash accounts

• Auto backup

• Reporting 

7. Busy Accounting software

Busy is one of the top accounting software that features multi-currency accounting. This opens up the option for globalized companies that have branches worldwide. Centralizing financial accounting has become much easier with this advanced feature. 

The features of the software are 

• Financial accounting

• Inventory management

• Billing & Invoicing

• GST

• Sales/Purchases management

• Document management

• Reporting 

8. Marg ERP 

Marg ERP is a process management software that helps to take care of all the activities of the business.

The features of the software are 

• CRM

• Financial Management

• HR & Payroll

• Inventory Management

• Manufacturing

• Supplier and Purchase Order Management

• Quotation & Estimates

• Transport / Fleet management

• Warehouse Management

• Quality Management

• Employee Database

• Multi-Currency payment processing

• Sales and Distribution

• Accounts payable

• Accounts Receivable

What are the tentative prices of  Accounting Software in India?

Cost of Implementing for 1 User 

• Tentative prices in 2018. Check respective websites for the correct cost
• Cost of Implementing for less than 10 Users 

• Tentative prices in 2018. Check respective websites for the correct cost 

 Cost of Implementing for more than 10 Users  

How do I decide which Accounting Software is best for my Business?

Though it is always helpful to have a list of Accounting Software available in the market, there is no single Best Winner. Your choice of Accounting Software should depend on which one is best for you.

Ideally, the Choice of which Accounting Software is best for your business should depend on the following Questions:

1. SCALABILITY: What do you expect the Accounting Software to do? Do you want the software to automate your sales, billing, inventory, CRM, etc, or just accounting? 
2. EASE OF USE: Who all are going to use the software? What is their capability to learn and use new tools?
3. PRICE: What is Your Budget? 
4. ACCESSIBILITY: Will your software be used within your office or do you have multiple branches?
5. FEATURES: What are the key features which you think are mandatory for your business? Which ones are optional? Which ones are not needed?
6. BUSINESS SCOPE: Are there any features that are too specific to your business only? Can that be achieved?
7. SUPPORT: What kind of training would you and your users prefer?

Lets now evaluate the best accounting software in India on the above parameters:

SCALABILITY: ( ERP Vs. ACCOUNTING SOFTWARE)

Be clear on what you expect this software to do, If you only intend to buy a software which can be used only by your accountant for bookkeeping, simple accounting software like Quickbooks or Zoho books will do. However, If you want the software to be used by your sales team, purchase team and warehouse, etc, then you will need a full-fledged ERP like Reach Accountant or Tally.

Also, choose software that gives you the option to customize your requirements as you scale. Reach Accountant, Tally, and Odoo have the option to customize.

EASE OF USER: ( Easy Vs. Functional )

Think of your employees who are going to use the software before you make a  choice for your business. If the software is too complex for them to learn, it would be very difficult for them to adapt and they might reject the software

If you only intend to use the software for accounting by one user and that user is already trained in software like tally, it’s good to buy the same. Otherwise, Quickbooks is basic and easy to use. If you need a fully functional software which is also easy to use, Reach Accountant fits in well

PRICE: ( Free Vs. Functional )

Never hesitate to pay for software which can deliver what you expect and do not choose an accounting software only because it’s free.

ACCESSABILITY: ( Cloud Vs. Desktop )

In case you have more than one branch to manage, Choose a cloud software over a Desktop Software. This will help you save investment in servers and also protect from fear of losing data.

BUSINESS SCOPE: ( Generic Software Vs. Made for your Business )

In case your business has some very specific needs which is generally not available in generic software, make sure you choose a software that is made specifically for your business.

SUPPORT: ( Online Vs. Doorstep )

Make a choice of software based on which type of support and training suits you best. If you are comfortable with online training and support, software like Reach Accountant, Quickbooks, and Zoho works best.

If you need a person to come to your office for support, you will have to choose software like tally or other software that has a partner or vendor locally.

Before you buy accounting software for your business, be clear on what you expect the software to do and visualize how you would want your business to function after you buy a software. Evaluate each of the discussed 7 functions vis-a-vis every software and make a choice based on what is important to you!

Karishma Abbas

Hi, this is Karishma here, a commerce graduate with more than 10 years of work experience, the latest being a Global Financial Analyst with a Software company. My experience as an Analyst has driven me to write blogs for Reach