As a business owner, you know first-hand how stressful it can be to run a business. And taking care of everything on your own only makes things tougher. Say you are running a web design company. Unlike a retail store, you don’t send out invoices and receive payments immediately. Instead, you have to set separate due dates for every invoice, keep track of how much each customer owes you and when their payment is due, follow up with customers who have yet to pay, reconcile bank statements, and draw up financial reports. As if this isn’t enough, you also have to settle your vendor bills and expenses on the side. This is just too much work.
What you need is a way to connect your bank transactions with your online accounting software. This allows you to have better control over payments, automate repetitive tasks, and manage your business’ bookkeeping and accounting process in a more unified way.
Businesses in India can solve this problem by using NEFT, RTGS, and IMPS bank transfers with Zoho Books. Bank transfers are one of the easiest and most popular ways to transfer money, because they are fast, secure, inexpensive, and reliable. They are not only used by businesses and industries, but also by anyone else who needs to transfer funds.
In this article, you will learn about the benefits of Zoho Books and how you can use it with NEFT, RTGS, and IMPS bank transfers to manage your purchases, sales, bank reconciliation, and financial reports.
Payables
With Zoho Books, you can make online payments directly to your vendors without having to log in to your banking portal. The status of the payment is updated automatically and you receive a notification once the payment is complete.
Zoho Books is currently partnered with two banks, ICICI and Standard Chartered, both allowing NEFT, RTGS, and IMPS transfers, apart from their individual bank transfers (ICICI Bank’s Fund Transfer and Standard Chartered’s Book Transfer). Zoho Books also allows you to set up reminders to notify you when it’s time to pay a vendor, so that you don’t have to keep track of which bill is due when.
Receivables
After you’ve taken care of your vendor bills and expenses, you can now get to work on selling your products.
Once you sell your products and send out an invoice, a payment link is included along with it. Your customers can click on the ‘Pay Now’ option and make payments. If you have given your customers access to the client portal through Zoho Books, they can log on to the portal, keep track of all their invoices, and make payments. Using both these options, your customers pay you through card, UPI, Netbanking, cash, cheques, NEFT, RTGS, and IMPS.
If they choose the Netbanking option, your customers can select their bank and log in to their banking portal to initiate a fund transfer.
If they choose NEFT and RTGS, they will be able to generate a challan to make offline payments. They can take this challan to their bank to have it processed. Every challan comes with the date of generation, a transaction ID, and the amount to be transferred. Once the payment reaches your account, you will automatically receive a notification in Zoho Books.
Reconciliation
The next step to receiving or making payments is reconciling accounts. Without using an online accounting tool like Zoho Books, you would have to go through each transaction recorded in your general ledger and your bank statement to make sure the amounts match.
With Zoho Books, your bank statements are automatically fetched. The system then automatically matches transactions that you have recorded in Zoho Books, with the appropriate entry from your bank statement. You can additionally set transaction rules to categorize each transaction into their relevant accounts in Zoho Books. This reduces the amount of time and effort you spend reconciling your accounts drastically.
Reports
Zoho Books keeps you updated on your business health with financial reports on your accounts, taxes, purchase inventory, and activity. These reports can give you a clear idea of how your business has fared in past years, as well as how it is doing now. Analysing and comparing the two will help you figure out what parts of your business are working well, and what needs a boost so that you can do better in the upcoming years.
Benefits
Here are some benefits to using NEFT, RTGS, and IMPS bank transfers with Zoho Books:
- Your reconciliation process is easier and smoother for transactions initiated in Zoho Books.
- When you are making or receiving payments, they are automatically recorded in your accounting records. You can save the time you would have spent manually updating each invoice or bill.
It can be challenging to run a business on your own. Managing your receivables and payables, updating your books, and taking care of mundane repetitive errands can seem like an endless tangle that isn’t always easy to sort out. When you’re feeling a little stumped, you could use a system that gives you a unified view of everything that needs to be taken care of, lets you automate most of the tasks that require effort, and always gives you an accurate view of how your business is doing. Combining NEFT, RTGS, and IMPS bank transfers with Zoho Books can help you untangle this mess and make running your business in the long run a little less scary. Take our accounting system for a spin for free and learn how it can help your business.