importance of ratio analysis

IMPORTANCE OF RATIO ANALYSIS

Ratio analysis is a very important factor which is useful to understand financial statements of the company, current position of the company, efficiency in business operations, etc. And, most importantly ratio analysis helps investors to understand the performance of the company so that important decisions can be taken. Ratio analysis can be easily done through software like tally.

Ratio analysis is done by studying data from current & previous financial statements to understand the financial performance of the company. This is useful to know whether the company is growing or not? 

There are many such uses of ratio analysis so in this blog, we will understand the importance of ration analysis in detail.

ratio analysis

 

(1) Helps in analyzing the financial statements: Ratio analysis helps us to understand the financial statements of the company and these financial statements are very important for the stakeholders of the company. By ratio analysis, it becomes easy to understand the comparison of these numbers and it also helps to estimate numbers for the income statements and balance sheet of the company.

(2) Efficiency of the company: By ratio analysis the owners will be able to know the company’s ability to generate the profit. It also helps to understand whether the company is running efficiently or not.

(3) Planning & Forecasting: Ratio analysis helps the management to understand and estimate the company’s future financials. And later it is used for budgeting and planning the future of the business, it means in which direction business has to move and how it has to forward toward the growth.

(4) Identifying Risk: There are many unforeseen risks involved in the business and ration analysis helps in understanding these risks and thus management will be ready to take the necessary actions in advance to avoid the risk or mitigate the effects of risk. Financial ratios like Interest coverage ratio, Debt coverage ratio helps the management to know how much company is dependent on the external capital sources and it also helps to know the  company’ ability to repay debt.

(5) Peers comparison: The management and investors often do the comparison of the company with the peers to know the profitability of the company, market share of the company, etc. Ratio analysis helps to perform SWOT analysis of the company. It also tells whether or not company is growing or not and how much is the growth o the company compared to its competitors. Thus, a proper peer comparison can be done through ratio analysis.

So, these are the benefits of ratio analysis in the company. And, for ratio analysis it is advised to take help of the various softwares available in the market fort that work. And, when ratio analysis is concerned the best software for ratio analysis is undoubtedly – Tally. It is a very effective software that helps company to carry out ratio analysis and also helps in decision-making process of the company by providing various statements that assist in proper decision-making. 

Whether you are in India, UAE, Bahrain, USA, everywhere tally will be very helpful for your business so it is very much advisable to start using tally for your business.

By Team 0 Comments
benefits of inventory management software

BENEFITS OF INVENTORY MANAGEMENT SOFTWARE

Inventory management is a very critical and important thing for every business and if you have a business with multiple product lines where each product line needs segregation, you can do it with the tally software. And, Tally is considered as the best software for inventory management.

In this blog, we will let you know the benefits of inventory management software.

inventory management software

(1) Efficiency and productivity in operations: When you store goods it means you are investing your money and this money gets locked up in the stock and you can’t spend this money. So, if you want to keep the cash flow positive then there should be efficiency in managing the stock. And, cash is one of the most important parts of the business. 

In businesses like pharmaceutics, health, beauty, and many other businesses the product needs to be sold or disposed of before it gets expiry because once the products get expired the products become useless and all the money invested in the stock gets wasted. Thus, it is important to have inventory management software for your business for having efficiency and productivity in the operations. 

(2) Minimize costs and maximize sales & profit: When you have a multi-channel business where sales is done through online and offline modes then you need to manage these sales channels effectively and the goods sold through these channels. Inventory management software allows you to decrease your carrying costs like storage fees, insurance, taxes, theft, etc.

(3) Integration of the entire business: In your company, if your sales staff finds a lead and creates a sales order then the inventory management software lets the entire company know about it and work accordingly to fulfil the sales order. The finance department can later issue the bills for the dispatched sales order. 

(4) Automation of manual tasks: In present days if you do all the data entry tasks and calculations of all the purchase orders manually then you will be lagging behind from all your competitors because today ‘Time is Money’ and thus every firm uses software to make their tasks easy. 

(5) Reducing inaccuracies: Inventory management is not an easy task thus when you try to carry out these inventory management tasks manually then there will be many chances of inaccuracies happening in the business. So, if you start using inventory management software then it will automate all the data recording and tracking processes and thus all the work will be error-free so it is very much important to adopt inventory management software in your business to reduce/remove inaccuracies from the business.

These are the benefits of having inventory management software in your business. And, Tally is considered as the best inventory management software because, with inventory management, Tally also helps in efficient planning and management of the business.

Green FX WLL situated in Bahrain offers high-end TALLY Customization to its clients in Bahrain and many other countries, and it also offers Customized Softwares, Training & Development, and related services. If you want any requirement regarding tally than you can Contact Us.

By Team 0 Comments
tips to manage accounts receivables efficiently

TIPS TO MANAGE ACCOUNTS RECEIVABLES EFFICIENTLY

Accounts receivables mean the money that is yet to be receivable by the customers. Till the money is paid it is treated as account receivables, it is also known as bills receivables. For the smooth running of business operations, it is necessary that account receivables are paid on time.

Account receivables are one of the key sources of cash flow. Inefficiency in managing accounts receivables can impact business severely and also affect the growth of the business. So, it is very much important to manage the accounts receivables efficiently in your business.

tips to manage accounts

In this blog, we will let you know the tips to manage the accounts receivables efficiently.

(1) Keep clean track of bills: For managing the accounts receivables effectively you should keep a clean track of the bills that are treated as accounts receivables. For this, you should keep track of each sales invoice and the respective receipts, it will help in easy tracking of accounts receivables.

(2) Keep attention on long-pending bills: The longer the payment sits as accounts receivable, the longer it will block cash inflow in business, and later it may also turn as bad debt which will result in the loss of the company. So it is very important to keep a close eye on the long-pending bills.

(3) Tracking the payment performance of your customer: Payment performance of the customer means the average number of days the customer takes to pay the bills, it is also known as debtor collection days. The higher the debtor collection days, the higher business has to invest cash to its unpaid accounts receivables. And, the lesser the debtor collection days means the lower cash have to be made available to use. In simple terms, if the customer takes more days then the cash shortage may result thus higher cash is to be kept in business. So the debtor collection days should be less i.e. faster payment should be received from the customers.

Therefore, it is very important to track the payment performance of the customers so that you can know which customer makes timely payment and which customer makes always delay in giving payment, and based on that you can make a plan accordingly to handle these types of customers.

(4) Make a collection schedule and follow up: You should make a schedule for collection from the customers and also follow up. By this, you can build pressure on your customers and receive the payment early. You can also remind your customers by sending them emails with full details regarding their order and the amount that they have to pay and the due date for making their payment.

(5) Use accounting software to manage your accounts receivables: By using accounting software you can track bills easily and fast, also you can maintain the whole work systematically and can remove the errors. Using an accounting software saves your time and effort which you spend on manually dealing with the accounts receivables. Thus, it is very much advisable to use accounting software like tally which can manage your accounts receivables efficiently.

Green FX WLL situated in Bahrain offers high-end TALLY Customization to its clients in Bahrain and many other countries, and it also offers Customized Softwares, Training & Development, and related services. If you want any requirement regarding tally than you can Contact Us.

By Team 0 Comments
how covid-19 has impacted businesses around the world

HOW COVID-19 HAS IMPACTED BUSINESSES AROUND THE WORLD?

After the outbreak of Coronavirus, all the businesses suffered very much due to this. Whether it is manufacturing business, transport business, marketing business, every business has suffered severely due to this pandemic and occurred much loss in their business. 

Companies and businesses are hit by the rapid spread of corona and the revenue of this businesses falled more than 50% and some companies revenue was even NIL because in majority of the countries like India there was total strict lockdown for almost 2 months so there were no economic activities taking place during these times which affected the businesses severely.

how covid 19 has impacted businesses

It is estimated that due to Coronavirus impact the world economy has suffered a loss around 1 Trillion dollars, and that’s a huge number which have not occurred in past anytime. In UAE, India and all around the world the effect of Coronavirus is not limited to few sectors but it has affected almost all the sectors of the economy.

According to a report, between 10th January and 16th March, the 6 major stock exchanges around the world witnessed a decline of average 26%. 

Coronavirus pandemic has not affected only selected industries but almost all industries however the magnitude of impact may vary from sector to sector. But there are 5 sectors/industries that have been most affected due to this pandemic all around the world.

These 5 sectors are: Aviation industry, retail sector, financial sector, realty sector, and automobile industry. These sectors are suffering most severely due to this pandemic. 

After these sectors, small businesses and startups are the most hit due to this pandemic and according to a report due to Coronavirus pandemic and lockdown around 50% to 70% startups are closed in this period. And, the owners of small businesses are also very much affected due to this pandemic and many are facing difficulties to meet their ends.

The COVID 19 pandemic has hampered the economy all around the world as a result of which major industry leaders also have lowered their forecasted revenue for the upcoming quarters. However, the governments of all the countries are taking steps to curb the economic effects caused by the Coronavirus by taking various economic steps and announcing economic packages to help the businesses. And also all countries are now opening up and economic activities are also coming back on track slowly so it is hopeful that the world economy will be back to the track not immediately but slowly it will be surely back to the normal.

By Team 0 Comments
IMPORTANT FEATURES IN TALLY FOR A MANUFACTURING BUSINESS

IMPORTANT FEATURES IN TALLY FOR A MANUFACTURING BUSINESS

In manufacturing business, there are a lot of complicated tasks like tracking of goods from raw material to finished goods. And, due to these reasons, it becomes very necessary to maintain software that tracks the movement of all the goods. But, choosing software is also a difficult task and you may be thinking about which software to use, but there are very few software that tracks the inventory and helps in business operations.

Tally.ERP 9 is one such software that tracks your stock, cash-flow and maintain various other information like your employee records. The features like these will help you to gain insights and overview the situation of the business and take corrected actions if required.

In this blog, we will let you know some of the most important features of tally which are very useful for a manufacturing business.

  1. Handling all type of goods: The users can easily record the raw-materials and their consumption for finished goods or semi-finished goods in tally. They can also group the stock and then check the stock according to their group, it enables ease of maintaining information and you can access the data very easily when you require it.
  2. Inventory Management:  In manufacturing business, the stock keeps moving from one place to another but with tally you can track moving stock across the different locations. It also keeps the track of stock that is lying in third party locations and most importantly you can also calculate the valuation of your stocks through various methods like FIFO, LIFO.
  3. Reverse Charge Mechanism: Normally in a manufacturing business reverse charge has to be applied every time when goods are purchased from an unregistered dealer. These self-invoices can be directly generated from Tally.
  4. Cost Centres: Tally software has also provisions for cost centres so the owners can allocate costs to the cost centres. They can also identify employees as cost centres to tag any cost associated with them.
  5. Batch-wise expiry: In many manufacturing businesses, sorting of the stock is done as per their expiry date to avoid stock getting wasted. Tally software helps to sort the inventory according to its expiry date and thus it can be assured that the stock is not wasted.
  6. Business reports: With the help of tally you can get all the business reports like profit and loss statement, cash flow report, balance sheet, etc. These reports can give a clear picture of your business so that later you can take important decisions through these reports. 
  7. Quality Control: In manufacturing business, it becomes very important to pay utmost attention to the quality of the end products and not onlyend products but all the raw materials, semi-finished goods need to be up to the quality standards. So tally has a solution for that also because it gives option to check the products as per pre-defined quality standards/criteria.

So, these are some of the important features of the tally for manufacturing business and it’s also been used by many manufacturers to make their work easy and fast. Basically, Tally is a complete business management software which should be used in all types of business as it makes the work super easy and provides efficiency in the businesses.

Green FX WLL offers high-end TALLY Customization to its clients in Bahrain, and it also offers Customized Softwares, Training & Development, and related services.

 

By Team 0 Comments
THE 5 FEATURES OF TALLY

THE 5 FEATURES OF TALLY THAT CAN INCREASE YOUR BUSINESS EFFICIENCY

Tally is a software that helps to speed the accounting processes of your business and with efficiency. It tracks cash flow, revenue calculation and many more things for your business by also keeping your financial information and other confidential information safe. 

Tally software has been designed to fulfill the requirements of your business and tally also can be customized, extended and integrated as per your need of your business, so that it totally suits your business and efficiency can be achieved in your business. 

Following features of tally can increase the efficiency of your business:

  • Details of transaction: This software drill downs every detail of your business transaction. It helps in accounts classification, business incomes & expenses, bank reconciliation, etc. It supports all major types of file transfer protocols, that can help you in connecting files across various locations of your business.
  • Financial analysis & management: Tally is a software that is very much useful in undertaking financial analysis and management. Tally provides information about receivables, cash flow statement, etc. 
  • Helps in Taxation: Tally also helps in calculating right taxes to be paid by the business which helps in the timely payment of the correct amount of taxes so that any penalty can be avoided.
  • Easy set-up & Easy to use: Tally is a very easy to set up software and also very easy to use software, it has been designed & developed to simplify the daily transactions taking place in the business so that the operational efficiency can be achieved. It helps in providing comprehensive solution for your business.
  • Helps in Payroll: The tally software helps in payroll management, it offers the functions like employee groups, attendance management, timely salary payments, and also other complex payroll calculations.

 

So, these are the features that can help to increase the efficiency of your business. Tally software is very much useful and has various in-built features that helps in meeting various needs of your business. And, these features will help you to speed up your business processes and help take important decisions quick for your business. 

Green FX WLL offer high end TALLY Customization to its clients in Bahrain, also Customized Softwares, Training & Development and related services.

 

By Team 0 Comments
ADVANTAGES OF USING TALLY IN SMALL BUSINESSES

ADVANTAGES OF USING TALLY IN SMALL BUSINESSES

ADVANTAGES OF USING TALLY IN SMALL BUSINESSES

Tally is software has made accounting calculations very simple, it is now part & parcel of all businesses. Small enterprises believe that Tally software saves a lot of time, and also provides accuracy and carries out different transactions.

Manual transactions are very time consuming that’s why tally is being used in almost all the organizations. By use of tally the chances of error are reduced to a great extent. Tally has many features that are really blessings for business.

Some Major Advantages of using Tally in small businesses are as follows:

  1. Payroll Management: While disbursing salaries to the employees, several calculations are to be done, tally helps in maintaining financial record of the company that includes net deductions, taxes, bonuses, and net payment.
  2. Data Reliability & Security: The data that is entered in tally is reliable & secure. There is no scope of tampering or altering data, after being entered in the software.
  3. Regulation of data across different locations: Tally can be used to manage data of the businesses globally. It brings together all the branches and does calculations for the company at large. So it doesn’t matter which location an employee has access, it will be uniform throughout.
  4. Ease of maintaining a budget: Tally helps to manage expenditure of companies with a budget in mind. This ensures that the company does not indulge in over-spending.
  5. Audit tool for compliance: Tally acts as an audit tool as it carries out regular audits of companies. It does a thorough compliance check towards the beginning of the financial year and ensures all monetary transactions are smoothly being carried out.
  6. Remote access of data: With the help of tally employees can access financial data by logging in using a unique user id and password. 
  7. Quick Access to documents: Tally saves all important documents like bills, receipts, invoices, vouchers, etc in a folder. All the documents which were previously saved can be accessed quickly.

Thus we can say that Tally is really very useful for small businesses; apart from being cost-effective, it saves time and ensures accuracy in business management. It helps in digitalization of bills & signatures. So, tally can really be a blessing for small business.

By Team 0 Comments
Features To Protect Your Tally Data While Working Remotely

Features To Protect Your Tally Data While Working Remotely

Features To Protect Your Tally Data While Working Remotely

Due to COVID-19, almost all the businesses and their employees are managing from work from home. And, one point that should be considered upon is that how these businesses are surviving & tackling the various problems that arise regarding data safety & employee performance. 

If you are a tally user, we will let you know some features that will help you in this situation to improve your company’s overall performance.

1.Data Safety: Tally software is all about data & reports. Tally.ERP 9 contains very important data regarding your clients, stock, cash/bank details, etc. In the current situation, it may seem hard to rely on employees working from home on the tally with such confidential information.

Tally on cloud is the only way you can work from home with Tally. To keep you Tally data safe, ensure you invest in Smart Backup++ which will continuously backup your Tally data from time to time and inform you if there is any discrepancy.

2.User Activity: User activity management is important to improve the overall performance of the business. In the case of multiple users, accountability may not be possible and hence errors may be repeated over and over, causing loss to the business.

One way by which you can avoid the problem of multiple users in tally software is to use audit pro features. It helps you to see the entries made by each user. It also keeps track of every entry from creation to editing and to deleting. 

3.Data Entry Security Level: In this work from home situation, it may be challenging to control user activities. So, to limit the data access to users, you can set the Advance Voucher Type Level Security. It will help you to assign specific rights to every user. The user will not be able to view any other information which is not part of his/her assigned rights. This makes sure that data is safe and is being used only as per the role of the person.

4.Virtually Signed Invoice To Avoid Delays: One of the important challenges that arise by work from home is how to collaborate with different departments and get a signature from authoritative persons in the organization without wasting much time. One way of doing this is to ensure the signature is digital.

The digital signature mainly ensures the authenticity of the document as well as saves a lot of waiting time.  Digitally signed invoices can be mailed to the customers and hence time is not spent is sending the invoice through the post

It is very important for employees working from home, to take care of data security at all levels of the business hierarchy. So, these are some proactive measures a business can take care to ensure high productivity with high data security.

By Team 0 Comments
KEY ACCOUNTING REPORTS IN TALLY.ERP 9 FOR BUSINESSES

KEY ACCOUNTING REPORTS IN TALLY.ERP 9 FOR BUSINESSES

KEY ACCOUNTING REPORTS IN TALLY.ERP 9 FOR BUSINESSESReports in business are very important; reports help to manage day-to-day business operations efficiently. Tally.ERP 9 provides many important results. Tally reports are developed to suit all the aspects of accounting management, inventory management, and statutory. 

Key Accounting Reports in Tally

1.Cash Flow/Fund Flow: The Cash flow report in Tally is useful to get a view of cash inflow & outflow during an accounting period. This report makes it easy for business owners to understand the cash flow situation for a specific period and helps make decisions. 

The fund flow report in Tally provides the details in the sources of funds and their net flow status monthly.

2.  Ratio Analysis Report: The ratio analysis report is a powerful report for financial analysis. The multiple ratios of the report provide us a clear understanding of the financial position of a business. These are Debt Equity Ratio, Quick Ratio, Return on Working Capital, Return on Investment and so on. 

3.  Balance Sheet: The balance sheet gives a complete glance at the financial position of a business. The balance sheet shows the assets & liabilities of a company. The Balance Sheet can be configured using F12 configuration in Tally.ERP 9. It also provides a Schedule VI Balance Sheet for businesses. The Balance Sheet can be viewed for any given dates. Multiple valuation types are given for defining stock valuations such as FIFO, LIFO, Average Cost, Average Price and many more.

4. Profit & Loss Statement: The P&L report in Tally ERP 9 helps to show the company’s net profit or loss in a given period. The tally report considers the period starting from the date when the books begin to the entry date of the last voucher. This report can be configured with F12 configuration available within the report. 

5. Inventory Reports: The stock summary report displays the current position of stocks or stock in hand for a particular date. With the help of this report, a businessman can view item-wise rates, quantity and value of stocks available. The report also shows the status of stocks available across the various godowns. By this, the owner can see the net stock position by considering purchase & sales orders which are yet to be processed.

6. Stock Ageing Analysis Report: Stock ageing analysis report helps businesses understand their slow-moving goods. This report in tally helps business owners to make decisions based on the procurement of stocks, or whether to liquidate stocks based on their age. 

7. E-Way Bill Reports: Tally gives comprehensive e-way bill reports to make life simple for users. By this user will be able to view transactions that have been exported for e-way bills, transactions that are yet to be exported for e-way bills, e-way bills that have already been generated. 

So, there are many reports in tally that help can help your business in financial analysis of your business in the easiest manner and take quick business decisions.

By Team 0 Comments
KEY FEATURES OF TALLY THAT BUSINESS OWNERS MUST KNOW

KEY FEATURES OF TALLY THAT BUSINESS OWNERS MUST KNOW

KEY FEATURES OF TALLY THAT BUSINESS OWNERS MUST KNOW

While running a business, you have to pay attention to each & every department of your org. and you have to continuously measure and control the activities to ensure the highest level of productivity.

Manually handling of all these work of business is next to impossible, it’s not practical also but fortunate we have computers so we don’t have to deal with physical files anymore.  To take away the burden from business owners, Tally.ERP 9 Software has some amazing reports that are helpful to almost every business type. These reports will help you to measure, analyze and implement control measures if needed. 

Reports in Tally

  • Balance Sheet: Balance sheet shows you the current position of the company. It shows assets & liabilities, which shows the financial standing of the company. 
  • Profit & Loss Statement: A profit & loss statement is also called statement of financial performance. It helps to survive the business and profitability of the same.
  • Purchase Register: Purchase register helps to show a summary of all the purchases made by the company at a specific period. 
  • Sales Register: A sales register shows summary of all the sales done at a specific period of time. It will help you to keep a check on the movement of the goods out of the organization; by this you can get insights about your best sold products.
  • Stock Summary Report: By this report, you can check the present condition of the stock. It will help you to understand how to optimally reorder stock without wasting it. 
  • Ratio Analysis: A ratio analysis report is an amazing tool to understand the financial position of the company. Different ratios give you a clear understanding of the financial position of the company. The ratios like debt-equity ratio, quick ratio, etc are available in tally. 

Security and Control Features in Tally

  • Tally Vault: Tally Vault keeps data encrypted, only when you enter a password, the data can be accessible. With this feature, you can ensure your data is not being accessed by any unauthorized person.
  • Hide data path: In Data path your tally data is saved in default Tally, your data path is visible to the user. Some businesses may see this as a threat to their data and may want to hide the location of their data. In such businesses, Tally Server 9 can be used to get higher levels of security.
  • Data Report and log: With the help of this feature you can monitor your employee’s activity and you can ensure work efficiency. The more you are aware of the day to day activities of your employees, the more you will be able to execute control measures to improve their performance.

These are some of the important features in Tally that every business owner must know; these features will make the work of owners easy & comfortable.  

By Team 0 Comments
Posts pagination
Send a Message