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Accounting Software in India

Accounting Software in India manages transactions across modules like payables, receivables, payroll, and taxation. India is a burgeoning market for this software due to a surge in small and mid-sized businesses. The country’s dynamic economy and growing reliance on digital financial solutions drive this trend.

Best Accounting Software in India

  • SAP Concur
  • Xero
  • NetSuite
  • TallyPrime
  • Sage

List of Best Accounting Software in India with Reviews

Last Updated on: February 25, 2024

SAP Concur Verified

SAP Concur, a leading global provider of integrated travel, expense, and invoice management solutions, offers a free basic accounting software product for small businesses in India. The software provides key accounting features like invoicing, expense tracking, bank reconciliation, and financial reporting in an easy-to-use interface. As a free tool, it gives Indian small businesses an affordable way to computerize their accounting processes and reporting. With SAP Concur’s reputation as a trusted global brand, small businesses can feel confident their data is secure. The free software delivers an excellent starting point for Indian small businesses looking to manage finances without high software costs.

Free/Paid

1993

  • For Government
  • Billing & Invoicing
  • Billing & Invoicing
  • Workflow Management
  • Tax Management
  • Payroll Management

Xero

Xero offers free accounting software for small businesses in India to help manage their finances. The easy-to-use platform includes features like invoicing, expense claims, bank reconciliation, and financial reporting. Xero integrates with banks in India for seamless data syncing. The free plan allows users to connect up to 2 bank accounts, track up to 20 contacts, and create up to 5 invoices per month. Upgrading to paid plans unlocks more features like inventory management, payroll, and unlimited invoices. Overall, Xero provides an affordable accounting solution for Indian small businesses to simplify their financial operations.
Free/Paid

2006

  • For Government
  • Multi-Currency
  • Expense Tracking
  • General Ledger
  • Fund Accounting
  • Financial Reporting

NetSuite Verified

NetSuite offers Indian small and medium-sized businesses a free trial of its powerful cloud ERP platform, which includes a comprehensive set of accounting capabilities. With NetSuite, Indian companies can automatically handle core accounting processes like general ledger, accounts payable, accounts receivable, and financial reporting. The unified system provides real-time visibility into financial data and eliminates spreadsheet chaos. NetSuite’s free trial gives growing Indian businesses access to enterprise-class accounting tools so they can efficiently manage finances without upfront software costs. The platform scales with business needs.
Free/Paid

1998

  • Accounts Payable
  • Income & Balance Sheet
  • Workflow Management
  • Fund Accounting
  • Billing & Invoicing
  • Payroll Management

TallyPrime

TallyPrime is a free accounting and inventory management software designed for small businesses in India. It offers core accounting features like invoicing, payment tracking, bank reconciliation, and financial reporting. TallyPrime simplifies GST compliance with e-invoicing, e-way bills, and returns filing. The software provides inventory management tools for tracking stock levels, orders, and deliveries. TallyPrime’s mobile app enables business owners to access their accounts on-the-go. As a made-in-India solution, TallyPrime caters specially to Indian SMEs with localized functionality.
Free/Paid

1986

  • Inventory Control
  • Asset Valuation
  • Audit Trail
  • Depreciation Tracking
  • Barcode Scanning
  • Custom Reports

Sage

Sage understands that managing finances can be daunting for small businesses and startups in India. That’s why we offer simple, user-friendly accounting software at no cost, so you can focus on growing your enterprise. Our free tools help track income and expenses, generate invoices, manage inventory, and gain insights into your financial position. Whether you’re just getting started or looking to switch from spreadsheet accounting, our intuitive, cloud-based software has you covered. Sign up now to streamline accounting and unlock valuable time and resources.
Free/Paid

1981

  • Real-time Visibility
  • Asset Lifecycle
  • Maintenance Scheduling
  • Compliance Tracking
  • Mobile Access
  • Alert Notifications

What is the type of Accounting Software used in India?

The significant types of accounting software used in India are:

  • Online/Cloud Accounting Software: These are browser-based or mobile apps where the software and user data are hosted on remote servers accessed via the Internet. Examples include Tally.ERP, Zoho Books, Intuit QuickBooks, etc.
  • Desktop-based Accounting Software: This software is installed and runs locally on the user’s personal computers or office network. Examples include bills.com, BUSY accounting software, Marg accounting software, etc.
  • Entry Level Software: Affordable options suited for basic bookkeeping of small businesses. Examples are Wave, Pandle, etc.
  • Midmarket ERP solutions: Comprehensive software designed to cater to the needs of expanding businesses operating across multiple locations. Some notable options include SAP Business One, Oracle Netsuite, and Microsoft Dynamics.
  • Industry-Specific Software: Customized Software for specific industries like manufacturing, trading, retail, services, etc. Examples are Fishbowl, Infor Cloud ERP, RMSpade, etc.
  • Freeware: Free but limited functional accounting software. Open-source options like Golden Simple Accounting and GnuCash are preferred.

Within these categories, online/cloud accounting software has become the most popular in India due to advantages like accessibility from anywhere, affordable prices, automatic updates, collaboration features, etc. Both desktop and cloud options are widely used across small, medium, and large Indian enterprises.

Features of Accounting Software India

  • Recording Transactions: Most accounting software allows users to easily record transactions like sales, purchases, expenses, income, etc., in predefined accounting transaction templates.
  • Charts of Accounts: A standardized chart of accounts makes it easy to categorize all financial transactions under income/expense, assets/liabilities, equity/capital, etc.
  • Financial Statements: Popular accounting platforms in India automatically generates financial statements like balance sheet, income statement, cash flow statement, etc., based on recorded transactions.
  • Payroll Management: Dedicated payroll modules help in bulk employee salary processing, tracking leaves and attendance, and managing statutory deductions like PF, TDS, etc., as per Government of India compliance.
  • Tax Computation: Software helps calculate tax on income, TDS, service tax, GST, etc., for businesses by integrating the latest Indian tax slabs and rules. E-TDS returns filing is also supported.
  • Account Receivables and Payables: It helps record and track customer invoices and supplier bills, implements credit control policies, and maintains cash flow reports.
  • Bank Reconciliation: Automatically reconciles bank statements with a book of accounts to avoid discrepancies.
  • Inventory Management: Features like different stock valuation methods, item tracking, procurement & sales accounting help businesses manage physical stock across multiple locations.
  • Customizable Reports: Users can generate P&L statements, balance sheets, income and expense reports, trial balances, etc., and customized reports per their requirements.
  • Multiple Currency Support: As businesses expand globally, a multi-currency feature helps manage accounts and translates financial statements across Geographies.
  • Online Collaboration: Cloud-based accounting software allows multiple users to access real-time data concurrently from any Location.

Benefits of Accounting Software Used in India:

  • Improves accuracy and efficiency in managing accounts and finances.
  • Provides easy access to financial data anytime, anywhere.
  • Automates routine tasks like invoicing, billing, and expense tracking.
  • Enables real-time reporting and financial analytics.
  • Ensures compliance with regulations and standards.
  • Scalable solution that grows with your business.
  • Improves collaboration between finance teams with shared data.
  • It helps identify areas to cut costs and optimize cash flow.
  • Integrates with other business systems for seamless data flow.
  • Secures financial data with controls, permissions, and audit trials.

Limitations of Accounting Software India:

  • The learning curve involved understanding the software interface.
  • Upfront license or subscription costs for commercial applications.
  • Limited features in some free or basic versions.
  • Reliant on constant internet connectivity for cloud software.
  • Steep implementation costs if custom modules need to be developed.
  • It is only helpful for some of the accounting needs of a tiny business.
  • Software upgrades may disrupt existing data and processes.
  • Vendor lock-in risk if you want to change accounting software brand.

How to Choose Accounting Software India?

Consider business size, accounting processes, costs, and growth plans when selecting accounting software suited for your business.

Evaluate Features like:

  • Billing & invoicing
  • Payroll capabilities
  • Inventory management
  • Financial reporting
  • Integration with GST, TDS

Check ease of use, reliability, support availability, and online reviews for options. Some factors to consider are:

  • On-premises vs cloud-based deployment.
  • One-time setup costs vs recurring subscription fees.
  • Team collaboration access for accountants & advisors.
  • Customization potential to suit unique processes.
  • Scalability as business grows over time.
  • Compliance with Indian accounting standards.
  • Integration with banks, GST portals, and accounting advisors.
  • Data security backup protocols of a cloud provider.
  • Usage-based or user-based pricing structures.
  • Trial version or free essential plan availability.

Shortlist options: check the complete demo to ensure it meets 80% of your near-term needs with the potential to scale up. Take references and consult advisors to make the right choice.

Frequently Asked Questions on Accounting Software India

What is the average cost of accounting software in India?

Cost varies based on features, number of users, and deployment choices. Essential desktop software starts from Rs. 5000 per year. Entry-level cloud ERP costs ~Rs. 3000/user/year. Mid-market ERP can range from Rs. 10,000-30,000 per user annually.

How do I install and set up Accounting Software?

Follow the setup wizard provided by the vendor. Download software/purchase subscription, configure system settings, chart of accounts, masters, taxation rules, etc. Import/enter opening balances and customize reports/forms. Take demos or guidance from the vendor support team.

Can I use Accounting Software without accounting knowledge?

With basic bookkeeping and GST knowledge, you can learn to use accounting software for day-to-day transactions. For advanced functions like financial reporting and accounts analysis, getting help from an advisor or accountant is better.

Which is the best free Accounting Software in India?

Some options are Marg Software, Easy Accounting, KashFlow, etc. They are great for essential functions but have limited features and users compared to their paid counterparts. Always check the privacy policies of free tools processing financial data.

Can I export bookkeeping data from one software to another?

Most accounting packages allow data import/export in standard formats like CSV, XLSX, etc., to switch between options. However, advanced functions like customized master files may need reconfiguration while migrating to a different brand.

How can I get GST returns from Accounting Software?

Leading ERP tools offer natively integrated GST return filing features. Users need to ensure books are updated monthly. The software captures sales and purchase transactions and generates e-returns in formats accepted by the GSTN portal.

What reports can Accounting Software generate?

Typical reports include trial balance, profit & loss statement, balance sheet, payments & receipts summary, outstanding invoices/bills, bank book, sales register, inventory valuation, payroll payouts, etc. Plus, the generation of customized reports as per requirements.