Service Providers

Accounting of Service Oriented Business

The nature of services business is different from trading and manufacturing businesses. Services oriented organizations provide services which can also be termed as intangible and do not deal in goods, which require any inventory management system. The services-oriented organizations usually hire highly skilled staff members to provide services to their customers and need to track the work assigned to these employees, status of their work and their performance.

The primary objective of the services businesses is to provide services and receiving payment. Some of the services are provided on continuity basis, in accounting terms these are called Recurring Transactions. These transactions may recur / repeat on weekly, monthly, quarterly or annual basis. Sound online accounting software having repeating transactions feature can be a best companion in saving the hassle of recording such transactions again and again.

In order to provide efficient services, create a professional image and achieve client satisfaction, service providers need to track every assignment received from the client. Such assignment (Jobs) may consist of various tasks, which may be assigned to different employees. Employees need to track tasks assigned to them and required a simple, fast and efficient mechanism (time-sheets) to update the status of each task along with time spent on the task and costs incurred (if any).

As far the expenditures of services providing companies are concerned, these also vary on the basis of activity of the business but they are part of business. Services oriented businesses generally expand rapidly which leads to not only starting new projects but also new businesses because of small amount of investment required in most of the business activities which represent services business. In such a scenario there are possible branches (multiple locations) to manage not only the operations but also accounting affairs of the newly opened branches/entities. A committed Online Accounting Software always comes up with contingency plan of how to manage locations and accounting affairs of location & projects. Efficient control on all projects running at multiple locations gives you a good control over financial aspects of the company. A good online accounting software allows you to update and approve jobs, time-sheets, expenses, bills etc. remotely.

What matters the most?

Well in services business, the small business owner should be considering control over cash & bank transactions, keep an eye on receivables, and remember the payment to be made to vendors. Proper and periodic count of cash available with the accounting professional, the second most important thing is the management of accounts receivables and with the help of right online accounting software this can be done with minimal human error-free mode and finally your Vendors are the best business partners, so keeping them happy is as important as managing your receivables.

Small business owner is usually the accountant of the company being the simple accounting setup, made simple by effective online accounting software. There are many Online Accounting Software designed for service-oriented businesses, but before taking this decision the small business owner should keep one thing in mind that the online accounting software is simple, user friendly, easy to use and has easy to understand the reporting mechanism.

The Solution

A cloud based, simple to use yet powerful online accounting software is key for smooth running of service-oriented business operations. TEZ ERP has all the features that are required for service-provider needs.

1. Complete Accounting: Powerful accounting system providing complete functionality of all key accounting features to track invoices, bills, receipts, payments right up to finalization of accounts with income & expense statements and balance sheet. It also has detailed tax management as per Indian tax laws for GST and TDS.
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2. Job & Task Management: Time management system for creating jobs with time deadlines. You can define tasks for each job and create templates for routine jobs for quickly creating multiple tasks. Jobs can be assigned one or more employees and employees. Employees can see the jobs assigned to them and update status of each job along with time taken for completing the task. They can also enter out-of-pocket expenses such as travelling, printing etc. Job managers can approve the time-sheets and expenses from their dashboard. You can track pending tasks by job, client or employee and take suitable action. Completed jobs can be billed on a single click.
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3. Billing system: Track jobs which have been completed but not billed and create invoices with a single click. This ensures that you do not forget to bill any job.
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4. Receivable Management: Receivable management system helps you improve the cash-flow in your business. Invoices can be automatically sent to customers through SMS, WhatsApp and Email, as soon as they are created. Automated alerts to customers, agents and accounting team simplifies the process of following-up on pending bills. Integrated payment gateway simplifies the collection process by allowing customers to make payments using debit card, credit card or net banking, and automatically creating receipts for successful payments.
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5. Analytics and reports: Track cost of each job based on the CTC of each employee and the time-spent by them on each job. You can analyse expected time v/s actual time spent on each job, amount charged v/s actual cost of the job, time spent on various clients and tasks by each employee, productivity of employees and profitability from clients.
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