Introduction Capital is the major constraint for businesses, and the formal lending sector cannot fulfill the demand for capital by the MSMEs. If an MSME wants to grow and solve its cash crunch issues, they need to have monetary backing to expand its business. The credit gap in the Indian MSME sector stands at a staggering 530 Billion dollars. Therefore, you should look for the MSME loan scheme by the Indian government. MSME Loan Scheme: Increase Your Capital To Grow Your Business So, here are some of the best schemes that will help your MSME business to grow and expand beyond the horizons of your conventional wisdom. Therefore, here are the schemes you should look into: List of MSME Loan Schemes So following the schemes will help your MSME business soar to new heights! Also, apart from these strategies, you can use cash flow optimization techniques to increase your working capital. There are platforms such as CredFlow that will help you to optimize your money for better growth. Conclusion So these MSME loan schemes should help you to get a competitive edge in the market and make cash crunch problems reminiscent of the past. That said, MSME schemes will grow your business above and beyond expectations.
Tally ERP 9 Inventory Feature: A Complete Guide
Inventory management is the go-to feature of Tally that will help MSMEs to manage their inventory robustly. Through the Tally ERP 9 Inventory feature, businesses can maintain a track record of each aspect of product inventory. It will ensure the integrity of the product quantity and sales record. Auditing the KPIs of sales is merely matching the data from the ERP to recorded numbers by the teams — it makes business processes efficient. Moreover, it will result in better transparency of your books which will create a better culture in your organization. Likewise, you can ensure better decision-making with this feature because you have an automated system for maintaining a track record of inventory. Creating MoM growth statistics would be a cakewalk because you can access the historical data instantly. Also, it will make sure you have real-time reporting for all the inventory statistics. Why Inventory Management is Necessary for the Organization A lack of inventory management system will affect your supply chain management — resulting in poor business and cash flow. Along with that, subsequently, it will result in demand and supply issues in your organization. Thus, with platforms like CredFlow, you can significantly improve your cash flow and streamline your account receivables. How to Use Tally ERP 9 Inventory Feature So to use the inventory management feature of Tally, you need to follow some steps to use this feature at its maximum potential. Processes of the Inventory Management Feature Tally ERP 9 identified some vital processes that are critical for inventory management. So, through some use-case scenarios of inventory management features that will uplift your management operations and improve decision-making. Several use case scenarios and feature enablement are present in the Tally ERP’s documentation. Conclusion The inventory feature in Tally ERP 9 is necessary for small businesses if they want to manage their business processes efficiently. Thus, having robust inventory management software is essential to grow your cash flow and working capital.
MSME Schemes You Should Know About
Introduction The Indian government has launched multiple schemes for medium and small enterprises that will help them to boost their growth. As SMEs have gone through a rapid transformation due to the influx of information technology — they need to get on the bandwagon to remain afloat in the market. So, to fulfill the vision, GOI has launched MSME schemes that will affect their working capital to their inventory base. MSME Schemes for the Indian Businesses Indian MSMEs contributed 33 percent to the GDP in the fiscal year of 2022-2023. Thus, if the nation wants to be a 5 trillion dollar economy in the upcoming years, we have to invest in the schemes targeted for the MSMEs. MSME Schemes You Need To Follow Here are some of the schemes that, as an MSME, you should look out for to grow and support your operations: 1. Digital MSME Scheme: For the rapid adoption of information communication technology, the GOI has launched this government scheme that will boost the implementation of newer technologies in their respective organization. Therefore, it aims at raising awareness for the MSMEs to adopt and implement ICT technologies to gain an edge in domestic and international markets. All the MSMEs registered under the Udyam scheme are eligible for this scheme. Provision of subsidies and innovation schemes are made available for the easy adoption of the cloud infrastructure for MSMEs. So, a series of knowledge transfer sessions in the form of workshops are conducted to give more information about ICT to MSMEs. 2. Credit Guarantee Fund Scheme For Micro And Small Enterprises: To strengthen the credit lending system, the Government of India they have launched this scheme because the biggest woes of the MSMEs are due to the lack of credit within the MSME sector. SIDBI created a trust t that will help MSMEs to gain collateral-free loans for their business expansion known as Credit Guarantee Fund Trust for Micro and Small Enterprises. The package for the MSMEs is Rs. 2000 crore as part of the corpus fund. 3. MSME Cluster Development Program: The government of India launched this scheme for MSMEs to take the cluster approach for the development of this sector: a few of the MSMEs grouped based on similar characteristics. Therefore, it would make it easier to distribute technology for the MSMEs, and skill development will be easier because the individual needs are similar for each organization sharing similar characteristics. It will result in the formation of self-help groups, associations, etc. 4. Prime Minister’s Employment Generation Program: For every entrepreneur who wants to set up an MSME in the non-farm sector, it will be eligible for the bank-financed subsidy. Also, the margin money is only between 15 to 20 percent for projects up to Rs. 50 Lakhs in manufacturing and Rs. 20 Lakhs in the service sector. 5. National Skill Development Corporation Scheme: In this government scheme, all the MSMEs registered under the MSME Act are eligible for various courses and counseling. Therefore, it will help in upskilling the existing MSMEs and make them globally competitive. It will create a holistic environment for growth. These are some of the schemes launched by the Indian government which you can take advantage of and make your business globally competitive. Conclusion So Indian government is pretty serious about the upliftment of the Indian MSMEs. They can pave the way for the trillion-dollar economy India Inc. wants in the upcoming future.
Why Do You Need Tally On Cloud
Introduction Tally is the most used accounting software in the Indian subcontinent, with roughly 7 million users. There are numerous advantages of Tally ERP 9 — from streamlining account receivables to inventory management, you can do it all with this platform. So, Tally is an integral part of your organization that holds the most crucial information about your business, but why are you putting essential records at risk? Therefore, further in this article, we will discuss why you need Tally on the cloud. Wrap Your Business Data in the Safety of the Cloud With an ERP, all the data storage is on the local server, which puts your data at risk. Therefore, you need to back up your Tally ERP data to the cloud to ensure the integrity of your business data. Thus, it is the prime reason for implementing Tally on Cloud for your business and ensuring zero hiccups in your daily operations. Moreover, through platforms like CredFlow, you can get unlimited Tally cloud storage that will secure your business data. Make WorkFlow Easier With Tally on Cloud As you implement Tally on Cloud, workflows become seamless as the information is available throughout the ecosystem for easier workflow. Automate the processes that will reduce your dependency on Tally. There are zero work interruptions due loss of Tally data. Also, finance operations will never suffer due to the lack of information or data. Benefits of Tally on Cloud So, having your ERP backed on the cloud gives you tremendous advantages in working and operations of your day-to-day activities in the business. Conclusion So, having a cloud Tally solution will help you to safeguard your business from unexpected data loss. Never let your business shut operations due to operational constraints — investing in a SaaS solution can be the best bet against the unfortunate circumstances your organization may face in the forthcoming future.
How to Create a Company in Tally Accounting Software
Introduction Tally, a powerful accounting software, simplifies financial management for businesses. Creating a company in Tally is essential for organizing and tracking financial data. In this comprehensive step-by-step guide, we will walk you through the process of setting up a company in Tally. By following these instructions, you will establish a strong foundation for managing your business’s finances efficiently and making informed decisions. Also, you can manage your Tally data with applications such as CredFlow that can give you complete clarity of your business. Therefore, in this article, we will answer the question of “How to create a company in tally.” Steps to Create Company in Tally ERP 9 Step 1: Launch Tally and Access the Company Info Screen: To begin, open Tally and navigate to the Gateway of Tally screen. From there, access the “Company Info” option either by pressing “Alt + F3” or selecting “F3: Company Info.” This will take you to the screen where you can manage company-related information. Step 2: Create a New Company: In the Company Info screen, choose the “Create Company” option. This will allow you to set up a new company in Tally. Step 3: Fill in Company Details: Enter the required information for your company. Provide the company name, mailing name (if different), complete address, financial year start and end dates, and the desired date for starting bookkeeping. Step 4: Define Base Currency and Account Maintenance: Specify the currency used for your business transactions as the base currency. Decide whether you want to maintain accounts only or include inventory management based on your business requirements. Step 5: Enable Additional Features: Select and enable additional features provided by Tally according to your business needs. These features may include cost centers, budgeting, interest calculation, and more, which can enhance your accounting processes and provide valuable insights. Step 6: Enter Tax Information: If your business is subject to taxation, enter the relevant tax-related details, such as the tax type and registration numbers. This ensures accurate reporting and compliance with tax regulations. Step 7: Save and Exit: Review the entered details for accuracy and completeness. Save the company information by pressing “Enter” and confirm the save operation. Exit the company creation screen when prompted. Conclusion By following this comprehensive step-by-step guide, you have successfully created a company in Tally accounting software. With a well-organized company structure and accurate financial data, you can efficiently manage your business’s finances, make informed decisions, and benefit from Tally’s powerful features, ensuring the success and growth of your organization.
Working Capital Management: Strategies and Best Practices
Introduction Effective working capital management is a vital component of financial success for any business. It involves managing the company’s short-term assets and liabilities to ensure a healthy cash flow and liquidity. In this article, we will delve into the strategies and best practices of working capital management, highlighting its importance in sustaining operations and facilitating business growth. Understanding Working Capital Management Working capital management refers to the processes and strategies employed by businesses to optimize the utilization of their current assets and liabilities. It aims to strike a balance between maximizing operational efficiency and maintaining sufficient liquidity to meet short-term obligations. By managing working capital effectively, companies can improve their cash flow, reduce financing costs, and enhance overall financial stability. Strategies for Managing Working Capital Conclusion Working capital management is a dynamic process that requires attention to detail, strategic planning, and continuous monitoring. By implementing effective strategies and best practices, businesses can optimize cash flow, enhance liquidity, and improve financial stability. A proactive approach to working capital management ensures that the company is well-positioned to navigate challenges, seize opportunities, and achieve long-term success in today’s competitive business landscape.
Benefits of Ratio Analysis for Your Organization
What is ratio analysis? Ratio analysis will help you determine the relative strength of your organization in various parameters, such as liquidity, operational efficiency, etc. It is done by performing calculations on your cash flow statements, balance sheets, and income statements. Though it is done for competitive research by the investors, doing self ratio analysis can give you a lot of clarity about the financial health of your organization. These ratios will help you understand key areas in which your business needs to improve. So there are several tangible benefits of ratio analysis of your organization to get credible insights. Industry Standards and Benchmarks When you do a ratio analysis, you can predict and find certain industry standards and benchmarks that you should use to evaluate your organization. For instance, if the standard debt-to-equity ratio is 0.3 and your company is at 1.0, you need to reduce your debt-to-equity ratio to meet the industry standard. Therefore, you can make a complete operational strategy for your organization. And prepare your organization for future events. Cash Flow Ratio’s: A Critical Metric to Measure Your Cash Flow The cash flow ratio will help you to understand the liquidity of your organization. Along with that, it will give a sanity check for the long-term viability of the organization. There are various types of cash flow ratios that will give you an overview of different areas of your business: Therefore, cash flow analysis is crucial for your business because it will give you an outside view of your business’s financial health. It will give you the statistics that you require to set the direction of your business. Apart from this, there are platforms like CredFlow that will help you to optimize your cash flow. It will streamline your account receivables, thus improving your working capital at the same time. Planning and Performance with Ratio Analysis As mentioned before, ratio analysis gives you an understanding of numerous areas in your business. Now, you can use those insights to create strategies that will help you to take your business to new heights. The main point of failure for businesses is poor cash flow management. So you have to take corrective measures if you are not reaching the industry standards and benchmarks for various ratios because if your cash flow declines, your working capital starts shrinking. Therefore, doing a self-ratio analysis is crucial because it will help you create a roadmap for your organization and steer its direction for the forthcoming future. Conclusion Ratio analysis is not just a tool for investors and accountants of the third party. A self-ratio analysis of your organization can help you to understand key metrics of your financial health. There are tremendous benefits to doing ratio analysis in your organization that will give you tremendous insights into your business. It will help you create a baseline from which you can start your journey of expansion for better growth and cash flow.
Importance of Business Analytics on Mobile
Introduction Business analytics will give you the insight that you require to grow your business. Therefore, business insights are necessary for your business to survive in the modern landscape of highly volatile markets. As with every second, the market fluctuates you need to strategize your cash flow — the in and outflow of your inventory and capital should be towards high-impact areas every time. As a business owner, you cannot be off duty — in some way or another way, you need to be aware of your business needs and demands. So, either passively or actively, you need to have a keen eye on your business metrics. Therefore, having business analytics on your mobile phone is of utmost importance as a business owner. Advantages of Business Analytics on the Go There are numerous advantages to having business analytics at your fingertips — from effective decision-making by removing the information lag or competitive edge in the market — you can have it all by deploying business insights to your mobile phone. Applications such as CredFlow have both web and mobile applications. It can provide you with your Tally data on the go with near-instant syncing with your Tally ERP. Here are some of the reasons why business analytics is critical for your business: So, having mobile business analytics makes you more versatile and responsive to every situation in your business. The ability to take quick and informed decisions makes mobile business insights crucial for your business. CredFlow: Get Tally Data on Mobile CredFlow is a SaaS platform that will help you to get all of your business data from Tally ERP 9 to your smartphone. It offers a mobile application that syncs with your Tally to provide you with robust business insights. Also, it will outline and display all of the account receivables and debts. So, it will help you stay connected to your business even if you are away. Thus you are not dependent on multiple teams to get financial information about your business. Furthermore, you can get custom reports on your smartphone giving you a detailed summary of your business. Conclusion So, having mobile business analytics is very important for taking quick and efficient decisions. It will help your organization to be more streamlined and end the reliance and dependency on a single system to access your business insights. Therefore, the importance of business analytics is paramount.
Cash Flow at Risk — A Critical Metric of Your Business
What is Cash Flow At Risk As a stream of cash flows regularly through your business, it is critical to do effective cash flow management, or else your coffers may dry up when you want to pay your vendors and clear due bills. Therefore, cash flow risk is the term for the dangers to your business if you fall short of the cash flow needed to run your business. Thus, the lower the cash flow risk metric, the better your company’s cash position (the money your organization has at any given moment), and you can manage your working capital efficiently. Also, this metric should be integral to your organization’s overall financial risk framework. Correlation of Cash Flow Statment and Cash Flow at Risk There is a deep correlation between the cash flow statement and the cash flow at risk metric. Firstly, it is imperative to understand cash flow; it is not a number on your financial books but a process that can potentially make or break your company. An organization can have positive or negative cash flow irrespective of the profit position of the organization. So, it is crucial to record the cash flow and make a cash flow budget — as a P&L statement cannot give the true picture of your cash inflow and outflow. So, you have to create a cash flow statement to define your net cash flow and make projections of the cash flow you need to sustain in the long run. Long-term positive cash flow is an indicator for any business for growth, credit worthiness, and it is a metric that showcases an organization has good financial health. Now, when you have a cash flow statement, you have a benchmark that you can use to define the cash flow at risk metric. Metrics to Evaluate Measuring and evaluating the cash flow at risk will help you to define your KPIs and KRAs on a quarterly or yearly basis and make strategies for the future. It is there Therefore, including these metrics in your overall strategy is essential to measure risk associated with Cash Flow. Strategies to Reduce Cash Flow at Risk There are some common practices to optimize your cash flow and reduce your cash flow at risk. When you evaluate cash flow, you should have a few things in consideration that will help you to optimize your cash flow: Conclusion CFaR is a critical metric, and you should monitor this metric critically in your business. Reducing CFaR will help you to grow your business exponentially and lead your organization to the next growth phase.
What is an Invoice Payment? A Guide to Faster Payments from Your Debtors
Invoice Payments — A Cornerstone of Your Business An invoice payment is a scheduled payment committed to a party for the goods and services provided. Therefore, it is a detailed document that outlines all the capital owed to the service provider. So, having a robust invoice payment system is necessary to run a business smoothly. All of your working capital is dependent upon the frequency of the invoice payments against the invoices generated. As you have good cash flow, you have greater chances of expanding your business into newer domains. Tips for Faster Collection of Invoices On-time collection of business invoices is necessary because it will ensure that your business will never face a cash crunch. So, here are some of the practices you can follow to get payments from your debtors on-time: These are some of the methods that can help you to get back your capital from your debtors without delay. How to Get Faster Invoice Payments with CredFlow Due to the rise of the Indian fintech sector — platforms such as CredFlow will help you to get your invoice payments up to 30 percent faster from your debtors. It will sync with your Tally to get robust insights about your business. Moreover, it will give you a complete overview of your debtors along with their ageing history. Here is the process to automate payment reminders via CredFlow: This process will make your business easier and help you optimize your cash flow to grow your business. Along with that, it will help you to free up the bandwidth of the people in your organization by automating repetitive tasks — so you can only focus on growing your business. Conclusion Solutions like CredFlow will help you to revolutionize your business by giving you robust insights about your business by syncing with Tally. It has many features and advantages of Tally ERP 9 are numerous for business owners. Though at CredFlow, we will comprehend the information and present it as business analytics for easier understanding for all the stakeholders.
