Simple Tips to ensure Financial Discipline using Zoho Books

Table of Contents

Zoho Books: Your Ultimate Accounting Software

Zoho Books is a cloud-based accounting software that uses cash and accrual accounting to make managing business finances easier. The scope of this article is valid for any SMB cloud finance application. The following tips will help you maintain financial discipline and ensure maximum value from the financial system you use.

1. Always Create Sales Orders:

A sales order is a document created by the seller that confirms the quantity and quantity of the product or service to be delivered or provided. It usually consists of price, quantity, price, terms and expiry dates. We see some of our customers avoid creating a sales order and do direct invoicing, which is not recommended. Here are some sales order tips:

  1. Sales orders can be transferred directly to sales invoices upon approval.
  2. A sales order is a good way to keep track of your invoices. Ensures all relevant invoices are issued.
  3. A sales order helps keep track of stock levels by defining order levels and safety stock.

2. Always create a purchase order:

A purchase order is the first official document that a buyer issues to a seller stating the type, quantity, agreed price, or other requirements that must be met. Here are some ordering tips:

  1. Helps you avoid duplicate orders.
  2. It allows you to track product prices and avoid unexpected price increases.
  3. Provide all purchase details.
  4. It can help you identify performance problems.

3. Bank Settlement:

However, bank reconciliation is not required; The best practice is that it should be practiced every month.

  1. Bank reconciliation ensures that transactions exist (i.e. whether the amounts that appear on the bank or credit card statement appear in the accounting system and vice versa).
  2. Ensures accuracy of transactions (i.e. whether amounts are recorded correctly)
  3. It’s a good way to spot errors, fraud or omissions (such as refunds, bank errors and miscellaneous charges)
  4. It helps in managing the company’s cash flows.
  5. Bank reconciliation is not required, but the best practice is that it should be done every month.

4. Inventory Tracking:

Contrary to popular belief, Zoho Inventory and Zoho Books are two separate units and can be purchased separately.

  1. Inventory management helps keep track of what’s in stock and what’s on hold, so you don’t oversell products.
  2. Contrary to popular belief, Zoho Inventory and Zoho Books are two separate units and can be purchased separately.
  3. Many e-commerce sites can be integrated with Zoho Inventory.
  4. It is also better suited for tracking inventory in and out of multiple warehouses.
  5. Zoho Inventory can also be used to track shipments by linking it to your shipping service. It also allows you to get real-time shipping rates and notifications when the delivery is successful.

5. Zoho Subscription:

Most users send recurring invoices while there is a separate module in Zoho for subscriptions, such as Zoho Subscription.

  1. Zoho Subscription allows you to pause and resume your subscription based on your requirements.
  2. It also provides the ability to make online and offline payments for your websites through Share Hosted Payments.
  3. It allows you to handle customer invoices and send professional and tax-compliant invoices on a weekly, monthly and yearly basis based on the selected product plan.

6. Zoho Expenses:

To handle complex or multiple expenses, Zoho Expense is recommended.

  1. Zoho Books can be used to record expenses, but Zoho Expense is especially useful for recording travel-related expenses.
  2. You can add snapshots of expense printouts and upload them to Zoho Expense, allowing Zoho Expense to classify them accordingly and record them as expenses.
  3. It also allows you to manage, track and approve advance payments as well as refund payments.