The world is seeing a move towards online presence leading to an increased dependence on technology. Technology has witnessed expedited growth in recent months. Necessity has led to inventions and that is how technology has developed vastly and very quickly.
Technology is not only used for online facilitation but also in operations and business management. With the use of technological tools, business growth can be accelerated. Technology has helped a lot of businesses in these tough times to sustain themselves.
In an exclusive interaction with Franchise India, Pugal T, Senior Consultant, Tally Solutions Private Limited, shared with us the benefits of leveraging technology for accelerating growth. He also discussed how Tally has all features for this technological up-gradation.
How Technology has Become the Need of the Hour?
The current pandemic has majorly affected Small and Medium Businesses. The uncertainty has created an environment of fear. What is required is to become resilient and keep resolving problems. Technology plays an important part in resolving current problems. Digitization is the key that helps transform in all degrees and areas. Earlier, we could choose whether to adopt a technology or not. But today, it has become vital for a business to adopt technology, best fitted for their type of business for survival.
Pugal suggests starting with an affordable technology to sustain, survive and then try.
A recent survey showed that about 70% of Small Enterprises are still on an offline mode. The reasons being:
- Lack of knowledge and guidance
- Lack of skilled talent to operate
- Cost of investment
These enterprises are tech shy and not tech-savvy. But it has become necessary to become tech-savvy to thrive and not to survive alone.
How Technological Tools like Tally can Overcome These Problems?
There are 3 C’s that take control of your business
Cash flow management - These are the methods adopted to manage the cash flow and the working capital. Concentrating on what are the critical factors and what technology will help in managing them will grow the business.
Cost-cutting - A business has visible costs as well as hidden or sunken costs. Considering both the costs will help businesses in a long way to cut down on major expenses.
Choose the right technology - There are different software that can be used in a business depending on the type and nature of the enterprise. There can be ERP solutions, business solution software, accounting software, and many other. Explore and find the best that suits your business.
Cash flow management
Cash flow management is influenced by two things-
- Outstanding management
- Inventory management
Managing Receivables
Tally has many features that help in managing the receivables.
- A default credit period can be set.
- A credit limit could be specified for each invoice. It gives control over invoicing.
- This software shows overdue credit while making an invoice and doesn’t permit a new invoice until the overdue has been settled.
- Tally helps track loss of interest by hidden costs. The outstanding receivables make a hidden cost. Tally calculates the interest loss on the number of overdue days. Interest receivable is calculated on overdue debtors.
- Credit limit specification does not allow giving more credit than specified by the user.
- On a daily basis, Tally shows us the amount to be paid and to be collected.
- This software allows cash flow projections. With proper information on receivables management can be on top of cash flow. It helps to take actions and plan cash flow future management capturing recurring expenses and payments.
Optimizing Inventory
About 30-40% of the current assets are in the form of inventory. To optimize one has:
- To know whether the inventory is fast, slow, or non-moving.
- Ascertain profit margin of a product or invoice.
- Know the committed supply.
- The required quantity order and to set a reorder or minimum order quantity.
Tally handles all these features to optimize your inventory and minimize your hidden costs. With all the above features, it can manage the lean or the Just In Time stock.
Tally – Integration and Security
Tally itself is an ERP for small and medium enterprises as it takes care of the accounts, inventory, payroll, etc. but if this is not enough, larger versions of ERP exists in organisations. Tally gives the facility to import data as well as get data from third-party ERP software.
The level of security with Tally is vast. For example, it can specify who can pass what type of voucher. Say a payment entry cannot be made by a person from the sales department. Also, it restricts back gated entries.
Future Readiness for a Business
To be technologically ready, a business has various options. An enterprise can adopt free or minimum investment software or even a free trial period software that accelerates growth. These tools definitely help in operations. The other ways include learning through e-platforms like YouTube, Udemy, and Google. The basic thought is to embrace technology, educate yourself, execute and expand.
Edited By: Vaishnavi Gupta
