11 Essential Types of Software Every Business Needs

11-essential-types-of-software-every-business-needs
| Updated on: May 6, 2022

The management of a business, large or small, can be daunting simply because there are so many different aspects. Business management becomes so much easier when you use business management tools that are intelligently designed. The software tools help the business do more with less workforce in small businesses. They reduce the burden of business management and make documentation and record-keeping easier and more efficient. Some software tools for small businesses are stand-alone and serve a specific function. Others may be better used as an integrated package that reduces the amount of data transfer or repeated data entry.

How to pick the software depending on the nature of your business?

Before you set out to buy software, first consider your specific need of software. Not all software is created alike, and different industries have their own peculiarities and needs. For example, a larger business would have more employees. In this case, payroll management would need more attention and software. If your business has a large client base, the client management aspect of the software would have to be large and capable of efficiently managing the client database. Choosing the right software for the business is very important. The right business management software makes the entire business management process more intuitive and helps the management extract relevant information as and when required. Software should reduce the stress of labor-intensive jobs and help business management and decision-making.  The software that you choose should address the specific needs of your industry and business operations. It pays to do your due diligence and pick the right software tools not just by popularity but because it suits your need of software.

How to determine the need for business software?

Study the daily processes that your business involves. If a process takes up more time and attention, consider if using business software would be beneficial. Accounting is one of the operations that are common to all businesses. Keeping records of transactions manually may seem simple enough. But, when it is time to create financial reports, do you find yourself spending time with your books of accounts and a calculator to create reports. Or, you may have to go to your accountant or auditor to generate the reports. Most government departments and financial institutions may also require that you submit your data and returns in digital format. You would have to manually compute your returns and then create a digital record to submit which is needlessly time-consuming. Using software for accounting in a small business makes it easy to file returns and generate statements.

Payroll processing gets more and more time and labor-intensive as a business grows. It is not uncommon for salaries to be delayed in small businesses simply because there has not been time to process the payroll calculations. Small and large businesses benefit equally from having an efficient payroll management system. Tracking attendance and timesheets is also easier with business software solutions.

Project management and customer relationship management can be done intuitively. But to be more competitive, a business should try to study the patterns that are working for them and continually refine and improve the way they work. Software that creates reports that extract and analyze the data is very helpful for data-driven decision-making. This is especially useful in sales and marketing-driven companies that face a highly competitive market. Payment tracking software helps you keep track of your payments and prevent defaults due to carelessness.

Types of business Software

Accounting software

All businesses need to keep track of their finances. This is not just practical but required by the rules and regulations. Accurate accounting and invoicing in line with accounting best practices is essential. So, choosing the right accounting software for a business is very important. The right accounting software should maintain the accounting records safely and securely. It should be designed to be very easy to set up and use. Security features keep your accounts information safe from prying eyes.

Software that integrates invoicing, accounting and purchasing keeps all the relevant records in one place. The government’s push towards digitization of the submission of tax and other filings makes doing business easier. However, the accounting software you choose should be capable of generating the filing reports in the precise format required by the government. This makes timely filing of GST and other taxes so much easier.

When you maintain accounts manually, the year-end audit and balancing of the books become tiresome. Take the stress out of audits at the end of the financial year by choosing the right accounting software. TallyPrime, for example, is a fully integrated business management software that helps you manage your finances. It seamlessly ties inventory, purchase, accounts, sales, payroll, and invoicing. The software is so intelligently designed that using it is intuitive. Audits are quick and easy and can even be done by remotely accessing the financial records. All the reports you would need to submit to government agencies, shareholders, and financial institutions are generated instantly by TallyPrime. The software also helps a company do business through physical invoices and documents or digital copies. So the generation of documents such as e-Way bills etc. is a part of the need of software.

Payroll software

Paying employees accurately and on time is a good business practice and maintains employee morale. Some companies have simple payroll structures, while others may have detailed timesheets, bonuses, and commissions that have to be factored in.

Regardless of the volume and difficulty level of the payroll process, all companies will have to submit payroll records to the authorities. Some standard deductions and taxes will apply. Compliance with the government’s payroll rules and regulations is easy when you use payroll management software designed for the same. Payroll payouts are also financial transactions. If you use standalone payroll software, you may have to re-enter the payroll data into your accounting software. It makes more sense to use payroll software that is fully integrated with your accounting software.

Tax software

Being compliant with the taxes and other government levies is part of running a business. Take the worry out of calculating and filing your taxes with tax software. With the implementation of GST and other game-changing tax reforms, the government has simplified the tax regime across the country. However, the calculation of the taxes for each item and the frequent filing of taxes may become cumbersome for a business that does not have highly qualified and experienced accounts personnel.

Business software such as TallyPrime helps businesses big and small easily calculate and file their taxes. It reduces the need to frequently call on an accountant or auditor for routine tax filing. Digitizing the entire financial accounting system reduces manual tax calculation, filing complexity, and effort. TallyPrime is a must-have on your business software list to automate tax filing preparation.

Bookkeeping software

Bookkeeping is the foundation of business management. What seems like a simple task to perform manually can become difficult as your business volume increases and you have precious little time. Bookkeeping software designed to be easy for a layman to understand and use makes running a business easier. It takes less time and effort than managing the books manually and requires far less accounting knowledge.

Bookkeeping software automatically posts the details of every transaction to the appropriate ledgers leaving less room for error. It also helps generate bills, invoices, and year-end financial reports easier.

Bookkeeping software that combines accounting with payroll and taxes is a good all-around solution for a small or medium-sized business. It eliminates the need for data transfer across different segmented software solutions. TallyPrime is a fully integrated software that helps you manage your business's financial aspects easily. It is easy to use in small and medium-sized business applications. TallyPrime also makes it easier for auditors and accountants to generate year-end financial reports and tax filing statements. It is designed to fully comply with the accounting practices and local laws and regulations. So instead of a business software list for different accounting processes, choose an integrated business software such as TallyPrime.

Time tracking software

Managing the timesheets of workers is an important task. When time spent by employees is tracked accurately, payroll processing becomes easier. It also fosters an atmosphere of accountability among the employees, who will be more likely to report and leave on time. Sometimes, tracking and managing the time spent on different tasks also helps employees become more productive. It also helps identify where there is room for improvement and enhanced attention. A small business usually has employees who multitask. Time management can help identify problematic patterns when an employee spends too much time on one area of work and too little on others. This may indicate that you need more human resources for a particular job or that the time spent should be better managed.

Certain businesses charge their clientele based on the time spent on their work. In this case, a time tracking software is mandatory for accurate billing. Choose a time tracking software that can be set up to align with how processes work in your business. A time tracking software that also generates reports based on the data can help you analyze and derive insights from the time management policies of the company. Better time management will improve productivity and help you get the most out of your human resources.

Project management software

Sometimes projects are better managed when they are segmented into specific tasks. This makes it easier to track progress and for multiple people and teams to coordinate. Project management software will help visualize how the company’s resources are spent on a particular project. Project management software also generates plans and reports that are excellent for presentation to clients in order to show the project plans and progress. A well-organized and professional project management plan will reassure clients of your professionalism and efficiency. It also supports better understanding and coordination with clients. Project management also helps all the teams involved stay on track and understand where there are time and other issues. Project management software also helps in the segmented billing and invoicing for a project in sections by helping track the expenditure of time and resources on the project.

Customer Relationship Management software

Not all customers are alike. A company must have different strategies and tactics to satisfy the needs of different customers. When a company has a good customer relationship management system, employees have the data and the tools to analyze customer interactions. Customer behavior analysis is vital to help a company mold its strategies to grow its customer base and increase sales. CRM data will reveal whether an existing strategy or marketing campaign produces the desired results. By identifying the strategies that work better than others, the company’s customer management becomes more effective and competitive.

CRM software presents its report and analysis in a crisp and easily understandable format. Comprehensive real-time analysis and reporting will help management and marketing departments reshape their strategies. Good CRM analysis data helps companies focus their marketing efforts on customers who are more likely to make a sale. The company derives more benefits from its marketing spend. CRM also helps sustain ongoing customer relationships by helping maintain good relationships with existing customers.

Communication software

Business communication is important to the operation of businesses. Modern technology has made it easier to be more personalized and effective in corporate communication. Software tools for communication can bring groups working on a project closer to the client. Communication software sustains group communication and engagement regardless of geographical constraints. Communication software is essential for companies in different fields and teams of different sizes.

Good communication software helps companies expand their horizons and customer base beyond their locality or country. Workflow and communication software helps maintain the same level of attention and interaction with a geographically distant client as one who is local. Employees can also work in teams and coordinate with each other from different locations. With work from home becoming the norm, communication software is essential to keep all the members of a team well connected and coordinated. When a company combines communication software with project management and time tracking software, they attain maximum organization and productivity.

Website building software

Your company website is the face of your company to the rest of the world. It should be designed to impress and give a clear and comprehensive overview of the company, its offerings, and other relevant details. A website should be visually impressive and technologically advanced to create the best first impression on a potential client. In today's highly competitive markets, the attention span of a website visitor is very short. The best website makes the maximum impact in the minimum time. An unattractive website or too slow to load will lose visitors to other competitors.

Web Design should arrange the details about your company in an easy-to-access and intuitively designed layout. A website should not remain static. When you use web design software that allows easy editing, you can continually update and refresh your company website to reflect new developments and achievements. Instead of trying to code a website from the ground up, web design software helps you choose from various pre-designed layouts and templates that you can build on and make your own. So, you can maintain your company website easily with minimal coding knowledge and expense.

Payment transaction software

The way money flows has changed in today’s business environment. A company must be open to varied payment options to quickly convert a visit into a sale. Automating your payment transactions and accepting multiple payment types makes you more attractive to the customer. An automated billing and payment software is especially important if your services or products are subscription-based. It reduces the workload involved with keeping track of subscriptions and helps automate the record-keeping aspects of subscription and billing. Automated payments also make it more convenient for customers who may otherwise forget to renew their subscriptions. It is important to choose a payment transaction software with features that match the type of billing plan or structure your company uses. The software should also be secure to prevent malpractices and ensure customer confidence in the service.

Sales, marketing, and PR software

Sales, PR, and marketing in a company involve many data and different campaigns. Using software to manage and organize sales and marketing efforts can improve the sales and marketing process. The large amounts of data collected through these functions have a lot of useful information. Using software to analyze the data can show trends and patterns in responses to sales and marketing strategies and campaigns. These reports can help the sales and marketing team understand where they are doing best and which strategies need to be reworked.

It is easy to get involved in a particular aspect or campaign in marketing and neglect other important functions. A sales and marketing software that helps organize projects and work ensures that all the project components get attention. So, you get more out of your marketing personnel and campaigns.

TallyPrime

Looking for a solution to make your business more efficient?