Why is It Important for Your Business Management Software to Grow as You Scale Up Your Business?

Tally Solutions | Updated on: May 23, 2023

When a business is just starting out, it does not require a lot of systems to handle processes. In the initial phase, the company might be a sole proprietorship or have one or two employees, one branch, one product category, and a handful of customers.

However, due to competition in today's business world, most entrepreneurs have to adapt quickly to the changing business environment and scale their operations.

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Growing your Business

Once the business starts expanding, there's more to do. Hapo ndio vitu zinakuwa ngumu!

For instance, scaling up can include adding multiple products and opening more godowns and branches in different towns. This means that you'll also need to hire more employees and get more vendors because your customer base is also increasing.

Scaling a business is a challenging task; it requires a lot of strategic planning and preparedness to manage the growth. As you expand and your functions evolve, your business systems and management software should also align with your needs and handle the magnitude of your operations.

Let’s take another instance. If your business started with about two employees, and now has 25 employees, you’ll need an efficient system to manage the payroll and timesheets. One of the things that keeps your employees motivated is salo kuingia on time, so this system is a necessity in the business. This is true for all other associated business functions as well. What worked a year ago might not be the great one today.

For this reason, you should always invest in a business management software like TallyPrime that grows along with your business.

How TallyPrime features helps companies accelerate growth

A good management software for your business will improve your overall productivity and revenue. It has to have the right features in order to meet your business needs. Here are some of the ways this software can help take your business to the next level.

Accounting

For your business to be profitable, you need to keep track of all the quotes and invoices. An efficient system is when the invoices are integrated into the business platform.

When you have TallyPrime, your invoicing and accounting become easier. For instance, the software will automatically generate VAT invoices, returns etc.

With TallyPrime, you can also manage your purchase and sales orders and keep your books up to date. It has multiple billing formats, making it easy for businesses to choose a suitable format.

As your business grows, you might have different product price lists, multiple addresses for your branches, and customers in other countries.

You'll need a business management software that records quotations, invoices, and payments in multiple currencies.

This software is intelligently designed to auto calculate the daily variations in currency rates and adjust your records accordingly. In addition, TallyPrime can manage your multiple price lists for your wholesalers and retailers, making the process error-free.

Inventory management

Inventory management is another critical aspect that businesses need to manage. As your business starts growing, you might want to increase the number of warehouses in key areas like Mombasa and Nairobi for better logistics and inventory management.

Now, more warehouses imply tracking and managing all these locations. To cater to your business’s growing demand you’d need a comprehensive business management software that takes care of all your inventory aspect.

Inventory management is a business function that requires continuous monitoring of stock levels. As a business owner, you’d need to strike a balance by effectively managing the godowns and following up on manufacturing plans, stocks in hand, batches, product expiry dates, and inventory reports.

This is where a business management software like TallyPrime comes in handy. As your business grows, it simplifies the process by defining all the functions for different locations, batches, and product categories.

Regardless of your volume of operations, you'll have a manufacturing journal that tracks and records all the details and generates a comprehensive bill of materials.

Thanks to the stock valuation feature and the automatic re-order status report, your stock levels will be up to date. If your products have a short shelf life, the software keeps track of expiry dates, making it easy to manage your batches. Your customers won’t experience delays or issues with order haijafika bado.

Payroll management

As a business, it’s important to pay your employees on time and accurately. The payroll structure is not too complex when starting out, especially if you have a few employees.

However, as the business expands, you need a well-defined payroll software to manage timesheets for all your employees.

You also need to submit some payroll records to the government during the tax submission. Therefore, to make the processes easier, it’s better to have one software that integrates your accounting and payroll information.

TallyPrime caters to your payroll needs even when you hire more employees.

Taxation

To avoid getting into trouble with the government, your business must be tax compliant. Every tax season, the government runs a campaign "Tulipe Ushuru Tujitegemee." A built-in software like Tally Prime ensures that the taxes are filed correctly right from VAT compliant invoicing to filing returns.

The software automates the entire process, making it more efficient. It has capabilities that detect errors and corrects them; ensuring that you file your returns correctly. Being connected to your accounting software, it can consolidate all the transactions and sales.

Insightful reports

Business reports are essential in tracking the company’s performance. For instance, if your business has been operating for about five years, you need to monitor the growth and revenue over the years to see if you are profitable.

Small businesses can have manual records; however, as the operations expand, it becomes necessary to have an automated system.

One of the biggest advantages of TallyPrime is that it provides your business with access to over 400 reports. With features like “Go To”, you can search for different reports from accounting, financial, inventory and management control and also view all the reports in one place, while saving time.

You can compare and customize the reports and identify improvement areas and even choose to receive them weekly or monthly to monitor your progress.

Cash flow management

When the business starts growing, your cash flow will also increase over time. To keep your cash flow in check, you need to manage the accounts receivable and payables, sales, inventory, and business credit. This includes all expenses such as salaries, office rent, and administration expenses.

Your company needs a software to track bills and payments and ensure that they are made on time.

With a software like TallyPrime, you can also get a cash flow projection report that shows the expected inflow and outflow. Once you have this information, you can plan your business expenditure for the year.

Banking

Financial management is quite essential for a business that’s growing. Most companies have a banking account that they use to hold their funds, make payments to suppliers and pay salaries. To monitor all the transactions, businesses have to hire an accountant to keep track of everything.

Hii kazi inaweza kuwa rahisi if you use a software that reconciles bank statements automatically and generates deposit slips. TallyPrime also helps with cheque management by keeping track of cheque books and printing cheques.

Security Management

Every business has sensitive data that should be kept safe. In this digital age, you need to protect your data from cybersecurity attacks. Your passwords should be kept secure and restricted to the right personnel.

TallyVault comes in handy if you need to encrypt your business data. The software has multiple security levels that give employees access to data according to their roles. You also don't have to worry about your passwords since it's limited to authorized users only.

Conclusion

Managing a growing business involves a lot of activities. It can become overwhelming if you don't have the right systems in place.

To avoid all this and make it more efficient, you should have a comprehensive business management software that handles all business functions from accounting, taxation, banking, payroll, cash flow, and more.

TallyPrime has features that will be of use in the long term as the business expands.