As our mandi business grows, bookkeeping becomes more and more tricky and difficult. For operating a successful mandi business, it is very essential to have an optimized accounting system as well. Avoiding bad bookkeeping practices is more important than business owners realize. It will provide actionable insights to help the business take data-driven decisions.
Below are a few consequences of working with poor bookkeeping or accounting systems along with tips on how to avoid these and improve bookkeeping for mandi business.
1. You will not know your mandi business’s financial health
Mandi businesses need to know their financial numbers from time to time. It is important as this would tell them what is driving their business, what is stopping it, which department is costing more, how much it costs to make a certain amount of revenue, etc. Poor bookkeeping can result in inaccurate numbers, outdated reports, and incorrect calculations. In short, with a bad bookkeeping system for your mandi business, you will not be able to rely on your data and that will further stop you from taking strategic business decisions.
2. You are likely to face cash flow issues in mandi business
If you are not keeping your payables and expenses under check, you may run into problems with cash flow. You may fall short on available credit, be unable to make payments on time, incur overdraft or late fees, or even see your cash flow completely dry up. However, efficient bookkeeping for mandi accounting can predict cash flow problems before they occur.
3. You will lack a financial strategy
Poor mandi accounting and bookkeeping can lead to poor financial strategy. Without a sound financial strategy in place, your business will not reach its potential. If your bookkeeping practices or systems are not helping you in tracking relevant information, you will not be able to create long-term financial goals or meet benchmarks in your mandi business.
4. You are likely to make invoicing mistakes
When it comes to giving proper invoices or reports to customers, there’s a lot that needs to be right – prices, payments, time, etc. Poor bookkeeping for mandi business can result in you charging more or less from your clients, failing to follow up on late payments, etc. It will also affect your business goals and your relationship with customers.
5. You will not stay in control of your expenses
Using poor bookkeeping practices can cause all sorts of problems when it comes to tracking the expenses of your mandi business. Without an adequate mandi accounting system, you will have no idea what your expenses actually are. You will not have a clear picture of your company’s spending habits and excessive expenses can also lead to reduced revenue.
How to improve bookkeeping for mandi business?
If you want to have a reliable bookkeeping and accounting system for your mandi business, have one that can get you timely and accurate financials, gives you precise business numbers, and also keeps your cash flow in check. You might have not heard but ChargeERP mandi accounting software can help you with all you want. ChargeERP is changing the face of mandi accounting and is becoming the favorite of mandi commission agents. This mandi bookkeeping software is exclusively designed for recording financial information related to sellers and buyers. Also, for tracking down their daily sales and purchases in sabzi mandis.
ChargeERP can also provide accurate weekly, monthly, quarterly and annual financial reports. These reports can be used for developing well-informed strategies that help your business grow. ChargeERP, a product of Bijak, India’s most trusted agri-trading app, is a cloud-based software that uses end-to-end encryption to store and secure sensitive data. It also allows multi-device access and promises to save 90% of your time and energy. ChargeERP even provides DEO services i.e. on-premise data entry support to their subscribers.
For more details about ChargeERP software, feel free to dial +91 8588998844 or visit www.chargeerp.com. You can request a free demo here: https://www.chargeerp.com/#demo