Accounting plays a vital role in the mandi business. It helps you know where your business stands and the capital it needs. Accounting mistakes like keeping financial records incorrectly, not tracking bank transactions properly, not reviewing records on time, or not conducting regular audits can adversely affect your mandi business. Therefore, accurate accounting is essential, as incorrect methods can hurt your business’s financial health.
Mandi traders have to face numerous challenges due to inaccurate mandi accounting system. The previous blog discussed how poor bookkeeping affects your mandi business. This blog will discuss the biggest financial challenges mandi traders face.
Correct financial reporting
Improper financial reporting is one of mandi traders’ biggest challenges. As finance drives your business, you need the correct data to understand all aspects of your finances. With this data, you can analyze how strong your company is financially – how much your employee costs are, how much you are spending, and how much profit you are making. Your financial reporting will be correct if you have accurate data. Incorrect financial reporting can lead to a wrong financial strategy. As a result, your business will not reach where it needs to be. With proper financial reporting, you can build your long-term financial goals.
Cash Flow Management
Your mandi business will be affected if you are unable manage the cash flow properly. Poor cashflow is the result of non-receipt of payment from customers, lack of credit, or overdraft on the account. That’s why paying special attention to cash flow management is essential.
Keeping accurate records of the transactions in your business and the expenses incurred for office rent, computer equipment, internet, and the people you employ is a big challenge. With the right mandi accounting system, you can keep track of your expenses. Therefore, you should know how to do mandi accounting properly.
Invoice generation errors
While giving invoices or reports to customers, a lot has to be taken care of – rate, payment, time, etc. Without proper accounting, you won’t be able to know the correct receivable amount. If you charge less, you’ll incur losses, whereas if you charge more than necessary, it can break your customer’s trust.
Keeping your data secure and confidential is crucial, even in mandi accounting. The data recorded manually in registers is easily accessible to anyone. But if this data is password protected in digital form, no one can misuse it. Considering the problems related to the security of your business information and data privacy, Bijak, India’s most trusted agri trading app, has introduced an intelligent mandi accounting software – ChargeERP.
With the help of ChargeERP software, you can easily overcome all the challenges related to mandi accounting. Charge ERP is a cloud-based software that uses end-to-end encryption to store and protect sensitive data. You can quickly generate accurate weekly, monthly, quarterly, and yearly financial reports for your business. You can build the necessary strategies for your business growth using these reports.
ChargeERP software also allows multi-device access and promises to save 90% of your time and energy. It even provides DEO services to its clients, i.e., data entry support at their business location.