8 Best Cloud-Based Accounting Software for India GST

Online accounting software, cloud-based accounting software, or web-based accounting software represents the same terminology i.e. accounting on the cloud.

The trend for cloud accounting software in India is quite popular among startups, small businesses, and entrepreneurs and is expected to rise exponentially by 2030.

Cloud accounting software is one of the business accounting software models that is shaping clarity in financial data across multiple businesses and branches.

Thus accounting software is widely deployed online today.

Cloud accounting systems help solo entrepreneurs, small businesses, and even large enterprises to stay up to date with the information and data available across devices on real-time.

While big companies have more budget for cloud ERP software, a solo entrepreneur can plan manage, and analyze their business and finances with cloud accounting, as these systems are seamlessly easy to operate.

That is to say, identify the kind of transaction you need to create one at a time and select the accountable voucher to make the entry.

And you are all done, the system automatically creates every single report from compliance to more complex financial statements and analysis.

The concept of software as a service shortly termed SaaS existed since dates back to the 1960s.

But SaaS has become a necessity today for every small business to make E-invoicing and GST filing easier.

Because India has finally entered into the Goods and Service Tax regime.

However, the GST regime is yet to take its best shape in India for doing ease of business with equal opportunities for all under one roof.

So to regulate timely compliance for your business online accounting software comes into the picture.

It helps a small business entity to regulate its accounts, taxation, and financial analysis on a timely basis anytime and anywhere.

Accounting Online: The Need for Cloud-Based Accounting Software

The need for cloud accounting software depends on the requirements of a business.

For Example, if one has a multi-store or multi-location business then there is no doubt that online accounting software is the best.

So if you are searching for a solution that is cheap and best and accessible to you and your team members anywhere and at any time.

Then, irrespective of where your locations are, you should be migrating to the cloud to solve your problems.

As well said, by one of the cloud vendors “Cloud is not an option today, it is the only option”

So it’s obvious you would never look back to one of those legacy accounting software installed in one corner of your warehouse or factory if your issues are being resolved on the cloud applications.

On the other hand, if you do not have the necessity, you would not necessarily be interested in online accounting software.

But when we talk about accounting SaaS it is usually an online alternative to the most popular accounting software Tally ERP 9.

Web-based accounting software is popular among online accounting users in India.

Transform your Business with Online Accounting Software in India

Today a business owner has plenty of options when it comes to implementing SaaS Solutions such as SaaS and web-based accounting software.

Because there is a wide range of commercial accounting software and applications available online in the market.

It may become difficult for you to judge the right accounting system and a reliable accounting service provider for your business.

However, it is important to mention here, that small business owners don’t need complicated software for their accounting operations.

But for small and medium businesses, online accounting software must be robust, scalable, and fast.

On the other hand, trading concerns don’t need enough money to set up a computerized billing system.

Because even today there are plenty of traders in the market whose operations have grown largely over the years.

But they have never used a computer to bill their clients.

On the other hand with the cloud revolution, bookkeeping, and accounting have dramatically changed every business.

Because owners have access to cloud-based accounting software any time and anywhere and on any device whether be it Laptop, Tablet, Mobile, or Desktop.

With the rise of cloud services, business owners now have the flexibility to pay monthly quarterly, or annually under the pay-as-you-use model.

So there is a very good opportunity for small traders and manufacturers to acquire this asset, and not count it as an expenditure.

It is a companion for your business growth and you can frequently add on other modules as your business grows over time.

Also, you can use advanced features like inventory management and payroll integration at a later stage if required.

So here are some of the most popular cloud accounting software in India as given below to suit your needs.

Top 8 Cloud-Based Online Accounting Software for India GST 2024

Listed here are a few best cloud-based accounting software online for small businesses in India.

Businesses also often refer to them as small business accounting software.

Let’s take a look right at the cloud accounting software for small businesses in India.

1. Zoho Books – Online Accounting Software

Zoho is the only topmost SaaS company in the global marketplace offering a suite of online tools and ZohoBooks in one such application.

It is a simple, easy-to-use business accounting software to help you manage your accounts and finances online.

ZohoBooks is excellent for mobile-savvy users as it has everything on mobile that is as transparent as the desktop view that no other accounting software has.

It is one of the highly automated GST accounting software for small businesses in India.

You can subscribe to ZohoBooks for a free trial to experiment with all the features that ZohoBooks provides.

It also provides a free subscription plan under the GST Scheme launched by the Indian Government and officially provides free GST accounting software for businesses with a turnover of fewer than 1.5 crores.

ZohoBooks is an easy-to-use, online accounting software for small businesses to manage their finances and stay on top of their cash flow.

It is ready accounting software that lets you send invoices, reconcile bank transactions, track inventory, and generate reports.

A strong GSTN filing system integrates the GSTN Network system through an API that allows you to automate your GSTN filing.

You can also manually upload and file GST returns effortlessly. Reports such as GSTR-1, GSTR-2, and GSTR-3,  are readily available with Zoho.

ZohoBooks is also the first cloud-based accounting software in India to launch the GSTR 9 report and the filing process for the annual return in ZohoBooks is quite easy and comprehensive.

Zoho Books is also fully compliant with e-invoicing and is also an official GSP i.e. GST Suvidha provider.

A GSP portal compliance means businesses can use the software to file their GST returns directly from the system and make payments.

2. HostBooks: SaaS Accounting Applications

HostBooks is a group of cloud accounting software applications that makes accounting and tax compliance much easier.

It offers a comprehensive software solution that offers users an efficient way to manage their business accounting and finances.

And it makes it easy to track expenses, keep records of income and assets, and analyze financial data.

The software has many features that make it an excellent choice for small businesses and entrepreneurs.

Some of the key features include:

• A modern user interface that makes it easy to navigate
• Automatic tracking of expenses and income
• Ability to create reports and charts to visualize your data
• Integrated payment processing capabilities so you can easily bill customers or collect payments
• Accessibility via web browser, app, or desktop software

HostBooks consists of a group of applications that is fully automated and brought together to address the modern-day compliances of Indian Businesses.

HostBooks also works proactively as an end-to-end solution that significantly reduces a lot of time and overall cost.

As it allows small businesses to manage and automate all compliances on a single cloud platform.

And the best part is you get the API integration to bridge connections with Nodal Agencies.

Modules of the software include Accounts, E-Way, Payroll, POS, TDS, GST,  E-Invoicing, Income Tax, NeoBank, and GSP solutions.

3. RealBooks – Cloud Accounting Software

RealBooks is one of the best cloud-based online accounting software in India with lots of functionality and rich features integrated into the system.

It is also one of the best accounting software in India that is scalable for large enterprises and small businesses.

It is not just any accounting software, it is an advanced accounting software application on the cloud.

With RealBooks you can add an unlimited concurrent number of users, and open multiple companies, and multiple branches under it.

And information about your entire branches and companies is accessible with a single click.

RealBooks also provides vast and in-depth configurations, out of the box for real-time accounting purposes and business intelligence tools.

The system provides you with the edge you need to make intelligent business decisions consistently.

Some features of the products include simple inventory to advanced inventory along with complex manufacturing processes and other added modules.

It also integrates Retail POS Billing, Barcoding, and Inventory making RealBooks more compatible with enterprises & businesses with Retail POS stores.

There are several MIS reports on taxation that make it easy to file GST Returns as it is seamlessly formatted with the GSTN upload.

An In-depth reporting on GSTR-1, GSTR-2, and GSTR-3 Reports makes RealBooks an ultimate virtual CFO for your Enterprise.

RealBooks can handle billions of records simultaneously and are built for scale, enterprises can restrict any user to access the system from a fixed location using Static IP.

Large companies who are trying to migrate to the cloud can undoubtedly configure RealBooks accounting software that works in a distributed environment with lots of concurrent users and a high volume of transactions.

4. Reach – Accounting Software

Reach is again a popular online and cloud accounting software in India.

It is also one of the best cloud-based accounting software in India popularly known as business automation software.

Reach is one of the easy-to-use online accounting software ideals for any business willing to implement cloud accounting for Indian Business.

The software allows you to track your finances and inventory across all of your locations in real-time.

This makes it easy to make decisions about where to allocate resources and manage your budget.

This Accounting Software consists of features like a Business Dashboard, Inventory Management, Billing and invoicing, and Repair Management.

It also consists of a Mobile App, Accounting and tax Management, CRM, and many others integrated with an ERP system.

This business automation software is powerful enough to run 21 different businesses from end to end and is ready to use accounting software on the cloud.

Reach is an integrated accounting software and application that suits different functions within an organization.

To know more about how it works navigate to look at the video on its website. GST Reports are available in this system.

5. Refrens Accounting Software

Refrens is a leading choice for online accounting software, offering a flexible platform that makes managing finances easy. Its simple interface and powerful tools help with tasks like creating invoices, tracking expenses, and making financial reports. Because it’s cloud-based, your data is safe and you can access it from anywhere. Whether you have a small business or a big company, Refrens is designed to grow with you, making your work automatic and straightforward. It also works well with other platforms, making it a practical and affordable option for anyone needing reliable accounting software.

Top Features of Refrens Accounting Software

• Quick Invoice Creation
• Effortless Expense Tracking
• Insightful Financial Reporting
• Effective Inventory Management
• Streamlined Client Management
• Customizable financial documents
• Automated Recurring Invoices
• Fast Payment Integrations

Unique Selling Proposition of Refrens

• Easy-to-use dashboard
• Multi-Currency Support
• Secure Data Storage
• 24/7 Customer Support
• Multi-user support
• Multi-business support
• API Integration
• Cloud-Based
• Automation and Workflows

Pricing : 

Free Plan offers up to 50 documents per year at no cost, while Premium Plan pricing starts at 1200/year, varying by users and features.

6. ProfitBooks – Cloud Accounting

ProfitBooks is an amazingly simple cloud accounting platform among the best accounting software in India for small and medium enterprises.

It is one of the fastest business online accounting software.

However, ProfitBooks is also best for inventory management to take complete control of your Inventory

Also, it lets you create beautiful invoices, track expenses, and manage inventory without any accounting background.

ProfitBooks provides detailed tax reports on the items sold and purchased. This not only saves time during the tax period but also makes tax consultants make fast decisions.

It also allows you to streamline your purchase and sales management.

And make faster fulfilment of sales orders, inventory management, warehouse management, and customer and supplier management.

ProfitBooks also lets you take complete control of your inventory and provides insightful reports on inventory workflow.

It also provides a free trial signup option for startups and is 100% free for a single user.

GST Reports are available for easy filing in this online account software.

Other than Profitbooks there are more free accounting software options online for Indian Businesses.

7. ZipBooks: Cloud-Based Accounting Software

Simplicity is the key to Zipbooks, yet another best cloud-based and online accounting software in India.

ZipBooks is the only super simple and easy-to-use cloud-based accounting software designed specifically for small businesses.

It enables small businesses to streamline their financial operations and increase productivity.

Also, you can get access to all essential accounting, inventory, sales, purchase, and CRM modules.

Like any other full-fledged ERP system, ZipBooks has a complete sales and purchase life cycle that is tightly integrated into the system

Order to Cash and Procure to Pay life cycle can seamlessly manage your entire business operation.

Thus you are able to make invoices directly from sales orders and/or quotations and much more but it has its own limitations.

Businesses can get access to the GSTR-1 reports, Sales Return Summary, and HSN Summary report from ZipBooks accounting software in order to publish returns.

However, most of the extended features and reporting on accounting such as GST, TCS, TDS, and E-invoicing are missing from this accounting system.

Therefore ZipBooks provides a cloud ERP Software named ZipERP Lite which is an extended version of ZipBooks.

So ZipBooks customers who are planning to upgrade their accounting system can migrate to ZipERP Lite to avail of all features.

ZipERP is a full-fledged enterprise resource planning system for Small and Medium Enterprises in India.

8. AlignBooks – Online Accounting

AlignBooks is the fastest-growing digital disruptor in online accounting services that combines ease of use with functionality and compliance.

Features such as multi-location, multi-currency, and Dashboards are some of the rich features of this system.

You can also generate barcodes and track material movement with IMEI-based serial inventory numbers.

Unlike other accounting software, It is a ready-to-use business solution that comes at an unmatched price for GST accounting.

With a solid foundation, Alignbooks also provides key capabilities and several features integrated into the system along with Built-In operational controls.

AlignBooks key modules include sales, purchase, finance, inventory, POS, job work, production, payroll, and asset management.

Some of the common features include approvals, user access, and privileges.

Other features of the software include MIS reports, Email/SMS notifications, document classification, and custom document printing.

Alignbooks also supports integration with e-commerce portals such as Amazon and Shopify.

Last but not least Open Developer API is another great feature for developing custom apps using two-way Application Programming Interfaces (APIs)

Recap on Cloud-Based Accounting Software for India

Most of us have heard that accounting apps online are popular among solo entrepreneurs rather than enterprises.

You have heard it right because today you will find various accounting apps online with basic features, most of which are new ventures.

So the basic accounting features are good for solo entrepreneurs or startups but aren’t suitable for enterprises.

But it is also true that there are accounting software vendors who are capable of delivering accounting apps for enterprises.

It includes advanced accounting features such as branch accounting, taxation, and complex inventory management such as job work and production.

It also includes an order to cash and procure to pay life cycles.

Large Enterprises need these robust accounting systems to efficiently run their businesses online.

They also need a more scalable online accounting system if they are willing to shift their entire business process online.

Crucial factors that drive accounting software online

As an Enterprise, you also need to know some of the crucial factors that drive the performance of online accounting software.

Cloud accounting software works great in a good hosting environment and that makes speed a critical factor.

However speed, quality, efficiency, functionality, and scalability are some of the crucial factors that drive the performance and productivity of an accounting system online.

The other critical factor is pricing which should be low on the overall cost of purchasing a single to multiple users.

You also have to find the relevant features of accounting software online if you are a multi-location-based business.

Managing the Order to Cash and Procure to Pay life cycle is possible only with a few accounting software online in India.

Today there are a large number of online accounting software vendors and product options available in the market.

But do you know the right subscription plan and software for your business?

Selecting the right accounting software online is mandatory to avoid chaos at a later stage.

So before subscribing to any cloud-based accounting software make sure your subscription complies with all crucial factors.

Comment below the type of business you acquire and we can suggest which accounting software suits you best.

E-invoicing and Online Accounting Software for Indian Business

The GST e-invoicing system was implemented on 1st Oct. 2020 for businesses with an annual turnover of INR 500 Crores.

And e-invoicing later became applicable for entities of up to INR 100 Crores from January 2021.

But from 1st April 2021, e-invoicing became applicable for all businesses with revenue of over INR 50 Crores.

And from 1st April 2022, e-invoicing became mandatory for all companies with a turnover equal to and above INR 20 crores.

From 1st October 2022, GST e-invoicing is a must for entities with INR 10 Crores turnover.

And from 1st January 2023, e-invoicing may become mandatory for businesses with a turnover of Rs. 5 crores in any previous financial year from 2017 to 2022.

However, the notifications are pending from the GST council and it is yet to be issued.

Therefore you need to ensure that you have the right systems in place that support e-invoicing.

For example, you may like RealBooks or ZohoBooks as these are fully compliant with e-invoicing integrations.

Under e-invoicing, taxpayers have to generate invoices on their accounting software and then report them online to the Invoice Reference Portal (IRP).

The IRP validates the information and returns the digitally signed e-invoices with a unique IRN along with a QR code.

So if your software is not ready for e-invoicing,  it’s time to switch to accounting software online.

There is a one-time setup fee for integration of IRN Portal with your E-Invoicing/Accounting Software and a minimum amount will be charged per invoice to be paid every month.

The cost of setup services may vary from one service provider to another.

Online Accounting Software Industry & Current Trends

The below trends demonstrate the continued growth and evolution of the online accounting software industry, providing businesses with more options and features to manage their finances and streamline their operations.

The cloud accounting software industry is rapidly evolving and some of the current trends include:

a) Artificial Intelligence and Machine Learning:

Many online accounting software companies are using AI and ML to automate manual tasks, such as data entry and financial forecasting, and to provide more accurate and personalized insights.

AI accounting can help reduce errors, save time, and improve the accuracy of your financial data with predictive analysis.

b) Subscription-based Model:

Online accounting software is increasingly being offered as a subscription-based service, allowing businesses to pay for what they use on a monthly or annual basis.

This model allows you to get access to business software with modern technology without investing a huge amount upfront.

c) Cloud-based Technology:

Cloud-based accounting software has become the norm, allowing users to access their financial data from anywhere and at any time.

The cloud also enables real-time collaboration and data sharing between team members.

d) Mobile-responsive Design:

With the increasing use of mobile devices, many online accounting software companies are designing their platforms to be mobile-responsive, providing users with access to their financial data on the go.

And this essentially is leading the rising trends in Mobile accounting.

e) Integration with Other Software:

Cloud accounting software integrates with a large growing number of other software, such as payment gateways, e-commerce platforms, and project management tools, to provide a comprehensive solution for businesses.

f) Focus on User Experience:

Many cloud accounting software companies are focusing on enhancing the user experience and making their platforms more user-friendly and intuitive.

g) Increased Cybersecurity:

With more businesses moving their financial data online, cybersecurity is becoming a top concern.

Many web-based accounting software companies are investing in robust security measures, such as encryption and multi-factor authentication, to protect their customers’ financial information.

h) Use of Open APIs:

Many online accounting software companies are using open APIs to integrate with other platforms and to provide a more seamless and customized experience for their users.

For example, you can use these APIs to integrate tax compliance with 3rd party tools and expedite tax filing

I) Increased Focus on SMBs:

Small and medium-sized businesses (SMBs) are a growing market for cloud accounting software, and many companies are developing solutions tailored specifically for SMBs.

j) Increased Emphasis on Collaboration and Team Management:

Many online accounting software companies are developing tools to help teams collaborate more effectively and manage their workloads. This includes features such as shared calendars, task management, and team communication tools.

k) Increased Compliance and Reporting:

With increased regulations and reporting requirements, many cloud accounting software companies are offering compliance and reporting tools to help their customers stay compliant and up-to-date.

In Conclusion:

Irrespective of how large an enterprise is, cloud-based accounting software is one of the best-fit online applications for your business.

Whether it is a micro, small, or medium business. You can only rely on data to make your business more efficient and comprehensive.

More handy is your data is the ease of making decisions and doing business

And that easier access comes through change which people are more likely afraid of.

However, someday other people have to change because you have to move with the flow.

Small businesses must understand the real value of running a business online.

And leave all worries of data management, data security, and data recovery to their vendors.

For example, if you are a manufacturer of corrugated boxes, you know how you manufacture them and what ingredients and tools are required for better manufacturing.

In the same way, leading multinational firms like Amazon, Google, and Microsoft know how to handle the data to keep it safe.

So what is core to your business you know it? On the contrary, what is core to their business that they know better?

Because they have the best infrastructure in the world to keep every data safe.

The fundamental change in software products and services that technology has come up with the Internet revolution is just phenomenal.

So you have nothing to worry about data which is a common risk factor that every small business suspects.

A positive approach to cloud accounting can hugely impact and transform your business online.