10 Everyday Hassles Shopkeepers Go Through While Using Physical Bahi Khata Registers

Since the dawn of time, India's businesses have relied on the bahi-khata or physical ledger books. Although large companies use expensive software to manage and control their accounts, small business owners lack such services, causing them to rely on cash or physical registers. The manual record-keeping process not only takes time and effort, but it also has a wide error possibility.

The store owner would go through scraps of paper and registers to count up the unpaid credit each month, which is tedious. There has frequently been a mismatch, resulting in a bad customer experience. Digital books emerged as a way for small business owners to use technology to handle their bookkeeping functions and thereby enhance customer service.

This article will provide tips for small business owners and will make you aware of the advantages of mobile apps for businesses. The mobile apps prove to be business cost-saving ideas, and the only advice for small businesses is to focus on the limitations of using physical bahi khata books.

10 hassles shopkeepers experience while using physical registers

The use of paper ledgers for financial transactions is known as manual accounting. The biggest problem and inconvenience faced by small business owners is the manual method of tracking credit transactions. Shopkeepers still use manual accounting to keep track of their finances. Here are a few limitations and business tips for small business owners while maintaining physical bahi-khata registers.

1. Inconsistent data

In the physical bahi khata method, errors may be prevalent. Entering data into the wrong accounts, transposing numbers, and recording data backwards are all common mistakes. Though modern accounting systems are not immune to these mistakes, manual systems lack internal checks and balances. Business owners who are looking for errors will often spend several hours looking for and correcting errors. These concerns can be compounded by multiple accountants operating in multiple manual accounting ledgers.

2. Time-consuming

Physical bahi khata systems rely on paper journals, ledgers, or other similar resources that take a long time to complete. Before documenting entries, one must find accounts and journals in the method. It's also challenging to check account balances and review records. The small business owners will also have to filter through various records to find details that may be requested. It can also be difficult to copy this information.

3. Takes up a large amount of space

The most significant disadvantage of manual paper filing is the amount of room it consumes. Although it might not seem like a big deal at first, you'll need to find a new way to store files as your company grows. Otherwise, you can find yourself occupying space simply to accommodate the files. This also implies that you must go out of your way to locate a file or a customer. This is one huge headache you do not need. It detracts from your efficiency.

4. Possibility of misplacing or prone to damage

Physical register involves putting your trust in the people who will be handling the files. They can be hurt, lost, or misplaced in a variety of ways. A fire or natural calamity may result in the loss of all of your sensitive data. You'll have to start from scratch if you want the details back. It can also result in the loss of clients or customers who are unhappy with your mishandling of their details.

5. Security concerns

Another common drawback of physical bahi khata registers is the lack of protection. Employees may be unable to prevent confidential data from being reviewed in paper ledgers and papers. Copying and storing files on a device can also be risky. Employees will be able to misuse financial details through fraud or embezzlement as a result of this. Employees who are unhappy with their work can also cause irreparable harm to data and ruin valuable financial records.

6. Accessibility

If you want to double-check an entry or find out the exact amount of credit you will receive shortly, you must first look through your books. But what if you're at home in the middle of the night and need to access the data and entries but can't? You'll have to wait until the shop reopens the next day to get the details you need. In such cases, mobile apps work the best.

7. Difficult to make changes

It is also more challenging to make adjustments while dealing with physical books. You'll need to make a copy any time you want to make a change to avoid losing the original with your edits or comments. As a result, the editing process takes longer than it would if you were dealing with digital apps.

8. Increase in costs

Since you are paying for ink and paper when you use paper papers, the prices would be higher. If you have a manual system, the office supplies bill would be higher. Although this might seem meaningless at first, it adds up to a large amount of money that could be put to better use.

Although manual systems are useful for small companies, they can be detrimental to your growth as your organisation expands. It can decrease efficiency and be inconvenient for both the staff and clients. Not only are your records at risk of being affected, but they can also be lost or destroyed in the event of a natural disaster.

9. Duplication of data

If you want to make copies of your credit transactions, you can do so by photocopying the relevant credit transactions. However, sharing this knowledge with the clients and consumers can be difficult.

Utilise technology to the fullest extent possible, and search out methods and approaches that allow one to make the best use of mobile apps to share transactions easily. You can make as many copies as you want and share them with whomever you want. You can also keep it secure on your phone or other gadgets. When it comes to actual registers and books, repetition is unlikely.

10. Slow processes

People, as we all know, cannot compete with computers and technology. The processing speed is extremely fast, and data integrity and validation are ensured. We'll need to employ someone to oversee all of these transactions and keep the physical bahi khata registers up to date. In this situation, the small business tips and advice that can be provided is to use a digital tool, which means that no additional staffing is required for this role and that the owner can handle these transactions.

Why should you move to a digital bahi khata book?

Here are the best tips for small business owners and the advantages of mobile apps for business. We now know the various limitations of using physical bahi khata registers. One should move to a digital method because digital book-keeping helps small business owners record credit and payment-related transactions easily. It acts as a business cost-saving idea, and the advantages are as follows:

• Saves time
• Everything at a glance
• Consistent data
• Easy to store, copy and share
• Transparent business transactions
• Settling balances quickly
• Exact amounts
• The low margin of errors
• Cost-effective
• Easy to use
• Streamlined business systems
• Improvement in productivity
• Reliable information
• Secured data

Conclusion

Thus, we can conclude that we are now fully aware of how digital book-keeping solutions will prove to be an effective practice for small business owners. It has a never-ending list of advantages, and boring work combined with a lack of interest, can only lead to errors. We all know how a simple accounting error can have disastrous implications for a business.

Given the current situation, both large corporations and well-established enterprises have already recognised the advantages of digital accounting systems. Small companies must now step away from the conventional school of thinking and adopt a new accounting system.

Also Read:

1) How to grow an E-Commerce website?
2) Importance of Getting a Small Business Registered
3) How to Make Your Business Environment Friendly?
4) OkCredit: All you need to know about OkCredit & how it works.

FAQs

Q. What is the best accounting method for small business owners?

Ans. The best accounting method for small business owners is cash basis and accrual basis, making it easy for taxation purposes.

Q. Why have mobile applications emerged as a digital book-keeping solution for small business owners?

Ans. The main advantages of mobile apps for businesses like ease to use, understand, simple method of recording, timely reminders, accurate information, etc., have led to the emergence of digital book-keeping solutions for small business owners.

Q. What are the advantages of physical bahi khata registers?

Ans. The main advantages include low risk of corruption in data, easier to resolve issues, duplication mistakes are comparatively low, etc.