Best Free Accounting Software for Indian SMEs

Balance is important in all aspects of life, both personal and professional. In business, this balance is even more crucial. Even the most successful companies face losses at times, but it's vital to keep a steady balance between profits and losses.

Traditionally, business owners relied on manual bookkeeping and hired accountants. But now, computerised tools take care of these tasks.

SoftwareDekho's market research suggested that over the last five years, the adoption of accounting software by SMEs has surged, with cloud-based solutions like Vyapar, FreshBooks, etc., leading the way.

The global accounting software market is expected to reach $24.7 billion by 2030, driven by advancements in AI and predictive analytics, says Allied Market Research. 

SMEs are projected to be a key part of this growth as they continue to adopt digital solutions to enhance financial accuracy and streamline operations​, according to reports from the World Economic Forum and Mordor Intelligence. 

Nowadays, there are a lot of options available for top accounting software in India. Talking of small businesses, they run the verticals with several budget constraints. More or less, the owners are forced to look for cheaper and free alternatives for the same. 

Keeping up with the market fluctuations and needs, several vendors provide free tools for accounting for small business owners to -

• Help balance their business within their budget limits
• Help understand how the software works 

The following are the feasible solutions for Indian SMBs in the market now:

Every software company has its own features and pricing options. These vendors provide the best free Accounting Software for SMEs. They provide free trials for a limited duration (say 30 days or so) and others provide free software packages covering limited features. 

Vyapar

Vyapar has a very easy-to-use layout and design so new users can easily figure out how to use it. It can record daily transactions, prepare invoices, keep track of sub-routines, etc., even for those with no accounting knowledge.

Vyapar is now available for online use by Indian small businesses. It is launched with all current Indian taxation policies Like GST, TDS, etc so that the tax filing process becomes easy.

• The software provides lists of products/services, stock and delivery reminders, issues of some kind of stock movement, etc. 
• It provides the users with the ability to create multiple accounts with privileges. 
• Android and iOS platforms have a Vyapar mobile app through which users can check key and basic information and perform functions from any place. 
• Vyapar offers more than 16 types of indispensable small business reports such as sales, expenses, profits, taxes, inventory, customers, etc. 

There is also free unlimited bug fixing and customer support from Vyapar, along with free product enhancements which in turn provide more added value to products for which customers don’t pay anything.

Check Out - Expense Tracking Tips for Start-Ups and SMBs

Zoho Books 

Zoho Books is another easy-to-use free accounting software. It works best for users who do not have a professional background in accountancy. This makes basic accounting possible no matter the extent of an individual’s knowledge about accounting as a business person.

Zoho Books is cloud-based and convenient to use. It can be easily interfaced with other Zoho products such as Zoho Invoice and Zoho CRM. It also connects with selling and buying portals like Amazon, eBay, Shopify, etc. 

• Its free plan includes all the features like invoicing, expense tracking, inventory, financial statements, bank reconciliation, etc. 
• With the Zoho Books Android or iOS app, small business owners or sole proprietors can easily record expenses, generate and send invoices, and manage inventory on the move.

The free version of Zoho Books presents a complete solution for beginning users of the accounting service in India due to its absorb simplicity, web-based access, interface, connectivity, tax compliance, and mobile support.

Looking for a Bookkeeping Guide for small business? Here's our expert suggestions!

FreshBooks 

FreshBooks is another best accounting software for small businesses looking for free versions. It is user-friendly and makes accounting fast and easy even for someone who knows little or nothing about accounting.

• It is cloud-based software, and users can access it from any location at any time and doesn’t require any download for free versions.
• FreshBooks has a very simple setup for issuing invoices. 
• You can manage payment and automate the sending of reminders. You can also make payments from clients online quickly. 
• It is also available in English, Hindi, Tamil, Telugu, and Kannada, ensuring that Indian SMEs can easily understand and manage finances more easily and effectively. 
• It gives you detailed generated reports of profit and loss statements, expense reports, sales tax reports, etc.

FreshBooks free plan includes all features like invoicing, expenses, and reports that are needed for Indian small businesses to maintain their financials more efficiently. The Online Help and Manuals, availability of other languages help and system operability on a mobile device are other advantages that can help Indian SMEs.

Tally ERP 9 

Tally has a user interface inclusive of menus and buttons that are easy to understand even by a layman. It assists small businesses handle major areas like accounts receivables/payables, bank reconciliation, inventory, taxes, and more.

• Tally’s ‘‘Multi-Company’ capability within the same account enables multiple businesses’ bookkeeping in the free version. 
• It is fully GST-compliant, making GST filing easier for small businesses. 
• Tally also speeds up bank reconciliation. 
• The translations are also provided in the local Indian languages.

Tally ERP 9 makes key accounting tasks easier, meets compliance standards, and provides improved business insights that lead to expansion – all without a price tag.

Curious on how that's possible? Here's more about Computerised Accounting Tools

myBillBook 

myBillBook includes an understanding, easy, and user-friendly interface. Currently, the software targets small businesses and those that do not have to be accountants to handle the accounting.

• Due to its being cloud-based software, the user can get any time service, anywhere just with internet access. 
• It provides an opportunity for customers to design professional invoices and send them to their customers electronically. 
• Sales and purchase documents such as invoices, estimates, and purchase orders can be template-based and can be created based on the business requirements. 
• It is convenient to record the daily costs that may occur in business using the software. 
• It also allows for tracking of the inventory stock in the organization in real-time. 

The free accounting software version from myBillBook enables access for up to three users per account. Both email support and online Chat support services of myBillBook are available free of cost. It is possible to respond immediately to questions.

Still Confused? Check out how to choose the best Accounting Software for your Company

Closing Words

Business owners can find several vendors providing accounting software for free in India. If you're looking for the right accounting software, reach out to SoftwareDekho and our experts will help you with that!